Every company will have to relocate at one point, either due to the fact that they’re closing down or the fact they’re too successful for their current premises. If you decide to start a moving business, this means that they’ll need your services at one point, regardless of how they’re doing.
In the financial climate where there are more startups and SMBs than ever before, this idea might be more lucrative than it ever was. Still, starting a moving business is not nearly as easy as you think. There are so many things to handle and so many administrative tasks to handle before you even start. Also, you need adequate staff, proper insurances and the right equipment. Here’s a quick guide to help you get a grip of this as soon as possible.
1. The type of moving business
Previously, we’ve focused exclusively on moving businesses, yet, the idea of moving people from one home to another may be even more lucrative. Why? Well, because you need a smaller staff, fewer trucks and will handle less expensive equipment. This means that even if something does get damaged during the move, you’ll have a smaller fee to pay (or will be able to cover it with an insurance policy with a less expensive premium). It’s also a bigger market, seeing as how there are more people relocating on a weekly basis than there are businesses.
On the other hand, businesses are a more reliable source of income, due to the fact that it’s easy to check just how solvent they are. They are also more likely to provide a word of mouth (WOM) referral if they’re satisfied with the job you’ve done. Finally, the profit from a single move is substantially larger, which means that you won’t have to work that hard when it comes to attracting the volume of clients. All in all, it all depends on your aims, ideas and aspirations.
2. Writing a business plan
Like with any other business, your next step should be writing down a business plan. Regardless if you think you have it all in your head or under control, your partners, investors and other relevant parties won’t be able to see the same thing without your help. What you need is an outline of your goals and objectives, keys to success, executive summary and several other, relevant key points that you should focus on. A strategic marketing plan is also something you need to start focusing on as early as possible, in order to find a way to effectively penetrate the market.
3. Apply for all the permits
You can’t just start a moving business without consulting the right authorities and government institutions first. If you want to open a legal business, what you need to do is apply for certain permits, depending on
(A) the type of company you want to run and
(B) your current location.
Different countries have a different department of transportation and requirements for proper certificates may vary from place to place. In some countries, even different states may have different requirements, which is something definitely worth bearing in mind.
4. Invest in equipment
Naturally, when you decide to get the necessary equipment for your moving business, the first thing you would do is start looking at trucks for sale. Remember, the size of the truck will affect more than just cost-efficiency of your organization, it will also affect which deals you can make and which would only lose your money. Taking a bigger truck means that you might be able to finish it all in a single run, however, it also means spending more gas per each run. Other than a truck, you also need forklifts, trolleys and similar material/furniture handling equipment. As for the supply of boxes, vacuum bags and similar packing equipment, you’ll need a steady and constant supply of these.
5. Hire diligent staff
How careful your staff is might affect a number of things, starting with the handling of your client’s belongings all the way to the overall safety in the workplace. Hazards will be real and all-present, which is why you need to hire people who are mindful at all times. Also, bear in mind that there are some things that depend on the training of your employees but there are also some things that no amount of training can implement. This is why you need to put extra effort into your vetting process and make sure that you’ve chosen the right people for the job.
6. Smart advertising
When it comes to the issue of advertising, this is where things become quite interesting. First of all, the channel, even though important, isn’t nearly as relevant as the very message that you’re sending. For instance, while in some industries being the cheapest in the market would be a good thing, here, this is not necessarily a positive feature. You don’t want to entrust your belongings to the cheapest movers, same as you don’t want a brain surgery on you to be performed in the cheapest clinic by their cheapest surgeon. Instead, focus on keywords like reliable, guaranteed, trusted, etc. One more thing worth mentioning is the fact that, in this industry, testimonials and reviews make all the difference.
7. Get insurance
The issue of insurance is an important point when it comes to a moving business. First of all, you’ll be constantly on the road, which increases the risk of a traffic accident. During this traffic accident, the chance of damaging the property of your clients will also increase, which is something to be added to the list. General liability insurance is, therefore, a must but it probably won’t be able to cover everything. As for your employees, they’ll be lifting heavy objects and loading it on trucks, which means that the risk of an accident isn’t that small either. Other than this, they’ll operate forklifts and trolleys, use ramps and, in general, engage in various forms of hazardous behavior on a daily level. Potential worker compensation, therefore, needs to become one of your major concerns.
Once you have these seven steps all covered, you can proceed to make a name for yourself in this industry. Sure, in the introduction we went to lengths to discuss why this can be a lucrative move, yet, as you can see, there is so much out there for you to do before you can reap these rewards. By completing these seven simple tasks, you’ll be on the right path to do so.