In this modern era, millennials are actively stepping into the business world. They are not afraid of failures and know how to overcome the challenges of entrepreneurship. Starting a business is like planting a seed. It needs your time, money, and attention without asking anything in return. Once you see the tree blooming, it makes all the patience and hard work meaningful. Sometimes, like trees, startups fail to grow, while some die after a couple of years.
Although failures are part of this world, an incredible business idea and plan can reduce its chances. Are you thinking of a startup? Instead of chasing after traditional companies and product development, consider digging into the service sector. You can start a courier service or a moving company if you want to try something unique.
A moving company business could be an ideal choice for people who don’t want to make large-scale investments. It is not mandatory to cough money on commercial trucks or massive warehouses as you can start small. Whether it is across town, down the street, or another country, people rely on moving companies to transport household items.
Are you thinking of opening one? Here we are unfolding a seven-step guide to starting a moving company business in 2020.
1. Draft a business plan
No matter if you are opening a multi-national organization or small moving company, no business can start without a plan. Firstly, look around the local moving companies to identify their structure, operations, and work practices. It will give a fair idea of running and managing your business – vital for drafting a business plan. Here are some critical things to include in your business plan.
i. Create a mission and vision statement, reflecting your professional goals.
ii. Explain your business objectives and how it will cater to customers.
iii. Include a section of market research to talk about industry dynamics and competitors.
iv. Most importantly, explain your unique selling proposition, which sets your company apart from the rest.
v. Present budget forecasts, financial statements, and conduct a break-even analysis.
A business plan lays a foundation for your company. Whether you are acquiring permits or seeking external finance – you will need a business plan in every step.
2. Determine your usp
As competition is intensifying, you need to offer customers something valuable to differentiate yourself. Create a unique selling proposition of your company that could be either through quality service or by incorporating technology. These days, the majority of people own a smartphone and have access to the internet. How about creating a mobile application? Homeowners can book a moving truck, supplies, or helpers by making a few clicks.
Similarly, you can leverage artificial intelligence to enable tracking services for clients. Feel free to include this feature on the app and show the clients which route the driver is taking. Alongside establishing credibility, it creates a strong USP for your business. If you wish to win over competitors, use authorized software with top-notch security so that none can copy you.
3. Acquire transportation permits
The business world is all about protocols, and failure to follow them can land you in trouble. Before purchasing or leasing trucks, acquire all permits and legal authorizations. Since you are opening a regular business, you have to register it with the authorities. Likewise, you have to apply for different permits depending on the scale of your moving services. After all, across the border, moving need more licenses than providing moving services down the street. Moreover, every state has different requirements for moving companies, and you have to ensure compliance with every law.
4. Buy moving equipment
Although startup costs for moving businesses are relatively low. You have to invest in a van or truck – the main asset of your business. If you don’t have a budget, consider renting a van for the first few months or opt for equipment financing. Otherwise, look for second-hand trucks, as there are great deals available on them. Aside from transportation, there are no significant expenses, as you need a few things that won’t cost more than $1500. Here is a list of other items and equipment you should have.
i. Moving dollies to carry the heavy boxes.
ii. Rope for tying the boxes together.
iii. Moving pads.
iv. Furniture Belts.
v. Packing and wrapping materials.
vi. Moving boxes for storing belongings.
5. Get insurance
When starting a moving company, you are already opening doors to risk since this is a new venture. Hence, it is vital to ensure some financial security to save you from unfortunate losses. You can either get business insurance or obtain a good insurance cover for cargo. It will protect you against all damages and liability, as mishandling is quite common in this business.
Simultaneously, if you are purchasing a vehicle, obtain insurance for it as accidents are rising. Check with your insurance agent and state authority to determine the premium and deductibles. Keep looking for companies until you find the one that doesn’t cost a fortune.
6. Recruit and train staff
We like being in charge of everything, but you cannot build the kingdoms alone. You have to recruit a competent team that is ready to work on challenging deadlines. Along with professional moving helpers and driver, you might also need an assistant. Similarly, if you are creating an app, start looking for a developer and marketer. Most importantly, before bringing the workers on board, enroll them in a training program. It will make them familiar with the mechanics behind proper packing, tricks to load and unload boxes without putting pressure on the back. In short, it teaches workers how to become efficient in all aspects of the moving process.
7. Start advertising
Running a business without anyone knowing about it is like shooting in the dark and hoping to hit the target. In this digital world, creating brand awareness is crucial. Unsurprisingly, there is no better way of doing it other than advertising your business. Utilize tech-savvy tools and social media to spread the word. Invest in logo design and create your social profile on the renowned forums. Likewise, create a website to offer an online shopping store to users.
Entrepreneurship is an exciting and overwhelming journey. You will witness multiple difficulties, but your ability to learn from failures makes you a commendable entrepreneur. Starting a moving company might be a new experience, but you can make the most out of it. Follow the protocols, draft a business plan, and use your creative skills to make this venture a success.