If you’re looking for ways to make more passive income, then you may want to consider starting a moving company. It’s a pretty lucrative business that doesn’t take up a lot of time, effort, and capital. More importantly, you can hire people to do the heavy-lifting on your behalf.
It takes money to make more money, so investing in yourself by starting a new moving business is a viable choice to help you meet financial independence. Here are some tips to get you rolling in this industry:
In most cities, small moving companies don’t need large storage facilities or enormous trucks; and yet, they remain popular because they give quality service without a hefty price tag. Sometimes, people just need help with moving small items, so there is a niche market for small scale movers.
Start by identifying what kind of service you want to offer—will you serve the local population or will you cater to interstate routes. Establish your brand, along with your company mission and vision, early on.
2- Business Plan Stage
Draft a business plan because seeing things you need in black and white can help give you direction. It will also help you identify what bases you have to cover the see your goals’ fruition. It doesn’t have to be a complex plan. A simple one will do that job of providing a blueprint to help you run your small moving business.
It also helps in forecasting possible issues, figuring out where to allocate resources, and identifying what markets to focus on. People moving to Miami will have different needs than people moving to Lincoln. Since the industry has a lot of competition, it is vital to prepare for it, so you can make the necessary strategies to set your brand apart from the rest of the pack. As the saying goes: failing to plan is planning to fail
3- Essential Permits and Licenses
There are necessary permits and licenses you need to secure if you want to open a legitimate business. Clients always ask for these permits, so it is best to apply and receive these accreditations to help your company prosper. Aside from a business permit, you’ll also need a transportation permit for your moving vehicle. For more information regarding permits and licenses, it is best to contact your state regulatory board for details.
4- All Important Insurance
On top of all these, you need to get insurance coverage for your truck, people, and future cargo transactions. Moving is a business that carries with it a lot of potential risk. Trucks can break down or get into an accident resulting in delayed transactions. What’s even worse is when the items being moved get destroyed because of a collision. Also, things can be damaged during the loading/unloading stage and the transit phase. It is best to cover all your bases with adequate insurance coverage. You can’t control accidents; but, you can at least minimize the damages by having liability insurance.
5- Necessary Equipment
Bulk of the cost is buying the necessary equipment that will help make your company operational. Some people start with rental trucks. Others use their existing vehicles like a pick-up truck, which can load a lot of things on its cargo bed. But, of course, you can also opt to buy a new mini truck or a moving van. A new vehicle will give lesser headaches because chances of breakdown or maintenance repairs are at a bare minimum.
6- Other Major Costs
On top of purchasing vehicles, other major costs are fuel and moving equipment. You will need to buy furniture straps, dollies, moving pads, and a trolley. You must also purchase a complete inventory of packing materials including boxes, tapes, styrofoam beads, and bubble wrap as these are micro essentials for your moving operations and makes your business more legitimate. Your clients will be more impressed and inclined to spread good reviews if you satisfy their needs.
The Bottom Line:
Starting a moving business requires a lot of planning and dedication. More importantly, you need to employ and train a great team. A moving company is not a one man show. You need your crew to achieve ultimate success. The backbone of your business will be your employees since they will deal directly with clients and their precious processions. Hence, it is crucial to have a professional, honest, and hardworking team.