How To Start A Moving Company In 5 Steps
Individuals with an entrepreneurial spirit typically lead the way in identifying fresh business prospects in their surroundings, and currently, moving companies are becoming increasingly popular. Even with the challenges of intensified competition and enhanced regulatory requirements like USDOT moving authority, the market for moving services has seen consistent expansion over recent years. The requirement for such services is genuine, and the surge in online shopping and e-commerce has only amplified this demand, showing no signs of potential substitutes at present.
As an entrepreneur looking to start their own moving company, there are a number of financial, legal and operational aspects that they ought to consider. Instead of simply setting up a make-do company and hoping to figure things out later, it is always recommended that an entrepreneur take their time to understand the nuances of the business and the industry they are looking to join, and do considerable homework at the start of their business to avoid any nasty surprises later on. Listed below are five steps to starting a moving company that can be a guide for entrepreneurs:
1. Select your niche
Entrepreneurs are recommended to choose their niche while setting up their moving company. This is because entrepreneurs who choose to offer multiple services during the first year of operations are likely to get lost in translation and fail to handle multiple requirements. Instead, it is better to focus on one particular niche or specialty and excel at that to understand the nuances of the moving business practically. The niche that an entrepreneur may choose is likely to dictate the financial investment required, the legal implications and the equipment and human resource needed.
2. Decide the business’ structure
There are essentially four business structures popularly used all over the world which include sole proprietorship, partnership, corporation, and a limited liability company. Each of these business forms comes with its own implications, legal requirements, pros and cons. If you are looking to draw out a loan for company operations, it is best that you opt for a limited liability model. If, however, you want excess and sole control, opt for a sole proprietorship. If you are looking to start a business with a colleague, friend or family member to make use of mutual expertise and funding, opt for a partnership.
3. Complete all formalities and legal documentation
Depending on the state or area you reside in, you may need to check with the local or state departments about the necessary paperwork and filing. Most states require you to have a specific license and insurance in order to start a moving company and before you can legally begin to operate. In addition to the above, you may also need to file for taxes on the basis of your local or state department’s requirements. Your tax status is crucial to you successfully establishing your business and obtaining an employer identification number also called the EIN. Additionally, if you choose to offer long-haul services, you will need to get compliance with your respective department of transportation.
4. Advertise your company and services
In order to make sure you create a buzz in the market, make sure you advertise and run a marketing campaign prior to your launch. You can either keep it simple or get creative with your advertising depending on your brand placement. You should ideally run paid ads on social media channels and on Google, invest in search engine optimization to ensure a drive of organic traffic, print ads to be run in local newspapers and magazines and ask your friends and family to help you through word-of-mouth.
5. Establish business goals
This includes establishing specific business goals, mission and vision for your company that can guide your daily operations. You should decide early on whether this business is simply a side hustle for you or whether it is something you plan to carry on in the long run. You should note down your personal and professional goals, and find some sort of alignment between them so that you can establish performance indicators and keep your goals and accomplishments in check. It is recommended that you get specific about your number related goals such as number of customers served in a year, revenue in a year, revenue growth to be expected and reached, number of KPI’s achieved, etc.
