What to Know When Starting A Moving Company

June 18, 2018

If you are reading this, you are likely contemplating whether or not to start a moving company. We wanted to provide you with the thing you need to know and the things you should have. 

 

The first thing to think about when deciding to start a moving company is the market you will be going after. You want to know if you are going after a quantity or quality in your type of clientele. That will typically dictate the type of branding/strategy/pricing/equipment type/etc... that you will want. Knowing this is a crucial step into starting a successful moving company. 

 

Next, the pros and the cons of owning a moving company. It can be awesome to think about the what if. What if we end up with several locations..what if we end up with 20-30 trucks, what if we build an amazing brand..etc... But in the moving industry, you have to also be ready for the what if's on the negative side. What if we get in a truck accident...what if we damage someones irreplaceable item, what if one of our employees gets hurt on the job, what if you end up dealing with a lot of upset people...etc... Here I'll try to list out the pros and the cons. Being in the moving industry is all about never getting to high or to low. 

Pros                                                         Cons

Low cost to entry                                    You are managing a very entry level labor force

Margins are great                                    There is lots of liability with trucks and people 

Be a second chance company                 Moving people in their most vulnerable state (leads to lot of headaches)

Impacting Lives                                      High Stress for all team members

Something different everyday                Person/professional life is very blended.

Too much Work                                      Not enough workers

 

If you are going to own a moving company. You need to be a person who truly loves serving people. That goes for serving your clients, your staff, and your community. If you don't thoroughly enjoy people you will fail to gain traction and never hold the ability to influence your employees. 

 

What kind of moving company are you going to have?

1. There are Van Lines which specialize in cross country moves. This type of moving company can provide a very hands off approach with the employees and company. Van lines are typically less personable but can strive to do a high quality job. This type of company provides more regulation as well as thiner margins.

 

2. Local Moving Company: (General Contractors instead of employees) So you can set up your moving company to where you can contract out individuals with trucks and just handle all of the surrounding parts of the move. Booking/client resolution/legal/etc... This typically leads to low quality and control. In this model, you are really a partner to many individuals vs. an owners with full control of team and behaviors. 

 

3. Local Moving Company: (Having all W-2 employees and owning all trucks) This type of model allows you to control standard operating procedures, service to clients, appearance of vehicles, quality of equipment, etc... This type of moving company is typically much easier to franchise or expand and allows you to continuously build on the business as the business matures. This model all comes down to leadership. If you have someone that can motivate and lead a team as well as run the business, this model makes a ton of sense. 

 

Now that you know which type of moving company you want to start, you can now start getting what you need to get started. 

 

1. Apply for all licenses needed. This varies from state to state and you can obtain information from your local DMV.

 

2. You will need to get equipment. Contact us for all of your moving equipment needs. We pride ourself on not only being a great supplier for your moving equipment, but also we are a resource to ensure you are using the type of equipment that fits your moving company's need. 

 

3. Choose a SEO (Search Engine Optimization) company. Most moving companies either gain new clients from referrals or online searches. It is so important to rank within the top 3 spots on any search engine. This company should also help get your website technically correct according to the SEO company standards. 

 

4. Choose a moving software: There are several moving softwares out there. Moveitpro and Movepoint are both 2 good options for a starting out moving company. You mostly just want to make sure you have a scheduling platform as well as a lead management system. 

 

5. Pick the right trucks:

*You will want to make sure you choose a truck that has a side door built into the box. There will be many situations where you are on a move and loading through the side door makes a ton of sense. 

* You will want to make sure your moving truck has an attic (Extended part of the box that goes over the cab). 

* Make sure to get diesel trucks

* Make sure to get a truck with the E-track system in the back. You do not want bumpers through the back that you have to tie off to when strapping things down.

 

6. Make sure your contract is in compliance with the local DMV: You can face fines or even lose ratings with the FMCSA.

 

When it comes to getting outfitted for your moving company, we would love to be the option to serve you. Please contact us with any questions. 

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