How to Start a Moving Company

Part 1 - How to start a Moving Company business - Background

There are few businesses that will always be in demand. A moving company falls under that category. Whether it’s across town or across the country, consumers hire moving services for packing and transporting their household items on a daily basis.

Our guide is in 3 parts:

• Part 1 - How to start a Moving business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a moving company?

Start-up costs for a moving business are fairly low. Your first purchase should be a van or truck. Aside from transportation, you’ll just need a few basic items, which will set you back approximately $1,000-$2,000:

• Moving dollies

• Rope

• Moving pads

• Furniture belts

• Moving boxes

• Packing and wrapping materials

Read our moving company purchasing guide to learn about the materials and equipment you’ll need to start a moving company, how much to budget, and where to make purchases.

What are the ongoing expenses for a moving company?

Monthly overhead costs are relatively low compared to many businesses. Most start out running the company out of their homes, moving to a warehouse location when the business has grown significantly.

Your largest expenses will be payroll and payroll taxes. Vehicle maintenance, insurance, and fuel costs come in a close second. Other than that, all you need is a phone line, website support, and a regular marketing strategy.

Who is the target market?

Typically, moving companies have a revolving door of customers. While a large percentage of people move each day, few are consistent repeat customers. Those looking for long-term stability seek out local businesses, who regularly require items moved from one location to another.

How does a moving company make money?

Revenue is generated from each move. Many companies offer services above and beyond moving furniture from one location to another. Each additional service increases your earning potential. Exact price will be determined by the level of service required and the miles logged for that particular customer, or the hourly cost for smaller, local moves.

How much can you charge customers?

Moving companies typically charge on an hourly basis and per mover. Standard costs are $25-$30 per hour per mover. When moving longer distances, many companies charge based on mileage and weight.

How much profit can a moving company make?

Business owners who are willing to put in the extra effort to build their business have reported profits of more than $49,000 in the first year. Moving companies who focus on winning contract bids with local businesses make significantly more, reporting earnings upwards of $450,000. Your profits are directly tied to the amount of services you offer, how much you put back into your business, and your goals for long-term growth.

How can you make your business more profitable?

Companies who have reported higher earnings offer more than basic moving services. If your goal is to expand your business’ profits, consider including the following in your business plan:

• Packing

• Unpacking

• Charge additional fees for homes with stairs

• Storage

• Bidding on contracts with local businesses

Day-to-Day and Growth

What happens during a typical day at a moving company?

As the owner of a moving company, your daily tasks will require part muscle and part brains. Depending upon the client’s needs, you’ll be carefully packing items and transporting them from one location to another. While demand is high, it’s also highly competitive. You’ll spend part of every day on a marketing strategy, which should include social media posting, gathering information necessary to bid on local contracts, following up with client inquiries, and following up with clients.

What are some skills and experiences that will help you build a successful moving company?

Your most critical skills for a successful moving business is personnel management and delegation of tasks. Whether on the phone or in person, much of your day will be spent interacting with customers and your moving team, so interpersonal skills is a must. Understanding your market will assist you in building a solid marketing and sales strategy. Movers need a decent amount of strength to move larger objects/furniture.

What is the growth potential for a moving company?

Typically, moving companies choose to remain small, serving a small radius of customers. If you’re thinking larger scale, there are a number of businesses that have found success by franchising their enterprises and/or expanding their services. If partnering with a national franchise is part of your business plan, companies such as Two Men and a Truck and Little Guys offer wonderful franchising opportunities.

Should you consider joining a franchise?

Joining a moving company franchise can be a good option for entrepreneurs who prefer to use a proven model rather than start from scratch. While joining one can mean slightly higher initial costs and less control, a quality franchise offers great benefits such as initial and ongoing support, marketing assistance, and brand recognition.

Opening a moving company franchise typically requires $90,000-$700,000. Larger moving company franchises typically cost more, while more niche favorites often have lower startup costs.

Interested in joining a moving company franchise? Check out our favorites.

How and when to build a team

Unlike other businesses, you cannot run a moving company alone. Your reputation hinges on a solid team of employees. They will be packing and moving both heavy items and fragile family heirlooms. Carefully vet each candidate to ensure honesty, integrity, and a solid work ethic.

Part 2 - Is a Moving Company business the right fit for you?

Part 3 - Action plan to launch your Moving Company business in 90 days