Starting a Moving Company
Why You Should Consider a Franchise
So, you’re thinking about starting a moving company? Since 80% of moves are local and small, if you already own a truck or a van, you could advertise your services online, introduce yourself to a few furniture retailers around town and you’re in business. Depending on the competition in your area, you can probably pick up $700 to $1,000 per month, according to morebusiness.com, with $200 in expenses for fuel and labor.
From that point, you can grow your business step-by-step as your network and client base expands or you could look into buying a franchise. For some business owners, a franchise may be the way to go, especially one, such as College HUNKS Hauling Junk & Moving® with a proven record of success and a strong business model that works. Otherwise, if at some point you decide to start a moving business in earnest, you’re going to need a business plan, insurance, licenses and permits, marketing and advertising, employees, reliable trucks, a website, and the list goes on and on . . . Overwhelmed yet?
According to an article on entrepreneur.com, independent moving service startup costs run in the range of $10,000 to $50,000 on the low end. Starting a moving business completely on your own goes something like this:
Draw up a business plan for your moving company
Define the nature of your moving business.
- Do you want to just move items or are you interested in junk removal, as well?
- Will you offer packing and unpacking services? Do you want to sell packing boxes and supplies for the do-it-yourselfers?
- What is your mission statement?
- Who are your local and national competitors?
- What are your projected goals?
- What is your business’s name going to be? A catchy name is important, people remember the fun, clever company names.
Some people can draft their own business plan, but if you’ve never done that and you’re not sure how to do that, you can hire an independent contractor for $50.00 to $200.00 per hour to create a business plan for your moving business. When you’ve decided on a name, move on to the legal stuff.
For tax purposes and liability issues, forming a corporation, most commonly a Limited Liability Company, or LLC, requires legal services and fees to register and certify your business. Small law firms could cost in the range of $1,500 to $2,500 to draw up and process documents required to start a moving business in your state. Larger law firms can run in the $3,000 to $4,500 range for around 10 billable hours. Permits and licenses required to operate your moving company legally in your area will incur costs, as well. In addition, calculate your time researching what’s required in your state or city.
Coverage will vary from state to state for commercial and business insurance, as well as insurance that covers any damage to furniture during a move and you will need to do some thorough research to figure this out. Some states require moving companies to carry a minimum of $300,000 in auto liability insurance and $5,000 in cargo insurance. This comes at quite a premium to you, the business owner.
You may need only one other person to help you move items or you may want to hire a crew and focus on running the business; either way, you need to make sure your math works out for you because you still want to make a profit. Due to the nature of moving businesses, offering insurance and other benefits to your employees will make your company a more desirable place to work and attract more conscientious employees. Moving is stressful for your clients so you want to hire a personable, yet professional staff who take their job seriously. Current rates of pay for moving staff range from $11.00 to $14.00 per hour, not including payroll taxes and worker’s comp insurance.
Marketing is one of those areas where you will need to spend money to make money. Vehicle wrapping advertises your moving business wherever you go. While full vehicle wrapping runs in the $2,000 - $6,000 range for a professional wrap, signage companies also offer partial wraps and magnetic signs for less. However, total vehicle wraps look more professional and grab people’s attention more than magnetic signs and partial wraps. What else will you do to market your business to the people who may need your services? How much should you spend on marketing? A large part of your marketing plan will be developing a website.
While there are many platforms available, such as Wix, WordPress, and Yahoo, if you aren’t inclined towards coding and graphic design, it’s really better to contract a professional web designer to build your site. This can run you anywhere from $3,000 to $8,000 for something appropriate for a small business. You’ll also need to factor in the purchase of a domain name and security certificate as well as website maintenance and web hosting on an ongoing basis. In today’s world, an online presence is necessary and social media marketing is a huge deal. In order to book appointments and take payments online, you’re going to need moving company software and an e-commerce platform (which will increase the cost of your website). Deciding which software to purchase can be an overwhelming task in itself but you should also consider scalability in your purchasing decision.
Then, there’s the reliable trucks and vans, fuel consumption, vehicle maintenance to keep them working and looking great, ropes, blankets, hand trucks, dollies, and other moving equipment to consider when starting a moving company.
Consider Franchising with College HUNKS Hauling Junk & Moving®
For many reasons, including the time it takes to research and implement the various aspects of starting a moving business and jumping through the hoops needed to legalize and protect your business, potential moving business owners expedite their money-making potential by purchasing a successful moving franchise. Minimizing the stress and guesswork, proven business models bypass the risk factors associated with opening your own moving business. Simply put, we’ve done and we know the answers to all the questions along the way. Purchasing a College HUNKS Hauling Junk & Moving franchise requires an initial investment of $89,800 to $208,700; that includes $28,000 to $80,000 to cover expenses during your first six months of operation.
In addition to the relatively low cost of purchasing a College HUNKS Hauling Junk & Moving® franchise, other reasons to join our growing network of business owners include:
- We’re two of the fastest-growing moving businesses in the US: College HUNKS Moving® and College HUNKS Hauling Junk®.
- Our comprehensive training and ongoing support as you grow your business. You’re not alone!
- We’re a relatively new company with untapped territories available. Other franchised moving companies have been around longer and desirable markets tend to be tapped out.
- A Performance Refund: You can opt-out after 18 months. We’re so confident you’ll thrive in your franchise that if you follow our proven business model and fail to gross $180,000 in sales, we’ll refund half of your initial franchise fee for your first zone. Who does that?
Additionally, our values-based company revolves around four principles:
- Building leaders that work to overhaul the moving industry into a more unified whole.
- Branding continuously to expand our exposure.
- Creating a fun, enthusiastic team environment with a community of dedicated workers and owners.
- Listening to clients, fulfilling their wishes and creating a WOW factor for their experience.
- Richard Purgason
- Bryan Tully
- Gary Bussard
- Bill Beisley
- Bill Martin
- Katie Hubner
- Steve Roper