How to Start a Moving Company

Is a Moving Business Right for You?

Before deciding to start a moving business, it’s important to understand the skills and approach you’re likely to need.

A Day in the Life of a Moving Business Owner

Here are some of the typical tasks you’ll be performing for your moving business on a daily basis.

• Dealing with customer inquiries on moving logistics
• Providing quotes for moving based on services needed, quantity of goods and distance of move
• Helping people to pack up their belongings for a safe move
• Loading and securing goods in a moving truck
• Driving a moving truck to the required destination
• Unloading the truck as required by the customer
• Arranging for maintenance and servicing of vehicles
• Marketing your moving business
• Sending out invoices, taking payments and financial management
• Scheduling required moving services
• Dealing with employees and assigning tasks

Skills Needed by a Moving Business Entrepreneur

The following skills will be very useful in your role as a moving business owner:

• Good strength, physical fitness and coordination for moving goods and driving trucks
• Strong interpersonal skills for dealing with clients, managing employees and resolving conflicts
• Reasonable administration skills for business management, scheduling and finances
• Estimation skills for understanding necessary services and providing accurate quotes
• Good marketing skills to build word of mouth and promote your moving business

What Your Moving Customers Are Looking For

Moving is a huge hassle and overhead for almost everyone. Relocating customers want peace-of-mind, reliability and trustworthiness. Ultimately, they’re paying a fee to a moving company so that they don’t need to worry about every tiny detail of moving. They’ll want you to have a proven track record, good reviews and to be completely up-to-date with your insurance.

Customers may also be looking for a range of services. For example, some will want to pack goods themselves, while others are happy to pay to have their house packed by professionals. Some will want you to collect goods from every room, while others will move things to the front door. You’ll need to tweak your services to meet customer needs, do what you say you will and be accurate and timely.

Validating Your Moving Business Idea

These are all great starting points, but you will need to build on them to make your relocation business your own. You have unique skills and insight that you can use to create a moving business that will really stand out.

• Identify your moving business’ unique selling points (USPs):You will want to sell the benefits of your relocation services to your customers. It’s important to identify what you do well and use this as the basis for your offerings. Consider the range of moving services you offer, your track record, the skills of your employees or anything else that sets you apart.
• Look at who your competitors are in the space: Having competitors is a good thing as it shows there’s a market — but if there are too many, you’re likely to struggle without a really good unique selling point. Bear in mind how likely people are to move to or from your local area and compare this to the number of existing moving businesses to start understanding the potential market size.
• Understand your market: Clearly identify exactly who your relocation customers are likely to be, where they hang out and how you’re going to reach them. This will be essential to your marketing, communications, sales and customer support.
• Talk to clients: Speak with potential customers to understand what they want from your relocation services, and validate this by asking if they would commit to spending real money on them. Ask them to get into the details, so you can tailor your moving offerings.
• Get involved with business communities and discussion groups: One of the great things about moving business is that there are some good discussion groups. Get involved in them and learn the ins and outs of your chosen market before committing.

Not every idea you have will make it through to becoming a moving business. There are all sorts of reasons to say “yes” or “no” to specific businesses, so think about what your strengths and weaknesses are so you can choose a type of relocation business you’d be great at.

Choose the Right Business Structure and Register Your Moving Business

There are five main business structures you can have in the U.S., and it’s important to choose the right one. We’ve shared your options below. They are:

Sole Proprietorship

If you don’t choose to form a legal business entity for your moving business, you will be a sole proprietor by default. This won’t give you the legal protections you need, so we do not recommend this.

Partnership

Similar to a sole proprietorship, if you go into business with someone else without forming a legal business entity, you will be treated as a partnership. This doesn’t give you limited liability protections, so we don’t recommend it for your moving business.

Limited Liability Company or LLC

The most common type of business entity. An LLC is fast, simple and inexpensive to set up and maintain. It protects your personal finances and assets and is a great way to start your moving business.

S Corporation

This is a more complex type of business and isn't generally recommended for smaller organizations.

C Corporation

These are the largest and most complex types of businesses, and they are typically far more than the average entrepreneur or moving business owner will need.

Setting up Your Moving Business and Business Operations

Once you've legally created your moving business, you’ll need to get some other things in place.

Location of Your Moving Business

You will almost certainly need office space for your moving business. You’ll need room to store your vehicles and equipment, meet with employees and clients, store goods as required and otherwise manage your business. Ideally, the office space should be located close to a major highway to make it quicker and easier to drive a moving truck to your customers.

Equipment for Your Moving Business

Much of the capital expenditure for your business will be for vehicles, equipment and consumables. You will need to purchase a moving truck, moving tools, packing materials, safety equipment and various other supplies. You’ll also need a computer, laptop, tablet or smartphone.

Marketing Your Moving Business

Marketing will be a huge part of your moving business. Word-of-mouth and referrals will be necessary for attracting customers, and you’ll also want a really good website. Focus on delivering excellent customer service to get good reviews, which will help to drive customer acquisition.

Software and Processes

The right software and processes will make running your moving business much easier. See our list of the best apps and software at the end of this guide.

Employees

If you’re managing very small, local moves, you can probably run the business yourself. If you’re doing anything larger, like whole-house moves, you will likely need to hire at least one other person. For bigger moves, or if you want to do more moves at once, you’ll need to hire even more employees.

Finances and Taxes

You will need a separate business bank account for your moving business, and you might also want to consider a business credit card. Additionally, you will also need to keep careful bookkeeping records and file business and personal taxes. Here at Incfile, we can even help you file your taxes.

Our Start a Business Checklist will get your business going in the best possible way.

Rules, Regulations and Taxes for Your Moving Business

You can’t escape real-world licenses, permits and regulations. You will need to explore local, state and federal licenses and permits, and we can also help out with researching your business licensing needs.

Taxes

Taxes are a fact of life if you’re in business, and there are various ways you will need to file and pay them. This can include self-employment tax, state income tax and federal income tax. Depending on where and how you’re selling products and services, you may also be liable for sales and use tax.

As a rule of thumb, we recommend holding back around a third of your earnings to pay your taxes. We can also prepare and file your tax returns for you.

Maintaining Your Moving Business

There are certain forms and legalities you need to follow to keep your moving business in good standing.

Insurance for Your Moving Business

All moving businesses should have comprehensive business insurance. There are various types.

Groups and Forums for Moving Business Owners

Here are some useful places where you can connect with other moving entrepreneurs.

Useful Online Tools for Your Moving Business

Here are some really great online tools for managing your moving business. They will reduce the time you spend on administration, help you to collaborate with others and free up your time to grow and manage your new venture.