How To Write A Business Plan For A Moving Company

How To Write A Business Plan For A Moving Company

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If you are finally taking the plunge and are ready to get your new moving company going, you are likely wondering what your first step should be to get it started. The most important step in getting a business started in any industry is writing a business plan. So, let’s take a look at what needs to be incorporated into a business plan, and how you can write one to set your new moving company up for success! 

To write a business plan for a moving company create an analysis of the market and your competition, find a space to lease or buy to set up shop, determine how many people you will need to hire, figure out what permits you will need, and plan out your finances. These are the five key points you will need to cover in writing out your business plan.

Now let’s take a look at each one of these categories individually so you can have a better understanding of how to write out each section of the business plan, and exactly what falls under each of these categories. Essentially, a business plan is a step-by-step plan that you write out in the beginning, to help make the process of actually building your business go smoothly. If you do the hard work and put research and careful planning behind your plan, each stage of actually setting up your business will go easily.

Analysis of the Market and Your Competition

How To Write A Business Plan For A Moving Company

First things first, before you can even find a space or think about getting set up, you’ll need to do research on the market to make sure that the area you are thinking of setting up in is a decent choice to do so. You don’t want to invest time and money in a space that in the long run won’t bring in good revenue. 

For starters, do a simple Google search online to find out how many other moving companies are in the area you are hoping to get started in. You may find that the market is already over saturated with the number of existing moving companies, in which case you will need to rethink the location you want to set up in. You could also find that the market isn’t quite over saturated, yet the few moving companies that are in town, aren’t pulling in decent business regardless. This would still be a strong indicator that this isn’t the area for you to get started in.

You could also find during your research, that there aren’t any existing moving companies in the area at the moment, but there is a demand from the towns people for one. Bingo! This would be you striking gold because this means that you can be the one to fill the need for their demand by opening up your moving company! 

This is why this phase of the business plan is SO important! This is where you will figure out and determine if the area you had in mind is a suitable location to get started. So, during the planning stage, carefully plan out how you will conduct your research, when you will conduct your research, and your plan B if your first area of choice does not turn out to be a good fit.

You will also need to set the prices of your services accordingly with what your competition is offering. For example, if the moving company across town is offering a full days service (including renting the van and help of the movers) for $2,500, then you will need to set your price competitively. Coming in at let’s say $2,300 is going to make your services more enticing to the client, who is already paying an arm and a leg for all of their moving costs! Be smart, and make sure you do your research on your competitions pricing when doing your market research. 

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Finding a Space to Lease or Buy

In most businesses, finding an open space to lease or purchase in order to set up shop is a big part of figuring out the business plan. In our instance, it is a little bit different, because we have a moving company. As a business that moves things for other people, you really don’t need a space of your own to set up unlike a store or restaurant would. You will however, need to get a truck that you will need to rent or purchase in order to move things for clients.

From the research that I did, it seems most expert movers recommend investing in a 26-foot truck in order to be able to get the most bang for your buck and be able to service clients best. According to prettymotors.com purchasing a new 26-foot truck can cost anywhere between $125,000 to $150,000! Keep in mind, you can always look into used options, or start out with a smaller truck and work your way up to a new one if this price seems too high to you.

You’ll also need to look into where you will store your truck at night. Your driveway likely won’t fit a 26-foot truck, so you’ll have to do some research and find who in your area you can work with to park your semi-truck over-night.

Determining How Many People to Hire 

Next, you’ll need to determine how many workers you want to bring on to get started. Keep in mind that it is a moving company, and you’ll likely need at least more than one member to get started. You may be super strong, but you probably can’t move a king-sized bed on your own. Try to recruit at least at least one if not multiple members to get started. 

If finances are an area of concern, then just get started with yourself and one other. You can always bring on more team members once business starts to pick up. Be clear with any applicants how much they will be required to lift and how much physical work the job requires so there are no surprises later on. 

Make sure you pay your workers fairly, so job turnover won’t be high and workers feel satisfied, but also pay them reasonably so payroll alone doesn’t sink your new business.

Figure out what Permits You Need

Now you’ll have to figure out what permits your business is required to get before opening in your area. The easiest and most straightforward way to do this is to head down to your local courthouse and talk to them about what exactly is required in your specific areas. Sometimes this can get a bit tricky and things that are required at the local level aren’t a requirement at the state level, and this can trip people up when it comes to understanding what the requirements are. 

This is why I suggest a visit to the courthouse as the best way to alleviate any confusion. They can also get you set up with any paper work you need to fill out to take care of the process, and give you an ETA of when you will be approved.

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Planning out Your Finances

How To Write A Business Plan For A Moving Company

Lastly, you will need to figure out how much money will go towards each part of your business and just how you will go about securing the money. This is why writing out a business plan and accounting for everything early on is so important. You can’t just pull a magic number out of the sky and hope for the best that it will cover all of your business expenses. You’ll need to do careful research to find out exactly how much each part will cost and then make a logical decision on how much of a starting fund you will need. 

Next, you’ll need to determine if you will be taking out a loan, or using savings in order to start your business. Taking out a loan is a safer option because this means your savings will remain untouched and you have a cushion to fall back on in case your business doesn’t take off immediately. However, this means that you are going into debt to start your business and you need to make sure you pay off your monthly payments on time. If in doubt, make a pros and cons list to determine if the better option for you is to use your savings or take out a loan.

The Small Business Administration is an amazing resource for small business owners and can really help you make decisions if you need some extra assistance. Check out their website here sba.gov to see how they can help out!

Writing a Business Plan to be Successful

In a nutshell, writing a business plan prior to getting started can really help you succeed in your business. It can help you determine what you need to accomplish before you get started, and specifically can help you figure out how much money you need to put towards your new company. Be sure to write down specifics, not just general statements or to dos. Then follow through on each step and if you want your company to be up and running by a date, make sure you have a timeline as to when each task should be accomplished. 

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Frequently Asked Questions

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  1. About how long will it take to get a business up and running?

Depending on how fast you work, I would say 3-6 months is a good timeline to expect to have a business up and running by. This gives you ample time to properly conduct research and set up shop, without leaving you feeling rushed or stressed out. It also gives you a good amount of time to be apply for an be approved for any licenses. 

  1. Any tips for taking out a business loan?

Just like with starting a business, make sure to do your research and shop around with different lenders. Make sure you are comfortable with the interest rate, and the amount of time you have to repay the loan. Don’t enter into anything that you are not a 100% comfortable with. Once you take the loan out, you are stuck with it until you pay it off. The SBA will come in handy if you have any questions or are stressed about the process.

To learn more on how to plan your own moving business click here!

Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.