According to research, moving is the third most stressful event in a person’s life. Add to that the fact that an average person moves 11.7 times in their life, and that the majority of those moves are due to personal or work reasons, and you’ll get a pretty clear picture of how a moving company needs to set the bar high for its clients.
You may feel disheartened to venture into any line of business during these turbulent times, let alone moving business, considering the pandemic lockdowns and social distancing. However, a study conducted by Pew Research Center found that a fifth of the surveyed participants moved, or know somebody who moved during the pandemic.
United States Postal Service’s data show a 3% increase in people filling for change of address, along with a staggering 27% increase in temporary movers. With the virus being spread the most in densely populated regions, people are leaving the urban areas for smaller cities. Moreover, many companies switched to working from home, and it seems some of them plan to stay that way permanently, moving will be a viable option for more people than ever.
Therefore, if you’ve been thinking of starting your moving and storage company, it’s time to act now, as moving peak season, which is between May and September, is about to begin. Find out what you will need to set off your moving business to a good start, and whether or not this type of business is a profitable option for you.
What do you need to start a moving and storage company?
In order for your moving and storage company to set off strong, you will need a detailed business plan and a well-defined idea of what your business is about. There are various types of moving companies – local, long-distance, international moving companies, partial to full moving services, car transport companies, and truck rentals, etc. Thus, your initial task is to determine which of these aspects of moving will your company focus on.
Upon deciding your business’s development path, it’s time to apply for moving and transportation permits and purchase the necessary equipment. It’s wise to start off small, so a van or a smaller truck will do. Some packing and wrapping materials will also be handy, as well as moving dollies, ropes, furniture belts, moving pads, etc. However, if you’ve got big plans for your business, investing in a truck with a moving body is a good idea. Finally, make sure you find the insurance deal that covers all your moving business assets.
Your next step should be branding. Choose a great brand name, motto, get a professional designer to create your company logo, and quality, trustworthy website. Last but not least, mingle your way into affiliations with companies that can help you find your first customers and spread the word about your moving business.
If your moving business offers storage services, it will be yet another expense. Still, you can contact storage facilities and see whether there’s a possibility of signing a long-term contract with them, which will significantly lower your rent payments.
Does having a moving and storage business pay off?
Initial expenses of all the legal and asset requirements of setting up a moving and storage business can go pretty sky-high, not to mention the bottomless pit of investments into marketing activities for your company. Whether you opt for local or long-distance moving, the market is heavily saturated, so it will take considerable time and effort to make your name among the experienced competitors.
When it comes to storage facilities, their prices ramped up in recent years, due to the influx of people moving into cities. If you’ve been looking for storage companies in Dubai, you’ve probably seen that many companies are offering these services and that the competition is quite active in this domain as well.
Still, with the possibilities of remote work and overpopulation of cities, and on the other hand greater life and work opportunities in larger towns, people are bound to incessantly migrate. Therefore, moving and storage businesses are yet to experience their full potential.
Tips on how to make your moving and storage business profitable
First, make sure your business plan is well-defined and streamlined, and that you have a backup plan as well. Be clear as to what your business offers, how your moving services differ from those of your competitors, and highlight the benefits movers get when choosing you.
Try to find the balance between rational investments in expanding your business, and going overboard – you shouldn’t buy or rent too many assets that will lay unused. Form a competitive though the reasonable price, and most importantly, create a splendid moving experience for your movers so that they have no other option than give you a fabulous review and spread the word about your business.
Interesting Related Article: “Pre and Post Moving Checklist: Relocation Made Easy“