Starting a moving company is among the businesses that are easy to set up and run. The returns are also high considering it is still an untapped market. But, just like any other business, starting is the biggest challenge, especially regarding financial matters.
In this article, we want to shed more light on the crucial issues that you should clearly define in your financial plan for a moving company.
Ideally, a moving company should have an in-house logistics plan, but where do you get the capital to invest in trucks and other specialized vehicles?
Our advice for small moving companies is to consider leasing. The advantages of vehicle leasing is that you can always have the type of vehicle you need and again, you won’t have to worry about maintenance.
However, if you have the capital, you can always buy your equipment, but remember the manpower required, and also, the maintenance costs as well as vehicle depreciation.
You will agree that the core of a business is the employees. So, what is your hiring plan? Do you need to hire full time or part time employees? How many employees do you need, and what’s your budget?
When first starting out, you should begin with a few employees, and then as the business progresses, you can add more guys. In the event you are shorthanded, you can opt for part-time employees.
A piece of advice; ensure your employees are comfortable, that’s the most important thing. Happy employees translate to satisfied customers.
The first months of a business should not be about targeting profits but streamlining operations by identifying constraints and solving them. That said, don’t be too focused on the margins and make sure that your pricing covers every cost that you will incur when moving a client.
The other aspect to consider is how you quote your prices. You should work with a good web development company that will build an easy to use pricing calculator. To get some inspiration, check out movon.com and see the functionality of their calculator.
One of the major selling points of a successful moving company is the 100% safety guarantee they offer for their clients’ goods. This means that in case of any damage or loss, the moving company pays for the losses.
You don’t want to carry that burden, so it’s best if you buy an insurance policy that will cover for those costs. If you are drafting your financial plan, make sure to include insurance costs because you can’t survive in the market without offering a 100% safety guarantee.
There you have it, the critical financial planning aspects you need to consider before starting a moving company. These are not the only important issues, of course, you will have to deal with issues like licensing, getting an office, partnerships, network marketing and so on. However, that can come later, for now, drafting the financial plan is the most critical stage.