Starting a moving company can be a rewarding and challenging business venture because of the heavy demand for relocation. As a business owner, there are many variables to consider, including compliance, consumer protection, and ethical business practices that align with regulations. If you're interested in learning how to start a moving company, our quick guide shares informational tips and guidance to help you along the way.
Why Start a Moving Company?
Starting a moving company can provide many benefits, including:
- Consistent business: It's no secret that there will always be a market for moving. As people downsize, relocate to new cities for jobs, and pack up their homes for other reasons, moving companies will always have customers. By 2033, it's predicted that the global moving services market will grow to a value of $147.7 billion, indicating a clear demand for these businesses.
- Low starting costs: Starting a moving company doesn't have to require a large upfront investment. One van and a few employees can do the job, and you can scale up as you get more customers.
- Specialization potential: As your business expands, you can decide to focus on a particular niche, such as moving office furniture or special, high-value items like art. The more you specialize, the more you stand out from the competition.
- Direct customer interaction: If you enjoy interacting with people, starting a moving company can be a rewarding venture. You'll work with different individuals daily, helping them through what can be a stressful, complex experience.
Things to Know Before Starting a New Moving Company
Like any business, moving companies must follow specific legal standards when starting their operations. Before you hire your crew or get the word out about your services, you'll need to make sure you set up your business properly and follow any relevant laws. Here are the top things you need to start a moving company:
Registering Your Business Structure
Depending on how you want to organize your moving business, you can choose from various business structures. While some companies are limited liability companies, others are corporations or sole proprietorships. The structure you select depends on different factors like liability protections and tax preferences. Review each option, ideally with a professional, to figure out the best choice for your goals.
Getting a USDOT Number and Motor Carrier Number From FMCSA
Moving companies typically need transportation licenses. In the United States, businesses must get a state-level license to handle transportation within their chosen state. If they want to oversee interstate moves, they're required to have a U.S. Department of Transportation (USDOT) number and motor carrier number, issued by the Federal Motor Carrier Safety Administration (FMCSA). You can apply through the FMCSA by filling out form OP-1 and paying the necessary fee.
Considering Insurance
Moving companies typically handle fragile items. To protect yourself and your company in the event of an accident, you'll need a comprehensive insurance policy. General liability insurance, which is often required by state laws, covers damages or injuries during the moving process. Cargo liability insurance protects customer property during transit and is one of the requirements for getting the FMCSA license. Make sure your business is fully insured as required before you handle any moves.
Obtaining Local and Special Permits
Permits differ according to the jurisdiction. For example, you may need special permits if you're transporting overweight or oversized items, which are usually obtained from state transportation departments. Work with a professional to ensure your business is permitted to operate in the towns and states you wish to cover.
Following Consumer Protection Laws
It's necessary to understand consumer protection laws and how they might pertain to your company. Be ready to provide written estimates and payment terms to ensure customers fully understand their financial commitment and your services. Additionally, you should be aware of arbitration programs, which can help you informally resolve customer disputes without escalating.
Marketing Tips for Moving Companies
Once your business is established, it's time to start putting together your customer base. Marketing your services will help you get the word out and connect with people in your community who are looking to move. Here are some tips for creating awareness for your moving company:
1. Connect With Housing Professionals
Real estate agents are connected to both sellers and buyers, creating the perfect opportunity for them to mention your name to movers. Consider partnering with these professionals to increase word-of-mouth marketing. You can also talk to apartment building managers to see about advertising your services in their lobbies. Online, you can post in real estate and housing communities to offer your services and connect with potential customers.
2. Learn About Your Audience
Understanding your target audience helps you find your ideal customer base. Whether your company offers full-service moving packages or focuses on only transporting vehicles, you want to make sure you're reaching the right people. Spend time researching different demographics and their behaviors so you can tailor your marketing efforts to your findings.
3. Highlight What Sets You Apart
Highlighting your unique selling points helps you stand out as a company. For example, maybe your employees have extensive professional moving experience, or you use a particular process to protect your customers' belongings. Show these qualities clearly on your marketing materials, moving vans, websites, and social media accounts.
Long-Term Success Tips for Moving Companies
As you start to organize and handle moves, you'll want to keep a few pointers in mind to support your business for the long haul:
- Prioritize being on time. While unexpected events can impact moving plans, lateness shows unprofessionalism and can make moving more stressful than it needs to be. Do what you can to build a reputation as a timely company, and customers will follow.
- Focus on customer service. Customer service builds a positive reputation for your business and helps cement the client-customer relationship, which can lead to repeat business and referrals.
- Ask for reviews. Reviews help you market your business. After you complete a move, consider sending an automated email to the customer and asking them to write a review. Whether positive or negative, reply to each testimonial thoughtfully and considerately.
- Keep track of renewal dates. Licenses and permits require renewal, so stay on top of these dates to ensure nothing expires. If you choose to scale and offer interstate moving services, make sure you set up everything legally to maintain compliance.
Learn More About Our Moving Company Arbitration Program
Even the most successful moving companies deal with lost or damaged goods, leading to frustrated customers. Moving companies are required by law to partake in a neutral third-party arbitration program to resolve specific customer grievances.
At Business Consumer Alliance (BCA), we help companies resolve these and other issues that may arise when dealing with customers. With our household goods arbitration program, our team works to keep you fully compliant with relevant laws and provide dispute resolution with your customers out of court.
Learn more about the arbitration process for moving companies, and reach out to the BCA team at (800) 834-1119 today to get started.
