Pros and cons of starting a moving business

Everyone who has any kind of job probably often thinks how great it would be to be their own boss. Right? Whether it is because you would like to choose coworkers on your own, or you think there are some better ways of doing business. Or even because you don't feel like going to work every day. And not to mention that you would probably like to be paid more. If you are in the moving industry, you know that's possible. However, starting a moving business is a challenging task. It requires a lot of hard work, long hours and, at the end of the day, some money. So, you have to be really committed to the idea of succeeding in order to sustain all the missing outs you are going to experience once you become responsible for the success of your business and maybe for other people's jobs.

Is starting a moving business a good idea?

Actually, starting a moving business is a great idea. If you can live with all the pros and cons it brings, of course. The great part is that there will always be a need for professional movers. No matter what the state of the economy is. If the economy is booming, people move to bigger homes and businesses prosper and expand. Which also requires moving to bigger offices or warehouses. On the other hand, when the economy is in a downward swing, people and businesses need to downsize. One way or the other, relocation is necessary. And that is when you come into the picture.

No matter how the economy is, moving businesses will always be in demand

So, we can definitely say that having the idea of starting a small business in the moving industry can be pretty productive. Basically, this is a recession-proof industry, that will stay alive no matter in which direction the economy goes. And we can all agree that this is a big pro of starting a moving business.

However, since this is common knowledge, many people wish to try their luck in this business. The demand is constant and barriers to entry in the business are pretty low. Those, in combination with minimal government regulations, lead to big competition. Which can be a big con if you are just a small fish in the big sea. But, don't worry, everyone started small. That doesn't have to stop you from being the best in the business, and maybe even the biggest, one day, who knows.

Picking a niche for starters

Just like any other business, when starting a moving business, you must be well-prepared. Firstly, you should research everything there is to know about the industry. You should figure out your place in it and make a good business plan. That way, you will get a pretty good idea of what a good niche to start from is. The business plan should cover:

• the niche you choose,
• startup and recurring costs,
• means of funding,
• marketing and advertising strategy,
• planned projected revenue, and more.

Depending on your finances, abilities, and the means for work you currently have, you should pick a niche to start from.

You must first create a good business plan, so you will see all the pros and cons of starting a moving business

The pro of this phase is that you really don't have to start big. If you only have a van or a moving truck, you can decide to do only smaller jobs over the weekends. Maybe your clients could be young adults, moving out of the college dorm room. Afterward, when you enlarge your business capacities, you can move on to bigger jobs, maybe execute corporate moves eventually.

The cons include the time that you will be needing to start making money since you will be limited by your means and abilities. Later, though, once your business grows, you can develop in several different niches and increase the scope of your services.

Financing a moving business

As you know, financing a business is crucial in order to move from ground zero. A good thing and a big pro of starting a moving business is that you can actually start it with your savings because there are no big investments necessary for this startup. Especially if you already own a moving truck. All the other costs are pretty low, so if you have savings, maybe it will be just enough. The things you'll be needing to acquire with that money are:

• crucial supplies and gear for moving - tie-downs and a ramp for your truck, packing blankets and other packing material, straps, and dollies for boxes and furniture;
• at least one employee, co-mover - since you can't carry bulky and heavy items alone;
• insurance policy - because no matter how good or careful you are, accidents happen, so you need coverage for damage and liability. 

The second option, besides your savings, is to borrow money from the bank, which you'll probably need to do if you don't have savings or a truck. So, that is a con of this business. Many banks offer low-interest loans for small businesses and startups. Sometimes even a government supports them with different financial projects. However, in order to apply and maybe get funding, you must create a great business plan. That way, you will show them how you plan to succeed in the business, become profitable and return their money, of course. 

You can start the business even with your savings or a small loan

The third option is to keep your 9-5 job and start moving on the side and on weekends. That way, you'll avoid the risk of failing and losing your job, savings and investment. And after you start doing more work, you can decide to resign your former prime job and invest your full time into the moving business.

The permits you need to obtain

Everyone can pick up a moving truck and start transporting other people's belongings. And this is, believe it or not, the con of this business. Because no one should put their trust in the hands of an illegal company, no matter what field it is in.

However, if you want to be taken seriously, you should make sure to run a legitimate business. And it is a big pro that this industry doesn't require too many papers, permits, and documents. But, in order to not break the laws when starting a moving business, you need to obtain all the necessary permits and licenses. Follow the example of some of the best moving companies from verifiedmovers.com if you want to expand and succeed in this business. You should register your company and get the MC number when you start operating locally. Later, if you branch out to interstate moves, make sure to acquire the USDOT number and other appropriate documents.

So, which one prevailed?

As you can see, just like any other field of business, starting a moving business has its pros and cons. However, since you are much more likely to start on a smaller scale, following the given guidelines will bring more pros than cons. Running either a small or a bigger moving company can definitely be a lucrative business - it's no surprise so many people try it in the first place, of course.  Moreover, it's easy to get into the industry because it has a high demand for movers. That is why we believe you will find the cons less important than the pros that go with this business, but it's still good to be aware of them.