If you are thinking of starting a small business, there are many factors to consider. In your research, you may find that moving companies require relatively small initial costs and have a comparatively high profit margin. All of that sounds like a good reason to seriously consider this as a good business opportunity. Consequently, you may be wondering exactly how to get started and if the risk is worth the reward. Read on to find out how to get started and how to protect your company.
What Do You Need To Start A Moving Business?
The first step of starting a moving business is making a business plan. In order to draft this, you will need to first consider what type of moving company you want to own. Many companies start out offering only local delivery services. This can be profitable and may save you expenses since mileage, hours, and travel expenses will be minimized. Additionally, staying local will avoid certain regulatory requirements and their related expenses. However, you may lose some potential business by setting a geographic restriction on your services. Ultimately, when deciding, you will need to consider the needs of the customer base in your area.
Then you will need to consider what services you want to offer. Some moving companies sell packing supplies, some offer packing services, and some offer storage options in addition to moving services. Once the services are determined, you will need to create a pricing structure. There are also some companies that offer long distance or cross country moving services. Many companies charge per hour but some also factor in mileage. You will also want to have a lawyer draft agreements for your customers that provide terms for the services and protect both you and the client. Finally, you can use this plan to determine the types of equipment you need.
The Kinds Of Insurance Needed In A Moving Business
Once you have the bones of your business and are gathering your equipment and employees, you will need to get insurance coverage. This is a critical step because if any incidents occur and you do not have the proper coverage, you could lose everything. The laws for the types of insurance that are required for your business will vary from state to state so you will want to verify with your state regulatory agency exactly what is legally required of you.
Typically, you will want to purchase more coverage than the minimum that you are legally required to for your own protection and peace of mind. Every moving company will need commercial auto insurance to protect their moving vehicles in the event of accidents. Most businesses in general also hold general liability insurance. This type of coverage protects you from accidents people may experience on or with your property, or damage that an employee causes to the customer’s property. No business owner wants to experience their employee getting hurt on the job, but it does happen. That is why worker’s compensation insurance is crucial. Other policies, such as business owner policies or umbrella policies, can help provide additional general coverage.
