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Starting a Moving Business

Starting a moving business? Smart move! Families move once every five years, and there's also good money to be made in moving businesses. But opening a moving business isn't a sure thing, as we explain in this article on how to start a moving business.

Unfortunately, many aspiring business owners think all it takes is a strong back and a pickup truck to start a moving company.
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The reality is that starting a moving company requires as much - or more - preparation as any other type of small business. If you follow the rules there's a good chance your business will be a success. If you don't, you could end up sued, broke, and bankrupt.

Like any startup, the decision to launch a moving company is a business decision. It deserves the same level of preparation you would give any other business including research, financing, and (most importantly) a business plan. However, moving companies also have some unique requirements you may not know about. Although the list of unique requirements can be long, here are the highlights . . .

Moving Equipment

Obviously a pickup truck is not going to take you very far in the moving industry. Once you've decided to start a moving company, your first order of business is to procure a vehicle that is up to the task. Since you will be entrusted with household items of value, it's important that your truck is outfitted with proper moving gear including a ramp, tie downs, etc. Additionally, you will need to think about the other equipment your new business will require. Dollies, straps, and packing blankets are some of the things that immediately come to mind.

Staffing

The next question that needs to be addressed is who will be doing the actual moving. If you plan to do it yourself, are you physically up to the challenge? Moving your sister's house was one thing. Moving one or more houses a day - that's something else entirely. Even if you think you can do some of the work yourself, it is physically impossible for you to run the business without at least one other employee to help move heavy and bulky objects. If you don't have someone in mind, you're going to need to find someone before you accept your first job.

Permits

Some states require moving companies to obtain special licenses and permits. Although the requirements vary by state, licensing and permits are designed to make sure moving companies are legitimate and responsible enough to be trusted with the public's valuables. In some cases, you may even be required to take a written test to prove your worthiness to safely and securely move possessions from Point A to Point B.

Insurance

No matter how careful you are, accidents are going to happen. One minor slip and Aunt Lucy's antique piano can quickly become a useless pile of wires and firewood. Long before you lay a finger on your customers' valuables, you will need to nail down an insurance policy with a reasonable amount of coverage for damages and liability.

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Comment Board

We greatly appreciate any advice you can provide on this topic. Please contribute your insights on this topic so others can benefit.

kenny minchin

8/25/2007

I am trying to start a moving company and it is very hard to figure out pricing. I was wondering if you could help me out. It would be very helpful. Thank you.

Ken Gaebler

8/27/2007

Kenny, Thanks for your message. Assuming that you are starting a moving company near where you live, I would recommend that you get moving price quotes from the moving company competition in the area to learn how they are pricing their moving services. Based on that information, you may want to price a little lower or you might want to price higher and differentiate yourself based on better service. Good luck to you, my friend!

Sean

6/28/2008

My brother and I owned a moving company while I was attending college. We lived in Massachusetts and were required to fill out an application for a moving company license, and about two months later we attended a hearing where we received a moving license from the Massachusetts department of Energy and Transportation in Boston. The people there were helpful in that they gave us what turned out to be accurate information reguarding average prices and what we should bill to be competitive. They also gave us the same moving forms and contracts that other companies that I had worked for had used. They also suggested an insurer that sold inland marine insurance, which is required insurance for movers in Massachusetts by law and for which I had been having a very hard time finding an insurance provider for. In addition, you need a moving supply company and a credit card for truck rentals. To legally start a Massachusetts moving company it cost me about $3,500. Knowing what I now know, I could have done it for less. I hope this is helpful information to some of the people who read this who want to start a moving business.

samara

7/24/2008

I'm thinking of starting a moving business since we live in a town with two major universities and there's not much local competition. However, I have no idea how to get started or a rough estimate of what equipment I will need or how much it all will cost, or if the moves are mostly local? If anyone out there has done this in a college town and can give some advice as to how I can start my moving company, please let me know. Thanks, Samara.

Tim Lee

12/21/2008

What Type of insurance is needed to start a moving company and who are some companies who offer it?

lenin

1/18/2009

i'm looking to start my own moving business in the Denver,CO area. I would appreciate some input from anyone that knows about permits, licenses, insurance needs for such a business.

Bae Bae

1/25/2009

Im a female looking to start a moving company in Cleveland please assist

Eric

2/3/2009

I am looking to start my own moving business, in Sheboygan, WI. Is there any special permits? And does anyone know what insurance will cost me?

Alex Sormaz

2/5/2009

Hi My name is Alex i've been moving people of and on for about 20 years now and i worked for many different Moving company's around U.S. Im planing to start my own moving company here in L.A. My question is how much business comes from the Yellow pages and how much from the well designed web? Is there any way to tell the ratio since looks like Y. pages are in decline. In the other hand every serious Mover still use Y. pages and pays for the entire page huge amount of money i guess there must be a reason for it.i guess this is the question for the sales rep's My mayor concern is the effective marketing. Any ideas for the starters? Thank you for this awesome forum!

Gary

2/5/2009

Lenin, What you need to do is first get your trucks. Second, call an insurance company that carries box truck and cargo insurance. Third, call the state and ask them about the moving permits and moving licence and how much coverage is required. Fourth, get dollies, blankets, and tie downs. Finally, call the other moving companyies in your area and come up with your pricing. I would get me a 4 man crew per truck with a set price per hour. GOOD LUCK BUT YOU RUN THE BUSINESS AND GET PEOPLE TO DO THE MOVING FOR YOU.

Shavon Angela Shepard-Walker

2/9/2009

I own a moving company and am female. I have been in business for 3 years and I love it. But the one thing that anyone should know is find out what is needed in your state to open a moving company. I was fined $10,000 for my first fine because I didnt have a CPCN #. That was a big fine to learn from my mistakes. Uf a you have a U-Haul in your area that will help because they have a way to network online and get moving jobs.

Liza

2/10/2009

Hubby and I want to start a moving company in Nevada as hubby is already a mover and has a big clientele (he can't use a truck without a company though so customers rent their own). I went to TSA to find out about permit requirements some time ago and was pretty discouraged. They want you to have a LOT of money in the bank before getting started, and an extremely detailed marketing plan saying exactly how many jobs we will have and coming from where (including letters from realtors who will send business). They were not friendly and helpful in any way. I've been trying to write the application but it is so hard without help. I also need to try to get an insurance quote and I'm having a hard time finding an insurance company with movers insurance. Any suggestions for company? I don't know how much coverage is needed in NV. Where can I find out? Funding MIGHT be taken care of when we know how much everything is going to cost. Would like to have enough money to keep going for a few months just in case. Otherwise who might give us a loan? Grateful for any info.

Liza

2/10/2009

Alex, the Yellow Pages are really expensive! We're planning to start out small with one truck so we will advertise with flyers (door-hanger type), hit apartment complexes, and storages (this can work both ways). Make sure to hand out business cards as often as you can, and create a website (nearly free). Hope this helps.

Gray

2/18/2009

The problem with starting a moving company in California is the government. The workmans comp is 32% on the emplyees not to mention matching Social security. Liability insurance on the truck is almost $700 a month per truck. Fuel has skyrocketed. There is so much compitition that a lot of companys are charging less than what I did in 1980. There really is no money anymore in California moving industry.

Alex

2/24/2009

Gray, I love California and the workers compensation laws here. 80% of Moving Company owners anywhere in 50 states hire gang bangers, drug addicts, scum of the earth, illegal aliens or anyone they can get very cheep in a busy season. This is the proven fact and accident waiting to happened. That's why in CA, the laws are the way they are.

This business is run by greed and egoism. I want to change that. There are ways to make a honest living and there are few companies that do that. I want to be one of them.

Liza, you can go to DOT web site and get information about insurance companies just by looking at which ones are used by Movers in your area. This is a public record and can be seen via the DOT web site.

My main concern is marketing. For starters, I would appreciate any creative and effective ideas for marketing a moving company. That would be great and very helpful.

Thanks everyone for your tips.

troy

3/3/2009

I am trying to start a moving business in pa but I keep getting protested. I have the truck and insurances from my other business in place as well as the help. Do i need to prove storage? And should I get people to sign anything to prove the need for another moving service in the area?

Dave P

3/13/2009

Good luck to all in the Business. Hope all endavors are good money makers. How easy is it to get financing and is it possible to get Uhaul to hold a truck for you at certain times so you can do your jobs until you get your own vehicle

Dave

3/13/2009

As a third-party provider of services (movingpermits.com and moversguru.com) to hundreds of different moving companies, I will attest that it is not the wisest time to enter the moving business. The economic downturn has created a huge slump in this business. There are fewer moves and too many moving companies competing to get the same jobs. As such, rates are in decline. Many well-established moving companies are probably not going to survive. That said - each geographic market is different. If you do start a moving company keep in mind that it is surprisingly complicated. For a very straightforward, simple task of relocating someone belongs, it is a very tricky business. There is considerable of state and federal regulations. There is plenty of liability issues and insurance to buy.

3/15/2009

starting a moving company is not complicated-just involves researching your market and price comparing other moving companies. The economic situation has not effected the moving industry at all. It has only created higher competitiveness within the industry itself. It aint rocket science, it's just moving furniture.

Tony

3/23/2009

Question to Sean - "..To legally start a Massachusetts moving company it cost me about $3,500. Knowing what I now know, I could have done it for less..." - can you please expand on this. I have been running under radar for about 1 year, trying to go legit. I will appreciate the advise.

Moverman

3/23/2009

Hello everybody, I am in california,let me tell you the competition is fierce,but there is still plenty of work. what you need is a marketing plan alot of creativity, and experience in onsite estimating, also what is needed is hands on experience as well as a loyal crew, whom you have to pay average salary, and be fair but firm. or they will rob you blind..so dont think by saving money,is the smart route to take.

Stave

4/1/2009

I am trying to start a moving Company in Texas. Just to comment on the industry, as long as there are people there will always be the need to move. The keys to a successful moving and storage business (in texas anyway) is marketing and customer service. 94% of this industry is local independent moving companies that employs less than 5 people per company or micro-businesses (grossing less than one million dollars annually). You do the math; the industry needs positive, trust worthy companies to give this industry, the independent contractor sector, the face-lift it so desperately needs. Good luck to all who have decided to become a part of this industry!

Kanacas

4/1/2009

on the california household goods permit (P.U.C Test)what is the test like?

Carol Smith

4/5/2009

What is needed to start a moving company in Bossier City, LA. We have Barksdale AFB here. I just lost my job and I don't want to work for anyone again. Please help.

Terrance

4/8/2009

Hi im trying to start a moving co is there like a movers book or a check list on how to start a moving co. and what about quoting software and paper work such as contracts or etc? thanks

Tommy D

4/10/2009

I am in the process in starting a moving company here in Fl. i found it pretty simple: cargo insurance and I M license and the obvious truck and things you will need to held with the move itself..As far as marketing your company i am having great success by hooking up with leasing agents in luxury apt. and offering gift cards for referral fees.No need for internet advertisement yet..

Bryan G

4/21/2009

okay this one is for Tommy D.....what exactly are you telling the leasing agents in the offices?? How much are the gift cards per referral

Bakari A.

5/16/2009

I have worked as a driver, packer, and also a broker for numerous moving companies.The time has come for me to start my own company, What is the easy way to start, utilizing just one vehicle? Where do I go to get these Permits?

5/29/2009

Im start a moving company in houston,tx any and all information is helpful and needed. I've worked for a few moving companies in the past but I really need help with the legal aspect of it all. I have a truck a mechanic and moving help on deck. Any and all helpful infor is greatly apperciated. Thanks

06/12/09

6/12/2009

My husband and some friends are trying to start moving company. He's a truck driver/movers and his friends are all movers. They are worked at the same moving company. We do really needs help with legal aspect of it and needing more information on how to do it.

jones

6/14/2009

Im in need of assistance please. I have been in Iraq for the last 3 years saving everything. I believe Im ready to start a moving co. in TX. Please provide me with any help.Thank you

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