While there may be a fluctuation in demand (due to seasonal and other variations), moving companies and businesses always remain busy and profitable. Consumers hire moving companies and businesses for a variety of reasons including packing, transporting, storing, and shipping their personal/household and commercial goods all the time. If you want to be the owner of one of the successful Oklahoma moving companies, you need to follow the steps below.
Make Your Business Plan
When you want to be successful as an entrepreneur, it is always important to have your business plan before you move ahead. You need to know about the target market, the costs, and other aspects of the moving business.
Know the Cost Involved
Fortunately for a moving company, you do not require a high amount of investment at the onset. You will require a truck or a van. You may also need other basic items that may not cost more than $ 2000. These items may include:
- The wrapping and packing materials.
- Moving boxes.
- Furniture belts.
- Rope and moving pads.
- Moving dollies.
There may also be outgoing expenses including the payroll and associated taxes. You need to spend on vehicle insurance and maintenance, and fuel costs. Other investments include those for the business website, phone line, and if you want to invest in marketing.
Set Up the Charges for the Customers
Most moving companies charge based on the hours worked and following the mover. The average cost is $ 30 for each mover per hour. However, if you are transporting the materials over longer and interstate distances, you may have to charge based on weight and mileage.
The Scope of Profits
Surveys reveal that business owners who persevere and put in all necessary efforts can earn a profit of $ 50,000 each year, on average. If you are focusing more on business-to-business (B2B) services and fulfilling the requirements of the businesses local to your area, you can earn more than $ 450,000. The quality and efficiency of your services, the amount of investment you make back into your business, and your strategic plans may impact your profits and long-term success. If you want to create even more demand and profits, you can include other services as well including:
- Warehousing and storage.
- Packing and unpacking.
- Additional fees for specific circumstances and personalization/customization of services (for instance charging more for moving goods to homes with stairs, or for moving heavy items).
Permits Required to Start a Moving Company
You first need to decide on a business name. You can choose from a variety of business structures for your moving company, including sole proprietorship, limited liability company, partnership, and even corporation. The business entity should also get itself registered for taxes by obtaining the Employer Identification Number or EIN (issued by IRS). You also need to obtain a bank account for your business and obtain the relevant financial instruments including credit cards. Apart from these basic licenses and registrations, you also need specific permits for functioning as a moving company.
- State and Local licensing Requirements for Your Business
Some States required that the moving companies and the moving vehicles be registered with the State’s Department of Transportation. The moving company should be registered with the Federal Department of Transportation for crossing state lines. There may also be certain additional regulatory, or license requirements as laid down by the county or state that can be checked with the local clerk’s office.
For international movements, you need a Federal Maritime Commission Number or the Freight Forwarding Permit. For better reliability and for obtaining the goodwill of customers, you should also get certified by the AMSA (American Moving and Storage Association).
- Service Agreement
Service agreements are an important part of moving services okc. A moving business must sign a service agreement and contract with the client before it starts the project. It helps in minimizing legal disputes and clarifies expectations.
- Business Insurance
Your Duncan moving company and storage business should also obtain business insurance to ensure that the company’s financial health is secured, and any unforeseen event does not harm the business’s health and prospects.
Conclusion
A moving company can be a profitable business if you can put in the extra effort and persevere for some time. However, you must ensure that you obtain all the relevant permits and licenses, and the insurance coverage, to ensure your business can operate while complying with the laws and any unforeseen risk is also covered.
