A moving company provides local and long-distance transportation of household and office goods; warehousing and storage services; packing and packaging services; processing, distribution, and logistics consulting; merchandise sales, and other services.
A report published by Nexus shows that there are over 7,000 moving companies in operation, servicing 13,900 locations nationwide. They are directly responsible for the creation of 186,722 jobs and indirectly for 482,081 jobs.
The report also shows that the industry directly employs 122,600 individuals, and they pay approximately $3.6 billion in combined annual payroll. Employees in the moving industry generate about $9.42 billion in tax revenue per year.
Steps on How to Write a Moving Company Business Plan
1. Executive Summary
George Jakes© Moving Company, Inc. is a licensed moving and storage company. Our head office will be located in a standard office facility in the heart of West Chester, Ohio. We will engage in moving goods and properties, packing and unpacking, disassembling and reassembling of furniture, appliance servicing, shuttle services, split pick-up and delivery, temporary storage, etc. George Jakes is the founder and CEO of George Jakes© Moving Company, Inc.
a. Our Products and Services
George Jakes© Moving Company, Inc. will be involved in;
- Moving used furniture
- Moving used household goods
- Moving used office goods
- Providing storage services for goods
b. Nature of the Business
Our moving company will operate a business-to-consumer and business-to-business model.
c. The Industry
George Jakes© Moving Company, Inc. will operate under the moving and storage industry.
d. Mission Statement
Our mission is to be at the forefront of our industry and to make sure we build a successful moving and storage company that will operate in the whole of the United States of America and Canada.
e. Vision Statement
Our vision of to be listed among the top ten moving companies in the whole of North America.
f. Our Tagline (Slogan)
George Jakes© Moving Company, Inc. – Your Trusted, Fast, and Highly Secured Movers!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
George Jakes© Moving Company, Inc. will be formed as a Limited Liability Company (LLP).
h. Our Organizational Structure
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive (Business Developer)
- Truck and Van Drivers
- Material Handlers/Yard Spotters/Forklifts Operators
- Customer Services Executive/Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
- George Jakes (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
- Gerald Lawson (Board Member) 18 Percent Shares
- Ruben Thomson (Board Member) 10 Percent Shares
- John Moley (Board Member) 10 Percent Shares
- Ellen Taylor (Board Member and Sectary) 10 Percent Shares.
- Ideal location for a moving company (thriving moving and storage market)
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Large storage facility.
- Excellent customer testimonials.
- Reliable and efficient trucks and vans.
- Access to reliable transport and logistics software.
- Financial Constraints
- No structure for maintenance and servicing team
- New business that will be competing with well-established companies
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in home sales and housing will increase demand for moving and storage services
- Online market, new services, new technology, and of course the opening of new markets
- Increase of the number of families moving from one apartment to another.
- Increase in the movement of goods from one location to another
- Increase in production activities and warehousing.
i. How Big is the Industry?
The market size measured by revenue of the moving and storage industry is put at $18 billion in 2023, with 18,290 companies and a workforce of 110,737 hence it will be safe to the industry is big.
ii. Is the Industry Growing or Declining?
Although the moving industry declined in 2020, the industry is currently experiencing growth. Available data shows that steady wage expenses and increasing prices of fuel amid the low demand during the pandemic were responsible for reducing the industry profitability.
Revenue in the Moving Services industry dropped 0.7 percent in 2020 as a result of the COVID-19 (coronavirus) pandemic. The good news is that as the economy rebounds and moves are rebooked, the industry is expected to grow.
iii. What are the Future Trends in the Industry
The moving and storage industry care changing, and players in the industry are improvising. No doubt, technology and climate change (people moving either from cooler to hotter regions or hotter to moderate regions) will change the landscape of the industry going forward.
iv. Are There Existing Niches in the Industry?
No, there is no existing niche idea when it comes to the moving and storage business.
v. Can You Sell a Franchise of your Business in the Future?
George Jakes© Moving Company, Inc. has plans to sell franchises in the nearest future and we will target major cities in the United States of America.
- The arrival of new moving and storage companies within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses and increasing prices of fuel amid the low demand during the pandemic will reduce industry profitability.
- Economic uncertainty
- Liability problems (Financing of trucks and vans that is bound to depreciate)
- The transport department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.
i. Who are the Major Competitors?
- UniGroup Inc.
- Atlas World Group Inc.
- Sirva Inc.
- United Van Lines
- Allied Van Lines
- North American Van Lines
- Two Men and a Truck Int’l. Inc.
- Stevens Worldwide
- International Van Lines
ii. Is There a Franchise for Moving and Storage Business?
Yes, there are franchise opportunities for moving and storage business, and here are 20 of them;
- Two Men and a Truck Int’l. Inc. (Initial Investment – $100,000 – $585,000)
- Units Franchise Group Inc. (Initial Investment – $460,022 – $1,083,322)
- Crowning Touch Senior Moving Services Inc. (Initial Investment – $323,000 – $551,500)
- Box Galaxy (Initial Investment – $95,000)
- Zippy Shell Moving and Storage (Initial Investment – $657,450 – $1,219,830)
- You Move Me (Initial Investment – $78,500 – $169,500)
- Metropolitan Movers Inc. (Initial Investment – $55,500 – $250,000)
- NorthStar Moving Co. (Initial Investment – $100,000 – $225,000)
- 1-800-Packouts (Initial Investment – $69,450 – $234,000)
- Navis Pack and Ship Centers (Cash Investment – $100,001)
iii. Are There Policies, Regulations, or Zoning Laws Affecting Moving and Storage business?
No, there are no county or state regulations or zoning laws for moving and storage business. Players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled. Please note that trucks and vans used for moving services are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so.
a. Who is Your Target Audience?
i. Age Range
Our target market comprises of adults above 18 years old who have the finance to do business with us.
ii. Level of Education
We don’t have any restriction on the level of education of those we will do business with.
iii. Income Level
There is no cap on the income level of those we will help move their goods or properties.
There is no restriction when it comes to the ethnicity of the people we will move their goods or properties.
There is no restriction when it comes to the language spoken by the people we will work with.
vi. Geographical Location
Anybody from any geographical location will be welcomed do business with us.
George Jakes© Moving Company, Inc. will not restrict any client from doing business with us based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Deliberately Brand Our Vans and Trucks.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Develop Your Business Directory Profiles
- Build Relationships with players in the manufacturing and real estate and brokerage industry.
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, George Jakes© Moving Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value, and full package. In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties such as referral partners, affiliate partners, strategic alliances in the real estate and brokerage industry to help refer clients to us.
George Jakes© Moving Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced.
b. Inventory Strategy
The fact that we will need loading crates, trucks and spare parts means that George Jakes© Moving Company, Inc. will operate an inventory strategy that is based on ordering, maintaining and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that George Jakes© Moving Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Return Policy, Incentives, and Guarantees
At George Jakes© Moving Company, Inc., we move goods from one location to another or store goods for a short period of time hence the nature of our offerings do not accommodate return policy, but we will guarantee our customers of the safe delivery of their goods or properties under our care.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to our clients and investors, it will help us to first understand their needs, experiences, and pain points.
On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnerships and retainer deals that will enable the firm boost our service offerings.
a. What Happens During a Typical Day at a Moving and Storage Business?
- The business is open for the day’s work
- The vans and trucks are washed, cleaned, and ready for moving goods and properties
- Customer’s requests are taken and they are scheduled or attended to
- Schedule maintenance of trucks and vans are carried out
- Marketing/website upkeep
- The business is closed for the day.
b. Production Process
There is no production process when it comes to the moving and storage business.
c. Service Procedure
The service procedure of a moving and storage company starts with a customer requesting the packing and moving of his or her goods or properties from one apartment to another or from one storage facility, warehouse, or business premises to another. Once the request is gotten, it will be processed and the suitable truck or van and staff are assigned to carry out the job.
d. The Supply Chain
George Jakes© Moving Company, Inc. will rely on key players in the manufacturing and real estate industry to refer business deals to us. So also, we have been able to establish business relationships with supplies of crates and truck spare parts et al.
e. Sources of Income
George Jakes© Moving Company, Inc. make money from;
- Moving used furniture
- Moving used household goods
- Moving used office goods
- Providing storage services for moving goods
a. Amount Needed to Start your Moving and Storage Company?
George Jakes© Moving Company, Inc. would need an estimate of $1.2 million to successfully set up our moving and storage company in the United States of America. Please note that this amount includes the salaries of all staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $200,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $100,000
- Start-up Inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $80,000
- Purchase of Trucks and Vans: $500,000
- Website: $600
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
George Jakes© Moving Company, Inc. will not build a new facility for our moving and storage company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Moving and Storage Company?
- Gas and lubricants
- Utility bills (phone bills, signage and software renewal fees et al)
- Salaries of employees
- Trucks and vans maintenance
- Marketing costs
e. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $68,000 Per Year
- Admin and HR Manager – $48,000 Per Year
- Transport and Logistics Manager $48,000 Per Year
- Marketing and Sales Executive (Business Developer) – $42,000 Per Year
- Accountant $38,000 Per Year
- Truck and Van Drivers – $36,800 Per Year
- Material Handlers/Forklifts Operators – $28,000 Per Year
- Customer Service Officer (Receptionist) – $26,100 Per Year
- Security Guard -$24,000 Per Year
f. How Do You Get Funding to Start a Moving and Storage Company?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
a. How Much Should You Charge for your Service?
Most moving and storage businesses charge an hourly rate that generally includes a moving truck, all the equipment, miscellaneous materials, and the movers. The more moving helpers or trucks needed for your specific move, the higher the hourly rate will be. For example, a truck and 2 movers may cost $120 per hour.
b. Sales Forecast?
- First Fiscal Year (FY1): $450,000
- Second Fiscal Year (FY2): $750,000
- Third Fiscal Year (FY3): $1.3 million
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $150,000
- Second Fiscal Year (FY2) (Profit After Tax): $350,000
- Third Fiscal Year (FY3) (Profit After Tax): $600,000
d. Profit Margin of a Moving and Storage Company
The ideal profit margin we hope to make at George Jakes© Moving Company, Inc. will be between 16 and 20 percent on each job carried out irrespective of the distance covered. This refers to our profit as a percentage of our total cost.
a. How do you intend to grow and expand?
George Jakes© Moving Company, Inc. will grow our moving and storage company by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
George Jakes© Moving Company, Inc. plans to expand first to Boise – Idaho, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Montpelier, Vermont.
The reason we intend to expand to these locations is the fact that statistics show that the cities listed above have the highest and thriving moving and storage market in the United States. Of the states that have witnessed the largest net gains in new residents, Idaho ranks near the top at 84.3 percent net gain, followed by Montana at 82.3 percent and Vermont at 64.29 percent.
The founder of George Jakes© Moving Company, Inc. plans to exit the business via family succession. We have put structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.