You probably know by now that starting a business is difficult – you have to deal with taxes, paperwork, Government officials, competition, deadlines and who knows what else. It’s all part and parcel if you want to start a lasting moving company in Brooklyn. Starting and maintaining a business is a lot of hard work. We’ll tell you how to start a moving business in the US more easily. There are some things that you have to do.
If you want to start a moving business in the US, you have to get some funding
The sad truth is that many rookie entrepreneurs do not have enough cash to cover all the possible expenses. For one second, you think that everything’s going great, and then the next day, you have massive fees and expenses that could ruin your moving business. For example:
- You’ve bought used trucks and gave them a new paint job. However, used trucks are, well, used, and they break down often. Soon you find out that you would have been better off buying three new trucks instead of eight used ones;
- You haven’t pumped enough money into advertising – unfortunately, the competition did, and now you’re stuck in a perpetual vicious circle that will eventually knock you off the market, unless you do something about it, and quick;
- Your company simply isn’t growing fast enough to cover all the expenses (licensing, legal, wages, maintenance, and repairs, and a lot of other things).
While moving companies do get grants and credits, they do not receive the same attention as, for example, IT startups. However, there are places where you can go to raise some much-needed cash. You can do it either through private funding agencies or through government grants. You’ll need to have a reserve of cash when you start a moving company in the US (It would be a good idea go stash money in case something goes wrong)
If you possess your own truck and know how to drive it, you should start on your own
This is how many entrepreneurs have decided to start a moving business in the US. They began with a truck and not much else until they had enough finances to expand their respective businesses. You could go down the same path if you own a truck and have a correct license. You could start out with small, local moving if you, for example, have a van. They’re much easier to maintain than a truck, they chug much less fuel (you’ll be on the road many, many times, so this is extremely important).
Another idea is renting a truck if you have a license only. However, I’d strongly suggest you don’t do that unless it’s absolutely necessary. You see, customers do not trust companies with rented trucks, and for a good reason. Another thing is that you’ll be paying for the usage of said truck. And if it breaks down, you are presumed to be responsible.
Specialize vs. diversify
Here, we have two different approaches to company management, and this extends by default to moving companies. This is important when trying to start a moving business in the US. To diversify your portfolio means that your company will become the “jack of all trades, master of none”. Specializing, on the other hand, means that you’ll focus on a single specific service. Let’s have a look at how moving companies do that:
The picture above shows that Company “B” has almost the same skill level in all areas. Company “A”, on the other hand, is very good at long distance moving, storage, and overseas transport. However, it is also severely lacking in piano moving, home moving and get moving.
“So, what do I chose when I start a moving business in the US?”
Good question. It depends on the market, though. Depends where you will be starting your business. If you’re starting your business in places where there are no other moving companies, you know, small places, you will want to go for a diversified portfolio. You may decide to specialize later if it suits the increased profit margins.
However, US contains some really big places with a lot of stiff competition that won’t surrender the market that easily to a newcomer. Places such as:
- New Jersey;
- Washington DC;
- Los Angeles;
- Miami, etc.
You get the idea. There’s a lot of competition, and if you diversify your portfolio, the customers will choose among specialized companies. This is because, due to their specialization, they can do the job much better. Since there are a lot of specialized companies, the entire spectrum of services will be covered. You need to specialize and conquer a very specific market. You can pick, for instance, office relocation in NYC and do your best to be better than anyone else at it. Then, the market’s yours for sure.
When starting a moving business in the US, do your marketing on social media
Management experts Philip Kotler and Kevin Keller differentiate between traditional and digital marketing. Let’s have a brief overview of what those are:
- Traditional marketing: billboards, flyers, pamphlets, TV, newspaper, radio, etc.
- Digital marketing is based on Facebook, Twitter, Instagram, and other social media.
When you start a moving business in the US, social media advertising is the way to go (When you start a moving business in the US, you want your customers to reach you over their laptops and other devices).
Social media marketing is cheaper and reaches way more people. When you’re trying to start a moving business in the US, you want to be able to reach as many people as possible. It’s also more cost-effective. What you basically do is:
- Select a key demographic (by area, age, gender or any other denominator);
- You pay for advertisements on a daily basis, which your potential clients will see;
- Some of them will go for what you have to offer;
Below is a video explaining some details about social media advertising for small businesses. It’s 30 minutes long, so grab a cup of coffee (or tea) and enjoy the knowledge that you’ll soon be putting to good use.