Starting a Removals Business from Scratch is Possible but NOT Easy
Millions of people in the UK use professional movers, as about 10% of Britons and 70-80% of Londoners change accommodation yearly, and businesses also relocate their offices on an annual base.
When starting from scratch nothing is easy. However, that doesn’t mean it is impossible either. The biggest perk of setting up your own business is being your own boss. Having the freedom to chose how to work and boost your income and success brings a great satisfaction.
Starting a removals company means that you will definitely have a hard time working on your own, especially at the beginning. In most scenarios someone from the family or a close friend will lend a helping hand. However, this won’t make it much more easier.
After all, you can’t just buy a luton van then pay for some ads and start making money in the removals niche. Unfortunately, this is not the way it works! Even if you are able to get some jobs at the beginning from your local ad campaigns and then work really hard for peanuts, don’t forget the competition. Your competitors will be really fierce and everyone will try to undercut your positions.
To have a successful endeavour you will need a comprehensive business plan that you have to follow. Thanks to the professional removal experts at Fantastic Removals in London, below you will find the most valuable tips you have to consider in order to set up a successful business plan to create a removals company.
* This guide to starting a removals business was produced with helpful tips and advice from the man and van professionals at Fantastic-Removals.co.uk – a removals company in business since 2011.
Start with a Comprehensive Business Plan
No matter the business niche, having a comprehensive calculation based on all your future expenses is a must in order to create an efficient business strategy. Your budget needs to be evaluated very precisely together with the main money leechers in the removals niche such as:
Choose the Type of Removal Service.
Determine what services you want or can offer. The more you offer the more expenses you must foresee.
- Home Removals
- International Removals
- Box Delivery
- IT and Office Removals
- Packing and Unpacking Services
- Man and Van
- Antique and Fine Art Removals
- Furniture Collection and Delivery
Decide exactly which kind of services you can start out with: man and van, home removals, office/commercial removals, storage, packing and etc. You should carefully look into to ins and outs of each type, for i.e. international can be tricky, packing can be stressful and changing an address is know-how specific. If you insist to offer all of them, you will have to invest a lot more funds at the start and time in the long-term to. To be familiar with details for each and all sub-services a removal company can offer is a hefty task. However, that’s why you still should pick one for your main service and focus on it.
It’s better to start from one particular type and just one area expand afterwards
Narrow your Area Coverage.
Think about how far you can go. You can help people move within city limits which, if we’re talking about a city the size of London, this means that you’ll still have plenty of work on your hands. You can also try to cover the whole country or even go international. Of course, the larger distances you will need to cover, the more your expenses and prices will go up.
Choose the Type of Vehicles You will Use – Truck/s, Van/s.
At least one vehicle is necessary in order to be able to do business for big scale bookings. Not only that, but its long term maintenance will come out of your salary as well. And don’t forget about maintenance and gas expenses.
Research for the best Tools and Equipment.
It would be best if your van/s are equipped with a ramp for easier loading/unloading process. Also is not a bad idea to supply the vehicle/s with hoisting straps in order to keep the luggage in place while relocated. Consider investing in a dolly (can be a two-wheel dolly, or a four-wheel dolly) to ease your moves, especially the ones with particularly heavy items.
What additional equipment you might need:
- Appliance Dolly.
This more specific dolly allows the crew to easily wheel out big, heavy appliances like refrigerators and stoves more quickly and securely.
- Pallet Jack.
It is advisable to equip the van with a pallet jack, which is used to move only the very heaviest items onto the truck, such as a safe or small machinery.
- Piano Board.
This piece of equipment is used to safely carry a piano. The end and board support the piano. The board also has slots for straps to keep the piano secure and handles to help carry the piece.
- A Tool Kit.
Very useful when customers need you to take apart furniture like beds, dining room tables, and more, the crew is prepared with a tool kit to ensure that basic assembly and disassembly is taken care of.
Choose the right type of Packing Your Removals Company will Use.
If you were thinking to run your moving company without providing a packing service, stop right now and think twice. The service goes in hand with the whole relocation and it is essential for upsale opportunities. However, you need to always be supplied with the right packing materials, such as tape, packing paper, stretch wrap, bubble wrap, and unused cardboard boxes of different sizes.
Calculate Your Organisation Fees.
If you manage to get into organisations, they will help you grow not only your brand awareness but your customers base as well. However, you would have to pay their periodic fees which may be hard when starting a business.;
Research for Online, Promotions, Ads, Deals, Discounts.
Living in the 21st century obligates you to invest in digital marketing features such as business development and marketing. If your business doesn’t exist in the realm of the internet then it is unlikely to succeed. Thankfully, the digital marketing niche is extremely abundant and there are many opportunities out there. You can hire help to create your website in no time at an affordable rate. You should definitely promote your removal company on social media and including constant research for other business channels.
Ensure Health Insurance.
Last but not least, you or your employees have to be able to work in the removals business in the first place. This means that your men in vans should be in top physical condition so they can carry heavy furniture and boxes. If you’re starting your company with a whole team of moving experts, you’ll need to properly set their salaries as well.
Get Licensing and Certification
The next step would be to obtain the required permits, licenses and insurance to be able to hit the road. You should cover requirements for driver licenses, safety regulations, and quite a few other.
Look out for other companies and business partnerships
The niche of removals and relocation is just one of the many verticals of related businesses. Look out to collaborate with companies in other verticals. If you will relocate tenants, you might team up with a team of tenancy cleaners to prepare the property for future renters. This way you can offer a complete A to Z service to landlords handling a portfolio of multiple properties or even estate agents. Handymen, painters, electricians, business is out there for you to get.
Ge Insurance to Start Your Home Relocation Business
As it has been mentioned above starting your own business is a risky endeavour, but that doesn’t mean you should give up.
Instead, focus on risk management and be aware of all the areas that pose any risk of loss. One of the major opportunities to leverage risk is to fully insure your business.
Most of the customers in the United Kingdom ask for insurance policies before booking a service with a removal company. Clients want to make sure that the company they will book is fully insured in case of unexpected damage. You should be able to happily show document copies with policy details. Your clients will want to have their peace of mind. This means that all belongings will be covered during transit!
A residential and commercial moving business can be a lucrative endeavor for any entrepreneur willing to take the time to ensure that his business is competitive. While you can start off taking small jobs on the weekend, without the proper insurance this leaves you vulnerable to lawsuits.
“Conduct a proper research on other successful moving companies and develop a business plan that incorporates their methods to your advantage.”
– Simon Laretta (Southampton Removals)
What you have to get done in order to offer insured moves?
- Vehicle Insurance.
This one should be obvious, but it’s worth mentioning that you need to insure your van/s. Road accidents could happen no matter how good the driver is. Your van might be damaged or stolen. All these circumstances are outside of your control. When you run a removals company, your means of transportation are the backbone of getting a job well done. Don not leave anything to chance and take control of this risk before you move to the next step.
- Haulage Insurance.
As your business grows, you will sooner or later need commercial van insurance. If such lacks, you might not be able to invest in more and bigger vehicles. If you possess a heavy goods vehicle (HGV) you’ll need a haulage insurance.Talk to your insurance provider and specify exactly the type of your business so you can get the right coverage and the right price that fits your needs. To optimize your expenses you could opt for a mixed fleet policy that will cover a wide range of vehicles like cars, trucks and vans.“Any driver” fleet insurance policy will give you a lot more flexibility so any of your drivers can drive any of your vehicles.If you buy a single insurance policy that covers all your motor fleet often comes with a discount and will help you cut costs. It will ease your management as well so you can focus on what really matters – your customers.
- Goods in Transit Insurance.
As a company in the moving business your main duties and responsibilities will be transporting other people’s goods and possessions. A vehicle insurance will get your van covered, but in order to protect what’s inside of it, you’ll need a GIT (Goods in Transit) insurance.Furniture, equipment and all sorts of content that you load and transfer need protection from loss, theft or damage. In this way your removal services will provide an additional guarantee for the customer and will raise your company’s reliability.
- Public Liability Insurance.
This type of insurance will give your business protection against a third party damage to possession or injury, in your case – injury to your customers or their possessions. This insurance is not obligatory or a legal requirement, but don’t try to cut corners if you want to stay on the safe side.
- Employers’ Liability Insurance.
When your business starts to grow you start hiring people and you are obligated by law to have this type of insurance. Just do not assume this legislation is another financial burden.Especially in the moving business employees lift and carry heavy objects and this may lead to an employee’s injury or illness. In such unfortunate event, the employee can make a claim for injury as a result of doing a work for you.Once again it’s better to expect the best and be prepared for the worst. Covering the cost of such claim could be devastating for a small company. And failing to acquire an EL insurance can cost you as much as £2,500 a day.So the best advice is to obtain an Employer’s’ Liability insurance as soon as you become an employer. Your business will be safeguarded and you’ll earn your employees’ loyalty as well.
Over-insured or underinsured?
To be over-insured is always better than being underinsured. You will spend some money on insurance, but you will save a lot more and not just money. Having a proper insurance will give you the 100% peace of mind so you can focus on all other important areas in starting your business.
Customers look for more than a regular service. The same applies for a cleaning franchise as well, when it comes to valuable possessions people need guarantees. They search for someone they can trust and rely on. As an insured business, you can prove you are a reputable company that can handle trust. A good reputation ultimately leads to higher customer satisfaction and higher profits for your company.
Start your business by buying a cleaning franchise.
Consider to hop on a brand that has a steady market share and well-built brand and awareness. To build a brand is a pathway that does not always lead to success. To run a removal service is stand-alone vertical in the art of running a business and big companies like opportunities like the Removals Franchise at JoinFantastic.com offers a wide range of benefits worth of value for your money:
- A considerable base of clientele since day 1;
- No per leed fees;
- Full London and UK coverage;
- Full initial & ongoing Support;
- Comprehensive trainings;
- Infrastructure and gear.
- Intuitive bookings management;
- Flexible schedule and availability conditions;
- Solid brand awareness;
- Advanced Marketing;
To join a well-established and profitable franchise comes with thorough experience that allows you to focus on growing the number of home removal jobs and men with vans.