In America, one out of five adults is either moving to a new city or knows someone who is doing so. In Canada, one out of three adults is moving to the Greater Toronto Area (GTA) whereas every two out of four Torontonians are either leaving Toronto city proper or are going to places having low housing prices.
The COVID-19 pandemic left the world in a state of damage, and damage control is what everyone is doing. With the re-introduction of full-scale remote working, a lot of people have decided to change addresses with a reason and an incentive.
Torontonians who are thinking about starting a moving company to help residents shift their goods, after seeing the shift from the city core to the suburbs, are in luck. They should read this post so they can understand what it takes to start one and what other factors they should consider.
Understanding the different kinds of moving companies present
Surprisingly, there are a considerable number of home moving companies, ranging from residential and commercial movers to auto transportation, like item movers and the like. Those who are thinking of starting a home moving business, they should first determine the kind of moving business they want to do (and can do) and identify the scope of services they wish to offer.
Here are the different kinds of moving services available in the market:
- Local moving companies: They transport customer items from an old address to a new one within a radius of 100 miles.
- Long-distance moving companies: They help transport customers’ items to a new address either outside a 100-mile radius or across state lines.
- An international moving company: This helps customers ship their items either through air cargo or by a cargo ship if they are moving to another country.
- A commercial moving company: It helps move a client’s office furniture, equipment, documents and other things from the old office to a new one.
- A moving container company: This kind of moving company helps drop large metal boxes for customers to pack their things in, and then transports those containers to a new location.
- An auto transportation moving company: It helps customers transport their vehicles across state boundaries and to an international location, if necessary.
- A specialty items moving company: It is a specialized company moving items requiring a lot of care, such as antiques, musical instruments, artwork, or animals.
- A small items moving company: It helps customers transport small items, boxes or shipments weighing less than 3,500 pounds.
- Full-service moving company: This kind of company handles all aspects of the entire moving process, from packing and loading to transporting and unloading.
- A partial moving company: Handles just certain aspects of the moving process with customers doing some part of the moving by themselves.
What do budding entrepreneurs need to start a moving and storage firm?
For a new moving and storage company to start on a strong footing, a detailed business plan and a well-defined idea of what the business should be. After understanding the kind of moving shipping companies available in the market, and which one to pursue; the next step is to determine which of these aspects of moving should the company focus on.
Once the development path of the company has been decided upon, it is time to apply for the moving and transportation permits and purchase the needed equipment. Starting off with a small van or a small truck is helpful.
Some packing and wrapping materials can work along with movable dolls, furniture belts, ropes, moving pads and the like. However, those who have bigger plans for their business, they can invest in a truck having a moving body (which is a good idea).
Branding is the next step. Here, entrepreneurs need to choose a worthwhile brand name, motto, mission statement, vision statement, motto and a logo (which can be created with the aid of a professional designer). Eventually, they will also be needing a trustworthy website.
Moreover, soon to be moving companies should find their way towards affiliations with companies helping them find their customers and spreading the word about their moving business.
If the moving business offers storage services then it will be another expense to cater to. Yet, budding entrepreneurs can contact storage facilities to see if it’s possible to sign a long-term contract with them. This can help reduce rent payments by quite a margin.
How good is a moving and storage business?
Initial expenses of all legal and asset requirements of setting up this kind of business can be a lot, especially the amount of investment needed to promote the business. Whether entrepreneurs opt for the local market or the long distance moving market, they both are saturated.
The efforts required are considerable and a lot of time will be consumed to make a mark among space occupied by richer competitors.
When it comes to storage facilities, they have become expensive as a lot of people are moving into affordable suburbs. Competition among storage companies in the Greater Toronto Area is quite high and the pricing aspect is a tough nut to crack.
Yet, with remote work still a popular practice (albeit temporarily) along with a growing metropolis, the opportunities for life and work in suburbs outside Toronto city proper are immense. Moving and storage businesses are now experiencing their complete potential, in spite of the restrictions put forth by the Governments of Ontario and Canada regarding the COVID-19 pandemic.
In what ways can a moving and storage business be made profitable?
It should be first ensured that the business plan for the moving and storage company to be established is clear-cut, well-defined, well-set and streamlined. A backup plan is necessary. Entrepreneurs in this matter should be clear as to what the business plans to offer, how these services differ from competition and what are the key benefits residents will get for selecting this company.
Entrepreneurs must find the balance between rational investments needed for growing the business and overspending. Meaning, they should not buy a lot of assets nor take too many on rent which can potentially remain unused and become a drain on the business’s finances.
Most important of all, the customer experience should be flawless so that they do not need to consider choosing another firm. Regardless of whether residents are moving into a suburban townhouse, a loft or a condo (from a list of Toronto condos for sale), no resident should be left disappointed.
This will help the business get the best reviews possible resulting in the best word of mouth promotion and hence, more customers.