It takes a lot of time and experience to master how to properly run a business. And no matter the type, size or niche – it’s always challenging. The moving industry is no different. In fact, being as competitive as it is, this particular niche can often seem overwhelming when it comes to standing out. However, there are always ways to make things simpler. The first step is to put your foot down and decide to start a moving business. Once you do that, the next step is to plan out how best to develop that company. And that is where the many reasons why movers need a business plan come into play.
What is the importance of having a business plan for moving companies?
The moving industry is defined by its service- and location-oriented functionality. And this is good since it means that you don’t need a large startup capital to get it all rolling. On the other hand, you do need to consider that you are in fact dealing with a highly competitive market. After all, there are practically well-established moving businesses in each city. That means that you will be competing with brand names that already have experience and reputation on their side.
That is where the introduction of a proper business plan for your moving business comes to fruition. As a new business owner, you need to consider how to direct your company from day #1. From purchasing professional equipment, leasing trucks and hiring moving crews, to investing in different ways to advertise your moving business – you need to have a plan for all of it. And if everything manages to work out, you will want to have a proper growth plan to avoid expansion issues later on.
What are the three fundamental parts of any moving company business plan?
Having had the opportunity to work with moving companies of all sizes, Movers Development has plenty of experience when it comes to this industry. We’ve tailored our professional services to match the needs that businesses in the moving industry have. And from all that, we’ve realized that there are in fact three pillars on which each moving company operates:
- Business Model. To represent the structure of the company, in the beginning, and as it grows. When it comes to business plans for movers, the business model is relatively consistent. However, that doesn’t mean that there isn’t room for innovation and becoming a pioneer.
- Marketing Plan. Businesses today have come to rely on digital advertising to gain customers at the lowest possible costs. When it comes to moving company marketing solutions, there are plenty of diverse strategies to consider. Some are expensive and have a challenging ROI (Paid Advertising), whereas others are less costly but require time and efficiency (Search Engine Optimization).
- Financial Projections. Finances are among the more important reasons why movers need a business plan. It’s simply a matter of properly organizing your resources to offer the best range of services at the lowest operational costs. Financial projections help movers determine how to make future investments and which part of their business to push forward as the company grows.
Five simple reasons why movers need a business plan
Creating a business plan for a moving company is simple enough. However, understanding why it is important to have one – that’s the more challenging part. And so, we offer you the following five arguments when it comes to the advantages of moving companies having a development plan:
1. Must-have when it comes to attracting potential investors and business partners
Applying for a loan or a partnership with financial institutions requires having a proper presentation of your business idea. And that idea comes in the form of having a detailed business plan. Although moving companies generally don’t require that large a capital to start, that doesn’t prevent you from seeking out potential investors. And you will hardly be able to accomplish that without a proper business plan to go along.
Other businesses want to make sure they are making the right call by putting their resources in you. And a plan of how your business would look and develop can help them understand that. It is among the best sales pitches that you can have in such situations.
2. Great for the decision-making process
There are certain checkpoints in the development stages of every company when you will need to make relevant decisions. The outcome of these decisions can easily make or break your moving business as you move forward. And one of the reasons for movers to have a business plan is to eliminate the grey areas that come with this. By having specific information in the form of a business plan, you can predict these dilemmas and make all the tough decisions ahead of time.
3. Taking that leap of faith becomes simpler for movers with a business plan
For most entrepreneurs, taking that first step from wanting to start a business to actually doing it is the most fragile one. And writing a business plan can be a real struggle that can put everything in perspective in those cases. Only once you actually get into it do you realize the potential flaws and struggles that might occur once you’re up & running. Therefore, you want to be able to battle that reality as best as possible by being as prepared for it:
- Identify gaps in running a moving business.
- Research the market and how other moving companies are faring.
- Test your business ideas in theory and see whether they are achievable.
Yes, this can set your start-up plans a bit behind, but you will thank yourself later on. Because the more time you spend on developing a proper business plan for your moving business, the lesser the chances of it coming across obstacles and issues will be.
4. A business plan can often bring about new ideas and innovations
The business planning process is something that can easily inspire and bring about new ideas and improvements even before you start your business. Just as it enables you to see the flaws in your initial concept, so can it help you think of new things to introduce. You just need to look at a business plan like something more than a black & white document that puts you to sleep.
A properly developed and structured business plan is dynamic and flexible. It is a creative tool that can inspire creative thinking and offer up solutions to the modern business challenges that each business owner ultimately faces.
5. It is helpful in creating an action plan for your growing business
A business plan (especially for small companies) functions as a sort of guide. It helps you realize things while also outlining the actions that you need to take to ensure the overall success of your moving business. Whether you are looking for that next step, planning future activities, downsizing operational expenses – this document gives you directions on how to get there.
The conclusion – create a proper business plan for your moving company
You can certainly build a successful moving company without a proper business plan – but why take the harder path to success? Having this document can save you a lot of trouble before, during, and after you start working as a moving company. Therefore, it is in your best interest to use this unique business planning tool to ensure the long-term success of your company.
For more useful insight on the inner workings of moving companies and other moving industry trends, explore our other articles. And if you are looking for that next step in developing your moving business, schedule a free marketing analysis today!