Starting a moving business is an exciting venture that combines logistical planning and customer service with smart business sense. It's a market worth billions, with consistent demand for moving services from residential clients, offices, and for long-distance relocations.
This guide will take you through the practical steps of validating your business concept, obtaining necessary licenses, acquiring equipment, and securing funding to help you launch a successful moving business in the U.S.
Step 1: Plan your business and validate your idea
Market and competitor research
Start by analyzing your local area. Use the U.S. Census Bureau to check population and income data for specific zip codes. High-turnover rental areas and neighborhoods with frequent home sales are prime targets. You might also talk to local real estate agents for on-the-ground insights.
Next, map out your competition on Google Maps and Yelp. Note their services, customer reviews, and any visible pricing. This research helps you find a gap in the market, whether it is through specialized services or better customer support.
Estimate your startup costs
Your initial investment will vary. A reliable used 16-foot box truck can cost between $20,000 and $35,000. To start with lower overhead, you could consider renting a truck from a provider like Penske or U-Haul for your first few jobs.
Basic equipment like dollies, furniture pads, and straps will add another $1,000 to $2,500. A frequent misstep is underbudgeting for insurance. You will need General Liability and Cargo insurance, with initial payments often running from $3,000 to $5,000.
Here are 3 immediate steps to take:
- Analyze demographic data for your target zip codes using the U.S. Census Bureau.
- Create a spreadsheet of 5-10 local competitors, noting their services and pricing.
- Draft a preliminary startup budget with line items for a truck, equipment, and insurance.
Step 2: Set up your legal structure and get licensed
Choose your business structure
You will want to register your business as a Limited Liability Company (LLC). This structure protects your personal assets, like your home and car, if the business faces a lawsuit. An LLC also allows for pass-through taxation, meaning you report business profits on your personal tax return.
Navigate federal and state licensing
If you plan to move customers across state lines, you need federal authority. Apply for a free USDOT number from the Federal Motor Carrier Safety Administration (FMCSA). You also need a Motor Carrier (MC) number, which has a $300 application fee and takes 20-25 business days for approval.
A frequent mistake is operating interstate with only a USDOT number. You must have an active MC number to legally perform out-of-state moves, and this triggers federal insurance filing requirements. For moves within your state, check with your state’s Department of Transportation for specific permit rules.
Here are 4 immediate steps to take:
- Register your business as an LLC with your secretary of state.
- Apply for a USDOT number and MC number on the FMCSA website.
- Research your state’s intrastate moving authority requirements.
- Contact your city or county clerk to obtain a local business license.
Step 3: Secure insurance and manage risk
Choose your insurance policies
You will need a few specific insurance policies. General Liability covers damage to a client’s property, like a scratched floor. Commercial Auto insurance is for your truck. Cargo insurance protects the customer goods you transport, and Workers’ Compensation is mandatory if you hire employees.
A basic insurance package often requires at least $1 million in General Liability coverage and $50,000 for Cargo insurance. Budgeting for this is a significant part of your startup plan, with annual premiums typically running between $7,000 and $12,000 for a new business.
Many new owners get tripped up by using a general insurance agent. You should work with a provider that specializes in the moving industry, such as Progressive Commercial, The Hartford, or CoverWallet. They understand the specific risks and federal filing requirements tied to your MC number.
Beyond policy paperwork, think about on-the-ground risks. Employee back injuries from improper lifting and minor property damage are frequent claims. Good training and the right equipment are your first line of defense, which helps keep your insurance premiums down over time.
Here are 4 immediate steps to take:
- Request quotes for a package including General Liability, Commercial Auto, and Cargo insurance.
- Contact an insurance provider that specializes in the moving industry.
- Confirm your Cargo insurance policy provides at least $50,000 in coverage.
- Allocate $7,000 to $12,000 in your budget for first-year insurance premiums.
Step 4: Set up your location and buy equipment
Find a place for your truck and gear
You need a secure place to park your truck. Look for properties zoned for commercial or light industrial use. A 500-square-foot paved lot or a large, dedicated parking space is often enough to start. Check with your city’s planning department to confirm zoning compliance.
When you find a spot, try to negotiate a 1-year lease to maintain flexibility. Make sure your lease agreement permits overnight commercial vehicle parking and minor vehicle upkeep on the premises. This avoids future issues with your landlord.
Purchase your moving equipment
With your truck secured, it is time to get your gear. You will need an appliance dolly ($150-$300), a few four-wheel furniture dollies ($25-$50 each), and a good set of straps. Suppliers like U.S. Cargo Control sell these items without minimum orders.
A mistake many new owners make is with moving blankets. Cheap pads can shed fibers and damage furniture. Invest in at least two dozen quality woven or non-woven pads, which run about $150 per dozen. They protect client belongings and your reputation.
Here are 4 immediate steps to take:
- Contact your city’s planning department about commercial vehicle parking zones.
- Search commercial real estate listings for lots around 500 sq. ft.
- Create a shopping list for dollies and straps from a supplier like U.S. Cargo Control.
- Budget for two dozen high-quality, non-shedding moving blankets.
Step 5: Set up payment processing
Most movers collect a deposit, often 10-20% of the estimated cost, to reserve the date. The remaining balance is then due upon completion of the job. Clearly state these terms in your service agreement to avoid any confusion with your clients on moving day.
Many new owners start with only cash or checks, but this can slow down your access to funds. When you look for a payment solution, focus on low transaction fees and the ability to accept payments on-site. This makes the process smoother for everyone involved.
While many processors charge 2.5% to 3.5% plus hardware fees, there are more modern options. For movers who need to accept payments on the go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for collecting the final balance right after the job is finished. Getting started is straightforward.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers.
Here are 3 immediate steps to take:
- Draft your payment terms, including deposit amounts and when the final balance is due.
- Compare the transaction fees of different payment solutions.
- Download the JIM app to see how it works on your phone.
Step 6: Fund your business and manage finances
Secure your startup capital
To fund your business, you might look into an SBA 7(a) loan. Lenders often look for a credit score above 680 and a detailed business plan. For a new moving company, loans typically range from $50,000 to $150,000 with interest rates around the Prime rate plus 2-4%.
A frequent misstep is applying without strong financial projections. Your business plan must show how you will become profitable. Another option is equipment financing, which lets you borrow specifically for your truck with the vehicle itself as collateral. This can be easier to secure.
Manage your cash flow
You will need enough working capital to operate for the first six months. A good target is $15,000 to $25,000. This covers fuel, insurance premiums, and marketing before you have a steady stream of jobs. Open a dedicated business bank account to keep your finances separate.
From day one, track all income and expenses. You can use accounting software like QuickBooks or Wave. This practice makes tax time simpler and gives you a clear view of your company's financial health. It helps you see exactly where your money goes.
Here are 4 immediate steps to take:
- Draft a business plan with three-year financial projections.
- Research SBA 7(a) loan requirements and check your credit score.
- Calculate your working capital needs for the first six months.
- Open a separate business bank account and choose an accounting software.
Step 7: Build your team and manage operations
Build your moving crew
Start by hiring for two key roles: Mover/Helper and Driver/Foreman. Movers handle the physical labor and typically earn $15-$20 per hour plus tips. The Foreman drives the truck, leads the crew, and communicates with the client, often earning $20-$25 per hour.
A frequent mistake is to hire based on strength alone. You should also look for people with good communication skills. Your crew represents your business, so professionalism is just as important as the ability to lift a sofa.
Train for safety and service
While movers do not need formal certifications, you must train them. Create a simple program on proper lifting techniques to prevent injuries. Also, cover how to wrap furniture with pads and interact professionally with customers. This reduces damage claims and builds your reputation.
For drivers, a standard driver's license is usually enough for a 16-foot or 24-foot box truck. A Commercial Driver's License (CDL) is only required for vehicles with a Gross Vehicle Weight Rating (GVWR) over 26,001 pounds, which is larger than most startup trucks.
Manage your daily operations
When you start, Google Calendar can work for scheduling jobs. As you get busier, look into moving-specific software like SmartMoving or Movegistics. These platforms combine scheduling, estimates, and customer management into one place, which saves you time.
To price jobs profitably, keep your labor costs between 35% and 45% of revenue. This is a standard industry benchmark. If your labor costs creep higher, you may need to adjust your rates or improve your crew's efficiency on the job.
Here are 4 immediate steps to take:
- Draft job descriptions for a Mover and a Driver/Foreman with pay ranges.
- Create a basic training checklist covering lifting, packing, and customer service.
- Review moving software like SmartMoving to understand future options.
- Set a target labor cost of 40% of revenue to guide your pricing.
Step 8: Market your business and get customers
Establish your digital storefront
Your first move should be to set up a Google Business Profile. It is free and puts you on Google Maps. Fill out every section with photos of your truck, equipment, and team. This is where your first reviews will live, so make it professional from day one.
Next, create a simple one-page website. It only needs to list your services, service area, and a clear contact number. This gives you a professional link for your Google profile and other lead-generation platforms like Yelp or Thumbtack, which are popular with customers.
Find your first paying customers
Google Local Services Ads are a direct path to leads. Unlike standard ads, you pay per lead, not per click. Expect to pay $25 to $60 per qualified lead in most metro areas. This is a proven channel for movers looking for immediate jobs.
A mistake many new owners make is to rely only on digital ads. You can build relationships with real estate agents, apartment managers, and self-storage facilities. Offer them a small referral fee, like $50, for each booked job they send your way. It builds a steady, local pipeline.
Here are 4 immediate steps to take:
- Create and fully verify your Google Business Profile with high-quality photos.
- Set a starting weekly budget for Google Local Services Ads.
- Make a list of 5 local real estate agents or apartment managers to contact.
- Draft a simple referral offer for your new partners.
Step 9: Set your pricing and create service packages
Choose your pricing model
Most local moves use an hourly rate. A common starting point is $120 to $160 per hour for a two-person crew and a truck. This model is simple for customers and protects you if a job takes longer than planned.
For larger or long-distance moves, a flat-rate price often works better. This requires an accurate estimate from an in-home visit or video call. Many new owners forget to charge for travel time to and from the job, so always build that into your quotes.
Calculate your rates for profitability
With your model in mind, it is time to research. Call a few local competitors and ask for a quote on a hypothetical move. This gives you a clear picture of the market rate and how others structure their pricing.
Your goal is to keep labor costs between 35% and 45% of the job's total revenue. After all expenses like fuel and insurance, a healthy net profit margin is 10-15%. For a $1,000 job, you should aim to clear $100 to $150 in profit.
Here are 4 immediate steps to take:
- Call three local competitors to get quotes for a sample two-bedroom apartment move.
- Decide on an hourly rate for a two-person crew and truck.
- Create a simple quote sheet that includes line items for labor, truck fees, and travel time.
- Calculate your target net profit margin based on your estimated costs.
Step 10: Maintain quality and scale your operations
Set your quality standards
To maintain a good reputation, track your performance with data. Monitor your damage claim rate, and aim to keep it under 5%. After each job, send a simple one-question survey to measure customer satisfaction. Your on-time arrival rate is another key number to watch.
While not required to start, you can eventually look into the ProMover certification. This program signals a higher level of professionalism and can help you stand out as your business grows.
Know when to grow
If you consistently turn down jobs because you are booked, it is time to hire. A good benchmark is to add another crew when you are booked solid at least two weeks in advance. This prevents you from overworking your current team and losing potential revenue.
Adding a second truck is a major decision. A frequent mistake is expanding before your cash flow can support it. Wait until your first truck is utilized over 80% of workdays for two straight months and your net profit margin is stable above 10%.
Once you have multiple crews, Google Calendar is no longer enough. This is the time to adopt moving-specific software like SmartMoving or Movegistics. These platforms help you manage complex schedules, dispatching, and customer communication without the chaos.
Here are 4 immediate steps to take:
- Create a one-question post-job survey to track customer satisfaction.
- Set a target damage claim rate of under 5% for your first year.
- Define your trigger for hiring, such as being booked solid two weeks in advance.
- Calculate your truck's monthly utilization rate to guide expansion decisions.
You have the steps to launch your moving company. Remember, this business is built on trust, not just strength. Your care with a client's belongings will earn you more jobs than any advertisement. Now you have the plan, so go put it into action.
To make payments easy on moving day, JIM turns your phone into a card reader. You can accept cards for a flat 1.99% fee with no extra hardware, and your money is available instantly. Download JIM and get ready for your first job.
