Removal companies are those that provide services to individuals and businesses related to moving belongings from A to B. From packaging to unloading, it includes every service that is part of moving. From individuals to businesses, everybody needs help with moving belongings between locations and therefore starting a removal business could be an ideal. However, running this business is not as easy as you think.

You can turn this business into a lucrative one in a short span because the demand for removal services is high. However, it involves some risks too. Experts suggest that you must have your business insured against damage to protect yourself and your customers.

Things you need to know before starting a removal business

This blog discusses what you need to do to start a removal company.

• Define your services

The first step is to define your removal services. For instance, you can target only individuals, businesses or both. There are various services you can choose to provide. It depends on your skills and goals whether you want to target all services or pick a few of them. In addition, you will have to assess available resources, such as the type of equipment you would like to invest in. Of course, it depends on the services you choose.

• As a home removal company, you will be responsible for moving furniture, appliances and other goods between locations. You will need to target the size of house you want to service, geographical radius, the van size, and equipment like a harness and a sack barrow.
• As a commercial removal company, you will be providing services to businesses. However, you will be handling equipment like desks, laptops, computer chairs, and cabinets. For moving such objects, you will likely need a larger van.

There is no need to provide all services. Do the research and then figure out which will work best for you to generate profits. You can narrow down services to:

• Packing and unpacking service – you can offer this service to both individuals and companies. You will only be responsible for packing the goods for smooth transportation, ensuring that they remain undamaged until they reach their destination. To provide these services, you will only have to invest in boxes, bags, bubble wraps and tapes.
• Some removal companies only offer storage solutions, which are aimed at those who are moving to smaller houses. You will need to invest in storage facilities.
• Another service you can target is waste removal. This includes clearing scrap material and collecting damaged furniture.

Pick a service based on the location and the demand.

• Evaluate investments

You will need to buy some equipment in order to provide removal services. This includes a van, protective material and tools. The size of a van completely depends on the size of households and businesses to which you are offering services. You might have to invest in more than one van. Even if you purchase a second-hand van, the minimum cost is about £5,000.

Do not forget to calculate the cost of a loan if you want to finance it. You can easily cover the cost of a car with bad credit business startup loans with guaranteed approval. While using a loan, you must calculate the total cost of the debt. It will cost you more money because of interest payments. Make sure that you will not struggle to keep up with payments.

• Determine your prices

The next thing you need to do is to determine the prices of your services. This is the toughest job because overpricing will result in increasing business losses, and underpricing will result in compromised profits. You will have to do research on the market to assess prices charged by your competitors.

Various factors influence the determination of prices. For instance, the service for a big house will be more expensive than that for a small house. The prices vary by location, too. Do proper research and compare prices offering similar removal services to charge competitive yet affordable prices.

• Register your business

The next step is to register your business. Registration is essential because it helps you protect yourself from financial and legal problems which you could face down the line if something goes wrong. Here are the benefits of registering your business as a limited liability company:

• With a limited liability company, you will be responsible only for the unpaid value of your shares.
• Your company will be legally protected. No one would be able to run a removal business using your company’s name.
• It increases credibility. Most lenders would like to take this factor into account while approving a loan for your business.
• You will be able to pay corporate taxes, which are generally lower than income tax.

You should start the registration process before you start running your removal business.

• Insure your removal business

The next step is to get your business insured to protect yourself against the risk. For instance, get public liability insurance that protects your business against the cost of compensation in case of damage to items while moving. In addition, you will also need:

• Good in transit insurance – this protects goods in transit against damage, loss and theft during loading and unloading. However, it only covers items that were available during the transit.
• Van insurance – this insurance is aimed at insuring your van. It will protect you from the loss as a result of theft of your van.

It is always suggested that you carefully research the market and compare prices. Insurance quotes differ from company to company. There are various online websites that enable you to compare deals. Choose the insurance company carefully.

• Invest in marketing and promotion of your business

Once you have made all the arrangements, you need to start promoting your business. Unless you inform people of your presence, they will not know about your business. It is not necessary to invest in traditional marketing methods such as TV commercials and radio advertisements. Take advantage of internet marketing.

• You should build a website. Make sure that you mention all services along with the contact us and about us pages.
• Choose a logo and tagline that will remain the same across all communication platforms. This will help people memorise your business.
• Create a business profile on Google where you will share all details from your company’s name to contact number, working hours and address. This will help you get those customers who find your business by making online queries.
• Maintain your presence on social media platforms. Provide engaging content to your users. This will help boost your brand identity.

If you need money to invest in marketing for your business, try considering the best UK finance brokers for a removal business, as they will arrange a suitable lender whose criteria match your needs.

The bottom line

Starting a removal business can be overwhelming, but if you have a proper business plan, you will be able to smoothly operate it. Set your goals, choose services you want to offer, and do research to evaluate whether your business is likely to be successful.