Mary Ellen Sheets started with a $350 used step van. She quit her job as a data processor and cashed in her retirement savings to run the moving company her sons had started. "It took the company three years to become profitable," and her son remembers that "she lived on ramen noodles."
When she made her first $1,000, she wrote ten checks of $100 each and gave them to nonprofits in Lansing. Two Men and a Truck went on to more than 350 franchise locations and over $400 million in revenue in 2018 (Transport Topics).
Three years to profit. That's the part most business plans skip. A good moving company plan isn't a 40 page document for a drawer. It answers three questions: how many moves do I need to cover my costs, where will those moves come from, and how long can I last until they do. Below is a calculator for the first question and a one page template for the rest.
What Makes A Moving Plan Different
Seasons
Summer is the busy season and winter is slow. A plan with the same revenue every month hasn't lived through a January. Plan your slow months first, because that's where cash runs out.
Labor on every job
Every move costs crew hours. Price per move only means something after you subtract what the crew costs to do it.
Fixed costs that never stop
Truck payments, insurance, software and marketing are due whether you move ten families this month or two.
Rules that cost money
Licenses, insurance minimums and paperwork depend on where you operate. Our how to start a moving company guide has a license finder for every state.
Break Even Calculator
The defaults are only an example. Put in your own numbers, including a salary for yourself, because a plan that only works if the owner works for free doesn't work.
Put your break even number on the wall. Then check it against your booking calendar every Monday. If you're below it for two weeks in a row, you know long before the bank account tells you. If more moves is the answer, start with how to get moving leads.
The One Page Plan
Answer each of these in a few lines. If you can't, that's the part of the business to work on before you spend money.
The cities and zip codes you cover, and the customers you want most: apartments, families, seniors, offices.
Your services, how you price them (hourly or flat), and your average move.
The movers in Google's map results for your city. Their ratings, review counts and prices if they show them. Where can you be better?
One sentence. The promise you can keep on every job.
Your channels, what each costs per month, and how many leads you expect from each.
Trucks, crews, licenses, insurance and the software you'll use.
Price per move, cost per move, fixed costs, break even moves per month, and the cash cushion for slow months.
What has to be true after 90 days, and after the first year.
A slow season, a crew member who quits, a damage claim, a truck that breaks down. What will you do?
When You Need The Long Version
If you're asking a bank or an investor for money, they'll want more detail: startup costs, monthly profit and loss, cash flow and projections for a few years. The US Small Business Administration explains the two common formats, a traditional business plan and a shorter lean startup plan, and what goes in each (SBA). Your one page plan becomes the summary, and the calculator numbers become the start of your financial section.
Two things that make a moving plan believable to a lender: month by month numbers that show the slow season, and a marketing plan with real channels and costs, not "word of mouth." Our marketing budget guide helps with the second, and the software comparison covers a line item most first plans forget.
FAQ
How do I write a business plan for a moving company?
Start with one page: who you serve and where, what you sell and your prices, your competition, why customers will pick you, how they will find you, how you will run the jobs, your numbers, milestones and risks. If you need a loan, expand it into a full plan with startup costs, monthly profit and loss, cash flow and projections.
How many moves does a moving company need to break even?
Divide your fixed monthly costs by what you keep per move after crew labor, fuel, supplies and card fees. For example, $8,400 in fixed costs and $729 kept per move means 12 moves a month. Use the calculator in this guide with your own numbers, and include your own pay.
Are moving companies profitable?
They can be, but it depends on pricing, labor costs and how many moves you book, especially in the slow season. Two Men and a Truck's founder said it took the company three years to become profitable. Plan your cash for the slow months before you count on the busy ones.
What should a moving company business plan include for a bank loan?
Lenders usually want a summary, your market and competitors, services and pricing, operations, a marketing plan, startup costs, monthly profit and loss, cash flow and a few years of projections. The SBA explains the traditional and lean startup formats on its website.
How much should I pay myself in a moving company business plan?
Include a real salary for yourself in your fixed costs from the start. A plan that only works if the owner works for free hides how many moves you really need each month.
How do I plan for the slow season?
Plan month by month instead of using one average. Estimate your moves in a slow month, see what you lose or make, and keep a cash cushion for the length of your slow season. Use slow months for marketing that pays off later, like reviews, SEO and partner relationships.
Goran is co-founder of Move Accelerator, a marketing agency that works only with moving and junk removal companies. Before marketing, he spent 10 years in customer service, which taught him that a business only works when the numbers and the customer experience both add up. He writes about what's working for movers right now, including the parts most agencies keep quiet.
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