(+1) 9784800910, (+44) 020 3097 1639 [email protected]
Select Page

If you are planning to write the Moving Company business plan on your own, then this sample Moving Company business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!  

Executive Summary

Overview: We at Xpress Movers are a Boston-based full-service Licensed and bonded moving company covering the United States and Canada. We create value and strive for greatness by relying on our clients’ pleasure and continuously high-quality services to propel us forward. We are sure that giving you the most excellent moving experience will leave you happy and inspire you to start a new chapter in your life

Mission: Our mission is to welcome each client with a cheerful smile and do all possible to meet their moving requirements.

Vision: Our vision is to become a customer-focused firm that provides the most excellent possible service to all of our customers.

Industry Overview: The expansion of real estate agents is the primary element driving development in the US moving services industry. The improvement in the real estate situation in the United States from 2010 to 2016 has fueled the rise of relocation services. Existing house sales grew by $4.45 billion to $5.56 billion in 2016, up from $4.45 billion in 2010. This is due to high hiring and job sales in the United States. The entire housing market is predicted to increase moderately quickly during the projection period. The market for relocation services will be driven by an increase in buyer interest, improved credit rates, and an overabundance of transactions. Buyers are investing in properties with the help of affordable housing loans, which would boost the US real estate industry. Low mortgage rates, population expansion, and increased buyer interest increase demand for available property.

Financial Overview

Moving Company business plan financial overview

Financials is one of the most important sections of a Moving Company business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.

Financial Highlights

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

FUND USAGE

Moving Company investment Capex

Industry Analysis

The industry analysis section of the Moving Company business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your Moving Company business.

According to Technavio, the moving services market in the United States is expected to increase by USD 1.95 billion between 2019 and 2024, with a CAGR of 2%. The residential segment’s market share rise will be essential for revenue creation in the United States. People are increasingly renting outhouses as the number of home purchasers declines. Furthermore, rising property prices are causing individuals to relocate from high-cost locations such as California, Arizona, and Colorado to lower-cost cities such as Texas, Massachusetts, and North Carolina.

However, during the projection period, the high prices associated with relocation services will significantly threaten the US moving services market. Relocation costs a lot of money, whether it’s a residential or business move. When a relocation service operator is employed to do the task, it costs considerably more. Even though relocation services offer an estimate for moving, the final cost numbers are always 35 percent to 40% more than the predicted cost. Furthermore, equipment/personnel possessions that are damaged incur additional expenditures. This is primarily a worry for businesses since any damage to the facility during the move process might result in higher lease costs. Clients anticipate that transferring across states would cost roughly USD4,000-USD4,800, and moving interstate will cost around USD800-USD900. However, the average cost of relocating interstate for business and residential services is between USD 1,150 and USD 2,500. Moving across states is about USD5,300-USD6,000, or around 35% higher than the anticipated cost.

In the United States, the moving services industry is fragmented, and providers compete by using organic and inorganic expansion techniques. Some of the key players in the industry are AGS Worldwide Movers, ArcBest Corp., Armstrong Relocation and Companies, Arpin Van Lines, Atlas World Group Inc., Beltmann Relocation Group, Coleman World Group, UniGroup CA, U-Pack, and Wheaton World Wide Moving.

The COVID-19 (coronavirus) pandemic caused revenue in the Moving Services business to fall by 0.7 percent in 2020. The industry will rise 5.4 percent as the economy recovers, and movements are rebooked. During the pandemic, the industry’s profitability was harmed by increasing labor costs and increasing fuel prices in the face of poor demand. As the general economy improved in 2021, economic uncertainty will likely decrease. However, revenue growth is projected to be slowed when the housing market reaches a plateau. Despite the continuing coronavirus epidemic, the Moving Services sector has grown in the five years leading to 2021. Industry revenue is predicted to climb by 5.4 percent in 2021, outpacing reductions earlier, especially in 2020. Due to the industry’s status as a critical service, it has remained operational for the duration of the epidemic. In addition, in 2020, an increase in existing house sales and housing starts helped offset the pandemic’s revenue consequences.

About 7,000 moving firms handle roughly 14,000 sites throughout the United States, generating $86 billion in income. Professional movers are only one of several options for local, international, or long-distance relocation. This only demonstrates that the moving business is far broader than most people know, and it has a tremendous influence on the US economy and everyday life.

Small businesses are well-known as the backbone of the US economy, and the moving industry is no exception, with over half of all moving firms employing less than five people. This is another example of how the destiny of the relocation business and the migratory patterns and habits of Americans are inextricably linked to the US economy’s future and success. Hardworking movers, drivers, and packers play a significant role in facilitating migration throughout the United States. The consequences of recent technical improvements have been felt by moving firms and the industry. Those businesses that embrace technological advancements will be able to provide a more seamless relocation experience, attracting more customers and increasing profits.

Meetings, frequent calls, and interminable discussions were part of the relocation process. Clients and businesses were required to go through every element of the relocation. Relocation specialists are expected to provide high levels of efficiency these days, and the easiest way to do it is to automate recurrent and time-consuming operations. Moving firms should use virtual reality and artificial intelligence (AI) since they have the potential to transform the industry as we know it.

Number of enterprises in the moving services market

in the U.S. between 2018 and 2021

Moving Company business plan industry analysis

While working on the industry analysis section of the Moving Company business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.

Many businesses have previously incorporated a variety of high-tech advances to enhance their service quality. Those who haven’t yet will undoubtedly do so in the future, as technology makes the moving process more pleasant and efficient for both clients and professional movers. Self-booking is an example of a digital trend that many businesses use. Clients may use one of the numerous applications available to book last-minute moving services in this manner. Clients may also get real-time service updates via household item monitoring. They may use an internet app to keep track of their stuff. The customer will feel more in charge and secure in this situation.

Marketing Plan

A key part of the marketing plan in a Moving Company business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC.

Moving Company business plan promotional budget

Content Marketing Xpress Movers posts a blog on YouTube to show viewers our services.

Discounts: Create a plan allowing Xpress Movers’ regular customers to get a discount if they successfully refer a new customer.

Social Media: Posting photos and promos by Xpress Movers gain confidence from prospective customers.

 Email Marketing We create a list of subscribers and send them emails regarding Xpress Movers’ services.

Website: The material on the website of Xpress Movers is well-organized, with simple navigation that is easy to follow.

SEO (Search Engine Optimization) When a customer enters a search box, Xpress Movers wants to appear at the top of the list.

Organogram

Moving Company business plan organogram

Financial Plan

This section of the Moving Company business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.

Earnings:

Break-Even Analysis:

Moving Company business plan break-even analysis

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122