How To Start a Moving Company Business Philippines

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Starting a moving company business in the Philippines is a great idea for the right entrepreneur in the right location. Still, the question we will address today is exactly how you begin and start a moving company business in the Philippines as a beginner?

Today’s article will break down these stages and go through some important information, such as the costs of starting a moving company business in the Philippines. So, let’s explore this business in more detail.

Start A Moving Company Business In The Philippines

1. Create Your Moving Company Business Plan

Individuals who wish to start a moving company business will need to make a business plan regardless of the size of their moving company. This will guide you on how to start a moving company business in the Philippines and take care of all the small details.

Since you are just starting this business, a business plan can help you avoid making grave mistakes (especially financial ones). This can also determine how the business can stand out from the rest. Here are some of the elements you can include in your business plan:

• Name of the business
• Target market
• Short-and long-term goals for business development
• Priorities and potential opportunities 
• Problems that can arise and what actions to take
• Budget for resources and marketing

Filipino wealth has a free downloadable business template for the Philippines, which can be downloaded directly onto your phone or PC by clicking on the business plan at the top of this page.

2. Find A Suitable Location

Aspiring business owners need to find a big enough area to park, maintain, and repair moving vehicles. Even though a big office is not needed, owners will need an office for operating the business. It is best to have a waiting room for clients and quarters for drivers to rest. 

If you plan to work on your own first, you can get a space big enough to park your vehicles. Leased commercial space is more affordable if you have a lot of vehicles.

Aspiring moving company owners should choose an area with good water access to clean the vehicles. Securing a warehouse is an important consideration if you plan to provide storage space for your clients. This will help protect your clients’ valuable items (and can be a great extra service / extra income).

Another tip in picking the right location is looking for easy-moving vehicles to get to. It is also best to inquire your local city government if there are policies about where moving vehicles can or cannot be kept. 

3. Purchase Moving Vehicles

The right equipment is crucial on how to start a moving company business in the Philippines. The size of the moving vehicles depends on the services you want to offer.

Furthermore, your preferred vehicles should protect your clients’ items from different elements such as rain. This is more important if you are planning to offer long-distance moves. A ramp also makes it easier to transport items in and out of the vehicles. 

Those who do not have a vehicle can consider purchasing one from an online dealership such as JMC. You can also try searching on Facebook Marketplace. It is also recommended to have the name of your company on the side of your vehicle.

Not only will it make your vehicle look more professional, but it also serves as an advertisement. Aspiring moving company owners also need smaller items to protect items from external elements during transport.

Considering the pricing of packing items such as boxes is also important if you plan to offer package kits to your clients.

4. Obtain All the Required Permits and Licenses

Depending on where the business will operate, there can be different requirements. Therefore, it is best to visit your city’s official website to see the complete list of requirements from the Department of Transportation. However, here are some of the necessary business registration aspiring moving company owners need to start their business:

• Business Registration With DTI Or SEC
• Taxpayer Registration In BIR For Business’ Tax ID
• A Business Permit From The Local Government 

5. Get Business Insurance

One of the most important responsibilities of moving company owners is obtaining insurance. This provides coverage for the owners and their drivers, trucks, and their clients’ valuables. It is recommended to reach out to many insurance agents to get the best offer. 

Some of the insurance needed on how to start a moving company business in the Philippines are general liability insurance, employer’s liability insurance if there are workers, and commercial auto insurance. 

6. Create A Moving Company Website

Though making a website is important when looking at how to start a moving company business in the Philippines, some are worried about it since they do not have experience building a website. Nevertheless, because of the significant developments in technology, it is now easier for new businesses. 

Feel free to take a look at our guide on how to start a blog in the Philippines and the best web hosting providers in the Philippines for some more details on starting a website effectively.

A website is important for all businesses, regardless of their industry or size. About 71% of small businesses have a website. Some may have the idea that social media accounts such as Facebook or Instagram are enough. However, these cannot replace having a business website. 

Creating a website is made simple because of website builders such as Wix. Those who do not have enough budget to hire a web developer can use one. 

The website can include images of hardworking employees who are packing, loading, or delivering items. Details about the different services you offer and your destinations are also indicated on your site.

If you have related certifications and licenses, you can also put them. It is also recommended to have a moving checklist page so that potential clients will have an idea of what to prepare.

Later on, we will be exploring how you can earn more money from a moving company business in the Philippines, which also has a lot to do with your general website and the development of the business.

7. Hire Your New Employees

Not only are strong bodies needed in a moving company business but also brains. Starting moving companies can operate with a few reliable employees. They can start with just 1 or 2 employees. Aspiring moving company owners can hire one person if they plan to do most of the work themselves. More employees will likely be needed as the business expands. 

Depending on the business’ needs, they can hire full-time, part-time, or seasonal employees. You can post on Facebook communities, your social media account, or job posting sites such as Kalibrr to find employees.

Aspiring moving company owners should also not forget to consider hiring staff for office tasks such as taking phone calls or bookkeeping. 

Another thing to remember when hiring employees is the responsibilities such as benefits and payroll. An important tip is to hire carefully. Being honest with what the business requires is important, and making sure that they agree with that.

Aspiring owners of this kind of business need to do background checks since their employees will be handling valuables from their clients’ homes. Safety is a must.

While we are on the subject of safety, it is best to purchase the right equipment for your staff to do their work effectively and safely. These can include safety belts for heavy lifts or personal protective footwear, for example.

8. Decide on the Pricing Structure

People who plan to start a moving company business need to determine their pricing structure before advertising their services. Many factors can be considered for this, such as distance, the number of items, weight, or hours. 

When they compute their rates, they need to consider the expenses to be covered before making a profit. These expenses are packing materials, the salary of employees, maintenance of the trucks, marketing, and insurance. The costing also includes the need to buy trucks. 

Another thing to remember is to know what particular services they will provide. For instance, not all moving companies in the Philippines offer packing services. Therefore, to know how much you need to spend on offering this service, you must calculate how much you will charge for it.

Furthermore, competition is another in creating a pricing structure. It can help to charge less compared to your competition if you have just started in the industry. 

But how does a small moving company in the Philippines go against some of those big giants? The best way is to niche down. Become a leader in your niche; this is one of the best ways to build a small business with heavy competition in the Philippines.

9. Market Your moving company Business

You can start marketing your moving company business with your friends. One of the simplest ways to launch your business is to help people (friends and family) when they need to move.

In other words, check your social media to see if any of your friends posted about moving, and offering help can help start your business. They will likely recommend your services if you can give excellent service to them. 

One thing I learned in the business world in the Philippines is that, in the majority of cases (depending on the industry), it is not what you know but who you know that is important.

You can also distribute business cards and flyers in your area and at public events. Giving these promotional materials to businesses such as furniture stores and asking them to refer your services to their customers is also a good idea. One thing to remember is to make sure that your business name is professional and consistent in all your materials. 

Aside from going to local events, you can increase the visibility of your business by volunteering through the use of your vehicles. For example, aspiring moving company business owners can network with realtors in their area or an employee from apartments. 

Another way to market a moving company business in the Philippines is through paid advertising. Depending on the target audience and budget, there are many ways to advertise. For instance, since many browse Facebook, placing a paid advertisement can help boost the presence of your business. 

Costs of Starting a Moving Company Business in the Philippines

The initial costs of starting a moving company business in the Philippines can be somewhat high. A truck or a van should be the first investment and a few basic items. The initial capital can be around P2,300,000.

This is a sample breakdown of starting a moving company in the Philippines

• 2 Trucks- Php 1,600,000 (2020 Hyundai H-100)
• Permits And Licenses- Php 7,000 To Php 14,000
• Insurance- Around Php 30,000 Every Year
• Operational Costs (E.G., Salaries Of Employees, Bills, Truck Maintenance) For The First 3 Months- Php 500,000
• A Building Lease If You Have An Office- Php 35,000 To Php 40,000 Every Month
• Items And Equipment (E.G., Dollies, Boxes, Computer, Etc.)- Php 60,000

Although starting a moving company business in the Philippines for much less is possible, some mandatory items push up the budget, such as insurance, operational costs, and personal protective equipment.

The vehicles are some of the most expensive expenses; thus, if these have already been purchased, starting a small moving company business in the Philippines can be started for around P600,000.

In general, the cost can differ depending on the size, offered services, and location. However, all in all, to start a moving company business in the Philippines, a capital of P2,000,000 will be required.

How to make more money as a Moving Company Business

There are several different ways a moving company business can earn more money. So let’s go through a few common methods.

The first is through adding a blog onto your website. not only will this improve your search engine optimization, but you can also bring in new customers through this method. Additionally, you can also add advertisements to this blog so that you can earn additional streams of income from your traffic.

You can also take to Youtube and share your content with a brand new audience. There is a growing trend on YouTube and other platforms of seeing how businesses work. People like to see behind the curtain and see how things are done, so this may be a great idea for your business when starting a moving company business in the Philippines.

Next, we move on to storage. If there is an emergency or if a customer of yours needs to leave that house in a rush, the option of storage is a high extra income for moving company businesses.

Moving companies also grow to the stage of offering overseas moves and even transporting different types of vehicles. You can even start to work with businesses that often work best for a long-term income.

Lastly, one of the best ways to earn extra money as a moving company business is to specialize in a certain niche to become a leader in that niche. For example, how about moving rare artifacts and national treasures?