The moving and storage industry in the United States of America is huge. As per the stats, over 42 million families hire one or another moving company to help them relocate. For businesses aiming to be one of the best coast-to-coast moving companies associated with networks like Moving Feedback, you must act smart and in a strategic manner. This makes the competition equally tougher as the huge demand attracts a lot of business enthusiasts to enter this field.
Now, running a moving company is not an easy job; to ensure the right cash flow, one must make smart moves. This post is all about bringing efficiency to your management to ensure the right cash flow in the company.
We are sharing some tips for moving service providers to manage their operations and make profits at the end of the day. If this sounds like what you want, then you should continue reading!
Tips to Help You Improve Profitability of Your Moving Business
#1: Get a moving truck on lease
If you are just starting your business or planning to expand, leasing a moving truck is one of the wisest decisions to make. A moving truck is one of the most important assets for a moving company. However tempting the idea may be, buying a new truck is not always a favorable decision. Instead, lease a truck to manage your expenses.
Now, how does it make sense? Wouldn’t it block a considerable amount of your revenues? Well, it would but then again, when it is off-season, you will not have to worry about any maintenance charges or related costs. This means when the off-season hits, you will have limited expenditure to manage.
But, as aforesaid, this strategy works only for those who are new to the business. Once you become a brand and get more business, you must invest in your fleet and live up to the expectation of your customers. Moving service clients trust moving companies with their fleet more than their counterparts.
#2: Work with part-time employees
Another smart way to save money and put your cash into other important investments is by choosing part-time employees over a full-time workforce. As a small business, it is wise to work with part-time employees. Having a large payroll does not suit your operation scale, and additionally, when it is the off-season, you will have a large sum to disburse as salaries to the full-time staff.
With part-time employees, you can easily lay them off when the need is not there. There are several credible moving businesses in America that follow this model and make money.
However, it is important to note that moving service clients trust movers who have a permanent workforce. This gives them assurance that the movers handling their valuables are checked and verified by the company and not some random temp employee. Hence, once you have built your base, it is best to go forward with full-time employees.
#3: Build networks and nurture it
Building a network with real estate agents and building managers is very important as they can offer you quality leads. People searching for a new house or moving out of a building would come in contact with these parties, and they can refer you as a credible and affordable moving company. Referrals are your way to survive in the stiff competition the moving industry today experiences.
Despite the fact that you will have to pay a commission on each referral, you will get to expand the number of projects handle and earn higher revenue. Moreover, with more projects handled, you will; be one of the experienced movers around and hence a preferred choice for moving service clients.
#4: Have a short receivables period
A short receivable period has a great impact on the cash flow, and you can experience the rise all by yourself. To avoid a long receivable period, it is important to have a smooth and clear contract with your employees, ensuring that all the terms & conditions are clear to them. The better your c customers understand the contract, the quicker they will pay you, and you will be free to take up the next project.
In addition to a shorter receivable period, you must also enhance your involvement system. Accuracy and efficiency are two important factors in deciding the time it takes for the customer to receive the bill and make the payment against it.
You can also choose to get the payment in advance, so you must first become one of the most trusted companies offering moving services. No one wants to pay in advance to a newbie and then end up getting poor services.
#5: Use credit card but be wise
Using an electronic method to pay will help you a lot. You will be able to make payments on credit which means you will have time to pay it off, and the money can be used for operational cash flow requirements.
It is very important to note that while using a credit card, never cross your limits and know where to stop. A credit card is a powerful financial tool when used appropriately. However, it can also cause you hefty losses.
#6: Market your business right
Last but not least, taking the right approach to marketing can help you make maximum profits. As a new company, you need to make your name big and recognizable among your target audience. By using both conventional and modern digital modes to advertise, you must make your company a household name and ensure that the next time someone needs movers for their house moving requirements, they think of you and no one else.
The better you promote your company, the more customers will believe in you and choose you when it comes to hiring a mover.
For advertisements, you can choose flyers, advertisements in newspapers, wrap on vehicles, and digital marketing, including social media marketing, email marketing, SMS marketing, and more.
On top of all, offer high-quality and reliable services to ensure you have returning customers. In the moving service industry, customers are looking for more reliable and professional businesses than ever; the mushroom growth of movers has increased the chances of moving service scams, and hence trusting any random company is least preferred by the clients. Offer moving services of all types but make sure you do justice in every project you undertake.
Follow the above-mentioned tips and get started to have a booming moving service company in 2022. Once you have made yourself known, it is time to move ahead and start finding ways to expand your business. Are you ready to become the best moving business in 2022?
