According to the U.S. Census Bureau, about one out of every nine people in the United States moved between 2013 and 2014. They said that the moving rate remains stable around 11 or 12 percent of the population each year. This creates a significant demand for moving services. If you are thinking of buying a moving franchise, these are some of the top points to consider.
Advantages Of Operating A Moving Franchise
You are operating under a trusted name. Since there are many moving service scams and con artists offering their own services, many people do not trust unknown names or individuals. They immediately look to established chains that they know operate across the country. This gives you an immediate advantage from the minute your doors open.
You are offering a necessary service. Moving services are becoming more common as people are paying more for medical care and health insurance. The risks of getting injured and paying thousands to work hard pale in comparison with the cost of hiring a professional moving company.
You have plenty of franchising choices. There are a wide variety of franchise-based moving services. If you want to deal with long-distance moves or prefer to just stay local or regional, you have your pick of popular companies. Also, the variety of choices gives you more chances to pick a franchise with a business model that meets your preferences.
Disadvantages Of Operating A Moving Franchise
Insurance and liability issues may be messy. If you opt for a local moving franchise, your insurance and liability issues are minimized. However, issues arise when you offer long-distance moving services that cross state lines. You will need additional liability provisions. Some companies opt to package items and ship them for long distances. Be sure to read the moving procedures and insurance requirements for any potential franchise choices.
Your operating costs can fluctuate. Since oil prices rise and fall considerably from one year to the next, your operating costs change. You can pass on the costs for higher gas prices to customers. However, your business may start to suffer in a tough economy if you do not have innovative solutions. Greener moving options and fuel-efficient vehicles can help. Look for a franchise with such solutions.
You still have to advertise. If you were hoping to open your doors and never advertise, your business will suffer. Other moving companies and franchises provide some stiff competition. You have to convey the value of your services to your market in terms that make sense to them. Also, you have to use social media and other platforms to attract and engage people in nearby communities.
If you are willing to put in the work and find a business model that meets your needs, a moving company may be better for you than other types of franchises. Always research a specific franchise’s annual earning requirements before you invest in a space or an existing business.