How to start a moving business: 10 steps for success

Published Thursday 18 December 2025

Table of contents

• Why start a moving company?
• Moving company pros and cons
• 10 steps for starting a successful moving business
• Start your moving business with confidence
• FAQs on starting a moving company

Key takeaways

• Develop a comprehensive business plan that includes your target market analysis, competitive research, and financial projections to establish a clear roadmap for your moving company's success.
• Register your business properly by choosing the appropriate legal structure, obtaining all required licenses and permits at provincial and local levels, and securing essential insurance coverage including commercial auto and liability protection.
• Calculate your total startup costs accurately, including equipment, vehicles, insurance, and ongoing operational expenses, then set competitive pricing that covers all costs while ensuring profitable margins of 10-15%.
• Build a strong brand presence through professional marketing materials, an optimized website, and targeted customer acquisition strategies that leverage both digital platforms and local networking opportunities.

Why start a moving company?

A moving business offers several compelling advantages:

• Be your own boss: Control your schedule and business decisions
• Low startup requirements: Start with just one truck or van
• High profit potential: Especially for those with industry experience
• Flexible operations: Choose your service area and customer types

Important considerations to starting your own moving company:

• Legal requirements: Provincial registration, permits, and licenses are mandatory
• Startup costs: Equipment, marketing, and operational expenses add up quickly
• Ongoing challenges: Stress and hard work are part of business ownership

To succeed, you need more than driving skills; you also need solid planning and to meet all legal requirements.

Moving company pros and cons

Moving company ownership offers significant opportunities but also presents real challenges. Understanding both sides helps you make an informed decision.

Advantages of starting a moving company

High market demand:

• Consistent need: People and businesses always need moving services
• Growing market: Population mobility drives steady demand
• Recession-resistant: Essential service even during economic downturns

Low barriers to entry:

• Minimal startup requirements: Start with one truck or van
• Flexible investment: Scale equipment based on budget
• Simple business model: Straightforward service offering

Profit potential:

• Good margins: average profit margins between 10 % and 15 %
• Cash business: Many customers pay immediately
• Growth opportunities: Expand services and service areas

Disadvantages of starting a moving company:

Physical demands:

• Heavy labour: Physically demanding work
• Injury risk: Higher chance of workplace injuries
• Seasonal fluctuations: Busier summers, slower winters

Operational challenges:

• Equipment costs: Trucks and tools require significant investment
• Maintenance expenses: Vehicle upkeep and repairs
• Insurance requirements: High liability and commercial coverage needed

Competition and market factors:

• Established competitors: Compete against well-known national chains
• Price pressure: Customers often choose lowest bidder
• Reputation dependence: Bad reviews can significantly impact business

10 steps for starting a successful moving business

Give yourself the best chance of success by setting a clear vision for your business and how you want to run it. Follow these 10 steps to start a successful moving business:

1. Develop a business plan

A business plan is your roadmap for starting and running a successful moving company. It identifies your business needs and helps you tackle challenges before they become problems.

Essential business plan components

Executive summary: The most critical section that captures your entire business vision.It must include:

• Company vision and goals: Your long-term objectives
• Achievement strategies: How you'll reach your goals
• Market need: Why customers need your services
• Financial potential: Expected revenue and profitability

Company overview: Define your specific moving services and target market.

Local moving companies:

• Service area: 25-100 miles from headquarters
• Benefits: Lower startup costs, fewer employees needed
• Licensing: Simpler permit requirements within one province
• Focus options: Commercial moves (businesses) or residential moves (families)

Specialty service movers:

• Services: Niche moving for valuable items
• Examples: Art, pianos, antiques, fragile goods
• Benefits: Higher profit margins, less competition

Required analyzes

Industry analysis:

• Purpose: Examine the moving industry and identify growth opportunities
• Focus: Market trends, demand patterns, seasonal fluctuations

Customer analysis:

• Target identification: Define your ideal customers
• Reach strategy: How you'll find and attract them
• Needs assessment: What problems you'll solve for them

Competitive analysis:

• Competitor research: Identify other moving companies serving your target market
• Competitive advantage: Develop your unique selling point (USP)
• Differentiation strategy: How you'll stand out from competitors

Operations and financial planning:

• Business goals: Your objectives as a professional mover
• Achievement methods: Specific steps to reach your goals
• Funding strategy: How you'll finance startup costs

2. Choose your business structure

Business structure determines your legal entity type and affects taxes, liability, and operations. Choose the right structure before registering your moving company:

• Sole proprietorship: You can go into business as a sole proprietor, without forming a separate legal entity, if you own the entire business. However, if you are a sole proprietor, your personal assets may not be protected in case of a lawsuit. You may work under your own name or file for a DBA (doing business as) if you want to name your company something else.
• Partnership: This is a business with ownership shared by at least two people. In a partnership agreement, it's important to define profit share and startup contributions (money, assets, time) to avoid future conflicts. Like sole proprietors, partnerships have no legal protection, and personal assets may be at risk. For tax, the partner's share of income is reported on their personal income tax return.
• Corporation: This type of entity provides legal separation from its owner, providing some protection from financial and legal issues. In most cases, incorporation is done through the province where a business is based, though larger national or international companies typically incorporate federally, which is more expensive. Corporations pay less tax, and you can raise money by selling shares. However, your operational costs will be higher than a partnership or sole proprietorship, you will have to submit regular paperwork to the authorities, and you will generally have to pay their taxes in monthly or quarterly instalments.
• Franchise: When you buy a franchise, you will have to form your own business. You may be able to choose your own structure, but this will depend on the franchisor. Many franchises are required to form a corporation and set up in a specific way to meet the needs of the franchise.

3. Register for taxes

To pay tax, you'll need to register with the Canada Revenue Agency (CRA), noting that as of November 3, 2025, the CRA will no longer accept registrations by phone. You may also have to pay provincial and federal sales tax. Some provinces automatically send you a business number and tax account when registering. For instance, when incorporating in provinces like Alberta, BC, or Ontario, your business will automatically be assigned a business number and corporation income tax program account. Others do not.

4. Apply for a business licence

Business licensing is legally required for moving companies. You must register with multiple government levels and obtain specific permits.

Required steps:

• Provincial registration:Register your business entity
• Local permits: Obtain city or municipal licenses
• Federal requirements: Meet national transportation regulations
• Multi-provincial permits: Required if moving across provincial borders
• Commercial driver's licence (CDL): required if you drive commercial vehicles

5. Determine startup costs and equipment needed

Startup costs include all expenses needed to launch your moving business. Equipment represents your largest initial investment:

• Vehicles: Pickup truck, van, or moving truck
• Moving tools: Dollies, ramps, tie-down straps
• Packing supplies: Boxes (preferably branded), blankets, rope, packing materials

Ongoing expenses you'll need to account for include:

• Vehicle maintenance: Regular servicing and repairs
• Insurance: Commercial vehicle and liability coverage
• Location costs: Storage facility or office space

Once you've worked out your startup costs, you need to decide how you will fund them. Some common financing options are:

• personal savings
• credit card
• family and friends
• small business loan

6. Define your target market

Your target market depends on the unique selling proposition (USP) that you included in your business plan. To narrow it down further, ask yourself:

• what type of services you will offer
• which locations and types of customers (commercial or residential) you want to serve
• what sets your services apart from other moving companies with the same target market

Understanding your USP and target market is necessary for obtaining and keeping your customers. You need that information to market your brand effectively.

7. Set your prices

Pricing strategy requires understanding both competitor rates and your own costs to ensure profitability.

Pricing research steps:

• Competitor analysis: Research local moving company rates
• Cost calculation: Determine your total operating expenses
• Profit margin: Set rates that cover costs plus desired profit

Key cost factors:

• Labour: Employee wages and benefits
• Operations: Daily running costs, fuel, maintenance
• Fixed costs: Insurance, taxes, licensing fees
• Variable costs: Equipment repairs, marketing expenses

After calculating your expenses and investigating competitor pricing, decide how to price your services. Common methods used by moving companies to determine their prices are:

• charging a minimum fee, to ensure you still make a profit for smaller jobs
• charging by the hour or by the mile
• a combination of weight and mileage

8. Develop a marketing plan and build your brand

Marketing and branding helps customers find and trust your moving business.

Brand development essentials:

• Company name: Choose a memorable, available name
• Domain availability: Secure matching website address
• Professional logo: Create recognizable visual identity
• Online presence: Build trust through professional website

Customer acquisition strategies:

• Customer reviews: Display testimonials prominently
• SEO strategy: Optimize website for local search
• Social media: Target different demographics on appropriate platforms

Social media is another effective way to reach your target market. You can use several social media platforms to market to several types of customers. For example, Facebook and Instagram can help you reach Gen X and Millennials, and TikTok is a good way to reach Gen Z customers. Other common channels for marketing that can drive business include:

• word-of-mouth referrals
• business cards
• newspaper and/or radio ads
• professional organizations such as the Canadian Trucking Association
• a Google business profile
• local business directories

9. Open a business bank account

To keep your company's finances separate from your own, a business bank account is essential. It makes things easier when filing your taxes. Plus, it's helpful if you want to eventually open a company credit card or take out a business loan.

10. Get business insurance

A business insurance policy is essential for most small business owners. You may need commercial auto insurance for your moving vehicle, cargo insurance to cover damaged or lost shipments, workers' compensation for potential employee injuries, and general liability insurance or a business owner's policy, too.

Insurance requirements can vary from province to province. Even if it's not required by law, it's a smart move to consider insurance coverage when starting your own moving company. When in doubt, consult with a lawyer.

Start your moving business with confidence

Starting a successful moving company requires careful planning, proper preparation, and the right tools. By following these steps, you'll build a solid foundation for long-term success.

Managing your finances is crucial for moving business success. Track expenses, monitor cash flow, and maintain accurate records from day one. Xero's accounting software simplifies these tasks, giving you more time to focus on growing your business. Try Xero for free.

FAQs on starting a moving company

Starting a moving business involves many considerations. Here are answers to the most common questions.

What is the average profit of a moving company?

Moving companies typically achieve profit margins between 10 % and 15 %. Your actual profitability depends on operational efficiency, pricing strategy, and local market conditions.

Where do movers make the most money?

Movers earn the highest profits in urban areas with high population density and frequent relocations. Cities with growing populations, military bases, and corporate headquarters offer the best opportunities.

How much does it cost to start a moving business?

Startup costs typically range from $10,000-$50,000, depending on equipment choices. This includes a truck or van ($15,000-$30,000), moving equipment ($2,000-$5,000), insurance ($2,000-$5,000 annually), and licensing fees ($500-$2,000).

Do I need a commercial driver's license to start a moving company?

You need a CDL if you'll drive vehicles over 26,000 pounds gross weight. Many moving businesses start with smaller trucks that don't require a CDL, then upgrade as they grow.

What insurance do I need for a moving business?

Essential coverage includes commercial auto insurance, general liability insurance, cargo insurance, and workers' compensation. Annual costs typically range from $5,000-$15,000 depending on coverage levels and business size.