Starting my own business

[Neil-D]

Hello everyone.

I'm currently looking to set up a removals company (house moves, office moves etc) in my area as i'm fed up with my current job.

My plan is to advertise my business in the local area with leaflets and business cards, and then hire a vehicle when needed. This way i can keep my current job (6am-2pm mon-fri) and evaluate whether or not the business could work as a full time job.

I plan to get the appropriate insurances and register as self employed, i believe i need to complete a CWF1 Form to set up business as a sole trader?

Basically i want to know if i am overlooking anything, and also would welcome any advice about the removals business or general advice about starting up a new business, eg would i qualify for any type of grant?

Another concern of mine is customer payment method. I don't suppose i could ask for cash only, and don't have any means of accepting credit/debit cards so it seems i would have to take cheques. The problem then is what if the customer gives me a bad cheque? As an extremely small business to start with i couldnt afford this to happen, is there anyway round this?

I would really appreciate any help and advice

 

[Big Pete]

Hello everyone.

I'm currently looking to set up a removals company (house moves, office moves etc) in my area as i'm fed up with my current job.

My plan is to advertise my business in the local area with leaflets and business cards, and then hire a vehicle when needed. This way i can keep my current job (6am-2pm mon-fri) and evaluate whether or not the business could work as a full time job.

I plan to get the appropriate insurances and register as self employed, i believe i need to complete a CWF1 Form to set up business as a sole trader?

Basically i want to know if i am overlooking anything, and also would welcome any advice about the removals business or general advice about starting up a new business, eg would i qualify for any type of grant?

Another concern of mine is customer payment method. I don't suppose i could ask for cash only, and don't have any means of accepting credit/debit cards so it seems i would have to take cheques. The problem then is what if the customer gives me a bad cheque? As an extremely small business to start with i couldnt afford this to happen, is there anyway round this?

I would really appreciate any help and advice

Hi and welcome Neil,

Sounds definately your on the right tracks.. seem to have bases covered ok.

On the payment Cash or Cheque and get a Paypal account online somewhere and they can pay by credit card to you that way ..

go to PayPal UK and have a read ..

 

[amanda1112]

Try www.hmrc.gov.uk for advice on setting up a business. You can also download the form to register for self employment. Better make yourself a cup of tea first because you'll be on there for hours once you get into it!

Regarding only taking cash payments I think this may be a problem. You could consider using a card machine (paypal) it will tell you immediately if payment is declined. Try taking a deposit first before you go ahead and hire any vehicles as this can be costly and you will have to pay out for their insurance upfront as well as other costs. Imagine if you turned up at a customers house after paying out for this yourself only to find out that they don't have any money to pay you. That's just my 10p worth. Im sure someone else will be along soon to give more advice. Good Luck with your new venture.

Amanda
(why spend your life making someone else's dream when you can build your own!)

 

[business_pupil]

Hello,

I spent a year working for a small removals firm in London a few years ago. We also accepted payment via paypal online and I would recommend this as a safe, cheap and convenient way to take payments from clients. You should also try to build relationships with local estate/letting agents - this is what I am currently involved in and we are always looking to build relationships with reliable removals companies. Would also suggest that you don't try and compete with the 'man+van' services who will always be able to undercut you price-wise, instead highlight the superior level of service you offer -learn how to price up a job comprehensively and stick with it, if you are offering a better service then word of mouth will be your biggest marketing tool.

Good luck with it, it's definately fun and varied work if you can handle the long hours.

Leigh

 

[sellickbhoy]

gumtree seems to have loads of "man with a van" and removal company ads, so you could advertise there if there is a gumtree in your area

also, i think you mightrun into problems if people are moving a considerable distance - you won't have enough hours to pack a house up, deliver it and unpack if you don't finish work until 2pm

you'll also need a helper - you tried to lift a sofa yourself?

 

[Neil-D]

Thanks very much to everyone who's replied, very helpful.

I will look into paypal then as it seems the way to go.

Leigh, competing against the 'man and van' services is a concern i have. As you say price wise they would be able to undercut me. What should i be doing that offers the customer a superior level of service?

The only things i've considered doing so far is going round to potential customers to give quotes which i'm hoping would more likely get me jobs than quotes over the phone. Perhaps supplying packaging materials such as boxes to customers. Other than that i'm not sure what is different in the service i offer.

I have thought about trying to build relationships with local estate agents, giving them 10% commission for any jobs that come about directly from them.

Do you think lack of experience in house removals will be a huge problem or is it pretty easy to pick it up fairly quickly. I'm thinking more of the best ways to load the van to fit the most things in, and the best way of getting awkward items down a narrow staircase for example. Also i don't really know what prices to quote, although i have a fair idea about what other removals companies in the area charge. I was going to place my prices between these companies and the 'man and van' services, but not entirely sure if this is the best way to go about things.

Sellickbhoy, i would make sure any long distance moves were done on a weekend, in fact i would guess most of the work would be done on a weekend to start with. I'm expecting this wouldnt be so much of a problem as most people seem to move on a weekend when they're off work etc.

I should also have mentioned i will have another guy to help me, both of us are used to heavy physical work so that side of things shouldnt be a problem.

Thanks again guys, much appreciated

 

[Neil-D]

Thanks for the link Amanda, ive been on the site better part of the last 2 days. Great for information, the problem is sifting through what info actually applies to you, lol!

 

[Big Pete]

A Good website and logo to set the business up would be a good idea as well maybe ..
The site is down at the mo as its being rebuilt but use the bottom link to see what we offer..

 

[matt1983]

Hi

I dont know if this has already been mentioned but you can get card machines that run on the mobile network which means you can take the card machine out on jobs and take payment there and then, nearly all companies offering card machines offer these mobile versions so may be worth looking into

They work out about £30 a month

 

[Duke Fame]

Rather than Hire a van, why not ditch your current car and buy a 2nd hand Luton, paint it in a mental colour scheme and get noticed. Most people want moving at the weekend. Why not just hang out in a B&Q car-park and pick up work. Spring-time is when we all buy garden stuff that doesn't fit in the car - I for one had the police follow me when I had planks of wood sticking out of the figaro when the snow was falling!

Around our way, we have the big yellow taxi van (complete with taxi light) and LDV van man who compete for work. Everyone knows them and uses them.

 

[saxondale]

Thanks very much to everyone who's replied, very helpful.

I will look into paypal then as it seems the way to go.

Leigh, competing against the 'man and van' services is a concern i have. As you say price wise they would be able to undercut me. What should i be doing that offers the customer a superior level of service?

The only things i've considered doing so far is going round to potential customers to give quotes which i'm hoping would more likely get me jobs than quotes over the phone. Perhaps supplying packaging materials such as boxes to customers. Other than that i'm not sure what is different in the service i offer.

I have thought about trying to build relationships with local estate agents, giving them 10% commission for any jobs that come about directly from them.

Do you think lack of experience in house removals will be a huge problem or is it pretty easy to pick it up fairly quickly. I'm thinking more of the best ways to load the van to fit the most things in, and the best way of getting awkward items down a narrow staircase for example. Also i don't really know what prices to quote, although i have a fair idea about what other removals companies in the area charge. I was going to place my prices between these companies and the 'man and van' services, but not entirely sure if this is the best way to go about things.

Sellickbhoy, i would make sure any long distance moves were done on a weekend, in fact i would guess most of the work would be done on a weekend to start with. I'm expecting this wouldnt be so much of a problem as most people seem to move on a weekend when they're off work etc.

I should also have mentioned i will have another guy to help me, both of us are used to heavy physical work so that side of things shouldnt be a problem.

Thanks again guys, much appreciated

I hope your going to have very, very good trade insurance .......... your going to need it.

 

[Neil-D]

I hope your going to have very, very good trade insurance .......... your going to need it.

I will certainly have insurance, however as far as i know there shouldnt be too much of a problem as long as careful with possessions, load the van properly etc.

 

[Neil-D]

Rather than Hire a van, why not ditch your current car and buy a 2nd hand Luton, paint it in a mental colour scheme and get noticed. Most people want moving at the weekend. Why not just hang out in a B&Q car-park and pick up work. Spring-time is when we all buy garden stuff that doesn't fit in the car - I for one had the police follow me when I had planks of wood sticking out of the figaro when the snow was falling!

Around our way, we have the big yellow taxi van (complete with taxi light) and LDV van man who compete for work. Everyone knows them and uses them.

I was thinking along these lines to begin with but don't want to take the risk of it not working. I'm also leaning more towards a removal business rather than man and van service. Thanks for the idea though.

 

[Neil-D]

Hi

I dont know if this has already been mentioned but you can get card machines that run on the mobile network which means you can take the card machine out on jobs and take payment there and then, nearly all companies offering card machines offer these mobile versions so may be worth looking into

They work out about £30 a month

I will definately look into this mate thanks.

 

[HostThree]

The only problem with Paypal is that it tries to push customers to signing up for an account, whereas NOCHEX just allows you to accept payments straight away but it charges you to send the payment to your bank account (not much, it's about 25-50p I think).

You could use an accountancy software like Kashflow to send your customer invoices and it's good for keep record of all your transactions, it can be built into a website as well.

 

[Neil-D]

A Good website and logo to set the business up would be a good idea as well maybe ..
The site is down at the mo as its being rebuilt but use the bottom link to see what we offer..

Site looks very good mate, not something i'm thinking of doing from the outset but will be something i want in the future if all goes well

 

[Neil-D]

The only problem with Paypal is that it tries to push customers to signing up for an account, whereas NOCHEX just allows you to accept payments straight away but it charges you to send the payment to your bank account (not much, it's about 25-50p I think).

You could use an accountancy software like Kashflow to send your customer invoices and it's good for keep record of all your transactions, it can be built into a website as well.

Interesting to know, something else to look into, thanks mate.

 

[Duke Fame]

I was thinking along these lines to begin with but don't want to take the risk of it not working. I'm also leaning more towards a removal business rather than man and van service. Thanks for the idea though.

If I were you, I'd get a PT job with a removals co, learn a little first.

 

[Neil-D]

If I were you, I'd get a PT job with a removals co, learn a little first.

I have a few contacts who have been in the removals business for a pretty long time (10+ years), however the one who lives close to me is now in a different line of work otherwise i could have had a bit of experience working with him. The other 2 work at the other end of the country. I'm hoping their advice will be of enough help to start me off, and also advice from people on this site.

I do understand what you're saying though, and perhaps i would be better going down this route. The problem is at the moment in my area jobs are difficult to come by so i could be waiting a long time for the experience.

Out of interest have you worked in this area before? If so how did you find it?

 

[Duke Fame]

I have a few contacts who have been in the removals business for a pretty long time (10+ years), however the one who lives close to me is now in a different line of work otherwise i could have had a bit of experience working with him. The other 2 work at the other end of the country. I'm hoping their advice will be of enough help to start me off, and also advice from people on this site.

I do understand what you're saying though, and perhaps i would be better going down this route. The problem is at the moment in my area jobs are difficult to come by so i could be waiting a long time for the experience.

Out of interest have you worked in this area before? If so how did you find it?

No, I haven't, however, I had a guy do some removals for me in December. I was fairly impressed with the speed and precision they worked and the spare hand was working on a casual basis for him. I suspect if you speak with a removal business and offer to do a little extra work cash in hand, youe offer owuld be accepted

 

[Neil-D]

No, I haven't, however, I had a guy do some removals for me in December. I was fairly impressed with the speed and precision they worked and the spare hand was working on a casual basis for him. I suspect if you speak with a removal business and offer to do a little extra work cash in hand, youe offer owuld be accepted

Sounds like a sensible idea to me. I dont expect it would take too long to learn most of the ins and outs of the actual loading/unloading.

I think i could get by as i am and learn as i go along however the last thing i want to do is fvck up on a job or look unprofessional as the bad name will stick.

Again it just depends on whether or not anyone is willing to give me a job. Here in Hull everyone seems to be looking for a job, i believe unemployment is greater than nearly every other city in England.

 

[Duke Fame]

Sounds like a sensible idea to me. I dont expect it would take too long to learn most of the ins and outs of the actual loading/unloading.

I think i could get by as i am and learn as i go along however the last thing i want to do is fvck up on a job or look unprofessional as the bad name will stick.

Again it just depends on whether or not anyone is willing to give me a job. Here in Hull everyone seems to be looking for a job, i believe unemployment is greater than nearly every other city in England.

Yes, however you have some very wealthy places nearby. Beverley etc. Remember, you are doing the job to learn and you get the benfit of being paid for it. The black market is thriving, partly due to the Labour government's nannying in the legitimate sector.

 

[Neil-D]

Yes, however you have some very wealthy places nearby. Beverley etc. Remember, you are doing the job to learn and you get the benfit of being paid for it. The black market is thriving, partly due to the Labour government's nannying in the legitimate sector.

Thanks for the advice mate, makes a lot of sense.

I would also like to know the opinion of you guys and gals as to whether the removals business is viable in the current economic climate? Are people making money or are they struggling?

I know there are lots of people moving house regularly in my area as there are lots of rented property, and i'm also fairly close to some wealthy places as DF pointed out. There are quite a few man and van services as well but i wouldnt say there are too many to put me off starting a business in this area.

 

[Duke Fame]

Thanks for the advice mate, makes a lot of sense.

I would also like to know the opinion of you guys and gals as to whether the removals business is viable in the current economic climate? Are people making money or are they struggling?

I know there are lots of people moving house regularly in my area as there are lots of rented property, and i'm also fairly close to some wealthy places as DF pointed out. There are quite a few man and van services as well but i wouldnt say there are too many to put me off starting a business in this area.

Removals businesses also tend to offer storage.

 

[strikingedge]

Stick a card to a tree advertising your service....you'll be surprised by the response....not a lamp post, newsagent's window, bus, classified ad...just a tree....trust me....trees work ;-)

 

[business_pupil]

I think many people stereotype a professional removals company as being a simple manual labour service - when my experience would tell me this is far from the case (assuming you want to do this properly). To not get labelled as the traditional 'man+van' you will need to have superior knowledge of the industry. I would certainly suggest that if you don't have any specific experience in removals that you first take a part-time job, 100%.

You should have a large stock of bubble wrap, tape, boxes, plastic sheet, van ties, tool set, web straps, blankets. I could go into detail about how each of these specific items have a purpose in varied scenarios but it would go on forever. I would say little things like it all starts with proper packaging, bubble wrap is not effective protection for a standard picture frame, load+tie large items first, constantly strive to preserve neat staking (cant emphasize this one enough), always consider the weather on moving date, always unbolt furniture if stairs are involved, never leave contents in drawers, always think about the laden weight of the van to avoid the dreaded VOSA on long distances.

You will need to understand the export process if you want to secure the jobs that the 'man+van' is not going to be able to deal with. When it comes to quotations i think you may have underestimated it, here are some more points: there is no such thing as a standard house or a standard householder (each job/price should be tailored) consider 'collectors' or 'hoarders', gardens, cellers outhouses - it is impossible to quote a job over the phone especially when householders will largely underestimate the job. If they pack themselves, then they should not expect insurance from you - I would even go so far as to say specify that you will do the packing for a safe, secure removal. Question the required degree of protection, are they after a competitive price or a seamless move (a question of scale/judgement). Take a perspective of cost vs risk, if there is expensive artwork either make a tailored unit to store/package the item or, something i would have to recommend if you are nervous, refuse to take it at all. Make sure your customers never take a quote from a company who hasn't considered all of this, if they tell you they can get it for half that price, tell them they will get what they paid for and you are happy to do the job for the quoted price. As soon as you start charging less to try to compete, the more you will rush and make mistakes.

As someone mentioned, you should try to build up your credibility level from an early stage with things like a corporate identity if you want the right jobs. Negotiate competitive rates with local storage companies for a bit of 'value-added' for your customers.

I think its definately viable with the revival of the sales market, just make sure you target your affluent areas. Sorry if this has gone on a bit, Good luck Neil

I'm afraid you're right that one valuable mistake will cost you your entire business, it is up to you to make sure you are best prepared for every scenario to ensure the risk is minimal.

 

[Neil-D]

Thanks very much for the in-depth reply Leigh.

I will look to get some part time work and put the idea on hold for a short while. After being in the business yourself would you say it will take a long time to learn the job well enough to start out on my own?

Would i also need to get the experience with a removals company or would working with a man and van service be sufficient. I imagine it would be harder getting a job with a more professional removals company?

Although i could probably get experience working for a mate at a removals company, but this would only be for a week or so due to the distance between us, ie would have to book a week off my current job to do the experience. However if this isnt going to cut it i may as well wait until something crops up around my area.

 

Thanks for the advice mate, makes a lot of sense.

I would also like to know the opinion of you guys and gals as to whether the removals business is viable in the current economic climate? Are people making money or are they struggling?

I know there are lots of people moving house regularly in my area as there are lots of rented property, and i'm also fairly close to some wealthy places as DF pointed out. There are quite a few man and van services as well but i wouldnt say there are too many to put me off starting a business in this area.

You will be starting at the bottom of the market, which is a good thing.

As others have said, get some temp work with a big firm; packing boxes & loading a van efficiently & safely are big skills, which you will need to learn quickly.

Breakages are inevitable ; you need to be well insured as you can bet the vase you drop will turn out to be Ming!

 

[business_pupil]

I would say any experience is better than nothing, but if there is an opportunity to work for a larger, successful firm then certainly take that. Try looking through the Yellow Pages for a removals company you would consider hiring if you wanted to move the contents of your 5-bed house to London, then call them and see if they have any work! You'd be surprised how easy it is to get work if you present yourself well... needless to say don't tell them your long-term goals.

I have no idea how quickly you might pick it up before you can undertake the work yourself, its probably very person-specific. But i would suggest that if you passionate enough about it and try to learn as much as possible in/out of doing the work then about 6 months would be a good start.

Have you considered forming a partnership with an independent removals company just outside your area? He may appreciate being able to expand to the affluent areas around Hull in exchange for teaching you the trade and offering you an equity share? This is not something I have experience of, just an idea. Leigh

 

[vince]

Hi
I dont know if this has already been mentioned but you can get card machines that run on the mobile network which means you can take the card machine out on jobs and take payment there and then, nearly all companies offering card machines offer these mobile versions so may be worth looking into
They work out about £30 a month

Also worth keeping an eye out for the new mobile solution here:
square . com

Developed by the same people that founded Twitter.
They process to avoid fraud is well thought-out IMHO.

- Vince

 

[Neil-D]

fp- Thanks for the input mate

Leigh- I will look for a company to get a bit of experience with, thanks for all the help. Forming a partnership is a decent idea, i will certainly have a think about that.

Vince- Thanks for the info much appreciated!

 

[MorrisChesterfield]

Hi neil,

We are a self storage and removals company, regards to cash only, i know a few removal companies around me who ONLY accept cash, main reason being if your doing a long haul move and they give you a cheque or card payment and it fails who have to hang around for them to search high and low for cash or go in town for bank. and its happened to us, after working 8 - 10hous the last thing you want is to wait to be paid, you want to get home! I am thinking of going cash only to behonest.

you need around 100 - 150 good blankets costs about £150 - 200
strappes (webbing) pack of 20 rolls is about £20
insurance (goods in transit) get £15k minimum, costs about £500
public liability is about £300

try haywoods of leeds, there good.

last problem we come across is when a customer needs to be out the house for 12pm, you need more than 1 van, some times we have used 3 lutons to get out by 12pm.

make sure you get a alloy body luton, ideally a sprinter as they hold 1.2tons, dont get a iveco grp body, they hold 750kgs, which is useless!

If you need any more help, give me a shout!

where are u based?

Ben
(good luck)

 

[Neil-D]

Hi neil,

We are a self storage and removals company, regards to cash only, i know a few removal companies around me who ONLY accept cash, main reason being if your doing a long haul move and they give you a cheque or card payment and it fails who have to hang around for them to search high and low for cash or go in town for bank. and its happened to us, after working 8 - 10hous the last thing you want is to wait to be paid, you want to get home! I am thinking of going cash only to behonest.

you need around 100 - 150 good blankets costs about £150 - 200
strappes (webbing) pack of 20 rolls is about £20
insurance (goods in transit) get £15k minimum, costs about £500
public liability is about £300

try haywoods of leeds, there good.

last problem we come across is when a customer needs to be out the house for 12pm, you need more than 1 van, some times we have used 3 lutons to get out by 12pm.

make sure you get a alloy body luton, ideally a sprinter as they hold 1.2tons, dont get a iveco grp body, they hold 750kgs, which is useless!

If you need any more help, give me a shout!

where are u based?

Ben
(good luck)

Thanks very much for the advice mate, lots of useful info there

I'm based in Hull mate.

 

Backbreaking work

Knee breaking, to be precise

You are dealing with people at high points of stress (moving home is one of the three most stressful life events'; many people moving now are getting divorced, which is one of the other 3)

Using your people-skills will help you to rise above much of the competition.

 

[ARBELL]

Hi Neil

Have you considered who will answer your calls when you are out at work?

Statistically more than 80% of people will not leave a message on an answer machine so you may lose out on new business and/or irritate your customers.

We could supply you with a Receptionist from only £29.95 per month.

Please feel free to call me or see our website www.arbell.co.uk

Arron

 

[guvna]

A domestic removals business is a great idea.

Especially in London where people normally don't have that far to go and just want somebody with a big van and some extra hands to help them. Do you think there is much money in it?