How to start moving company

• Do you have any experience of working in a moving business? If you do, did you work in an office or as a driver?

• Do you have any experience in any other business? What did you do? How successful were you?

• Do you communicate well with people?

• Can you conduct business over the phone? Do you know how to resolve disputes and avoid conflict situations?

• How many languages do you speak? What is your native language? If you already work in this business, you will know that most moving companies are run by people from various countries of origin. Speaking a foreign language (Hebrew, Russian, Spanish) is a big advantage. However, if English is not your first language, you will still need good English conversational skills.

• Motor Carrier: A company that provides truck transportation. There are two types of motor carriers, private carriers and for-hire carriers.

• Private Carrier: A company that provides truck transportation of its own cargo, usually as a part of a business that produces, uses, sells and/or buys the cargo being hauled.

• For-Hire Carrier: A company that provides truck transportation of cargo belonging to others and is paid for doing so. There are two types of for-hire carriers, common carriers and contract carriers. A for-hire carrier may be both a common and a contract carrier, but must file separate registrations to obtain both licenses.

• Common Carrier: a company that provides for-hire truck transportation to the general public. The services offered and the prices charged are published in a public tariff and these are the only prices the common carrier can charge.

• Contract Carrier: a company that provides for-hire truck transportation to specific, individual shippers, based upon private contracts between the carrier and each shipper, stipulating the services offered and the prices charged to each.

• Selecting "Common" or "Contract": The OP-1 form requires an applicant to designate whether it is registering as a "common carrier" or a "contract carrier." The historical difference between these two types is reflected in the definitions immediately above. The ICC Termination Act of 1995 defines contract carriage as truck transportation provided under a contract, but, effective January 1, 1996, it no longer distinguishes between common or contract carriers. However, the Act specifically authorizes FMCSA to continue registering applicants as either common or contract carriers. Now the main difference between the two types is that common carrier applicants must file a proof of cargo insurance while contract carrier applicants are not required to do so.

• Freight Forwarder: A company that arranges for the truck transportation of cargo belonging to others, utilizing for-hire carriers to provide the actual truck transportation. The Forwarder does assume responsibility for the cargo from origin to destination and usually does take possession of the cargo at some point during the transportation. Forwarders typically assemble and consolidate "less-than-truckload" (LTL) shipments into full truckload shipments at origin, and then disassemble and deliver LTL shipments at destination.

• Broker: Also a company that arranges for the truck transportation of cargo belonging to others, utilizing for-hire carriers to provide the actual truck transportation. However, the Broker does not assume responsibility for the cargo and usually does not take possession of the cargo.

PROS

• If your business is properly organized it can be very profitable.

• If your work experience is entirely in driving, you have few other qualifications and you want to stop being on the road, this is the ideal business for you.

• Since people move constantly in America, you won't have a lack of customers, unless you do your job so badly that it results in losing your partners, customers or business license.

CONS

• The business is mostly seasonal, so most of your revenue will come in April through September. In winter time the moving business slows down, because most customers are families who don't want to move during the school year. At that time of year your business will depend on the strength of your business contacts. If you are reliable and have built up a good reputation your partners will gladly provide you with jobs. In addition you will spend less time to get your truck fully loaded and will be able to survive in the slow season.

• You will have to deal with a lot of stressful situations, such as: trucks breaking down, sometimes in inconvenient and out of the way places; trucks getting stuck because of bad weather conditions; customer's goods getting lost or damaged; or your drivers letting you down. Once the business has grown, you will have a dispatch to deal with these problems, but initially you will have to deal with them yourself and you will be involved 24 hours a day. You won't have a "cruise control" option.

• If you are considering financial investment only, bear in mind that you will have little or no control over a return on your money. • If you decide to give up the business you may find it difficult to find a buyer for your company.

The first thing you need is to find money. As you probably know, 90% of all business ideas are stuck simply because of lack of capital. If you can't find the money, this is a warning sign telling you not to try to start alone, but to find a willing business partner. In addition to possible investment, he must be knowledgeable about insurance/and/or accounting. You must choose this person very carefully because he will own a part of your business. You will need to split your duties, and to find out what your partner's plans are, whether he wants a short term project or a long term commitment. His business experience is also a factor to take into consideration. To be a viable team, you should complement each other.

If you have property to use as a collateral, and you feel confident enough to start alone, you can get a small business loan and look for financial help and advice in your local small business development centers, for example at this web site: http://www.l4cd.com/ If you would like to get a small business loan, you should start the process in February, because it takes several months to complete the process of registration and it is better to begin this business in the summer which is the most profitable season. The first year is critical, so it is very important to start your business at the right time. You will definitely need to write a business plan which will help you understand your expenses, potential profit, amount of start-up capital required, as well as other important details. If you are not experienced in writing business plans, visit www.businessplanarchive.org . Please bear in mind that your business plan will need constant updating as your company grows.

One of the most important things to consider is your connection to local small business organizations. These people can be a great help, as they can to advise you specifically about local regulations. In addition this contact is a concealed advertisement for your business-to-be, and can lead to more help and support. Sometimes unexpected people can give you priceless advice or contact information. Here are some links to sites where you can find local business support:

So, it is a good basic principle to have close connections with your local small business organization, particularly as banks feel more comfortable providing loans to people with community ties.

When you have completed a draft of your business plan, contact a consultant from SCORE - www.score.org - to get a professional opinion. You can send it via email or make a face-to-face consultation.

• During the registration process, keep a careful record of where and when you have sent particular documents. This is important for tracking the process.

• Complete is OP-1 according to the instructions. Send it to the FMCSA:

FHWA, Licensing and Insurance Division, Suite 600 400 Virginia Ave, SW Washington, D.C. 20024 You can download this form here: http://www.fmcsa.dot.gov/factsfigs/licensing/op1.htm Note that you won't be able to change the name and the business address once the procedure has started. You will receive ICC from FMCSA in a couple of weeks.

• You need to get a cargo liability insurance, bodily injury, and property damage insurance. Links are below:

http://www.directtruckinsurance.com/ http://www.transinsurers.com/ http://www.transportationresources.net/ http://www.truck-insurance-mart.com/

• Your insurance company will complete BMC-91 form and send it directly to the FMCSA.

• Apply for EIN (Employer Identification Number). You can download this form here http://www.irs.gov/pub/irs-pdf/fss4.pdf . Fill out this form and send it to the IRS. Until you receive your EIN, it is possible to use your SSN for opening a business account. Basically the Employer Identification Number has the same functions as an SSN, but only for companies.

• Fill out the MCS-150 form to get USDOT number. Download this form here and send it to the FMCSA http://safer.fmcsa.dot.gov/public/MCS-150.pdf

Start the Process Agent Service and complete BOC-3 form http://www.fmcsa.dot.gov/documents/boc.pdf. You need a Process Agent (an agency) in each state you will operate. This agency will be authorized to get all legal documents for your company in case of any law suits against your company. Below are the companies that are approved by FMCSA to provide this service.

• Next step is the Single State Registration. Call your State's Motor Vehicle Department (Single State Registration Division) and request BAS1&2 forms. Complete these forms and send it back with a check for state fees.

• After you receive from FMCSA the approval to operate, you need to register with IRP - International Registration Plan http://www.aamva.org/IRP/documents/pub_ThePlan.pdf It is an agreement between all US states (except Alaska and Hawaii) and several Canadian provinces for payment of registration fees for highway transport vehicles.

• File an IFTA license application (International Fuel Tax Agreement). All the information is on your state's web site or at Motor Carrier Section. The IFTA member jurisdictions include all 48 states of the US and the 11 provinces of Canada.

Here are some requirements for drivers:

• Commercial driver's license (CDL)

• Good driver's record

• Necessary driving experience. More details are here

A driver may only drive for a specific quantity of hours. For rules on this look here:rules

They need to fill so-called log books, check it here

What is the best place to find drivers? It is a good idea to establish good relations with local driving schools, but basically you can hire drivers from any state. If you are located in TX, and the driver lives in the state of WA, you pay his air fare. Your profits will defray these costs. Before employing the driver, you must verify his driver's record. It is also highly recommended to get references from his previous employer, click here

"Good driving record" means that driver:

• Has not had more than one license;

• Has not had any license suspended, revoked, or canceled;

• Has not had any convictions in any type of motor vehicle for major disqualifying offenses;

• Has not had more than one conviction for any type of motor vehicle for serious traffic violations;

• Has not had any violation of State or local law relating to motor vehicle traffic control arising in connection with any traffic accident, and has no record of an accident in which he was at fault.

In California DMV there is EPN program (Employer Pull Notice Program): http://www.dmv.ca.gov/vehindustry/epn/epngeninfo.htm#reports If you sign up for this program you will be able to verify the driver's record before hiring him. As you probably know, the best candidate for this job is a single person who can handle being on the road for several weeks at a time. I knew a lot of excellent drivers who had to quit the job because it caused too much stress on their family life.

• P.U.C. - Public Utilities Commissions

• FMCSA - Federal Motor Carrier Safety Administration FHWA, Licensing and Insurance Division, Suite 600 400 Virginia Ave, SW Washington, D.C. 20024

• IRP - International Registration Plan • SSRS - Single State Registration System • IFTA - International Fuel Tax Agreement • EPN - Employer Pull Notice Program