Pls Help, Starting A New Home Based Business - Local Furniture Removals Service

[EstatePreneur]

Hi, I've been thinking of starting a new home based business, a local small furniture removals business.

Reasons to do this business:

1. More income (especially one that generates high cash flow), my freelance website development business isn't good enough for me to start saving for buying my First Home (hopefully mid-next year, around August 2007). As side note, my landlord is going to increase the rental cost again in the next contract term.
   
2. No need for an office (still can't afford to rent an office, so simply buy a car and park the car in the garage or on the side of the street)
   
3. Good potential / opportunity in local furniture removals market (this is yet to be found out as I do more research later)
   
4. Low risk (buy a used good van maybe at around AU$5000, and if the business doesn't work as expected, simply sell the van, although might lose some money on this, but I think still wouldn't be that much, hence low risk)

I'm basically planning to get the business started by borrowing some money from my parents, buy a commercial van, do some little marketing campaign in local areas, work as the driver and removalist (but I have a couple of friends who are interested in helping when doing the moving job), eventually say, in 3 months time, if the business turns out well and worth doing it, I'll employ a fulltime driver/removalist, and have a few casual staff/removalists.

Now I'm not sure whether this sounds like a good plan, maybe not even a good business idea either, but who really knows what's going to happen?

By the way, am I missing anything here? Would you everything is so far so good?

Your thoughts, advice, comments will be highly appreciated.

 

[GIDDO]

Hi Estate,

Moving furniture for extra $$$$ certainly doesn't ring my bells, it may move the earth for you of course.
Sounds like you have done some research and found a demand eh?
Is your target market younger people who are pretty mobile but may not have resources to shift their gear? Maybe these people may not have uncles with box trailers, or mates with station wagons??
Have you looked into what is available for rental - I mean vans for hire - self shifts?
Maybe there is a gap in the market for "rent a wreck Van" ??
Then you could get more passive income? You could still do the full service shifts too of course.

I am a fan of passive income.

 

[Aceyducey]

Estatepreneur,

Ever started a business before?

Make sure you do your research - particularly regarding insurance.

eMove might be a good place for you to look at the competition (they are relaunching soon with a massive removalist section - hundreds from across Australia).

Cheers,

Aceyducey

 

[Jimmyjamjars]

I will type a detailed reply tonight as I am at work atm but I started and ran a successful furniture removal business on the Gold Coast for 5 or 6 years before moving to the country for a quieter life. There are lots of things to consider.
JIM
PS: The business was called Allstar Removals

 

[rj]

Ok, I too run online businesses and would firstly like to ask what exactly are your online ventures? Where does your heart lie? With online business? Or shifting furniture?

Have you thought about using the money to market the web stuff rather than move towards moving furniture.

I get the feeling that you need to step back for a moment and rethink your approach.

RJ

 

[EstatePreneur]

Hi Estate,

Moving furniture for extra $$$$ certainly doesn't ring my bells, it may move the earth for you of course.
Sounds like you have done some research and found a demand eh?
Is your target market younger people who are pretty mobile but may not have resources to shift their gear? Maybe these people may not have uncles with box trailers, or mates with station wagons??
Have you looked into what is available for rental - I mean vans for hire - self shifts?
Maybe there is a gap in the market for "rent a wreck Van" ??
Then you could get more passive income? You could still do the full service shifts too of course.

I am a fan of passive income.

Thanks for reminding me about the glamour of passive income
I do already have generated and is still getting some passive income from my freelance website development business (hosting and domain name reselling). But this removals business is set to be a passive income in the long run too
Although, initially I definitely have to go all the way as a one man show.

Estatepreneur,

Ever started a business before?

Make sure you do your research - particularly regarding insurance.

eMove might be a good place for you to look at the competition (they are relaunching soon with a massive removalist section - hundreds from across Australia).

Cheers,

Aceyducey

Yes, Aceyducey, I have, and that is my freelance website development business. And yes, I'm doing some research at this very moment (asking for advice from everyone here including you AC/DC lol )
Talking about insurance, does anyone know which insurance is best for a commercial van particularly one that speciliases in removals industry? I asked my friend, he said it would be at least $1000/year.
Hey thanks for that eMove thing. I've looked at MiniMovers and CityMove, I think these guys can be great inspiration for me despite the competition hehehe.

I will type a detailed reply tonight as I am at work atm but I started and ran a successful furniture removal business on the Gold Coast for 5 or 6 years before moving to the country for a quieter life. There are lots of things to consider.
JIM
PS: The business was called Allstar Removals

Crickey!
I never expected that I'd bump into someone who's very experienced in this type of industry and who is very keen to share all the valuable experiences. I believe I'll take a lot of notes down when you post your reply tonight (tonight?? It's now )
I think I've either seen or heard about Allstar Removals somewhere.
Jim, by all means, please do share anything you'd like to share, and thanks a million for it Jim!

Ok, I too run online businesses and would firstly like to ask what exactly are your online ventures? Where does your heart lie? With online business? Or shifting furniture?

Have you thought about using the money to market the web stuff rather than move towards moving furniture.

I get the feeling that you need to step back for a moment and rethink your approach.

RJ

Hi RJ, mainly website development for small to medium businesses, I do provide domain registration and hosting for my clients too, and some SEO stuff, ecommerce development/online shopping.

Ok Where my heart lies?
With this one I can say with confidence...My heart lies within...music and sports! I'm crazy about playing guitar and soccer, and also body building
I know a lot of wise men say go with your passion, but in this case, I think I'm gonna stick with becoming a business entrepreneur and later perhaps estate preneur after I have all the money.

My short term life goal in the next 1 - 3 years is to generate stable income sufficient enough to afford a 3 bedroom house. And then rent the other 2 bedrooms out, setup an office at home and have both the website development and removals business run from home.

It's been a few weeks that I keep thinking about doing this removals business, because honestly speaking, I love dynamic work environment, and not just sitting there in front of computer for hours designing and developing/website.

By the way, I've been closely watching some commercial vans auctions on ebay. If I do happen to proceed with this business, which of these vehicles is best for small to medium removals:
1. Toyota Hiace Commuter (this one is a hi top van)
2. Ford Transit (I'm leaning towards this one as it's very spacious inside)
3. Mitsubishi Express (normal size van, I'm not sure whether I can move a lot of stuff with this vehicle)
4. Or maybe a Toyota Hilux Ute?

 

[ozi]

Hi Estatepreneur,

I'm just wondering what sort of removalist business you are planning, i.e. what will you be moving? There is only so much you can fit in a small van, or on the back of a Hilux tray! Most removalist companies I have seen use small to medium/large sized trucks. Depending on what you are moving, won't it be more efficient to do 1 trip in a truck as opposed to 5-6 trips in a Hilux?

Regards,
Ozi

 

[Ricardo29]

best point yet ozi...
look at any furn removalist....economies of scale - save time, and hence money, by having a big truck and doing it all ONCE.
5 trips to other side of town...thats maybe 5 hrs of wasted time.
no one would a)pay for it, b)want to wait that long, and c)youd go broke very quick id suspect.

 

[EstatePreneur]

Hi Estatepreneur,

I'm just wondering what sort of removalist business you are planning, i.e. what will you be moving? There is only so much you can fit in a small van, or on the back of a Hilux tray! Most removalist companies I have seen use small to medium/large sized trucks. Depending on what you are moving, won't it be more efficient to do 1 trip in a truck as opposed to 5-6 trips in a Hilux?

Regards,
Ozi

Hi Ozi, it will be furniture removals, I'll be moving stuff like study tables, dining table, white goods, beds, book shelves, mostly students stuff and small household stuff.
You're right about getting a medium truck rather than a van. But I need to see how this business goes first, start with a van, and if the business gets better, I'll definitely get a truck and get more casual remoalists/staff.

best point yet ozi...
look at any furn removalist....economies of scale - save time, and hence money, by having a big truck and doing it all ONCE.
5 trips to other side of town...thats maybe 5 hrs of wasted time.
no one would a)pay for it, b)want to wait that long, and c)youd go broke very quick id suspect.

Hi Ricardo, I'd agree with you. That's already part of my expansion plan if the business does go well later (i.e. when a van just won't do good enough)


Thanks very much for people who've replied so far, if you anyone else out there got some ideas/comments/advice, please do share them. Have a great fabulous day everyone. The weather is just awesum today in Brissie

 

[Leandro]

Hi Ricardo, I'd agree with you. That's already part of my expansion plan if the business does go well later (i.e. when a van just won't do good enough)

Things don't always work like that in business. i.e. You can't start small to get bigger later, if nobody wants small or you realise that you are losing money being small.

Unfortunately sometimes in business (dependant on your market) you need to take some risk and start bigger to get any sort of reasonable response.

Porbably comes down to you doing some research to work out if their is a market for small scale moves, maybe within the same suburb or neighbouring suburbs.

 

[ozi]

Unfortunately sometimes in business (dependant on your market) you need to take some risk and start bigger to get any sort of reasonable response.

Porbably comes down to you doing some research to work out if their is a market for small scale moves, maybe within the same suburb or neighbouring suburbs.

Exactly! It all comes down to what the market wants. If they want small, give them small. If they want big, give them big. Thorough market research is absolutely necessary. Start working on a business plan and I'm sure you will work out what strategy to use. Have a goal set and then figure out the best way to reach it.

Good luck.

Regards,
Ozi

 

[Jimmyjamjars]

Crickey!
I never expected that I'd bump into someone who's very experienced in this type of industry and who is very keen to share all the valuable experiences. I believe I'll take a lot of notes down when you post your reply tonight (tonight?? It's now )
I think I've either seen or heard about Allstar Removals somewhere.
Jim, by all means, please do share anything you'd like to share, and thanks a million for it Jim!

I have PM'ed you in some detail, mate.

Jim

 

[EstatePreneur]

Things don't always work like that in business. i.e. You can't start small to get bigger later, if nobody wants small or you realise that you are losing money being small.

Unfortunately sometimes in business (dependant on your market) you need to take some risk and start bigger to get any sort of reasonable response.

Porbably comes down to you doing some research to work out if their is a market for small scale moves, maybe within the same suburb or neighbouring suburbs.

Hi Leandro, thank you for your advice.
The reasons I want to start small is because:

1. Minimise risk
   Small investment, buy a roughly $3000 good used van, if the business doesn't go well, sell the van and little to nothing to lose. If the business goes well and a van isn't good enough (*Thank God), go buy a medium/pantec truck and get a truck drivers licence (*I only have a class A licence).
2. Keep running cost low (low overheads)
   A van is obviously easier and cheaper to look after than a truck
   Low marketing cost, i.e. put flyers, brochures on Uni/college message boards, small advertisement in local newspapers.
3. Have an exit plan
   If the business fails, easy quick safe exit plan, which is to sell the van.

In terms of target market, frankly speaking, I'll be targetting at:

1. Uni/College students
   Particularly international students as most of them don't have vehicle, drivers' licence (so renting a van/ute is a problem for them), and for the ladies I'm sure they'd need men's power to lift & move heavy items LOL
2. Small households/local communities/neighbouring suburbs
   This is hard to predict, if it's a big scale (stuff don't fit in a van), then there's not much I could do to see them go to other removalist. If it's a small scale move, I'll simply take it.
3. Small local businesses who need delivery/courier service
   I've seen in local newspapers, there's always some businesses require delivery /courier driver with van & licence to help their business. I suppose I'll be able to get a sub-contract work from them.

Thorough Market research (*thanks to Ozi for bringing this up )
Well, I'll keep doing research as this business progress. For instance, I'll note down how many jobs/customers I reject due to limited scale move, and make decision accordingly (i.e. when it comes the best time to buy a medium size truck, and also perhaps hiring people to help with removals, etc).

Please feel free to keep posting comments, feedback and especially advice

 

[EstatePreneur]

I have PM'ed you in some detail, mate.

Jim

Jim, all I can say...thanks a million!
I'm reading your message/advice right now, and I'll be reading it several times.
I reckon I'll definitely have to adjust my plan after finish reading your advice and digesting every part of it

 

[tubs]

Hi

I'm starting to get a copywriting/marketing business off the ground at the moment. I may be able to offer you some advice on the best way to get your business flying off the ground quickly.

PM me and we can talk.

 

[Ace in the Hole]

Whatever happens with your business, it will be a good learning experience for you, so good luck.

If you love bodybuilding, why not try selling supplements online?

I like bodybuilding too, and started selling gym equipment online just over a year ago and will turn over close to 1 mil next year.

So good luck, and if it doesn't work out, try something else and keep trying until you find something that does work for you, that you like doing.


Adrian

 

[EstatePreneur]

Whatever happens with your business, it will be a good learning experience for you, so good luck.

If you love bodybuilding, why not try selling supplements online?

I like bodybuilding too, and started selling gym equipment online just over a year ago and will turn over close to 1 mil next year.

So good luck, and if it doesn't work out, try something else and keep trying until you find something that does work for you, that you like doing.


Adrian

That's the one! I like what you said in your last sentence, so I'll keep trying.
Selling supplements is a good idea, but I don't like doing it, I prefer being the consumer when it comes to supplements.
Hey I've stopped using supplements since 3 years ago, I'm now only counting on food with high nutrition (red meat, fish, eggs, lots of vegies & fruits, bread/rice, milk, yum! )

Ok, waiting for more replies again...so pls keep it coming.