Removal services are in constant demand, and aspiring entrepreneurs looking for a lucrative business option could find the right opportunity in this industry. However, it’s also a high-risk venture, and those looking to start their own removal company should be prepared to protect it and their customers properly.
In this guide, we will take you through the steps of starting your own removal company. As well as set-up costs and promotion techniques, you’ll learn the importance of registering as a limited company, getting the right insurance, as well as the legal considerations to take into account.
The first step is to define the removal services that you are going to offer. Think about your skills, and any available resources that you already have, the type of equipment you’ll have to invest in, and how much you can afford to spend on them. Below are some of the most common removal services to consider:
People will always need removal companies. This will involve transporting furniture, goods, equipment, and appliances between properties – often high-value ones. You’ll need to determine some of the following details:
To narrow your options down, think about what’s more realistic for you to start with. For example, if you’re getting started with a business partner and there’ll only be two of you for now, you may want to stay local until you can take on employees and invest in additional vans.
Commercial removals service businesses and offices. It’s similar to home removals, but you’ll be handling more and heavier equipment like desks, chairs, computers, and cabinets.
Additionally, there’s generally more heavy lifting involved and you may need to dismantle furniture, displays, and fixtures, and reassemble them at the new location. You’ll also need a larger van (or several vans) than you would for home removals, and a team of movers to accommodate such large-scale jobs.
You could offer packing and unpacking services with home or commercial removals. This means you’ll be responsible for preparing items properly for transportation, ensuring they’re protected and arrive in the same condition at the other end.
To offer packing and unpacking services, you’ll need lots of additional materials like bags, boxes, bubble wrap, and different types of tape.
Some customer may want storage solutions from their removal company (e.g. if they are moving to a smaller house). To offer storage services, you’ll need specialised facilities for different items and quantities.
Your new removal business may not be able to do this right away, but it’s something to keep in mind as your company grows and delivers these additional services to your clients at a later stage.
Another service you can consider is waste removal. These types of jobs can vary in size – from something as small as clearing some scrap material from a customer’s drive, to collecting damaged furniture.
After collection, the items become your responsibility. So, you’ll need to ensure they are disposed of or recycled correctly. For instance, if someone wants to remove electrical waste, you must comply with The Waste Electrical and Electronic Equipment Regulations 2013 .
Once you’ve defined your removal services, it’s time to buy the equipment you need to get started. Here are the essentials you will need and how much they’ll cost:
The right van type/size depends on the scale of removal services you’re going to offer. If you’re handling studio or 1-bedroom flat removals, for example, you’ll need a medium to large transit or panel van to accommodate boxes and furniture. However, if you’re dealing with 5-bedroom homes with a garden, you’ll need one or two 7.5-tonne Luton box vans.
Depending on the size, model, and manufacturer, van costs can start at £5,000 if you opt for a second-hand one. An approved-used one is recommended, to ensure good quality, longevity, and peace of mind.
Meanwhile, new vans cost around £30,000 to £50,000. In addition, if your removal company is going to operate in the central London area, you will need to make sure that your van is ULEZ-compliant.
Don’t forget to factor in the running costs of your vehicle. These are typically up to £1,000 per month for upkeep, fuel, and repairs, depending on mileage, age, and van condition.
This is another substantial cost to consider when starting your removal company. Firstly, you’ll need essential protective materials to keep your customers’ items properly secured and covered before, during, and after transit.
Remember that you may be handling high-value and heavy items (like pianos or artwork), so you need to get them from A to B in one piece. Any damages as a result of improper care and preparation could lead to a liability claim made against your removal company, disputes with customers, and reputational damage.
You’ll also need certain tools to get the job done. This includes everything from boxes and labels, to hand trucks and lifting straps.
Material costs vary widely depending on the scope of your services. However, to reduce your start-up costs, you should obtain the essentials first and buy more as your business grows.
Next, you need to determine how much you’re going to charge for your removal services. As you might expect, typical prices vary across locations, services, transport distance, and the size of the building you are removing.
To determine your prices, you need to calculate how much it costs you to provide your removal services. Add up your travel, equipment, and labour expenses per average job. Then, add a suitable markup that will allow your removal company to make a reasonable profit.
To help you get started, below are the average home removal and packing prices from Getamover for different house sizes based on a 15-mile transit:
For longer journeys (up to 25 miles), prices range between £900 and £1,800. For long-distance journeys between cities (e.g. London to Glasgow), prices start at £712 for a 1-bed house and go up to £1,362.
Keep in mind that these are average prices based on home removals only and select locations, and they exclude storage fees. You should conduct thorough competitor research and compare your prices against other similar businesses in the same area, to ensure they are competitive, fair, and affordable.
Now that you have all your services, equipment, and prices established, you need to write a business plan. This step is essential for checking whether your removal business is viable. It also allows you to map your company’s journey for the next 12-24 months, and assess how long it could survive without additional capital.
Your business plan should be truthful, thorough, and concise, focusing on the key information that other people should take away from the document. Here are the main sections that your business plan should cover:
For detailed guidance on how to write a business plan for your removal company, see the gov.uk website .
Registering your removal business as a private limited company is essential. This is a high-liability business, and this structure will protect you from any financial or legal problems it might face later down the line.
Here are the key benefits of registering as a limited company versus other business structures:
You can register your removal company with Rapid Formations in just a few hours, using our quick and simple online process. You’ll need to provide the following details:
Once you submit your application, we will check it and send it to Companies House if there are no errors. Once the application has been processed, we’ll send you a digital copy of your incorporation documents and you’ll be ready to trade.
Your removal company must comply with certain legal requirements. Failure to do with could lead to serious consequences such as warnings, fines, and in extreme cases, prosecution.
Below are the different rules that some removal companies must abide by. They may not all apply to you, so it’s important to check the requirements that are specific to your business.
You’ll need a specific license (known as a goods vehicle operator’s license) if your removal van:
To carry goods within the UK, you’ll need a Standard National License. To carry goods in the UK and abroad, you’ll need a Standard International License.
Your application must be submitted at least 9 weeks before you need to use it. It is illegal to operate your removal van without the correct license, or while you’re waiting for it. For fees and application details, visit the gov.uk website .
If you operate in London, your removal van(s) will need to comply with London’s ULEZ policy. The zone operates across all London boroughs and excludes the M25. The following vans are subject to ULEZ standards:
Petrol vans must meet the minimum emission standards of at least Euro 4 (NOx) and Euro 6 (NOx and PM) for diesel vans. Non-compliant vehicles will be charged a daily rate of £12.50.
Check if your removal van is ULEZ-compliant on the TfL website .
You will carry out a lot of manual handling in your removal business. The Manual Handling Regulations 1992 protects you and your future employees from any injuries or illnesses that may occur as a result of manual handling, so it’s essential that you familiarise yourself with these rules before starting operations.
Additional rules your removal company may need to comply with are:
Before you can start trading, you’ll need to get the right business insurance:
Public liability insurance is a must. It protects your business against the cost of compensation and legal expenses in the event of a damage or injury claim. Not only is it an essential cover, but it also shows clients and investors that you operate at a high, professional standard.
Another essential cover type for your removal company is Goods in Transit insurance. It protects the goods you transport against loss, damage, and theft during loading and unloading, and while in transit. It does not cover items before or after delivery.
Finally, it may be a given but you’ll need to insure your business vehicle. As with any insurance, it’s best to shop around for the best deal that suits your individual needs. A good place to start is a comparison site like Compare the Market , which will match you with the best providers based on your circumstances.
Now, you’re ready to promote your removal business and build a customer base. Let’s explore how you can do that below:
Start by creating a website that informs people about your removal services, prices, unique selling points (USPs), and who you are as a business. Your website should be user-friendly and customised to your desired brand image.
As well as selling your services, a key objective of creating a website is to build brand awareness, ensuring that new customers can find you. With this in mind, you should come up with a domain name that’s memorable and easy to communicate. You can pick up a free .com or .co.uk domain name with any of our company formation packages.
Once your website is live, you should create a free Google Business Profile.
This allows your company to collect Google reviews, and insert company photos, logo, address, phone number, opening hours, and website URL onto a profile on Google, which people will see when they search for your company name on Google. It will also allow your business to be found by users of Google Maps, which many people use to find local businesses.
You should also make business accounts across social media, to showcase your removal services and brand identity. Platforms like Facebook and Instagram are great for helping customers discover new businesses.
The design of your social media pages should match your website. This will allow users to recognise your business, and instantly let them know that they’ve landed on the right page.
In addition, you can run paid ads on social media platforms, which is an excellent way of reaching a wider audience. You can also work with social media influencers, who are paid to promote your services to their existing followers.
An effective way to get your customers to find you is through a directory. Comparison sites like Sirelo connect people with the best movers in their area. With over 1 million annual visitors, this can be an excellent way for your new removal company to gain quality leads and boost its revenue.
The above marketing tools should drive customer enquiries by email, SMS Text, and telephone. Ensure that you are set up to receive and respond to these sales opportunities promptly and you have a business telephone number for your website and your company’s Google Business Profile.
In the early days, it may be a good idea to enlist the services of a first-line support business to handle customer calls and appointment management.
The last step to starting a removal company is to apply to become a member of the BAR . It is a Trading Standards-approved association that helps people find trusted movers and removal services in the UK. BAR members enjoy the following benefits:
Becoming a BAR member will show your customers that you are a professional company that meets industry standards. It’ll also help you promote your removal services, boost brand awareness, and connect you with meaningful clients and partners that’ll grow your business.
To see if your removal company is ready to meet the BAR requirements, complete their pre-application checklist .
So, there you have our Rapid guide to starting a removal company. For this high-risk business, we strongly recommend registering as a limited company, to keep your personal assets protected. We also recommend obtaining the right insurance, and researching which industry regulations your company must comply with.
We hope you found this guide useful. If you have any questions or comments, please post them below.