Quitting job to start Craigslist moving business? Risks costs?
I figure cheap business to start I will rent trucks as i get jobs. I would hire some high school or college students and pay 18 dollars an hour and charge 30 per person so I would get 30 plus 12 for each employee. Church news letters Craigslist flyers etc for marketing.
I figure only starting cost would be the insurance for liability and business license.
Am I not seeing something? It might be a pay cut from my current job but I need to get out of corporate work. I am just worried what will happen if I quit due to depression and other stuff I am dealing with.
- Casey YLv 77 months ago
Having seen dozens of people try the same or similar things...you will not succeed.
1. Renting trucks makes you significantly more costly than competitors who own trucks.
2. You will need General Liability Insurance, Commercial Auto Insurance and Workers Comp. Try to deliver somewhere that has insurance requirements for contractors and you will find this out the hard way. Expect your first year premiums, even while renting a vehicle, to be in the $20k range. This will vary based on the amount of work and payroll.
3. You have no concept of what you need to charge your customer since you have not developed a real business plan. You're just picking numbers out of a hat...without any research.
- SuccessLv 67 months ago
If you are already struggling with depression, starting a moving business will probably be more stressful than your regular job.
I understand you are willing to take a pay cut...but what happens if you get a week with no moving jobs for some reason? That could seriously 'bum you out.'
But if you understand that self - employment is a 'feast or famine' scenario...and you set aside some money for slow times (Blizzards in the winter and floods in the summer can impact your business)...then I would say...based on what an acquaintance is earning.....in 5 years you could be very well off with this business.
So I wish you the best!
- A HunchLv 77 months ago
"I figure only starting cost would be the insurance for liability and business license."
Assuming you are in the USA, you figured wrong:
- you would have truck insurance
- truck gasoline & maintenance
- workers compensation insurance
- state trucking licensing
- business license
- legal fees for contract development
And your math doesn't give you any profit:
If you have 2 employees on the job making $18 an hour each. Then you have $36 in labor before you pay any payroll taxes - with only FICA taxes (which there are more taxes besides FICA) you are already paying $40.51 but only bring in $42.
- NeverLv 77 months ago
Don't quit your day job.
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- Robert SLv 77 months ago
You're business model has a fatal flaw.You don't know what you're doing.