Relocation Service Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Relocation Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Relocation Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
The gross margins that are generated from providing relocation services are extremely high. As this is a service-based business gross margins typically range anywhere from 75% to 95%. However, these pricing matrixes can change depending on whether or not the relocation service acts as a brokerage between the individual moving there home goods moved via a licensed moving company. The startup cost associated with the new relocation service ranges anywhere from $20,000 to $100,000 depending on the size of the business and the potential number of relocation specialists that are going to be on staff at the onset of operations. The ongoing operating expenses of these businesses is relatively low given that it’s a service-based business and only requires a small centralized location to operate on a day-to-day basis.
Typically, these businesses are started with capital le provided by the owner or from an investor. However, given their economically secure nature most banks and lenders are willing to provide a working capital line of credit to finance the underlying operating expenses of the business while an ongoing client base is being established. If an individual is looking to raise capital for this type of business then a relocation service business plan is going to be required. This document should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features industry information that is similar to that of other businesses. Special attention should be paid to the underlying operating costs as well as the cost of goods sold in order for the owner-operator to understand the breakeven point of the business. As stated above, once an established corporate client list is developed then these businesses are able to achieve profitability very quickly and their revenues are highly predictable on a month-to-month basis.
As it relates to the relocation service industry, annual revenues in each of the last five years has exceeded $5 billion. There are approximately 15,000 companies that employ one or more relocation specialists within theUnited States. In each of the last five years, annual payrolls have exceeded $2 billion. The industry employs approximately 50,000 people.
Within the business plan as well, a full demographic analysis regarding the corporations that will be targeted should be included as part of the overall analysis. This includes a discussion of the estimated annual revenues of the businesses targeted, annual profits, number of employees on staff, and percentage of employees that are relocated on an annual basis. A substantial amount of this information is available online through specialized research reports. Beyond discussing the corporations that will become clients of the business, in overview of the individuals that will be moved should be developed as well. This is important given that many people need to appropriately transition to their new city or location. As such, many relocation services have taken to providing ancillary services such as assisting individuals with placing the children in schools, joining private clubs, and assisting these people on a frequent basis to acclimate to their new location. While it is unusual to have two different types of demographic profiles within a business plan, for a relocation service this is almost imperative.
Once the business plan is complete, it is time to develop the relocation service marketing plan. One of the more important aspects of the marketing plan for the company is to seek to establish ongoing relationships with major corporations that will call on the company on a frequent basis. Given that these businesses employ tens of thousands to hundreds of thousands of people – the ongoing need for relocation services is substantial. One of the ways that a relocation service can quickly develop its revenues is by developing ongoing relationships with human resources departments among companies that are targeted by the business. It is usually these individuals in human resources that refer individuals to companies like relocation services during the course of their transition. One of the ways that this can be accomplished is through the distribution of print advertisements in major publications that focus on the human resources industry. These print advertisements can be very expensive, but they can produce a substantial return on investment as it relates to obtaining a large client base. Again, the highly predictable streams of revenue can be reinvested into expanded marketing campaigns in order to further expand the client list of the relocation service.
A presence online is also extremely important given that many individuals, especially professionals like doctors, attorneys, and accountants – will use the Internet in order to find specialized services for their moves. The company’s website should feature information regarding preliminary pricing, relocation services offer, time it takes to engage a moving company, contact information, and hours of operation. This website should be listed among all major search engines including Google, Yahoo, and Bing. A web development firm can assist the individual company with developing appropriate website that is easy to read and it can be readily found when a search is completed for relocation services.
A presence on social media, while not necessary, can be an important for these types of companies. Platforms such as FaceBook, Twitter, Google+, and LinkedIn can be an invaluable source of business given that many people will turn to referrals from friends online in order to find specialized services. The cost associated with developing a new page on a social media platform is extremely low, and as such – the return on this aspect of the marketing investment can be significant. This is especially true these days given that many people can now provide recommendations for specialized services when they go to community social media pages. As such, a well-maintained social media presence can have a very positive result on the relocation services revenues as well as its profits.
A relocation service SWOT analysis should be produced as well. This document focuses on the strengths, weaknesses, opportunities, and threats that are faced by these businesses. As it relates to strengths, the startup costs for new relocation service are very low while the gross margins are very high. The barriers to entry are considered to be moderately low given that most people entering this field typically have had a significant amount of experience in the relocation and moving industries before they decide to establish their own firm. Once established, the revenues and profits generated by these businesses are highly recurring especially if they have an extensive client list consists of major corporations, organizations, and other entities that have employees or personnel that need to move from a frequent basis.
For weaknesses, these businesses do face a significant amount of competition from other companies within this industry. All the benefits of owning and operating a relocation service have allowed another have allowed a number of agents to come into this market. It should be noted that in many instances, especially among large corporations, relocation is provided by in-house human resources department. However, in an effort to reduce costs many corporations have outsourced these services to third parties.
Relating to opportunities, this can be done very easily by hiring additional relocation specialists that have extensive experience with moving from one person or family to another location. This can drastically increase the billings of the business on a month-to-month basis. Additionally, quite simply the business can acquire additional large-scale clients that have frequent and ongoing relocation needs for their personnel. One of the other ways of these businesses can grow is by establishing ongoing free brokerage operations with trucking companies throughout the United States. The gross margins associated with providing the service range anywhere from 10% to 20% of the overall order, this can be a substantial additional revenue stream for relocation service.
As it relates to threats, more and more people are working online rather than relocating to a new location. As such, this may have a slight downward pricing pressure impact on the industry’s revenues as a whole. However, certain jobs simply cannot be done online such as those provided by physicians, surgeons, lawyers, and other related personnel that must work with individuals on a face-to-face basis. As such, these businesses will always be needed in any economic climate.
Someone who is highly familiar with all of the ins and outs of moving from one city to another can develop this as a fun, exciting, and highly lucrative small business. The operating costs can be substantially controlled and the business is able to produce profits and most economic climates given that most of the clients are large corporations and organizations. The demand for the services is not expected to wane substantially over the next 10 to 20 years, but rather increase significantly as the complexities of business continue to increase.