2022 Study: The Best Side Hustle Nobody’s Talking About Is Starting a Local Moving Labor Company

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Key Findings:

  • Moving companies tend to earn between $75-128/hr. or between $206-352 per move
  • Based on HireAHelper data from 2022 so far, average mover earnings are $110/hr.
  • Seattle is potentially the most lucrative place to become a mover, with hourly earnings as high as $137/hr.
  • Movers in Maine and Iowa make an estimated $132/hr. — the highest rate in the country
  • Sherman-Dennison, TX has the biggest gap in the moving services market, with 608 moves per moving company registered in the metro area

As inflation continues to rise, many Americans are beginning to notice the prices of consumer goods are drifting out of reach. This is likely why, according to a recent study, nearly half (44%) of Americans are turning to side hustles to make ends meet.

moversAnd while the internet is awash with articles listing all kinds of side hustles to consider, there is one lucrative side gig few are talking about: starting a local moving company (or joining one).

Despite some real estate markets cooling off, the demand for moving services is high. Homes are still selling fast, and as rents climb higher, many are moving out of their homes to find cheaper accommodations or to live with family.

While starting a full-scale moving company with a fleet of trucks, drivers, and movers is an undertaking too big for a side hustle, starting a moving labor company is actually relatively simple.

All you need is a business license and some start-up costs. Ultimately, if you are comfortable with lifting heavy items and have time to spare, you could realistically start a moving labor business and earn upwards of $100/hr. by helping people move.

And the data shows that people who are currently doing it are doing quite well.


Moving Labor Companies: How Are They Defined and How Do They Work?

We often think of movers as folks that drive up in a truck, load up all your earthly belongings and deliver them to your new home. In the “biz”, these are known as “full-service movers”. And they tend to be more expensive.

This is why in reality, the overwhelming majority of moving companies that exist are what we call “labor-only” movers.

 

“…even if you charged at the lower end…at $250 per move, or roughly $90-100 per hour, you only need to pick up four moves to make $1,000. Not bad for a weekend, huh?”

 

Labor-only

The difference is that a moving labor company is a company that helps people with loading, unloading, and, sometimes, packing up people’s possessions — no driving. The average person often books their truck or container separately, as this is far cheaper.

Here are a few reasons local moving labor works as a side hustle:

  • In most states, you don’t need a special mover’s license
  • There are minimal start-up costs, as you don’t need to purchase a moving truck
  • Demand for moving services is highest on a weekend, meaning you can do it alongside your work or studies
  • Moving costs (read: mover earnings) in 2022 are the highest they’ve ever been in U.S. history

Where Do Local Movers Find Customers?

Of course, it’s not quite as simple as registering as a moving labor company and watching business come flying through the door.

Here are the typical places movers tend to use to attract customers.

craigslist movers
Craigslist

Craigslist

+ The most famous classified ads website, this is a typical starting point for moving labor hopefuls, with millions of people checking the website every day.

Costs money to post ads in the moving section as a provider.

Customers can also be flakey, often looking for bargain-basement pricing, and often end up being very hard to service.

yelp movers
Yelp

Yelp

+ Popular with people looking for local businesses, it’s a free place to get attention/find customers. Business owner tools allow you to upload logo/team photos of you and your crew to boost credibility.

No actual online booking, you just accrue lots of “leads”. You’ll have to field lots and lots of messages, emails and phone calls from people looking for a price.

Low rates of converting mean most of this work will not turn into orders.

HireAHelper

hireahelper sign up
HireAHelper sign-up page

+ Completely free to list, no membership fees or cancellation fees.
+ Your very own landing page you can show to potential customers where you can easily display and edit your own rates/availability so people won’t call you to ask.
+ Insurance and 7-day-a-week customer service for both you and your customers.

Insurance and customer service operate on a fee that is charged per order booked through the platform, which is how they pay for all of the above.

Your own website

+ Full control over how you present your new brand and services.
+ Direct booking puts every dollar right in your pocket.

You need to create, design, and maintain the website.
You’re responsible for all the customer service, marketing, and insurance.
Cost of purchasing a domain, fees for website hosting.

Needless to say, you can also create a page for your moving labor company on Facebook and Instagram, or even list it on your local Yellow/White Pages. Oftentimes, a mixture of approaches is useful at the start, before you figure out which one works best for your moving side hustle.

How Much Can You Earn as a Mover?

movers

Let’s face it, if you already have a job or other commitments, you’re probably not going to launch into moving as a full-time pursuit.

The good thing about moving as a side job is that nearly one in three (30%) moves takes place either on Saturday or Sunday. In other words, if you’re looking to casually work as a mover over the weekend, you’re in luck, because that’s when the demand is highest.

To calculate a ballpark number of how much local movers earn, we’re going to make the following assumptions:

  • You only work on weekends
  • You don’t work more than eight hours a day
  • You have a partner with whom you work as a two-person team and split earnings 50-50

With that said, the average take-home an individual moving job earned on HireAHelper in 2022 was $110 per hour (after fees).

That rate is based on the service of two movers loading and unloading a customer’s belongings (meaning, not counting potential tips, one mover will typically get about half of that, or $55 per hour.)

“The data show that 6 of the 20 metros where the demand for moving services most outmatches the current supply exists in Texas, especially in Sherman-Dennison, TX, where the ratio of moves to moving companies is roughly 600 to 1!”

 

Similarly, Yelp reported a local move quote average of $128. Forbes suggests local movers charge between $25 to $50 per mover, per hour, while ConsumerAffairs estimates the average cost for a local move is $80 to $100 per hour for a team of two movers.

The following graph shows how much you could be earning as a two-person team, using the reported average duration of a move of two hours and 45 minutes.

Please note that the above figures are indicative only. As a newly registered moving company, you probably won’t be able to charge high rates straight away. Moves also come in all shapes and sizes, affecting how much you could charge for them. This is just an average.

That said, even if you charged at the lower end of that scale at $250 per move, or roughly $90-100 per hour, you only need to pick up four moves to make $1,000. Not bad for a weekend, huh?

Cities & States Where Movers Earn the Most Money

moving company city

Your earning potential, among other things, will depend on where you are in the country.

According to a recent estimate of moving costs, people pay the most for their moves in San Jose ($520) and Seattle ($495). But that’s just a broad snapshot. Let’s break it down more to see how services translate into mover earnings, and where it may actually be most lucrative to start a moving labor company.

Cities

Using data on moves booked through HireAHelper.com, taking into account commission rates and the typical duration of a move throughout different cities, here are the top 10 cities where movers make the most money per hour.

Looking at the data through this lens, Seattle grabs the top spot with an estimated $136/hr. net earnings. In cities like Columbus, OH ($126/hr.), San Francisco ($125/hr.), and Oakland, CA ($125/hr.) the earnings are all around the $125/hr. Mark.

States

Moving on to states’ potential mover earnings, we find Maine ($132/hr.) and Iowa ($132/hr.) with the joint highest earnings, with Utah and Washington closely behind ($129/hr.).

Going down the list, Arkansas is next with $128/hr. in potential net earnings. This highlights that moving is a universal need, and that small states can compete against states with big cities like San Jose or San Francisco, where the cost of living is highly expensive (and therefore potentially more lucrative). The average earnings for movers in California are comparatively middling in the take-home department, averaging around $110/hr. per move.

Check out the chart below to see what mover earnings are like in your state.

This section is based on data from moves booked through HireAHelper and their partner sites. Earning figures represent average estimates; actual earnings may vary.

 

Supply and Demand: Cities and States With the Greatest Need for New Moving Companies

movers

High earnings are great to aim for, but it’s worth bearing in mind that crowded markets where earnings are high are often hard to compete in — especially for a brand new company.

Like with any kind of business, the supply and demand (and thus the price people are willing to pay for moving services) vary by location. If you’re just starting out as a moving company, ideally you’d like to start where there’s a gap in the market.

Cities

Based on our analysis of moving company data and the number of moves in America’s biggest metropolitan areas, here are 20 metros where the gap between potential demand for moving services and their supply is the biggest.

The data show that 6 of the 20 metros where the demand for moving services most outmatches the current supply exists in Texas, especially in Sherman-Dennison, TX, where the ratio of moves to moving companies is roughly 600 to 1!

Among larger metros with favorable demand-to-supply ratios are the Phoenix-Mesa-Scottsdale, AZ area (393 moves per moving company), the Houston-Baytown-Sugar Land, TX area (276), and the Dallas-Fort Worth-Arlington, TX area (255).

States

At the state level, the opportunity is greatest in Arizona and Missouri, where there are more than 200 moves per moving company. Kansas (188), Washington (187) and Texas (186) round off the top five.

To see what the supply and demand for moving services look like in your state, check the graph below:

Convinced? Here’s How You Can Get Started

If you think you have what it takes to safely move some couches, luckily, you don’t have to go in blind.

If you really wanna get the ball moving, here’s a moving business guide for starting and running your own local moving company. It has information on how to register a business, set prices for your services, where to find customers, which tools you need to buy for the job, and way more.

Want a license to drive on the job too? Here’s a guide for starting a fully-fledged moving company, detailing the necessary steps for starting a moving business with links to the proper business licensing authorities in each state.


Sources and Methodology

General mover earnings were estimates were compiled using indicative rates from HireAHelper, Yelp, Forbes, and Consumer Affairs.
Mover earnings by state and city were calculated based solely on data from moves booked and completed through the HireAHelper platform and their partner sites. Earnings figures are indicative of the amount earned minus fees.
The number of moving companies was calculated using the U.S. Census Bureau’s American Business Survey (count of companies listed under “Transportation”) and Yelp (number of companies listed as “movers”).
The number of moves was taken from U.S. Census Bureau’s Current Population Survey, as available through the Integrated Public Use Microdata Series.

How To Start a Business: 5 Steps to Opening a Legit Moving Company

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On the surface, starting a moving company may look simple: get a truck, hire a reliable crew, and start finding customers.

But anyone who has actually started a moving company will tell you there’s a lot more to starting a moving company. (We’re talking about confusing stuff, like obtaining the proper licenses.)

Below, we’re going to tackle the potentially complicated process of getting your moving company on the map.

Business 101: The Four Business Types

Before you get started, you’ll want to familiarize yourself with the four basic company structures. Here are their descriptions from the Corporate Finance Institute:

  • Sole Proprietorship

A sole proprietorship is the simplest business structure and involves one individual who is responsible for the day-to-day operations of the business. Also, from a tax perspective, the incomes and expenses of the business are included in the tax return of the owner.

The business is not required to file separate income tax forms from the owner since the business does not exist as a separate legal entity from its owner. The owner is required to file Form 1040, and the form must include Schedule C and Schedule SE for self-employment tax.

  • Partnership

A partnership is a form of business structure that comprises two or more owners. It is the simplest form of business structure for a business with two or more owners. A partnership shares a lot of similarities with a sole proprietorship. For example, the business does not exist as a separate legal entity from its owners, and therefore, the owners and the entity are treated as one person.

When filing taxes, the profits and losses of the business are passed on to the partners, and each partner is required to report the information in Form 1065 with their personal tax returns. Also, partners are required to pay self-employment tax, depending on their share of the enterprise’s profits.

  • Corporation

A corporation is a type of business structure that gives the entity a separate legal entity from its owners. It is complex and expensive to set up, and it requires the owners to comply with more tax requirements and regulations…

…When an organization intends to go public through the issue of common stock to the public, it must first be incorporated as a corporation. Corporations are required to pay both federal and state taxes, while the shareholders are required to disclose their dividend payments when filing their personal income taxes.

  • LLC

A limited liability company (LLC) is a hybrid business structure that combines the best of both worlds, i.e., it possesses the characteristics of both partnerships and corporations. It provides personal liability protection to business owners while reducing tax and business requirements. The profits and losses of the business are passed through to the owners, and each business owner is required to include a share of the profits/losses in their personal tax returns.

Also, unlike an S-corporation, which is subject to a limit of 100 shareholders, there is no limit to the number of shareholders in a limited liability company.

You may need to make a decision before beginning the actual registration process. Though it’s very probable if you’re just starting out, we’re talking sole proprietorship or partnership status here.

The Five Major Steps To Starting a Moving Company

The process for registering and licensing your moving company involves five basic steps. Well, I say basic, but that doesn’t automatically mean easy. (Remember, we’re dealing with the government here!)

But just like moving someone out of their house goes one piece at a time, so goes the process for getting your moving company up and running.

Step 1: Fulfill your state’s permit and license requirements

This includes registering your business, obtaining tax identification numbers, and nailing down the necessary insurance. Click on your state and go directly to the people who can tell you exactly what forms you need to fill out for YOUR state.

State  New Business Information Permit and License Information 
Alabama Guide for starting a business  Motor Carrier Certificate Application 
Alaska Small business support Business license
Arizona Small business information Business services
Arkansas New business registration HHG mover permit
California How to start a business HHG mover permit
Colorado How to start a business HHG mover permit
Connecticut New business registration HHG mover permit
Delaware New business Information Business license
Florida Starting a business Mover registration
Georgia Registering a business HHG intrastate carrier certificate
Hawaii Starting a business  Motor carrier certificate
Idaho Starting a business Permit Information
Illinois Small Business resources HHG mover permit
Indiana Starting a business HHG mover permit
Iowa New business information Motor carrier permit
Kansas Starting a business Motor carrier directory
Kentucky Starting a business HHG permit
Louisiana Starting a business HHG permit
Maine Starting a business Business License
Maryland Starting a business HHG Permit
Massachusetts Starting a business Operation permit
Michigan New business guide Mover permit
Minnesota Starting a business HHG permit
Mississippi Starting a business Licensing
Missouri Starting a business Business permit
Montana SmallBiz Startup guide Business permit
Nebraska Starting a business HHG permit
Nevada Starting a business HHG Permit
New Hampshire Registering a business Moving company license
New Jersey Registering a business Certificate for operating
New Mexico Registering a business Certificate for operating
New York New business requirements HHG permit
North Carolina Starting a business Motor carrier license
North Dakota Starting a business HHG permit
Ohio Starting a business Forms and fees
Oklahoma Starting a business HHG permit
Oregon Starting a business Motor carrier registration
Pennsylvania Starting a business Special Registrations
Rhode Island Starting a business Motor carrier license
South Carolina Starting a business HHG permit
South Dakota Starting a business Business license
Tennessee Business startup guide HHG permit
Texas Start a business Motor carrier registration
Utah Business registration Intrastate Registration
Vermont Business registration Commercial Vehicles Operations
Virginia Business Registration HHG permit
Washington Business license HHG permit
Washington, DC Business registration Registration requirements
West Virginia Starting a business Motor carrier license
Wisconsin Business registration Motor carrier application
Wyoming Starting a business DOT operation information

Pro Tip: Right off the bat, determine whether you need a state license to operate as a moving company. Some states — Alaska, Arizona, Maine, Maryland, Delaware and DC — have in the past been delegated as states that do not outright require such licensing. But times change, so check!

Step 2: Obtain a “USDOT#” (U.S. Dept. of Transportation Number)

Simply put, if you are planning on operating across state lines, you will need a United States Department of Transportation number.

If your business will be conducted entirely within your own state, you may or may not need one. (Some states require them locally, others don’t.) The FMCSA breaks it all down here.

If you do need a USDOT# to operate legally in your state, you can go here to get started.

Note the government’s warning that… “Everyone that registers with FMCSA is required to understand and comply with all applicable Federal safety regulations before registering.”

Those safety regulations can be found here.

Step 3: Federal Motor Carrier Safety Administration (FMCSA) requirements for moving trucks

If your business is more than just labor and you plan to be operating a vehicle, you will need to become compliant with the Federal Motor Carrier Safety Administration (FMCSA).

Which registration and operational requirements you are subject to depends on whether you are operating interstate or intrastate (that means operating across at least two states, or inside just one). Either way, there will be requirements for you to fulfill. Some of them include:

  • Having a USDOT#
  • Getting a “safety rating”
  • Minimum levels of insurance required
  • Financial reporting requirements
  • Mandated checklist of safety requirements for your vehicle(s)
  • Having qualified drivers

The FMCSA lays out all these details and more over here.

The FMCSA also lists all the steps in the registration/application process (as well as information on state requirements, safety programs, and maintaining/updating your USDOT status down the road) right here.

Step 4: Check for government help for your small business

An important resource for starting any business (wherever or however you plan to operate) is the U.S. Small Business Administration (SBA).

Some things the SBA can help you with include:

  • Government business loans
  • Free business counseling
  • Home & business disaster loans
  • Federal government contracting

Check them out. Because when you’re starting a business, it never hurts to have extra help.

Step 5: Get listed on mover marketplaces and start generating reviews ASAP

After you’ve got your licenses, equipment, funding, and a crew, you are good to go!

But if you’re serious about generating customers and starting a real, you know, business, the best thing to get your company in front of potential customers is to list your website on free moving marketplaces. (If it’s a website that only lets verified customers review you instead of randos on the internet, that’s obviously better.)

And don’t ever pay anyone to be listed somewhere online — it should be free for your company if it’s legit.

Get your website listed on websites customers in your area are searching on

After all, there’s no point in going through all this effort without putting your company online for people to find. What’s a moving company without people to move?

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