It costs about $104,000 in startup CAPEX to launch the researched senior relocation service setup before payroll runway and working capital The largest asset costs are two company vans at $35,000 each, plus $10,000 for office furniture and equipment, $8,000 for initial website development, and $6,000 for computer hardware Total funding need is higher because the model also carries payroll, rent, insurance, software, marketing, and variable move costs during ramp-up In the researched base case, minimum cash need reaches $811,000 in Month 2, with breakeven modeled in Month 7
Calculate Fuding Needs
Highlighted CAPEX$104,000Base planning example
Excluded cash needs$811,000Outside CAPEX total
Funding need$915,000CAPEX + excluded cash needs
| Cost Category |
Main Cost Driver |
CAPEX Calculator |
| Vehicles for moving operations |
$70,000 |
Company vans and vehicle readiness |
Yes |
| Office furniture and equipment |
$10,000 |
Office setup and workstations |
Yes |
| Packing equipment and tools |
$5,000 |
Reusable move-handling tools |
Yes |
| Website, software, and licenses |
$10,000 |
Website build and startup software setup |
Yes |
| Hardware, branding, and launch setup |
$9,000 |
Computers, signage, and brand setup |
Yes |
| Opening cash reserve |
$811,000 |
Modeled Month 2 cash need and early operating runway |
No |
Estimate Startup Costs with Calculator
!Excluded costs This calculator covers capitalized startup assets only. It excludes non-CAPEX startup expenses such as payroll runway, working capital, deposits, debt service, insurance premiums, ads, rent deposits, consumable packing supplies, and other ongoing operating costs.
What does the CAPEX screenshot show?
This CAPEX tab in the Senior Relocation Service Financial Model Template lists startup costs, launch timing, depreciation/amortization, working capital, and payroll ramp—review assumptions now.
Screenshot highlights
- $104k CAPEX, Months 1-7
- No-van: $34k CAPEX
- One-van: $69k CAPEX
- Two-van: $104k CAPEX
- $811k cash need Month 2
- Breakeven Month 7
- 17-month payback, $63k EBITDA
Compare 3 Startup Cost Scenarios
Lean, Base, and Full launch cost comparison for a senior relocation startup.
| Scenario |
Lean LaunchLowest asset risk
|
Base LaunchBalanced local launch
|
Full LaunchHighest control
|
 Launch model |
Model a no-van launch with licensed movers and about $34,000 in startup capital. |
Model a one-van local launch and about $69,000 in startup capital. |
Model a two-van staffed launch at about $104,000 in startup capital, plus $811,000 minimum cash in Month 2. |
 Typical setup |
Use office tools, packing gear, and outside movers, with a light team and low asset risk. |
Use one owned van, a fuller local team, and enough office support for steady jobs. |
Use two owned vans, larger staff, stronger marketing, and full office support for more control. |
 Cost drivers |
- No owned van
- licensed movers
- office setup
- packing tools
- marketing budget
|
- One van
- staff readiness
- office setup
- packing tools
- local marketing
|
- Two vans
- larger crew
- office needs
- stronger marketing
- working capital
|
 Planning rangeCAPEX only |
$34,000Lean capital
|
$69,000Core launch
|
$104,000Heavy funding
|
 Best fit |
Best for a founder who wants low asset risk and can outsource transport. |
Best for a founder who wants a balanced local launch with one vehicle and in-house coordination. |
Best for a founder who wants wider service scope and can fund a heavier launch. |
!Planning note: These ranges reflect researched planning assumptions, not exact vendor quotes. Use them to size launch funding, then confirm local prices and staffing.
What hidden costs come with starting a senior relocation service?
For a Senior Relocation Service, the hidden costs are mostly cash timing, not the trucks themselves. The model can need $811,000 of minimum cash by Month 2 even though CAPEX is only $104,000, because insurance deposits, training, outreach, software, fuel, launch marketing, and delayed payments hit before revenue. For owner-pay context, see How Much Does The Owner Of Senior Relocation Service Typically Earn?
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$300 monthly liability insurance
-
$200 monthly vehicle insurance
- Background checks and senior-sensitive training
- Referral outreach before first revenue
-
$150 monthly CRM software
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$100 monthly accounting software
- Temporary labor setup and launch marketing
- Year 1 variable costs: 80%, 120%, 50%, 30%
How should I fund a senior relocation service startup?
Fund Senior Relocation Service with a launch budget that covers both startup assets and working cash. The base case needs $104,000 in CAPEX plus enough cash to cover the $811,000 modeled Month 2 requirement, before you approach lenders or investors. Build the pitch around a $230,000 first-year payroll plan, a Month 7 breakeven, a 17-month payback, and $63,000 Year 1 EBITDA.
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$104,000 CAPEX to start
- Cover $811,000 Month 2 cash need
- Raise before lender meetings
- Use cash for runway first
-
$80,000 Founder/CEO salary
-
$55,000 Move Manager salary
- Two Packing Staff at $40,000 each
- One Marketing Coordinator at $15,000
Model revenue from 20 organizing and packing hours at $75, 10 unpacking and setup hours at $70, and 5 move supervision hours at $90. That gives lenders a clean path to Month 7 breakeven and a 17-month payback.
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20 hours at $75
-
10 hours at $70
-
5 hours at $90
- Show billable hours clearly
-
Month 7 breakeven target
-
17-month payback
-
$63,000 Year 1 EBITDA
- Use these as your core asks
How much money do I need to start a senior relocation service?
You need $34,000 to start a Senior Relocation Service as a solo no-van coordinator, about $104,000 for a fuller-service setup with vans, and up to $811,000 minimum cash need by Month 2 in the staffed base case. CAPEX means startup assets and setup costs, so separate it from payroll and monthly burn; for KPI context, see What Is The Most Important Indicator For Evaluating The Success Of Senior Relocation Service?.
- Solo no-van model: $34,000 base CAPEX
- Referral model: legal, screening, insurance, marketing
- Full-service model: $104,000 CAPEX setup
- Includes two vans at $35,000 each
- Year 1 payroll: $230,000
- Monthly fixed expenses: $4,300
- Year 1 marketing: $15,000
- Month 2 cash need: $811,000
- Startup CAPEX totals $78,000 for vehicles and equipment.
- Year 1 payroll is $230,000 before working capital.
- Marketing starts at $15,000, with $300 CAC.
- Vehicle insurance and fuel stay in operating costs.
Senior Relocation Service Core Five Startup Costs
Vehicle, Transportation, and Reusable Move Equipment Startup Expense
Own transport takes real cash up front. The modeled startup CAPEX is $78,000: $35,000 for Company Van 1, $35,000 for Company Van 2, $5,000 for packing tools, and $3,000 for branding and signage. That covers mileage readiness, but $200 monthly insurance and fuel plus maintenance stay in operating costs.
Pack the move kit with dollies, carts, moving blankets, straps, bins, shelving, and reusable labels. The source budget is $5,000, so estimate it as units times supplier quotes, then add spares for wear and loss. This is one-time setup spend, not monthly overhead, and it sits inside the $78,000 launch budget.
If the company coordinates licensed movers instead of transporting belongings, it can start with far less equipment and cash tied up in vans. That shift lowers capital needs fast, but it still needs strong scheduling and client handoff. Keep vehicle costs separate from operating costs, especially the $200 monthly insurance and fuel plus maintenance at 50% of Year 1 revenue.
Branding and signage are a small but useful $3,000 piece of the launch budget. Use it for van graphics and field visibility, then keep the rest simple: one budget for vehicles, one for gear, and one for operating costs. If transport is outsourced to licensed movers, this spend can drop fast.
Insurance, Licensing, Legal Formation, and Compliance Startup Expense
This startup cost covers general liability, professional liability if you give advice, commercial auto if you own vans, workers’ comp where required, state registration, local permits, client authorization forms, contracts, and background-check policies. Put upfront legal work and deposits here, not in CAPEX, unless your accounting policy capitalizes them.
Use the monthly assumptions to estimate the run rate: $300 liability insurance, $200 vehicle insurance, and a $500 legal retainer. Add quotes for formation, permits, and pre-opening filings. If you only coordinate moves, licensing is lighter; if you transport household goods, moving-regulation exposure rises and the budget should reflect that.
Trim cost by using one lawyer for formation, contracts, and authorization forms, then keeping renewals on a calendar. Skip van coverage if you do not own vehicles, and do not buy a broad license you do not need. The big mistake is treating this as a one-time fee; insurance and compliance are recurring startup-to-runway costs.
Build the file before opening: state registration, local permits, insurance certificates, signed client consent, and background-check rules for every worker. Workers’ compensation depends on state rules and headcount, so get a quote early. If onboarding takes longer than planned, the gap hits cash fast because these costs sit ahead of revenue.
Staffing Readiness, Training, Screening, and Launch Payroll Startup Expense
The launch payroll is $230,000 in Year 1: $80,000 for the founder/CEO, $55,000 for the move manager, $80,000 for two packing staff, and $15,000 for a 0.5 FTE marketing coordinator. If these wages are paid before revenue steadies, they sit in startup cash need; after opening, they are working capital.
Before the first move, budget for founder training, senior-sensitive service protocols, background checks, uniforms, onboarding materials, temporary labor setup, and payroll registration. Estimate each line from vendor quotes, per-hire screening fees, headcount, and weeks of paid onboarding. This spend protects quality and keeps the first jobs from being staffed by unready people.
- Quote screening per hire
- Count onboarding weeks
- Price uniforms by headcount
Keep the team tight until demand proves out. Later-year hires include an administrative assistant after Year 1 and an operations manager after Year 2, so don’t pull those roles forward without booked work. With organizing and packing on 90% of Year 1 customers and full project management on 30%, use a flexible core crew first.
Staff readiness should match the service mix. Most Year 1 jobs need packing and organizing, but only a smaller share needs full project management, so wage burn rises fast if you hire for the top end too early. One clean rule: hire for the booked mix, then expand only when utilization stays steady.
Technology, Office Setup, and Operating Systems Startup Expense
For a senior relocation service, this cost is mostly runway burn, not just setup. The modeled one-time stack is $26,000, and the recurring office base is $3,300/month before labor, vehicles, or marketing. Separate capex from monthly spend, because the second group starts draining cash on day one.
Build the launch stack from vendor quotes and unit counts. The model includes $10,000 office furniture and equipment, $6,000 computer hardware, $2,000 software setup and initial licenses, and $8,000 website development. These support CRM, scheduling, invoicing, intake forms, and photo inventories.
- Quote phones and tablets separately
- Count users for software licenses
- Keep storage in software line
Keep it lean by buying only what staff use at launch. A home office or small office can replace a larger lease, and coordinating licensed movers can cut the need for transport assets. Don’t mix one-time hardware with monthly subscriptions; that mistake hides runway pressure.
- Delay extra workstations
- Renew licenses only when needed
- Track rent as monthly burn
Here’s the quick math: $150 CRM + $100 accounting + $400 utilities and internet + $150 office supplies + $2,500 rent = $3,300 monthly overhead. That’s before payroll and vehicles, so the office choice has a direct effect on how long the startup can stay open.
Launch Marketing, Referral Development, and Trust Materials Startup Expense
Year 1 marketing is $15,000, with $300 CAC as the planning target. That spend covers the website, local search setup, local business profile setup, brochures, outreach, launch promos, and trust-building visits to retirement communities and referral partners. It is a small but necessary startup line, not a broad ad budget.
This cost covers the first credibility assets and outreach work: website, local search setup, business profile setup, brochures, and partner visits. Estimate it from deliverables × quotes × launch months. Build the budget around how many referral sources and local listings you need active before first jobs, then keep it inside the $15,000 Year 1 cap.
- Website and profile setup
- Brochures and launch promos
- Referral outreach visits
CAC means customer acquisition cost. The cleanest way to lower it is referral-led growth, since the plan already targets a drop from $300 in Year 1 toward $200 by Year 5. Put spend into retirement communities, elder care providers, real estate agents, elder law attorneys, and discharge planners before scaling paid ads.
- Start with partner channels
- Track cost per booked lead
- Use paid ads only with proof
Plan the marketing ramp early: $25,000 in Year 2, $40,000 in Year 3, $60,000 in Year 4, and $75,000 in Year 5. Performance-based digital ad spend is also modeled at 30% of Year 1 revenue, so the budget should grow with booked work, not ahead of it.
