How to Start a Dump Truck Business
Are you interested in knowing how to start a dump truck business? The good news is that the dump truck industry is growing at a rapid pace and it can be a good time to start and build a strong market for your micro or macro dump truck business. In fact, the U.S dump truck service market is expected to hit $20.64 billion by 2025.
However, you may still be looking for answers to the question such as:
- Is owning a dump truck profitable?
- Is dump truck Driving a good job?
- Is a garbage man a good job?
And the answer is, yes, of course. Starting a dump truck business can be very profitable and rewarding because it is not dependent on the season. Moreover, garbage transport is not the only business model, a dump truck business makes money through.
There are enormous opportunities such as loads of construction works throughout the U.S and dump trucks are permitted by U.S law to transport loose materials like sand, stones, concrete, and garbage, etc.
And you can start a dump truck business with a single truck as well as with a fleet!
How Much Does it Cost to Start a Dump Truck Business?
The most relevant question when exploring how to start a dump truck business is, “how much does it cost to start a dump truck business?”.
Well, the cost of the dump truck(s) is the major cost involved in starting a dump truck business. Depending on the make, model, the year it’s built, and features, a brand new dump truck can range from $100,000 up to over $200,000 in the United States. However, you may also consider buying a used one in the auction.
Other than the cost of the dump truck, there can be other startup expenses such as business licensing costs, overhead costs allowances for a couple of months, etc.
When considering the costs of starting a dump truck business, make sure to have clear answers to the following important questions.
How Much Fuel Does a Dump Truck Use Per Hour?
Fuel is the biggest operating expense on a dump truck. According to EquipmentWorld, Class 8 models generally get around 3.2 gallons per hour for short hauls, and 6.2 mpg for highway hauling.
Consulting a dealer, and discussing the mileage based on your location can give you better estimates.
How Much Does a Dump Truck Business Make?
Dump truck drivers are among the highly demanded truck drivers in the U.S and on average a dump truck owner makes $130,000 to $197,000 per year.
Geography is the biggest factor affecting the income of the dump truck business. If you own multiple trucks and have constant jobs with long-term contracts, the profits can be significantly higher.
Do not forget to deduct the necessary expenses it takes to run the dump truck business, i.e. cost of fuel, tires, repairs, and fixing, driver wages, etc.
How to Start a Dump Truck Business
Though the above-discussed facts and stats are very encouraging, you may find yourself overwhelmed about how to start a dump truck business, as it requires some more careful considerations.
Here is the step-by-step procedure you might want to consider while starting a dump truck business.
1- Do the Market Research
No matter how small you start, understanding the dump truck market and its future scope is a must. Begin your market research with the following point.
The dump truck business industry is vibrant but you must focus on challenges & competitions for a secure future.
As discussed earlier, geography plays a vital role in the profitability of a dump truck business. You must explore the scope of the dump truck business industry in your area, whether other constructions, infrastructure, and mining companies are present in your area or not.
Know Your Target Market
The most common misconception about the dump truck business is it being considered a garbage truck. Well, that’s not the only target market for a dump truck business. Instead, there are numerous opportunities, i.e.
- Chemical Material Manufacturing Companies.
- Construction Material Manufacturing Companies.
- Mining companies.
- Earthwork Companies.
2- Create Business Plan for Your Dump Truck Business
One of the most frequently asked questions is “How do dump truck owners find work?”.
Well, if you have a well-thought business plan in hand, this very important question will be answered automatically.
How do I Write a Business Plan for a Dump Truck?
A business plan is a roadmap for success, and if you cannot create a detailed business plan, you must at least have a one page business plan.
Create your business plan by your future plans and how your business will be structured. You will need to make sure that the community is aware of your service.
Here’s what your dump truck business plan should include:
- Details of market research, and target market.
- List of potential customers.
- Details of the running costs for next one year.
- Estimates of income for the next one year.
- Ideas on how to reach potential customers.
- Details on how to convince the customers.
- Clear and realistic pricing strategy.
- Promotional offers and packages.
- An action plan that details who is responsible for which tasks, and relevant deadlines (if applicable).
Create your business plan by focusing on marketing your business through local news publications, making websites where potential customers can find you online, and growing your web presence with listings on google business to get customers for your business.
While creating a business plan also consider using social media platforms like Facebook, Instagram, or Twitter for marketing and spreading the word about your business.
3- Register Your Business
In the next step, you will need to register your dump truck business to get started. To successfully get your dump truck business registered, visit the Secretary of State’s Office of a particular region (Business Bureau Section), mention at which place you are planning to start your business, prepare papers and mount up all necessary documents & then go for final submission and your work is done.
Depending on your state and local regulations, if you find it difficult to do it yourself, you may hire an attorney for a hassle free and smooth process.
4- Obtain Licenses & Permits
If you know how to drive a dump truck, then all you have to do is to get your driving license from the Department of Motor Vehicles (DMV) conversely, if you don’t know how to drive a dump truck then you will need to complete local truck driving course and appear at the CDL (commercial driving license) exam to obtain your license.
If you want to start your business in several states then you will need to apply for a nationwide permit to operate your business.
5- Set up the Business Essentials
While setting up business essentials, the most important is to open a separate business account and also a business credit card. You must do all your business transactions and expenses from a separate business account.
You can also join dump truck apps like TRUX for getting a reliable stream of work. It gives you a variety of tools like automating payments and keeping track of your vehicles through GPS.
6- Start Operations
This phase includes the practical steps that you have defined in your business plan. You can start operating your business by reaching out to your potential customers through word of mouth strategies, basic marketing, and professional connections.
Give your customers captivating offers like (discounts or free at natural disasters) to gain their attraction and trust towards your business and start it to make it successful and profitable.
The Bottom Line
Starting a dump truck business can be exciting, but when it comes to running it and making your dump truck business profitable, the path is not easy. All you need to do is to stick with your end goals, keep working, prepare things in advance and keep tweaking your business plan as needed.