There has never been a time when there isn’t a high demand for the services of a truck owner. People would always have to move goods from one place to the other, which makes owning a box truck business a profitable one. With a box truck, you can help people move large products and packages across the state. At the same time, you can move people, haul away junk, or even make deliveries for wholesaling companies like Amazon.
There is enough market for anyone looking to enter the trucking industry. So, if you are looking for how to start a box truck business, here is the right place to be. We will answer many critical questions you might have in your mind concerning the business. Sounds interesting? Then, let’s get right into it.
How to Make Money with Box Trucks
These types of trucks, which are also called straight trucks, as used to move and transport furniture, appliances, junk, and many other things. Many of these things that are being moved can only be moved by truck, making a box truck business a business with high demand.
When you already own your own box truck, you just need to get your business registered and follow every laid down guidelines to start operating. Afterward, you can make money from your truck by starting your own transportation business transporting loads and people or leasing it out to other drivers for a fee.
How Much Does It Cost to Start a Box Truck Business?
A box truck business is an expensive one. So if you would love to start one, you have to be prepared for the capital implications. To start a bulk truck business, you will need between $25,000 and $50,000. The chunk of the money will be going into purchasing your truck. A used box truck costs between $6,500 and $14,000. But if you will be going for a new truck, you might need to prepare for more than that for it.
How Much Can You Make From a Box Truck Business?
As a box truck business owner, the amount of money you can make depends on a variety of factors. It depends on the size of your truck, your state of operation, and the type of load you transport. However, you can make up to $70,000 profit per year by making 10 deliveries per week.
And as your business grows and you have more trucks and hire more drivers, you might do 50 deliveries per week. That means you can make more than $100,000 profit.
How to Start a Box Truck Business with No Money
Well, while this may sound impossible, the better question would have been how to start a box truck business with small capital. And yes, you can start a box truck business on a low budget. You will only need to lease your truck instead of purchasing one. That way, you won’t be paying so much upfront for the biggest part of the investment.
So, find a reliable box truck leasing company that can assist you with the lease. However, make sure you have a credit rating that is above 650 in order to get the best deal. If you have a good credit score, you won’t be needing so much as a down payment for the truck.
How to Start a Box Truck Business
Now that we have answers to some of the most important questions about starting a box truck business, let’s see how we can really start.
#1: Write a business plan
Like any other business, a box truck business also requires a well-thought-out business plan to be successful. Your business plan will serve as your road map while you run the business. So, settle down to write a comprehensive plan for the business. Your business plan should include things like your startup capital, market analysis, competition, marketing strategy, target market, and many more.
#2: Register your business
This is a crucial step in starting any business – even a box truck business. Registration is the prerequisite to raising capital, paying taxes, opening a bank account, and doing many important things that pertain to the business. So, contact your state secretariat to know the necessary requirement for starting such a business in your state.
#3: Form a business entity
You will need to define your business by forming an entity. This could be an LLC, partnership, or corporation for your box truck business. The major reason for this is to protect some of your personal assets in case there is a claim against the business in the future. If you are not sure how to go about this or which of them will work best for your business, you can contact a lawyer to put you through it.
#4: Choose a suitable location for the business
While it may look like you don’t need a physical location for your box truck business, you will definitely still need a place to store your truck when it’s not in use. And if you are really serious about the business, you shouldn’t think of using your home for that. You should have a business location where people can always contact you.
Look for a place that is not too expensive. The location should also be easily accessible. Also, your location will affect your legal requirements for registering the business. It will affect your taxes and your revenue too. So you need to choose wisely when choosing a location for your box truck business.
#5: Apply for licenses and permits
To run your box truck business without issues, you will also need to obtain some necessary licenses and permits. First, you will need a commercial driver’s license from your state DMV. Also, you will need a Motor Carrier Authority number and a Department of Transport number. You can get both of these when you register with the Federal Motor Carrier Safety Administration (FMCSA).
To be sure you are getting all the licenses and permits you need, just contact your state’s secretariat and ask them about the things you need to start a box truck business.
#6: Get the necessary insurance
Don’t be tempted to want to overlook this area. Insurance protects you and your business from unexpected events that can have a devastating impact on the business. So enquire and get the necessary insurance for your box truck business. Some insurance policies you might want to consider are:
- General liability
- Cargo insurance
- Physical damage insurance
- Passenger accident insurance
- Commercial auto insurance
#7: Get funding
As we earlier said in this post, starting a box truck business is capital intensive, especially if you are thinking of buying a new truck. Fortunately, there are lots of equipment financing options out there that can help lighten the burden on you. On the other hand, you can as well rent or lease a truck for the business. All these will lighten the initial cost implications for you.
However, you will still need money to foot some other aspects of the business, including registration, getting a location, and many more. So think of a way to raise funds for the business. This could be through personal savings, credit cards, bank loans, crowdfunding, or through your friends and families.
#8: Choose the right box truck for your business
Now that every other thing about the business is set, you should now think of getting your truck and starting your business properly. But when choosing a box truck to buy, make sure you are choosing the right type of truck. You should choose a truck based on the type and size of things you would be moving.
But that doesn’t mean there are not some trucks that are very useful for most small businesses. Some of them are:
- Cargo vans for moving small and light equipment
- Parcel van or cube vans for somewhat larger and heavier materials
- European style high roof vans – also suitable for moving capacity loads
If you are considering the best brand of truck manufacturers you could consider for the business, here are some of the best manufacturers of box trucks in the market:
- Ford
- Isuzu
- Dodge
- Mitsubishi Fuso
- Nisan
- Chevrolet
- GMC
#9: Develop a strong marketing strategy
This is important for your box truck business. When you are asking how to start a box truck business, you should also be asking how to market it and get contracts for yourself. Some ways to go about this are having a strong online presence and using all other traditional means of advertising.
Create an attractive website for the business and get it listed on important listing platforms so people can easily find and use your business. If you are not sure how to get jobs and contracts for your box truck business, below are some good ideas to help.
Box Truck Business Ideas
- Become an amazon contractor: This is a perfect idea if you have a 26k box truck and are willing to partner with Amazon. If your truck qualifies for the requirements Amazon is looking for, you can regularly get jobs from them by helping them move goods and products from one place to another.
- Delivery jobs: The e-commerce industry is growing by the day, and so there is an increasing demand for a box truck delivery business. Do you think you can handle deliveries for e-commerce businesses? This is a great way to make some cash as a box truck business owner.
- Moving services: With your box truck, you can also help moving companies move their homes and office items from one place to another. You can decide to run this as a business or partner with some existing moving companies to always get contracts.
- Junk removal: This involves moving lots of heavy items. It can also include cleaning out garages, storage units, and basements full of junk.
- Advertise on your truck: This is another interesting way to make money with a box truck. You can turn your vehicle into a mobile billboard since you will always be on the road. Many businesses would be willing to pay you to advertise their business on your box truck. You can lease a section of your truck as advertising space to marketing agencies and earn some extra cash.
