Do you want to start a Dump truck business? If so, here is a stepwise guide to starting this business for beginners.
A dump truck is a truck with a large engine containing an open box bed at its back. It is used to carry wastes and debris from construction sites or coalfield and many other sites to carry a large amount of load at a time and dispose of them.
Dump trucks are required for different kinds of work like carrying material to and from construction sites, removing debris from places of natural disaster, demolition of large buildings, etc.
Starting a dump Truck business can be a very profitable venture for you as it has a constant demand round the year and the payment is also good. You can buy a Dump Truck and drive it yourself, to start with. After the business becomes stable and the profit increases, you can opt for a Dump Truck Company and scale up your business.
Here are 8 Steps to Start A Dump Truck Business
1. Understanding the Nature & Importance of Dump Truck Business
Before embarking on the Dump Truck Business, let us have a look at its role and importance.
Dump Trucks are an integral part of many industries like the construction industry. A dump truck is also known as dumper/tipper truck is used for transporting a variety of materials such as sand, gravel, dirt, rocks, construction materials, machinery, equipment, building materials, debris, and many more.
The dump truck business plays an important role by offering essential services of transporting large quantities of materials from manufacturing plants to construction sites and from construction sites to dumping sites. The dump trucks are indispensable in the construction and various other industries.
Dump Trucks also works effectively in the waste recycling fields, by carrying the waste and dumping them. Even these trucks are used in carrying huge loads in times of relocating.
Therefore you can understand the nature of Dump Truck Business and the important role it plays.
2. Need For Market Research
Like any other business, you need to do your research about the Dump Truck Business. You have to remember that there are different types and sizes of Dump Trucks available in the market used to carry loads of different varieties.
You have to find out the different areas where the services of Dump Trucks are needed. It’s not just the construction sites that need the Dump Trucks. Many companies need the Dump Trucks for carrying their load and transporting heavy machinery from one place to another.
You have to do good research to find out the different areas of operation for your Dump Truck business. Some farms need machinery to be carried, machinery dealers that need their products to be delivered, and other manufacturers of large machines and equipment to be supplied. Make a list of such possible clients for your Dump Truck Business and then decide the location of the business.
3. Importance of Location of the Dump Truck Business
Like any other business, the success of running a business on Dump Truck Business also depends on the selection of your area of operation. You have to select a location that is easily accessible and not very far away so that it is easier for you to reach and easier for your clients to reach you.
You have to find a location that is close to your prospective clients. For example, the farms, Manufacturers of machinery, construction sites, or recycling sites. The landfill sites or dumping sites should not be far away so that you can save your fuel.
4. Write A Business Plan
To get finance from the bank or other financial institutions, you need a good and well-thought business plan. Take the help of an expert in this regard.
The business plan must cover the important aspects of your Dump Truck Business like the Fixed Cost, Variable Cost, Break-Even Point, Return on Investment, and the Profit Margin in a stipulated time frame. The Business Plan will help you convince the fund giving authorities or investors and you need not do much.
5. The Legal Requirements
Your business will require certain legal formalities. If you start with your truck driven by you, there is a need for a commercial driving license. For the company status, you can choose the sole proprietorship or LLC.
The other Legal certifications you need for your Dump Truck Business are Commercial Vehicle Registration, Tax Registration, Business Registration, Agreement for LLCs, Insurance Certificates, etc.
6. Insurance Policies
To start your Dump Truck business, you need to insure your business. There are several types of insurance required for this business. They are General Insurance, Auto Insurance, Insurance for the event of disability caused by accident, Insurance covering risks, etc.
7. Marketing & Publicity
This is one of the most important pillars of the success of your business. You have to follow a very well-planned and appropriate strategy of marketing and publicity of your business endeavor.
Let us discuss some of the marketing and publicity moves which can make your Dump Truck Business popular and earn you a good base of clients.
- Make attractive and colorful brochures and leaflets about the areas of your services and distribute them to corporate, government, and other offices and the neighborhood.
- Design good banners and hoardings and put them up in strategic locations.
- Use social networking sites like Facebook, Twitter, or Instagram to publicize your business and share the link of your website there.
- Start your business with a special event like a party or a charitable program or sponsorship.
- Advertise your Dump Truck Business in Local Newspapers, Television and Radio.
- Take the help of skilled professionals in the publicity and image building of your business.
- Keep good contacts with Government, Private Companies, and the local people for word of mouth publicity and whispering campaign.
8. Cost & Investment to Start Dump Truck Business
The approximate price of a new Dump Truck ranges between $100,000 to $150,000. While the approximate price of a used truck is between $15,000 to $100,000 depending on the size and the condition of the truck.
If you have a good idea of an automobile or can seek an expert’s opinion, you can go for a used truck. Excluding the fixed costs, if you are the owner-driver of your Dump Truck, you can earn approximately $35,000 – $180,000.
You can also buy an existing dump truck business. In that case, you will have to shell out a little more money. At Bizbuysell.com we find one seller is offering to go sell his dump trick business at $2,95,000
You can start the business from your savings. Or you can go for a bank loan, for which you will need a well-drafted business plan.
This is good money and with the increasing demand for carrying, transporting, and dumping, your Dump Truck Business can give you a good return.
Wrapping it Up:
To be successful in your Dump Truck Business, you have to remember certain points and try to follow them. Let us discuss some of them.
- Try to be very prompt in your service. Remember, excuses don’t pay you.
- Try to cover far and wide geographical areas in providing your service. Talk to experts and participate in trucking forums.
- Be prepared for odd hours’ services.
- Be very polite as well as professional with your clients.
- Try to use as many references as you can.
- Extend your service in as many niches as possible, like construction materials, heavy machinery, waste disposal, and debris of accident or natural disasters, etc.
These are the key points to start your Dump Truck Business. It is a prospective field and you will be able to get a good return from your investment.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.