Dump trucks must always be used to move materials to and from mines and building sites, as well as to pick up trash. As a result, it is an industry worth about $20 billion, and starting your own dump truck business could help you get a piece of that pie. Since you will have a big profit margin as a solopreneur, you could use your gains to grow your business.
Getting the necessary information is the first step in starting a business. This step-by-step guide will give you all of the information and skills you need to start your own dump truck business.
Step 1: Find Out if this is the Right Business for You?
There are advantages and disadvantages to every business, so you should weigh them all before deciding if starting a dump truck business is right for you.
Positives Vs Negatives
|Ordinary hours – You’ll usually work normal business hours|
Stay close. You won’t have to move like other transporters.
Great Cash – Net sales are moderately high
|Unpredictability: You might work less in the colder months.|
Fuel Expenses – Dump trucks just get 5 – 6 miles for every gallon
- IBISWorld, a market expert, thinks that the US dump truck administrations business is worth almost $20 billion. Even though the market fell in 2020 because of the outbreak, it has been growing steadily for the last five years.
- Forecast: The world market for dump trucks is projected to grow at a 7% annual rate through 2026.
- In the United States, there are more than 28,000 businesses that offer dump truck services.
- Number of people working: The US dump truck operations business employs more than 100,000 people.
- Number of workers: More than 9,000 people work in this business.
Cost of Starting Dump Truck Business
A dump truck business can be started with as little as $6,000 and can grow to be worth $50,000 or more. The car itself will probably cost you $45,000, even if it is used. Your down payment could be as low as $5,000, or 10% of the whole amount.
- Shovels and other tools
The normal hourly rate for dump truck services is around $100, and if you work for yourself, your profit margin should be around 70%.
In your most memorable short time, you might be able to work from home and do 20 week-long stretches of administration, making more than $100,000 a year and getting more than $70,000 in benefits (with a 70% edge). As your name grows, you might rent a business space and hire more trucks and drivers, cutting your edge to about 20%. But if you could give 100 hours per week, you could make between $100,000 and $520,000 per year.
- You will need to find and pay for a safe used car.
- Most places have a few trustworthy dump truck companies.
Step 2: Create a Strategy
- Scrap from construction
Services with dump trucks usually cost between $100 and $120 per hour. When you work for yourself, the most expensive things you’ll have to pay for will be your car rent and gas. Since they only get 5 to 6 miles per gallon of gas, dump trucks are expensive to use. Overhead costs and drivers’ wages, which are usually between $20 and $25 per hour, will be added to the bill later.
Once you know how much you’re spending, you can use our Step-by-Step profit margin tool to figure out your rate and final price points. Keep in mind that your shipping prices should be able to change when the market calls for it.
Most likely, your goal market is engineers, contract workers, and development companies. You can find them on business websites like LinkedIn.
You might decide to start your business from home to save money. But as your business grows, you may need to rent an office area and hire people for different jobs. You can look on Craigslist, Crexi, and business Cafe for business space to rent in your area.
If you are looking for a place to do business, you might want to keep these basic rules in mind:
- The place is convenient and easy to get to with public transportation.
- The room has good air flow and plenty of light.
- As your business grows, you can continue the lease.
- It works perfectly and doesn’t need any big fixes.
Step 3: Write a Business Plan
A firm must have a plan. This will assist you in guiding your new firm through the launch process while keeping your major objectives in mind. A business plan also helps potential partners and investors better understand your company and its goals:
- Executive Summary: Brief outline of the whole marketable strategy; should be written following the completion of the plan.
- Overview of the Company: An overview of the business, its vision, mission, ownership, and objectives.
- Item and Administrations: Give a thorough description of your services.
- Market Research: Evaluate market patterns like varieties popular and possibilities for development, and do a SWOT investigation.
- Analyses of the Competition: Make a list of your services’ advantages and conduct an analysis of your main competitors, evaluating their advantages and disadvantages.
- Deals and Showcasing: Analyze your company’s unique selling propositions (USPs) to develop sales, marketing, and promotion plans.
- Supervisory team: A description of the supervisory team, including their roles and expertise, as well as a corporate order.
- Plan of Operations: The procurement, office location, critical assets and equipment, and other logistical aspects of your company’s operating plan are covered.
- Plan for finances: Three years of financial planning, covering initial expenses, return on investment study, benefit and misfortune gauges, income, and accounting report.
- Appendix: Include any additional documents pertaining to business or finances.
Step 4: Create a Marketing Plan
Some of your business will come from people who walk by or find you online, but you should still spend money on advertising. For new businesses, getting the word out is especially important because it will bring in more customers and raise brand recognition.
Connect your website to your social media accounts once it’s done. Social media is a great way to promote your business because you can post fun updates and sell your goods.
- Facebook is a great paid advertising tool that lets you target specific social groups, like men under 50 in the Cleveland area.
- Instagram is a lot like Facebook, but it has different focus groups.
- Site: Web optimization will help your site get to the top of relevant lists, which is important for making more money. Make sure the ways to take action on your website are as easy as possible. Check out a few different options for the language, number, size, and placement of action suggestions like “Contact Now,” which has the potential to increase meeting times by a lot.
- Google and Cry: For businesses that rely on local customers, having a profile on Cry and Google My Business can be a good way to get more attention and customers.
- Competitions and giveaways: Get customers interested by giving them things like a free first load if they do a certain job.
- Make sure the signs for your business and website stand out.
- Distribute relevant flyers in your neighborhood and at events for your field.
- Trade shows and neighborhood markets are great places to show off your goods and services.
- Add a movie that shows what your dump truck services are all about. If you’re funny, you might go viral!
- Start a blog and update it often. Change up your information and put it on different channels.
- Customers may tell their friends about your business if you give them something in return.
- Paid social media ads: Choose sites where your ideal customers hang out and put ads there.
- Pay-per-click marketing (PPC): You can improve your search engine results by using Google AdWords. First, find out as much as you can about your keywords.
- Customers should say what your services do for them in their recommendations.
- You can make infographics by sharing and mixing infographics with your own content.