Starting a Dump Truck Business
Starting a dump truck business is relatively simple, but quite costly to do
Description of the business
This business requires owning the dump truck and hauling materials. There are many sizes and brands of trucks that you can get. A tri-axle truck is larger and can carry more materials. The tri-axle is the way to go if you plan to use the truck in the construction industry. If you are going to use the truck for delivering landscape materials (eg topsoil) to home owners, then you might go with a one tonne truck with a dumping unit attached. For slightly larger jobs, a double axle truck would be best. For the purpose of this page, we'll assume you want to buy a tri-axle and serve the construction industry.
Business Start Up Investment Required
The investment for this business is in the tens of thousands, if not the hundreds of thousands. A brand new tri-axle will be over $100,000. With good credit, a down payment, and a viable business plan, you should be able to get financing.
A dump truck business is certainly a full time commitment. You don't invest in a truck and just use it part time. The truck needs to be going full time in order to pay off the financing, cover expenses and make a profit. Busy dump truck drivers are known to regularly log over 60 hours per week.
Barriers to business start up
Aside from the cost of the truck being a barrier, you will have to look into the licensing requirements in your area. Beyond this, it is costly to own and operate a dump truck. Insurance, fuel, maintenance and repairs are all quite expensive.
You will need proper licensing for yourself and your truck. Check with your local licensing representatives.
Tips for Success in Starting a Dump Truck Business
1. Before you buy the truck, research who your competitors are. Learn as much as you can about them. For example: What do they charge? What are their strengths and weaknesses? Who are their clients?
2. Find out all of your costs before opening (insurance, fuel, licensing, etc).
3. Figure out what to charge and how to bill. You will probably have to offer the same prices and payment terms as your competition.
4. Know who your clients will be. Will you work for general contractors? Maybe other dump truck company's? Be confident that you will have enough work all year round.
5. Set up a system to carefully track your financials. Stay on top of your accounts receivable and payables as well.
6. Carefully follow all industry safety rules. It is important to build a good reputation as a safe reliable company.
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