How to Start a Box Truck Business – Brief Plan
There’s no doubt that many want to know how to start a box truck business. They are easier to operate than the big rig trucks. Box trucks are smaller than the big rigs, and they haul shorter loads. In addition, box trucks are preferable for the local transportation market. So if you’d like to learn how to start a box truck business, below are the steps to follow.
Complete How to Start a Box Truck Business Plan
Before starting a box truck business, you will need a couple of things below:
You need vehicles, obviously. Whether it’s a cargo truck, or a 24-foot or 26-foot box truck, you will need to have some kind of vehicle in these dimensions
You will need to find financing options to fund your business. Starting out in this business can be costly, especially when you need to buy a new truck. However, you can always reduce the cost by renting a truck. To lease a truck is an option to reduce the starting cost of the business.
And also, you will need to pay some money for the operational cost when your business starts running.
3. Business plan
As mentioned earlier, starting a box truck business can be very expensive, so you might need to borrow some money. Therefore, so will need a business plan to help make your business profitable.
The business plan should include budget plans, observation of local markets and business competitors, marketing strategy plans, pricing, whether to recruit drivers, and many more.
At this early stage, your business plan should function as a tool to organize your new business. This business plan can always be changed or updated later. If you need to raise money to start this business, having a business plan might help you get the funding.
How profitable is a box truck business?
According to a report from ZipRecruiter’s Box Truck owner-operator, their salaries range from $52,000 to $146,500, with top earners earning $260,000 annually. As of December 18, 2020, the average annual income of US box truck owner-operators is $ 110,275 per year. That means they earn $53.02 per hour, $2,121 a week, or $9,190 a month.
However, the operational circumstances of box truck companies are different among businesses. So the average income of participants varies greatly. This business is more likely to make more money if it is operated by an experienced business owner and the location is economically profitable.
However, if you decide to start this business, you need to be aware that there is a learning curve. In general, you should expect different incomes between owners of 24-foot non-CDL straight trucks and CDL drivers who own 53-foot trailers. This is because the cargo carried on a 53-foot trailer is larger than the cargo on a 24-foot box trailer.
How to start a box truck company in 3 steps
Below are the 3 steps of the how to start your own box truck business plan.
1. Filling out the legal papers
First, you will need to register your business. The steps are:
- Complete all legal paperwork.
- Set the business structure of the box truck company.
- Waiting for the approval.
- Once approved, you’re ready to start your business.
2. Run your business
Once the paperwork is approved, you’re ready to start some work. The initial works to be done include:
- Carry out operational tasks of the business.
- You need to market your business.
- Get in touch with customers.
- If you are a beginner, you need to take some time to learn how to run the business.
3. Grow your business
If your business is doing well after a year, try to scale up your business by renting or buying more trucks.
Box truck business ideas
Some ideas to help you get started.
1. Amazon contractors
If you own a 26-feet box truck, you need to check the Amazon Relay affiliate program. In this case, you need to see the requirements for being an eligible to partner with Amazon.
Amazon Relay requires a straight truck with a lift gate, and the cargo can be loaded using the pallet jacks on the loading dock.
2. Delivery business
With the rapid growth of e-commerce, starting a box truck delivery business makes perfect sense. Large companies may already have a courier, but small businesses may still be looking for a delivery business. As well as the vehicle itself, you might need to get a few things to help get yourself set up – for example, many businesses now use pallet wrap to ensure things don’t move whilst you are on the road so that you can drive with confidence. If there is sufficient demand for truck delivery services in your area, you need to learn how to start a non-CDL delivery business.
3. Moving services
Moving from one location to another can be a daunting task given the heavy loads, so it usually needs a box truck to transport the items. If you have a business, you can help customers move to another residential or commercial property.
In addition to providing services, check out the guidelines for owning a moving service in your area. In some states, there are strict regulations on moving household goods. The moving services always involve heavy physical activity. This means that your body should be in good and healthy condition. So, you should choose your job wisely.
4. Advertise on your box truck
When you move around, the vehicles become advertising on wheels. Many local or even national companies will be interested in advertising on your ride. You can lease the side wall of the truck as an advertising space to marketing agencies or rent it directly to small businesses. Renting the side wall of your box truck for advertising can make passive income for you.
5. Junk removal services
Junk removal services include driving, lifting, and loading many heavy objects.
Some major junk removal service includes cleaning out a garage, a storage unit, or a basement full of junk. After collecting the items for return or disposal, you need to decide what you want to do with that item and decide on the most environmentally friendly option in your area.
You must only choose junk removal jobs that you can handle, considering the jobs mainly involve lifting heavy objects that can have an impact on your health. Consider partnering with a brokerage firm such as XPO Logistics or CH Robinson.
6. Become an owner-operator
As a business owner, it should be noted that the demand for box truck services fluctuates at any time. When today’s demand is enough to meet your financial needs, you should be aware that tomorrow it can fall and affect your income.
Therefore, working with a reliable logistics company can provide you with a constant flow of cargo. This service provides you with a stable income. That’s why you need to learn how to become an owner-operator.
7. Make additional income with a box truck side hustle
If you own a box truck, you can make extra money easily with th side hustles.
Side hustling with a is a great way to make additional income besides your full-time job. Also, because this side hustle is a part-time job, you are free to choose the working hours you want.
Useful advice on How to Start a Box Truck Business
- Do not expect as much income as a CDL driver in the beginning.
- In the first year of starting the whole truck business, you need to have a fair amount of cash for tires, fuel, oil, insurance, breakdowns, food, and many other operational costs.
3 Consider working with a broker to avoid the constant hassle of finding loads.
- Before you start, choose what kind of delivery services you will provide: local (low payment potential), intrastate within state boundaries (medium payment potential), or interstate (high payment potential).
Keep in mind that no matter what load you choose, all the costs of operating this truck will be directly on your shoulders.
- Be aware of vehicle weight limits to avoid getting stuck due to being overweight as you cross the mandatory scale on the road.
- Try to promote your truck business on social media, Facebook groups, or local forums.
Set up a website and list your truck services there. Set up a Facebook Page for your business and link the business page to your website. Launch a local advertising campaign on Facebook or Google to reach out to more audiences.
When the website is up and running, contact cargo truck delivery brokers to inform them about your box truck service. Try to have partnerships with major trucking companies such as FedEx, CH Robinson, and Panther II. You may also want to look into how to start a hotshot trucking business plan as well.