If you are thinking of how to start a box truck business, you are definitely thinking in the right direction. Box truck business has always been in demand because people would always need help moving large products and packages from one place to the other.
There is enough market to serve as a box truck driver. If you aren’t moving large goods and products, you can move people, haul away junk, or even make deliveries for various wholesaling companies. That means you can make a reasonable income by owning your own box truck. In this post, we will show you a step-by-step guide to starting a box truck business. So prepare yourself for the ride!
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How Much Do You Need to Start a Box Truck Business?
Before going into how to start a box truck business, it will be good to first show you the amount you will likely need to start such a business. Starting a box truck business will require huge capital. There are many areas of the business that will require huge investment.
So if you are thinking of starting a box truck business, you might need between $25,000 and $50,000, depending on your business model. Most part of the initial capital will definitely be going into the purchase of your truck.
However, if the initial capital to start a box truck business scares you, you can consider some related businesses that are not as capital intensive. We have once written a post on how to start a hotshot trucking business on the blog. You can check that out too. While box truck business deals with large items, a hotshot business specializes more in delivering small packages.
How Much Can You Make From a Box Truck Business?
Now that you know the amount you will likely need to start, you should also have an idea of what the income might be. That way, you will be able to decide if it is the right business for you. But the box truck business is a lucrative one. You can make up to $70,000 per year making 10 deliveries per week. That means if you are able to work harder and make more deliveries, you will be earning more.
The amount of income you make from a box truck business also depends on some factors, such as your state of operation, the size of your truck, and the type of load you are transporting.
How to Start a Box Truck Business; a Step-By-Step Guide
Let’s learn about “How To Start A Box Truck Business” in detail:
Have a comprehensive business plan
Like every other business, you will need a comprehensive business plan when starting a box truck business. This will mean a lot to the success of the business. Your business plan will help you know the right things to do concerning the business and when you need to do them.
Having a well-written business plan will also come in handy when sourcing funding for the business. So don’t joke with this step when considering how to start a box truck business.
Choose a good location for the business
Your location matter a lot. It can determine how much money you make or spend on the business. Your location can influence your registration fees and procedures and can also influence how much you charge your clients and customers. So find a good location for your box truck business.
You will also need a physical location where you will be keeping your truck when not in use. This will also serve as your office location. So it is not recommended to use your home; it won’t speak well about your box truck business. Get a location that is close to your target market.
Register your box truck business
Registration is important. So don’t joke with it. If you fail to register the business, you won’t be able to perform some other processes that are essential to the growth and establishment of the business. Such processes include paying taxes, opening a business bank account, obtaining necessary licenses and permits, etc.
To register your business, walk to your state secretariat to know the required documents to submit and the processes to follow.
Form a business entity
A business entity will help define your business and will come in handy to determine the success of the business. There are various options available to you on this. You can register the business as a sole proprietorship, partnership, corporation, or limited liability company (LLC). You may need to consult a professional lawyer if you are lost on which of these you should go for.
Arrange for funding
A box truck business requires a lot of money, so you shouldn’t start out without first figuring out a funding source for it. You will need to purchase a truck, buy necessary equipment, register the business, and secure a location, and all of these require a lot of money. So get your funding right. If you don’t have enough money to start on your own, you can approach a bank for a loan, secure funding from family and friends, etc.
Get the right permits and licenses
These are important entities you will need to run your box truck business successfully. Ask to know the necessary permit and licenses and get them. You may need a commercial driver’s license from your state DMV. You may need a Department of Transport number and a Motor Carrier Authority number.
Purchase your box truck
This is a very important step in how to start a box truck business. In fact, there wouldn’t be a box truck business in the first place without the truck. So, identify the right truck for your business model and buy it. Choosing the right truck is very important to the success of the business. Your truck choice should be of the right size and type, matching the type of things you would be transporting.
Design a strong marketing strategy for the business
After all things are set, the next step is figuring out how to get the word out to your potential clients. That is where having a strong marketing plan comes in. consider your target market and see how best you can reach them.
We are in the era of technology, so work towards creating a strong presence online. Create a professional and attractive website for the business to make it easier for people to find and contact you.
Can You Start A Box Truck Business With No Money?
This is one of the common questions we receive when people ask how to start a box truck business. And the answer to the question is yes. You can start a box truck business with no money. However, you will need a strong business plan that can help you get the right funding from external people for the business. This could be from the back or interested investors. They will give you the money you need to fund and start the business.