Even though every business has been the hardest hit amid the coronavirus pandemic, it has unlocked scopes for many businesses and transportation and logistics is one of them. “How to start a dump truck business” is one of the many questions that people are exploring the potential.
“Adversity opens up opportunities!”
If you are indeed planning to start a dump truck business, then this can be the right time to start over and build a strong market for your dump truck business.
Besides, starting a dump truck business at this moment can help you expose your business locally as well as nationally without making much marketing effort.
After a long halt, construction, excavation, drilling, mining, and demolition of wastes have started, and that will bring a big opportunity for the dump truck business to make a better start.
The global dump truck market is estimated to reach USD 10.83 billion by 2026 – Fortune Business Insights.
So, if you plan to start a dump truck business, this is the right time to fill the gap! The U.S. construction industry will grow at a CAGR of 7.0%.
8 Steps to Starting a Dump Truck Business
- 1. Market analysis
- 2. Choose a name and entity for your dump truck business
- 3. Register your dump truck business and get an EIN
- 4. SWOT analysis (funding, vehicle (insurance), employee needs)
- 5. License & permits
- 6. Business checking account
- 7. Write a marketing plan (build a client base)
- 8. Empower with digitization
The article will help you not only with how to start a new dump truck business but also help achieve your end goal. However, you must follow the guidelines and tips given here by the experts. You can also bookmark this article so that you can access the steps whenever you feel the need for it.
So, here we go. Scroll down to the steps;
How to Start a Dump Truck Business: An-8-Step Guide (As Recommended by Experts)
One of the biggest benefits of starting a dump truck business is that it is not dependent on the season. As we have seen recently, when the spread of coronavirus was at its peak and the entire travel & tourism, transportation, and logistic sectors were shut, the dump truck business remained active.
However, it was more philanthropy than business. From collecting garbage and excavation to transporting essentials were some of the great work done by dump truck services.
The moral of the story is to explain to you that the dump truck business has immense opportunities, even in times of adversity.
Let’s understand the factors and steps suggested by experts to make a successful business.
Know more: On-Demand Service App Ideas
#1. Market analysis
Do you know, ‘50% of businesses are closed within five years of opening, while 70% of businesses close within 10 years?’ No doubt, poor market analysis is not the only factor; it is just one of the many factors. Still, we need to take it seriously. No matter how small you start, you must know the market, explore its future scope, and brainstorm how to start a dump truck business that works.
Understanding the market is a must. You need to make a complete dump truck business plan, and that is possible only after understanding the market.
To know the market, begin with;
Market trends: Even though the dump truck cum trucking industry is dynamic, businesses have to face the toughest challenges and competition, especially in the United States, Canada, and European countries.
- An IBIS World report states that over 27 thousand dump truck businesses are active across the United States.
- The dump truck businesses in the USA are expected to grow at a 1.8% CAGR annually.
Scope: Now, just don’t keep your focus on how to start a dump truck business, but explore the scope of it. Usually, military, construction, infrastructure, mining, and agriculture are core sectors that can make your dump truck business blossom, though you need to see if there is an abundance of such sectors in your location.
Despite all these, the one thing that makes you win over all the situations is “Your Credibility”, which you need to earn with time. Once you get success in this, it will be easier for you and your company to secure permanent deals and get contracts with big construction companies and other merchants.
The major factors which can be vital in on-demand trucking include trust, reliability, good relationship management, and delivering what you promise (such as timely and safe delivery).
Know your target market: Basically, the target market of the dump truck business is construction companies, mining companies, earthwork companies, maintenance authorities, merchants, and manufacturers.
Let’s find out the list of sectors for your trucking business;
- Chemical Material Manufacturing Companies
- Construction Material Manufacturing Companies
- Mining Industries
- Earthwork Companies
- Maintenance Authorities
Also, individuals who have cause to move goods from one location to another can also be a potential target market.
Know more: Movers & Packers App Development
Now, let’s understand these sectors in detail and know how they can be your potential clients;
Chemical and Construction Manufacturing Companies are those that need your services or truck to get raw materials including iron, gravel, coal, silicon, metals, and other heavy objects delivered in large amounts. You need to target such customers and prepare further plans accordingly.
Mining Industries can utilize your services for mining and quarrying operations. You need to have heavy-duty trucks that can easily carry, plow, and lift heavy loads.
Earthwork Companies deal with construction projects and they may be your potential customers as they need to transport sand, gravel, soil, asphalt, and other materials to the construction sites.
Maintenance Authorities are responsible for maintaining the city and keeping it safe. They may be your target customers and utilize your services for removing snow (during winter) and damaged building materials.
#2. Choose a Catchy Name for Your Dump Truck Business
One of the initial steps in starting a dump truck business is the ‘Name.’ It is important as it leaves the first impression on your clients. It should not be selected randomly rather you must spend some time doing research and finding a catchy and easy-to-remember name for your dump truck business.
Again, deciding on a business name depends on the type of business entity you have. For example, if you are starting a dump truck business as a sole proprietorship, then your name will be your business name, though you can file a DBA to replace it with something else.
Besides, if you are opting for “Limited liability partnership” or “Limited liability company”, then the name of the dump truck business will be decided based on that.
The point is -to research the name which explains your business and is easy to memorize.
#3. Register Your Dump Truck Business and Get an EIN
As you have decided on the name of your business, the next step for your dump truck business is to get it registered so that no one else can have the name of your business.
To get started, you need to visit the Secretary of State’s office in the particular region and mention where you are planning to start your dump truck business.
You will get all the information from the business bureau section and find out the list of paperwork that you need to submit to get the registration done.
Prepare the paper, accumulate the necessary documents, and then go for final submission and your work is done. You have successfully got your company registered. You will get the confirmation notification in a day or two (based on the norms).
#4. SWOT Analysis [Funding, Vehicle (Insurance), Employee Needs]
One of the best ways to start a dump truck business is to maximize your strength, know your lacking points, explore the opportunities and stay alert for threats. To know all these, you need to conduct a SWOT analysis. SWOT stands for Strength, Weakness, Opportunities, and Threats. And, once you are prepared with this, it would turn any unfortunate event into a fortunate one and you get a winning step when you look for how to start a dump truck business.
Let’s understand the SWOT analysis in detail;
Know your strength -whether it is your experienced team or robust fleet operation, or others that can be counted as strengths in the Dump Truck business.
Understand your weakness -that’s a very important part of your dump truck business plan.
You should know your weaknesses and keep improving them. It could be finance, debt burden, manpower, cost, or something else.
Grab the opportunity -the third most important part of the dump truck business is that you should know the opportunity you have in this business. You may have got this through the market analysis. Find the gap and fill it. It could be starting a new service, integrating new or enhanced technologies, or expanding your business across new markets within the target locations.
Don’t ignore the threat -threat in business, especially in dump truck business is inevitable.
“Don’t panic, Be prepared”
Yes, you cannot escape it, so why not prepare for it rather than getting tensed thinking about the threats.
From stiff competition and a dwindling economy to volatile costs and increasing fuel prices, you’ve got several potential threats in this business to tackle against. With proper preparation, you can work through any threat to your business.
#5. Obtain Commercial License & Permits
If you know driving, then the only obstacle you have is to get a driving license from the Department of Motor Vehicles (DMV) (in the USA). It is required for dump truck drivers to get their particular class of license. You can also apply for a nationwide permit to operate your dump truck business across several states.
If you don’t know how to drive a truck, you need to complete a local truck driving course and appear at the CDL (Commercial Driving License) exam to obtain a license.
#6. Open Business Checking Account
The next step in the process of how to start a dump truck business is to separate your personal finances from the business. For that, you need to open a business checking account and even a business credit card. You can do all your financial transactions including purchases and expenses from a separate business account.
#7. Write a Marketing Plan (Build a Client Base)
“Relationships are built on trust. Trust drives revenue.” – Andrew Davis
Indeed, nothing is sold unless you are actively involved in building relationships and marketing your business. You have to do it and let people know what your business is all about.
It is important to identify target customers and understand their needs and decide the ways to meet their demands. We’ve explained this in detail in the “Market Analysis” section. You can revisit the section for a better understanding.
When you know your target market, making a marketing plan becomes absolutely easy. Make a list of marketing channels and platforms, and explore how you are going to utilize them.
Let’s check a list of digital marketing channels and platforms that can add fuel to the fire;
- Email Marketing
Here’s how you can utilize these channels and platforms;
- Build a website and mobile app for your dump truck business
- Create accounts on Instagram, Facebook, and Twitter
- Write blogs, share your services
- Promote your business through social media
These are powerful mediums and you can gain maximum exposure. However, you need to make a plan about what to write, publish, and market. You can take the support of content marketers for better ideas.
Read More: Route Optimization Software
#8. Empower Your Dump Truck Business With Digitization
As the world is growing digital, adopting the trend can turn your company into a more customer-centric, high-grossing organization. It fulfills whether your target is to increase conversion, engagement, or sales.
If your end goal is decided, digitization can help you achieve that goal easily. With digitization, you get a new way of doing your business, offering more comfort and convenience to customers.
Starting a dump truck business without digital support is 100% possible, but for that, you must be efficient enough to spend over required human resources to manage.
Whereas, digitization can cut down the additional expenses to zero and increase your business efficiency and revenue significantly. When you think about expanding your business, digitization is the first step.
Get a dump truck business app, connect with the masses, serve their needs, and grow your business. And, that’s the way out to achieve your end goal – becoming a high-grossing Dump Truck Carrier Service Provider Company.
We have already explained how digital marketing can help you gain trust, increase engagement, and turn the visitors into your potential customers.
Now, we shall understand how creating a dump truck business mobile application can help you grow.
Benefits of having dump truck business application
Today’s business is all about how fast and conveniently you serve the needs of customers. If you are not digitally equipped, you need an immense human resource to fulfill the demand that technology can serve with ease. A single mobile app for your dump truck business brings transformational changes in your business and keeps business operation smooth.
Let’s look at some of the top benefits of dump truck business web and mobile applications;
App Improves Utilization Rates:
One of the major problems that a dump truck business operator has to face is “empty miles.” It’s the biggest contributor to higher costs in the freight industry. Apart from the consumption of more fuel, enterprise runs-sort of the right rate of utilization and that can be avoided with the integration of a dump truck management app.
Interconnected digital platforms like digitized trucking systems can help.
When you think of starting a new dump truck business, considering the use of cutting-edge applications to manage a supply chain can make a positive start.
Automated Business Operations:
Manual operations lead to higher costs and require larger human resources to manage. Still, arranging capacities and deciding costs could be based on imperfect information.
It is obvious that businesses depending on human resources consume more time and if you don’t have an adequate workforce, then a lethargic business operation is inevitable -you can’t stop it.
Dump Truck Business mobile application automates not only your business operations but also keeps your clients satisfied. The task that consumes hours manually can be done in a millisecond with automation. From managing operations and booking to regular reporting and communication, everything is taken care of well by the app. Grab it now.
Excellent Customer Experience:
When you integrate a dump truck business application into your business operations, it provides speed, comfort, and convenience to your customers. And, that’s the winning factor today.
See Also 7 Best Trucker Apps in 2023
Top Features of Dump Truck Business Application Solutions
If you want to develop a dump truck business app solution for your newly started business, you can customize the app as per your business needs. You can integrate as many features as you want.
The best way to decide the features of the application is to research. Explore your competitors’ apps and try to find out the customers’ pain points in it. Add those features to your application and serve well to your clients.
Here are some of the common features that a dump truck business usually has;
- Admin dashboard
- Manage booking/shipping
- Expand report data
- Manage ratings & reviews
- Manage payments
- View users/history
- User management
- Services manager
- Dump truck business managers
Dump Truck Business App Features
- Manage availability in the calendar
- Status updation
- Live status tracking
- Accept/reject the appointment
- Customer review
- Start appointment
- View payment details
- Sign up/login
- Request a service
- Profile updation
- Multiple payment options
- View requests history
- Pay for service
- Select snow plowers
- Schedule request
- Check offers availability
- Confirm service booking appointment
- Get payment details
- Cancel booking
- Give feedback
- Live status of a serviceman
Challenges startups face while shifting to a digital platform
One of the biggest issues occurring with startups while taking their business to digital platforms is “having a robust and effective dump truck application.” They keep wondering whether to go with enterprise-level apps, MVP or Clone.
MVP: Developed with minimal features and maximum usability
Clone: The app will be a copy of an existing app
Enterprise-level apps are not suggested for startups as they will be costly and may be unnecessary at the initial stage.
Clone app is suitable for a startup, to begin with.
Team for App Development
Now, the next issue that you may encounter is where to get your app developed. You have three options -hire an in-house development team, outsource the project, or hire a freelancer.
Hiring an in-house development team may not be a feasible option as you may have to face plenty of issues, such as hiring expertise, providing infrastructure, and management.
Outsource: Outsourcing your projects will help you get an enterprise-level app at the cost of MVP.
Freelancer: Hiring freelancers is another option to get your app developed at an even cheaper price.
There are some issues in hiring freelancers, such as finding the right developers or designers may be more complex. It’s better to choose outsourcing instead of freelancing.
Read also: Trucker Path App Development
How to Start a Dump Truck Business: The Final Words
The path to the dump truck business is not easy when it comes to starting a dump truck business. All you need to do is to stick with your end goal and keep working. We are sure the guides given will help you explore all the possible options and make a good start to the dump truck business.
As we have seen how startups get stuck when it comes to digitization. Just make sure you do not encounter such a situation. Prepare things in advance, develop an app that suits your business needs. In case, you face any issues regarding app planning, designing, or development, then we are here to help. We have a team of experts who can help you build an app from scratch.
We can help you build an enterprise app, develop MVPs or even deliver you the clone solution (we have already developed a clone app like Uber for Truck, which you can use for your dump truck business as well).
If you are stuck anywhere in between and are looking for any help, we are savvy in this industry. You can contact us anytime.
FAQs about starting a dump truck company
1. Is a dump truck business profitable?
Yes, the dump truck business is profitable, but you need to follow the proper business ethics and match the latest business trends. However, the only thing you have to care about is “fuel cost”. Even a slight increase in fuel price will have a greater impact on your overall profit margin.
2. How much money can you make if you own a dump truck?
It depends on various factors, such as the type of services you offer, locations, and your credibility. Usually, a dump truck business owner or operator makes anywhere between $40,000 – $197,000. How much you’ll earn is largely dependent on location, cost of maintenance and fuel cost fluctuation.
3. How much does it cost to start a dump truck business?
It depends on your fleet capacity and the cost of the dump trucks in your region. In the U.S. a dump truck can cost in the range of $100,000 to $150,000, depending on the type of truck you choose.
4. Is starting a box truck business profitable?
Yes, starting a box truck business is definitely possible. With less money, you can start this business as all it needs is an idea about what trucking business you are looking for. You can either start a food truck, moving services, or rental services with a small truck. This will surely help a lot of users in transit or moving. Get going with creating a trucking app for your business to make life easier for every individual.
5. How much do dump truck drivers make?
$15 per hour on average is what a company pays its drivers. Certain companies pay double this amount depending upon the destination and distance traveled. It is a good earning for the drivers who are looking for some extra source of income.
6. How much money can I make owning a dump truck?
A dump truck owner-operator has a list of factors that affect their earnings. To start any business there’s always a checklist to follow and certain factors that incur while earning profits. Driver’s haul is also one of the important factors to consider. The owner-operator startup checklist includes license, US carrier authority, UCR, IRP, fuel tax agreement, heavy use tax, etc. These are only a few that label the factors while making money in owning a dump truck.
Optional: As many dump truck businesses are considering switching to digital platforms, if you decide the same, then you have to spend on dump truck business app solutions and that may be the additional cost. “How much will it cost to develop a dump truck business app?” The answer entirely depends on what features you want in the app and where you get it developed.
For example, if you choose to develop it locally (anywhere in the USA), the app development charges would be between $80 to $250/hr while if you choose South Asian countries like India, the charges will be anywhere between $15 to $80. You can estimate the final costs based on your requirements, such as the complexity of the app and the hours it takes to develop.