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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on December 15, 2021
Investment range
$6,550 - $14,100
Revenue potential
$100,000 - $500,000 p.a.
Time to build
1 – 3 Months
Profit potential
$70,000 - $100,000 p.a.
Industry trend
Growing
Commitment
Flexible
Here are the most important aspects of starting a box truck business:
Every business has pros and cons that you need to carefully consider before deciding if a box truck business is the right path for you.
Over the past decade-plus, the industry has seen a steady increase in the use of medium-duty trucks like box trucks, as opposed to 18-wheelers, due to greater demand for shorter-distance deliveries. This presents a huge opportunity for the box truck entrepreneur.((https://www.truckpartsandservice.com/economic-trends/indicators/article/14991095/trucking-industry-sees-influx-of-mediumduty-vehicles))
The US trucking industry is greatly influenced by the e-commerce market, which is expected to grow from more than $757 billion in 2024 to over $1.1 trillion by 2029, according to market research firm Statista. This means that trucks capable of making a lot of deliveries in a limited area in a certain timeframe will be in great demand.((https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/))
Trends
Challenges
Startup costs for a box truck business range from about $6,500 to $14,000. These numbers include either buying a used truck for as little as $5,000, or putting a 5–10% down payment on a new truck, which could cost as much as $50,000.
You’ll need a handful of items to launch your box truck business successfully. Here’s a list to help you get started:
| Startup Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150–$200 | $175 |
| Licenses and permits | $100–$300 | $200 |
| Insurance | $100–$300 | $200 |
| Business cards and brochures | $200–$300 | $250 |
| Website setup | $1,000–$3,000 | $2,000 |
| Down payment on a truck or the purchase of a used truck | $5,000–$10,000 | $7,500 |
| Total | $6,550–$14,100 | $10,325 |
Prices for box truck deliveries vary greatly depending on the size and value of the load. Working by yourself, you can expect a 70% profit margin and assume an average load price of $200.
In your first year or two, you could work from home and do 10 deliveries per week, bringing in about $100,000 in annual revenue and $70,000 in profit. As your brand gains recognition and you add trucks, hire drivers, and rent an office, you might do 50 loads per week, but your margin would fall to around 20%. Thus, your annual revenue would be over $500,000 and your pre-tax profit would be around $100,000.
These numbers are in line with Amazon’s delivery program Amazon Relay, which offers average salaries running from about $50,000 to $150,000. That’s another opportunity you might consider, though the hours can be long.
There are a few barriers to entry for a box truck business. Your biggest challenges will be:
Now that you know what’s involved in starting a box truck business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Research the demand for box truck services in different areas. Look for regions with a high concentration of businesses that require frequent shipping and delivery services, such as manufacturing, retail, or construction industries.
Choose a location with good road connectivity and easy access to major highways and interstates. This ensures efficient travel times and reduces transportation costs.
Being close to your client base can significantly reduce transportation times and costs. Consider the geographic distribution of your potential clients and try to position your business centrally to them.
Research box truck companies in your area to examine their services, price points, customer reviews, and what seems to be most in demand. A location with fewer competitors might offer more opportunities, but also consider the presence of competitors as a sign of a healthy market.
For instance, maybe the local market is missing an estate clean-out service in which you haul away items left in a home after the estate is settled.
This is targeting a niche market by specializing in a certain aspect of your industry. This could jumpstart your word-of-mouth marketing and attract clients right away.
Since a box truck has so many potential uses, you may want to choose which services you’ll offer. You could:
Box truck delivery prices vary by weight and value of the load. Often, there is a minimum rate of $120 and the weight and value are used to calculate the final price. You should check the prices of box truck companies in your area to make sure yours are competitive. Before you hire staff, your main costs will be for the truck and gas.
Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will depend on what types of services you want to offer. If you offer a delivery service for local stores, you can find business owners on sites like LinkedIn.
When choosing a physical location for storing your box trucks, look for an area with ample space for parking and potential expansion. Ensure the location complies with local zoning laws for commercial vehicle storage. Additionally, consider the security of the area to protect your vehicles and equipment from theft or vandalism. Lastly, factor in the cost of leasing or purchasing the property to ensure it fits within your budget constraints.
Here are some ideas for brainstorming your business name:
Discover over 240 unique box truck business name ideas here. If you want your business name to include specific keywords, you can also use our box truck business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool below. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to a box truck business.
If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your box truck business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a box truck business. You might also try crowdfunding if you have an innovative concept.
Starting a box truck business comes with significant regulatory requirements.
First, you’ll need to obtain a commercial driver’s license from your state DMV. You’ll also need a Department of Transportation number and a Motor Carrier Authority number, both of which you can get by registering with the Federal Motor Carrier Safety Administration (FMCSA). Finally, you’ll need to complete a unified carrier’s registration, and if you plan to drive to other states or Canada, an International Registration Plan tag and an International Fuel Tax Agreement decal.
Federal regulations, licenses and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your box truck business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats — from marketing to sales to accounting — which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You can use industry-specific software, such as ShipWell, TruckingOffice, or Dump Truck Dispatcher, to help you manage your scheduling, billing, bookkeeping, and more.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your box truck business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your box truck business could be:
You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a box truck business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the trucking industry for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in box trucks. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a box truck business would include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
With the sharp growth in online sales and the trend toward local distribution centers, it’s a great time to jump into the box truck business. It’s a relatively low-cost business to enter, yet with great profit potential. With the trucking industry worth more than $940 billion, there is plenty of money to be made. With just one truck, you can offer a multitude of services, or deliver for Amazon and make up to $200,000 a year.
Now that you’re armed with the necessary information, you’re ready to start your entrepreneurial journey and build a successful box truck business.
If you work full-time, you can make a healthy profit with just one truck. As a solopreneur you could make $70,000 a year or more. A box truck offers a world of opportunities.
It would be difficult to do unless you already have a truck! You can get a used truck for about $5,000 – $10,000 or a new one for $40,000 – $50,000, but you can get financing. You still, however, would probably need a down payment of 5% to 10%.
There are many possibilities. You can make deliveries for local stores, provide moving services, deliver catered food, do junk hauling, or even work with the Amazon Relay program. You could do a combination of any of those to stay busy all the time!
You can work on a contract basis with a logistics company, which will provide you with orders for a percentage of the revenue. You could become a mover. You could work for Amazon, or add a snowplow and offer your services to local businesses and homeowners in winter. The possibilities are endless.
Box trucks come in various sizes, with Class 3 trucks typically 12 to 16 feet in length, Class 4 trucks 16 to 20 feet, Class 5 trucks 20 to 26 feet, and Class 6 trucks often between 26 and 33 feet.
Some box trucks are equipped with a sleeper compartment or can be modified to accommodate sleeping arrangements. However, drivers should adhere to applicable laws regarding rest and sleep periods to ensure safety and comply with transportation regulations.
Box trucks are commonly used across various industries for tasks such as moving and logistics, retail and e-commerce deliveries, converting into mobile food trucks for catering, transporting tools and supplies to construction sites, and customizing as mobile marketing vehicles for events and promotions.
Identify industries that often use box truck services, such as logistics, retail, food, and construction, and find potential clients within these sectors. Attend industry events, join business organizations, and network with professionals in related fields to gain referrals and establish partnerships for business growth.
If you work full-time, you can make a healthy profit with just one truck. As a solopreneur you could make $70,000 a year or more. A box truck offers a world of opportunities.
It would be difficult to do unless you already have a truck! You can get a used truck for about $5,000 – $10,000 or a new one for $40,000 – $50,000, but you can get financing. You still, however, would probably need a down payment of 5% to 10%.
There are many possibilities. You can make deliveries for local stores, provide moving services, deliver catered food, do junk hauling, or even work with the Amazon Relay program. You could do a combination of any of those to stay busy all the time!
You can work on a contract basis with a logistics company, which will provide you with orders for a percentage of the revenue. You could become a mover. You could work for Amazon, or add a snowplow and offer your services to local businesses and homeowners in winter. The possibilities are endless.
Box trucks come in various sizes, with Class 3 trucks typically 12 to 16 feet in length, Class 4 trucks 16 to 20 feet, Class 5 trucks 20 to 26 feet, and Class 6 trucks often between 26 and 33 feet.
Some box trucks are equipped with a sleeper compartment or can be modified to accommodate sleeping arrangements. However, drivers should adhere to applicable laws regarding rest and sleep periods to ensure safety and comply with transportation regulations.
Box trucks are commonly used across various industries for tasks such as moving and logistics, retail and e-commerce deliveries, converting into mobile food trucks for catering, transporting tools and supplies to construction sites, and customizing as mobile marketing vehicles for events and promotions.
Identify industries that often use box truck services, such as logistics, retail, food, and construction, and find potential clients within these sectors. Attend industry events, join business organizations, and network with professionals in related fields to gain referrals and establish partnerships for business growth.
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