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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 - $520,000 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 things to consider when launching your dump truck business:
Every business has pros and cons that you should consider before deciding if opening a dump truck business is right for you.
Industry performance is tied directly to the construction sector; when construction activity increases, so does demand for dump trucks. The outlook for the US construction industry is strong,((https://www.businesswire.com/news/home/20210817005412/en/United-States-Construction-Market-Report-2021-2025-An-Infrastructure-Bill-Worth-US1.2-Trillion-to-Upgrade-roads-Transport-Broadband-Finance-EVBus-Charging-Infrastructure—ResearchAndMarkets.com)) thanks in part to the recently passed infrastructure bill. With massive projects to upgrade roads, railways, and airports, the construction industry is expected to grow nearly 4% annually through 2025, according to market research firm Research and Markets, ensuring steady business for dump trucks.((https://www.researchandmarkets.com/reports/5546599/construction-in-the-united-states-of-america))
Trends in the dump truck industry are:
Challenges in the dump truck industry include:
Startup costs for a dump truck business range from about $6,000 to $50,000 or more. The largest expense is of course the truck itself, which even used will probably run you $45,000. Your down payment could be as low as 10% of that total, or around $5,000.
You’ll need a handful of items to launch your dump 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 | $5,000 - $10,000 | $7,500 |
| Total | $6,550 - $14,100 | $10,375 |
Dump truck services tend to cost about $100 an hour, and when you’re working by yourself your profit margin should be about 70%.
In your first year or two, you could work from home and provide 20 weekly hours of service, bringing in more than $100,000 in annual revenue and more than $70,000 in profit, assuming that 70% margin. As your brand gains recognition, you might rent a commercial space and add more trucks and drivers, reducing your margin to around 20%. But if you’re able to provide 100 service hours per week, you’d have annual revenue of $520,000 and make over $100,000.
There are a few barriers to entry for a dump truck business. Your biggest challenges will be:
Now that you know what’s involved in starting a dump truck business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Look at what dump truck opportunities exist in your area. Are you near any mines quarries or massive construction projects? Research dump truck companies in your area to check out their services, prices, and online customer reviews.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as waste disposal or residential construction.
Another option is to add a plow to the front of your truck and offer your snow-plow services for hire in the winter! This could jumpstart your word-of-mouth marketing and attract clients right away.
You may decide to specialize in certain types of materials, such as gravel or dirt, or you could offer to haul:
Rates for dump truck services range from $70 to $120 per hour, with an average of $100. Your main expenses when you’re working by yourself will be your truck payment and fuel. Dump trucks only get 5 to 6 miles per gallon of gas, so you need to be prepared for that cost. Later, your added expenses will be overhead and drivers, who are usually paid $20-$25 per hour.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market is likely to be developers, contractors, and construction firms. You can find them on industry forums and business sites like LinkedIn.
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on Craigslist, Crexi, and Commercial Cafe.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Discover over 260 unique dump truck business name ideas here. If you want your business name to include specific keywords, you can also use our dump truck business name generator. Just type in a few keywords and 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. 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 dump truck business.
If you’re willing to move, you could really maximize your business! Keep in mind, 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 dump 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 or 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 option, other than friends and family, for funding a dump truck business.
Starting a dump truck business requires obtaining a number of licenses and permits from local, state, and federal governments.
You’ll need to obtain a Class B and possibly a Class A commercial driver’s license (CDL) from the Department of Motor Vehicles.
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 dump 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 dumptruck Dispatcher, to manage your scheduling, inventory, staffing, 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 dump 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 strong USP: “Fresh, hot pizza delivered in 30 minutes or less, guaranteed.” Signature USPs for your dump 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 dump truck business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in dump truck services 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 dump 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 dump 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 a dump truck business, you can start your own company with a relatively small down payment on a truck. With that and a CDL license in hand, you’re ready to start hauling!
It’s a nearly $20 billion industry and you can make a healthy profit, even just working on your own. Eventually, you could have your own fleet of trucks and a staff of drivers, and never have to drive those big loads again. You’re off to a good start by acquiring the relevant information, and you’re now ready to start on the road to a successful dump truck business.
To differentiate your dump truck business you could focus on a niche market, like quarries or construction sites. You could also market your company’s reliability.
One! You can start with just one and work on your own, or if you have the funds, you could acquire 3-4 trucks and hire drivers. Either way, you can eventually grow your fleet of trucks and build a dump truck empire!
A dump truck company that handles difficult or hazardous materials must follow strict safety protocols and regulations to ensure the safe transport and disposal of the materials. This may include obtaining special permits, using specialized equipment and containers, and following strict disposal procedures.
You should always speak professionally with your clients and go out of your way to provide exceptional services. You also need to train your employees about how to interact with customers.
Unfortunately, dump trucks generally average about 5 or 6 miles per gallon. This makes dump truck business profit margins very sensitive to increased fuel prices.
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