Box truck business can be rather profitable in terms of representing a high-risk, high-reward venture.
However, it may be difficult to start your own box truck business and make substantial profits out of it.
Still, there are various investment options, so you can also partner with a well-established box truck company.
Box truck business involves package delivery and can bring hefty profits as the delivery sector is booming, especially with the development of online shopping.
How to start a profitable box business? What do you need to start a box truck business?
We are answering all these questions and more with a list of box truck business ideas that can help you kickstart your next business adventure.
How to Start a Profitable Box Truck Business?
In case you want to start a box truck business and you are not sure where to start or what exactly to do, we can help. Here’s a list of the ultimate steps to take when starting a box truck business.
Step 1: Business Establishment
The first step toward starting any business is establishing it. You need to come up with a brand, logo, and your company’s name.
After you have commissioned an attractive logo and picked a memorable name for a recognizable brand, you need to list your business and set up your business entity. It is important to conduct your business legally and pay all taxes involved.
Create a website to make it easier for your customers to find you and contact you.
Step 2: Create a Business Plan
It is crucial to create a feasible business plan that can help you orientate your business needs and wants.
Your business plan should involve the resources you need, initial investment, planned sales, marketing strategy, and finances.
A well-crafted business plan can help you with banks and lenders as well. In case you need to borrow some money as a business, a detailed business plan can help you get the loan you need.
Step 3: Open a Business Bank Account
Having a separate business account from your personal bank account is essential.
You want to be able to track your business expenses and income, which is best done when you have a dedicated bank account reserved for business needs only.
The account should be in the name of your business, while your name will be listed on the account as well.
Step 4: Financing
Now that you have opened a business bank account, you need to start thinking about financing.
As you can probably guess, starting a box truck business by yourself is rather expensive. Even if you already have a truck, you will need at least $5,000 to start operating.
Check out business and personal loans with different banks and lending services.
Make sure to compare the proposed rates and fees, as well as the amount you can take as a loan.
By having more than a single option, you are more likely to find a better deal.
Step 5: Insurance, Licenses, and Permits
Insurance, licenses, and permits are the holy trinity of a legal business.
You will need to check what kind of licenses and permits you need for your business, both at the local and state levels.
Aside, you should have insurance for your business so that you are covered if anything goes wrong.
There is a great number of insurance companies that offer insurance for box truck businesses.
Every box truck business in the US should apply to the Federal Motor Carrier Safety Administration (FMCSA) for a Motor Carrier (MC) Number.
If you are planning to transport cargo across the state lines, you will also need to obtain a Unified Carrier Registration (UCR).
Step 6: If Needed, Storage Location and Drivers
If you need a place to store packages and cargo, you will need to rent a storage location. Based on the space you may need, storage locations can be rather expensive.
Try finding the best deals by comparing different rental and purchase options.
If you have more than one box truck, you will also need to hire drivers.
One of the top things to take care of in case you need drivers is the payroll architecture.
Make sure that your drivers can be fairly paid and get their payments in time. You also need to take care of all the legal requirements as an employer.
Step 7: Find Contracts
Finding contracts is landing jobs in a box truck company. To start making profits, you need contracts. Here’s how you can get to the much-needed customers:
- Online load boards
- Truck dispatchers
- Amazon truck drivers
- Advertise as a delivery/moving company
- Rent your box trucks
Online load boards can be a great way to land your first gigs as a box truck business.
One of the leading delivery load boards is DAT TruckersEdge.
What Do You Need to Start a Box Truck Business?
We are summing up everything you need to start a box truck business and start making a profit on moving gigs and deliveries.
- Licenses, permits, and insurance
- Initial investment
- Drivers (optional)
- The storage location (optional)
- Motor Carrier number
- Dispatchers (optional, but recommended for a medium to a big company)
Best Box Truck Business Ideas
Now that you know what you need in general to start a box truck business and start making money, here are some of the top box truck business ideas to get you started.
1. Starting Your Own Box Truck Business
Starting your own box business will bring you the greatest profits among all the ideas on the list. However, this might be a high-risk, high-reward scenario.
You will need a substantial initial investment to start your own box truck business.
Follow up with our guidelines on how to start a box truck business to keep it legal and feasible.
2. Partnering with Someone
Perhaps some box truck companies are looking to expand their business and would like to acquire business partners.
This is your chance to enter the business and land contracts without having to start from scratch. In comparison to starting your own box truck business, your investment will also be lower.
The chances are that you will only need to invest in a box truck of your own, or several box trucks, depending on your budget and business plan.
3. Box Truck Delivery
If you start your own box truck business, you can focus on making deliveries. Delivery is in its prime, especially with the development and booming of the eCommerce industry.
While big companies may already have contracts with other box truck companies, you can check with small and medium companies if they can offer contracts for you to take over.
You can visit your local grocery shops, markets, and other businesses in need of couriers.
4. Box Truck Moving
In case the delivery business is not skyrocketing at the pace you originally imagined, you can shuffle things up a bit and give moving a shot.
You can use your box truck for moving, while you can also make hefty profits from this business. Start advertising locally and online to land