A box truck is the perfect solution for small businesses that need to transport large goods, such as appliances and furniture, across the country or around the world. You can start a box truck business if you have a vehicle and enough money saved up to buy some boxes, but many truckers don’t even know how to get started in this profession. To help you figure out how you can start your own box truck company, here are some tips and tricks on what it takes to build your business.
The best way to build a successful box truck company is by starting with someone else’s that is facing financial troubles. Once these companies are in trouble, then it will be easier for them to sell their trucks.
How to Start a Box Truck Business
Here are steps to starting a box truck business in Nigeria:
1. Complete a business plan
Complete a business plan: Before you start your business, make sure you do some research and find out how much money it will cost to get going. There are different ways to gauge the price of getting started. Get a copy of Freight Value® and figure out the freight rates for your city in order to see what it would cost to move a cargo van or truck full of goods. Get the right kind of insurance: Get the liability insurance that you need. This is not something you can do without. Make sure that you have a general business liability policy, one specifically designed for vehicles or cargo vans and trucks, and one that also covers your equipment.
A cargo van insurance policy will help you pay for damage to your business as well as any merchandise damaged in transit. Cargo van owners should also look into business auto policy coverage, which includes protection for injuries, theft of your vehicle and its contents, damage to other vehicles, medical payments, and comprehensive coverage.
Find cheap transport: You should always try to find cheap transport before you actually start shipping things. Your goal should be to find the cheapest way possible that is reliable enough for the types of goods that your company manufactures and sells.
2. Research the market and competition
Research the market and the competition; consider your business objectives and what services and products you want to offer. Explore terms like “pop-up truck” and “box truck” before settling on how to start a box truck business. The more you learn about the market, the more likely it is that your business will succeed even in hard times. Consider your options
As with any business, the first step is to do your research. Every market has its own quirks, and it’s important that you know what they are so you can adapt to them. Do your research, and you’ll be able to start a box truck business that works for you. There are essentially three ways of entering the box truck business: fleet ownership, renting box trucks, and running a delivery service.
Box trucks can be purchased outright or leased, allowing, like with any other type of business, owners to purchase profits by taking on partners or getting additional investors on board. Delivery services are a good alternative if you can’t afford a fleet of box trucks. Using a van for deliveries may be better for your wallet than it is for your competitors. If you’re looking to compete on price, this is the way to go.
3. Find an affordable office space
Find an affordable office space; this may be a spare room in your home. This will allow you to avoid spending a lot of money on rent or furniture; start out small before you grow. Make sure the office space is clean and well-lit and has its own access to utilities. Once you’ve found the perfect location, set up a good environment with plenty of space for your staff members and guests to sit. Set up an area for storage or an office supply store within the business premises so that visitors don’t have to leave your property during their visit.
4. Start building relationships
Find out who’s reliable in your area and begin building relationships with them; this will be crucial as you start marketing, advertising, etc., as well as building a customer base. Relationships in the business world are everything, so be sure to develop your network of reputable suppliers and service providers.
5. Get the word out
Use word-of-mouth advertising, post fliers, and leave business cards at local stores and shopping centers. Be sure to find out which retail stores are having grand openings or will be hosting community events. These events can be a great way for you to promote your company on a large scale for very little money. Don’t miss out on any opportunity to get your name out there!
6. Get covered
One of the most important things you can do before beginning any business is ensure that your vehicles are properly insured. This will be a big expense, but you should make sure you are covered before you even break into this business. Your vehicles are the most visible part of your business, and it is important to keep them safe and secure while they’re on the road.
7. Obtain a lease agreement
A lease agreement is needed in order to obtain a box truck from a supplier. The lease agreement will specify the amount that is due each month; it should also specify how many months will be paid by the business and how many months by the business owner.
8. Undertake insurance and taxes
An insurance policy is needed because it can protect against loss of earnings and property damage. Identity theft insurance can protect the business against financial damage caused by fraud. A good amount of liability coverage is needed in case any accidents occur while delivering or shipping out goods to customers. Lastly, workers’ compensation is needed in case any of the employees are injured while working for the company.
Benefits of Starting a Box Truck Business
The benefits are:
- More profitability
- easier to start
- lower investment cost
- Potential higher earning power
- Tax advantages
- Increased flexibility
- Potential for higher demand
- Potential increase in earning power
If you’re still looking for ways to earn money, consider starting your own box truck business! You may be thinking that this type of business is too difficult to start or too expensive. The reality is that it’s easier and cheaper than many other types of businesses. You’ll also have the benefit of lower investment costs, which means you could see a faster return on your initial investment (and get started sooner).
Frequently Asked Questions
What is the professional name for a box truck?
A straight truck, also commonly referred to as a “box truck” or “cube truck”, is a commercial motor vehicle in which each axle — from the tip of the cab to the rear of the trailer — is connected by a single frame.
How many trucks do you need to start a trucking company?
Don’t be intimidated by the larger trucking companies with thousands of truck drivers and investors to provide capital. 90 percent of trucking companies are small fleets of six trucks or less so there’s space in the industry for you to start a trucking company with one truck.