How To Start A Box Truck Business: 6 Steps To Start A Box Truck Business
by Shahnawaz Alam Starting a Business 10 August 2022
Multiple reasons are there regarding why you should start a box truck business. First, according to the Freight Transportation Forecast by American Trucking Association, the Freight tonnage has the potential to spike 24% in 2022. As a result, the revenue might increase up to 66%.
Indeed there are some decade-old industry problems like driver’s safety, poor working conditions, and rising wage demands. Unfortunately, while the industry is still struggling to handle these issues, there is a lack of rising entrepreneurs willing to offer solutions.
While starting a box trucking business, an entrepreneur needs to come up with the latest solution to some existing problems and the ones that are rising. Providing your associates and employees with a comfortable working environment should help you start with a positive approach.
As for how to start a box truck business, you can follow this article here and get an idea. This article has the answers you are looking for.
What Is A Box Truck?
Box trucks, also known as box vans, straight trucks, or cube vans, are unique in their ways. These are class 3 to class 7 trucks, with a gross weight of around 33000 pounds. Another key feature of these trucks is – they don’t have a separate trailer attached to the engine by an axle.
A truck of this type helps you accommodate the increasing freight demand in the urban areas and the LTL sectors. They are most efficient when it comes to local freight hauling. Unlike the A-class big rigs, the box trucks are capable of navigating in urban areas.
What Is A Box Trucking Business?
Box trucking business boomed following the expansion of eCommerce businesses. The main point of this type of business is to deliver freights within LTL (less than truckload) areas using straight trucks (class 3 to class 7 trucks). In addition, box trucks deliver freight such as furniture, delivery packages, and bulk food products.
Such deliveries are usually related to online or local purchases. Due to their medium sizes, these trucks are great for maneuvering through urban areas. They can also deliver packages to small spaces without an extra budget.
How To Start A Box Truck Business With No Money?
The eCommerce market is in play, pushing the box truck business industry forward. Regular delivery of parcels and boxes requires efficient transportation, and the box truck businesses are filling that gap. Here are steps to start a box truck business.
1. Plan Your Business
The first step for any business is planning. You should outline your business goals and outline all of your steps. We recommend you plan for three to five years in advance. You can rely on your skills, or you can take help from different business planning tools.
There are a few key things that you need to consider when starting a box truck business.
- An executive summary is crucial; it explains the history of your business and its operation in the present day.
- You should also add a company description for your business in the plan.
- Adding an operation section will include your aim regarding where you want to see yourself in a few years.
- A marketing plan for your business is a crucial part of planning a business.
- The service section of your business also needs to be a part of your planning.
2. Set Up Box Truck Business
An important step to starting a box truck business is to create your business logo, a website, and an online listing.
- You have to create a logo for your business.
- create your business website.
- and also list your box trucking business online.
Here Are Some Steps To Help You Get Started:
- First, you have to generate a logo for your business.
- Coming up with a name for your business is the next necessary step.
- You must verify the availability of the name on the Patent & Trademark Office Website.
- A well-designed logo can help your business stick to the minds of your customers.
- You can create a website using WordPress or other similar platforms. A website will help you keep an online presence for your business.
- Online listing of your business alongside having a website will help you gain the amount of exposure you are expecting.
3. Form Legal Structure For Your Box Truck Business
The next phase is creating a legal structure for your box truck business. While forming your business as a legal entity, you will find four different options.
- Sole Proprietorship: A sole proprietorship is a type of legal entity with no distinction between the owner and the company. All the profit of the business goes to the proprietor. The owner also has to bear all the liabilities, debts, and losses of the business.
- Partnership: This type of business entity is similar to a sole proprietorship. It only includes more people.
- Corporation: The corporation structure helps the owner stay safe from any personal liability for business debts. The profits are also distributed to the shareholders.
- LLC (Limited Liability Company): An LLC structure helps a business to evade the disadvantages of a corporation. The LLC provides protections against liabilities and also offers the advantages of a corporate business. Most of the experts would recommend you go with an LLC type of business entity.
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4. Business Checking Account
It is crucial to have an account for your business. It helps you evade any business-related liabilities. You can also separate your personal financial aspects from your business by creating a business account. You will also need a business credit card.
5. Commercial Driver’s License
Running a box truck business requires you to have a commercial drivers driver’s license. But before you acquire a license, you need to fulfill some criteria like,
- Age requirements.
- You will need a Commercial Learner’s Permit.
- Attending a CDL program.
- Pass exams and skill tests.
- Get all the necessary documents.
- You will also need to pass medical tests.
6. Get All The Necessary Permits
Now that you have gotten your CDL, you will need a USDOT number and a Motor Carrier Authority number. More permits like State-level permits and city or country-based permits are also important for running a box truck business.
Many people ask how to start a non-CDL box truck business. For that, you have to gain a license to operate in the State.
Frequently Asked Questions (FAQs):
Here are some popularly asked questions related to a similar topic. You might find them helpful.
Yes, there are some existing problems in this industry. But if you can solve problems, then the box trucking business has the potential for profit. If you are skilled in handling this business, then it can be profitable for you.
You can start a box trucking business with only one truck. Here are the steps–
1. You can start by writing a business plan.
2. Choose your business structure.
3. Create logos and a website.
4. Get CDL and other permits.
5. Create a bank account for your business.
The lowest income one can earn from the box trucking business is $33000. You can earn as much as $264000. The salary for the Box Truck Operator range from $52000 to $156,000.
Once you get all of these steps out of the way, you can start worrying about more steps. For instance –
- getting your business insured.
- Gather funding.
- Employ workers and such.
The steps mentioned in this article will help you understand how to start a box truck business. If you have any further queries, please reach us in the comment.