When starting any business, the entrepreneur or investors involved have a lot of planning and prepping to ensure it is a success, the same can be said how to start a dump truck business? For the many starting up a dump truck business may seem to be a niche offering, however the premise of this business idea and its necessity make it extremely lucrative. These trucks are contracted for a plethora of jobs such as; moving building materials, offering hands on aid in the midst of natural disaster clean ups, working with landfill owners and removing rubbish commercially.
Venturing into the dump truck business can be extremely lucrative, but with this demand comes a lot of competition. Below a list has been devised, offering ten pro tips you should consider when starting up a dump truck business. These aim to guide said entrepreneur into making the right decisions from the get-go, hopefully resulting in a profitable business.
1. Get your Commercial Driver’s License
This is the first step in achieving your business goal of owning a dump truck business is being able to drive one. Gaining your Commercial Driver’s License (CDL) can be done via government initiatives, such as the department of safety. It is quite a simple process; you will have to complete your dump truck driving course and sit a CDL approved examination.
The great thing about this initiative is that you get valuable driving experience whilst learning how to drive in a safe environment. Also, most of these courses at a truck driving school will help to place you into a job straight after you graduate, this is a great initiative to consider for hiring drivers for your own business.
2. Gaining Dump Truck Driving Experience
If you have had no previous experience with driving a dump truck, other than to obtain your license, then this could be an invaluable experience. A great tip would be to gain employment with another firm, that way you will increase your experience in operating the truck and learn some of your competitors’ tricks of the trade.
If you have had some experience driving a dump truck but are unsure on which one to purchase for your own business, then a good exercise would be to go a vendor for a few test drives. There are many truck sales depots that you could visit and test a range of dump trucks to suit your needs.
3. Create a Detailed Business Plan
Whilst this may seem obvious, it is such an important step that many people usually skimp on. A great tip would be putting as much information into this business plan as possible, that way you can easily gain loans, additional capital and in some cases increased your workload with clients.
This is one of the most important tips to take into consideration, the benefits of a detailed business plan can be rewarded ten-fold. If you take the time out to focus on your business plan and how you aim to grow and market your business now, you will receive a lot more help and interest.
4. Understand the Dump Truck Industry
After compiling all the information, you require for your business plan, you will have to learn a lot more about your own businesses wants and needs. It is now time to understand the dump truck market, to ensure that you can focus your offerings on the jobs which actually make a lot of profits.
The general public would associate a dump truck business solely with garbage and waste disposal, but there is so much more to it. A great tip would be to diversify your offerings and adhere to a wider market with more opportunities.
5. The Power of Marketing
Another top tip would be to invest heavily on marketing and marketing activities, especially as a start-up. You will need to get your name known in the local area and with the suppliers and customers you hope to work with. If you invest in a good marketing strategy early on can create some market awareness and overtime gain some market dominance, which leads to profitability.
6. Client’s Needs
Unlike bigger, already developed dump truck businesses, you have the ability to really match your clients needs. Instead of operation standard hours, such as 9am-5pm, you can really match your work schedule with your clients needs. If a customer requires your services at 5am, you should accommodate them to the best of your ability, that way you can build up customer retention rates.
7. Understanding Bids
This is a great activity that will serve you well in the future when writing bids to gain new custom. If you can understand the value of bids early, then getting new customers and bigger projects will be easy. A great way to understand how to price up a bid is to look to local dump truck services that offer similar works to you. Use them as a point of reference when writing your own bids and pricing models.
8. Which Truck to Buy?
Having a deep understanding of your own services needs will allow you to ascertain the expectations of the dump truck you need to buy. Many start ups choose to buy second-hand dump trucks due as they are cheaper to obtain initially, however these may cause issues in the future. If you can, purchase your dump truck new, many retailers offer loans and 0% interest in paying these off over a certain time period. As your business grows, so will the need for more vehicles so building a partnership with these vendors would be advantageous.
9. Secure a Government Contract
This is a very profitable solution to any dump truck business potential cash flow issues, by securing a steady government contract you can ensure that your business will have work. The best way to do this initially could be to partner with another firm, this way your bid will be strengthened and your capacity for the works doubled.
10. Pursue Certifications
This tip will make you a much more interesting supplier in the long run, there are various certifications that a dump truck business can achieve all of which increase their profitability. There are various certifications for each field of work, so once you know which discipline you plan to work within you can specify your certification status.
These 10 pro tips aimed at helping you develop a dump truck business and expand that business are just the start. There are many things that you can do within your own niche business idea to attach a loyal audience and gain profit, but these will be recognised by you as you start to develop your business.