Construction companies, mining companies, and waste management projects have one thing in common: they all require dump trucks. Without these large vehicles, they would be unable to transport metals, dirt, gravel, and similar objects from one location to another.
And since these large vehicles are usually in high demand, starting your own dump truck company is a good idea. It’s a profitable business that promises significant returns once you get established, attract clients and build brand trust.
But before starting a hauling company, you must have adequate knowledge about the industry. For instance, how does the entire process work, how many trucks should you buy, and do you need a commercial truck driver’s license?
However, this is a good time to try your luck in the dump hauling industry. Experts predict a growth of 8% CAGR between 2022 and 2030 and about 11 billion USD by 2026.
Before your start, it is crucial to conduct market research, explore the present demand, buy the trucks you need, get a CDL or hire a driver, register a name for your company, and buy an insurance policy. Some processes are made eaisier by services from Matrix Expedited Service and other platforms. Why are those things essential, and what other questions should you consider? Read on to know more.
Why should you do market research?
The answer is quite apparent: without adequate market research, it would be impossible to know the current demand and scope for future growth. You can create a successful business plan only after studying the market.
While studying the market, look out for construction, mining, waste management, and similar projects in your area, and try to get in touch with their owners. Besides these industries, your potential customers could include earthwork companies, maintenance authorities, and material manufacturers.
What kind of name should you choose?
When choosing a name for your business, ensure it is catchy and draws your attention instantly. The term also depends on the type of company you have. For example, if you are the sole owner, you could name your business after yourself. If it’s a limited liability company (LLC), it should contain the words “LLC” along with those of the other partners.
Should you buy a new truck or a used one?
Buying a new truck or a used one depends on your budget. A new hauling truck will cost you between 100,000 USD and 200,000 USD, depending on various factors like its model, features, and year of manufacture.
The other option is buying a used track when you want to save money. Used trucks are available for between 40,000 USD and 60,000 USD. But before buying one of these, you should check its frames, rails, axels, tires, cracks, hydraulic lift cylinder, and related components.
Do you require a CDL?
You will need a commercial driver’s license (CDL) if you plan to drive the truck rather than hire a driver. The license permits you to handle large vehicles like trucks on roads without endangering yourself or other drivers.
It is advisable to take CDL training while obtaining your license since it makes the process easier and quicker. The various types of courses include licensed, certified, and accredited training schools. Once you complete the training, the training school allows you to drive large trucks.
However, you will receive the license only if you pass the Federal Motor Carrier Safety Administration skills test.
Is it mandatory to have insurance?
You should have liability insurance while driving large vehicles like dump trailers because they protect your business during accidents. The coverage depends on your company’s size. Some insurance coverage options are auto, physical damage, non-trucking, and general liability. Get a free commercial truck insurance quote from Royalty Truck Insurance today.
You should consider starting a dump truck company after doing proper market research, considering its scope for growth, and asking questions like the ones mentioned above. It is a profitable business once you gain experience and understand its various aspects.