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If you’re familiar with the concept of a box truck business but lack guidance on how to get started, you’re in the right place. A box truck business offers daily earning potential and doesn’t require owning a truck outright; you can rent one and earn while covering the rental expenses.
Starting a box truck business can be highly profitable if you’re looking to be your own boss rather than working for someone else. While many business ideas may initially involve working under someone to gain knowledge, you may not need to remain in their shadow for an extended period.
Here are the steps on how to start a box truck business
1. Establish your company
To establish your own company, the initial steps involve naming your business and obtaining a business license. When it comes to obtaining a business license, it entails researching the specific requirements based on your location and the nature of your business.
It’s crucial to select a name that aligns with your company’s truck and is both straightforward and professional, as it serves as your brand identity. Once you’ve chosen a name, creating a business logo is a recommended step. You can either delegate this task to a graphic designer or create one yourself using online design resources
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2. Create a website.
Establishing a website is essential when devising a business plan for your box truck venture. Although numerous tools and aids are available to facilitate the swift development of a polished website, it’s important to balance visual appeal and an excellent user experience.
Define the content to be featured, incorporate engaging images to captivate your audience, and select an appropriate platform to ensure your website effectively reaches prospective customers and contributes to your business growth. Through meticulous planning and research, you can construct a powerful online presence that sets you apart and propels you toward your business objectives.
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3. Complete your trucking documents.
To initiate your Box trucking business, you must complete the following documents and requirements:
- File a BOC-3 form: If you’re operating as a trucking company, it’s necessary to designate an FMCSA agent in all states where your business operates. This designated agent will receive and forward legal documents on behalf of your company.
- Apply for a Motor Carrier number: Typically, you’ll need to furnish basic documentation like proof of identity, bank statements, and liability insurance information to the FMCSA to obtain an MC number. As part of your motor carrier authority application, there’s a required application fee of $300.
- Complete the Unified Carrier Registration (UCR): If you intend to conduct business across state lines, you’ll also need to register for the UCR program. The UCR program is federally mandated and necessitates registration for commercial vehicles engaged in interstate travel. Drivers transporting cargo across state lines must renew their UCR registration annually by December 31st.
- Obtain a commercial driver’s license (CDL): Box truck owners may not need a CDL if the vehicle has a gross vehicle weight rating (GVWR) of 26,000 pounds or less. This exemption is advantageous for new business owners who plan to operate the truck themselves or hire drivers, as it broadens the pool of potential candidates. However, if the GVWR exceeds 26,000 pounds, obtaining a CDL or hiring drivers with CDLs is required.
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4. Get trucking insurance.
It is highly recommended to enroll in trucking insurance as it serves as a valuable safeguard. When selecting trucking insurance, it’s important to carefully assess the type and level of coverage required, beyond just collision insurance.
Liability insurance addresses damages caused by your trucks to other properties, whereas collision insurance deals with damages to your own trucks. Additionally, it may be prudent to explore insurance options that encompass medical coverage for potential driver injuries resulting from accidents.
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For box truck owner-operators utilizing reefers, it’s worth exploring insurance plans that also cover equipment repairs. Comparing the coverage and rates offered by various insurance providers will help you identify the most suitable policy tailored to your specific needs.
5. Organize your business expenses
Effectively managing your business expenses involves maintaining a record of your daily expenditures. It’s crucial to maintain a clear separation between your personal and business expenses. One way to do this is by opening a dedicated account for your business finances, allowing you to assess your financial status at the end of each month or reporting period.
Another valuable tool for streamlining expense management is a fuel card program. Such a program provides access to a vast network of gas stations, truck stops, and commercial fueling locations nationwide. Additionally, depending on the specific card, it may offer discounts. These cards typically include features for controlling employee spending and reporting tools to monitor fueling activity. This capability proves particularly vital in the trucking industry, where precise records of gallons and usage must be reported to various government agencies.
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6. Buy the right truck
Your choice of truck size should align with the services you intend to provide, ensuring it’s spacious enough to accommodate the cargo you’ll be transporting. Additionally, take into account whether a reefer unit is necessary for refrigerated cargo.
If you have budget constraints for your business, you may explore the option of purchasing a pre-owned truck, which can range from $10,000 to $20,000 in certain regions. Alternatively, you could opt for a new truck, which, although pricier, may entail fewer maintenance concerns compared to a used one. Assessing these factors is crucial prior to making your purchase.
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7. Build a customer base.
If you are aware of the locations where your potential clients operate, consider interacting with them face-to-face, particularly if they are fellow business owners. Alternatively, you can promote your services through online channels like your website and social media platforms. To distinguish yourself from competitors, employ imaginative marketing strategies and messages.
Another avenue is to pursue independent contractor agreements, both short-term and long-term, with prominent delivery firms. Regardless of your chosen approach, prioritize delivering exceptional customer service, as this will not only foster word-of-mouth referrals but also cultivate your customer network.
Conclusion
While the final step may pose a challenge for some individuals when it comes to meeting customers in person, it can also be an opportunity to understand their needs better. Launching a box truck business can offer a rewarding means of livelihood and the independence of being your own boss. You can begin the journey even without owning a truck at the moment by renting one, covering the expenses, and following the steps outlined above.
