Dump Truck Business Plan:
How to Run an Effective Business
The dump truck industry is growing at a rapid pace, which means the number of driving jobs available is too. In fact, it’s estimated that by 2025, the U.S. dump truck service market is expected to hit $20.64 billion, and that’s just for mining and construction projects on a major scale.
Whether it’s corporate or private deliveries, companies offering their own dump truck services or outsourcing fleet work creates a demand that brings tremendous opportunity for those just getting into the field. If you’re struggling with how to run an effective dump truck business, here are a few things you might want to consider:
Nail Down the Fundamentals
Sure, the admin side of things is not very exciting, but having the proper licenses and approvals in place ensure that your dump truck business doesn’t run into unexpected (and costly) road bumps. Here’s a rundown of what you’ll need to be compliant:
Licenses & Certification
To address the fundamentals, every driver should have a clean, regular state license updated each year. Next, completing the training process and earning a Class B Commercial Driver’s License (CDL) grants someone the ability to drive a straight dump truck and other tractor trailers and busses. For heavier, semi-dump trucks, a Class A CDL may be required.
Some additional certifications include a CBT certification that covers dump truck tailgate removal and installation. Many drivers also benefit from HAZMAT or passenger endorsements. It’s important to check with your local DMV to abide by state licenses and testing requirements before putting a trustworthy fleet together.
It’s always better to have coverage for a variety of scenarios rather than not have enough coverage. For example, signing up for auto liability insurance ensures that your drivers are protected, as well as the vehicle and health condition of the other driver in case of an accident. Physical damage insurance covers any repairs needed for your dump truck in the event of a collision or accident outside of a normal fender bender.
Lastly, trucker’s general liability coverage takes care of physical injuries or damage to property that happens through daily operations for your employees.
And then there’s good ol’ taxes. It’s important to establish yourself as a sole proprietorship or an LLC depending on how you want to navigate taxes each year. Also, you’ll need to sign up for a Tax ID number or EIN with the IRS, which is free for all businesses.
Doing your research to choose the right business type will lead to your next steps in terms of getting everything approved. However, it’s best to consult with a tax specialist or accountant in case you’re ever in doubt.
After your dump truck business is up and running, steer clear of pen and paper reporting and manual processes. Leveraging technology to automate and streamline your dump truck business gives you more time to focus on business growth.
For instance, digitize payment systems, automate driver punch-in and punch-out & invoicing, send out automated reminders to your drivers, and minimize the need for dealing with paperwork. You’ll also have the opportunity to manage logistics in real-time with online platforms that bring contractors, truckers, and material producers together.
Get a Contract
Now that your dump truck business is up and running, getting your first work contract is dependant on how well you promote your services. Through word-of-mouth strategies, basic marketing, and making professional connections, you may be able to secure a few starter jobs for local and residential projects. After you’ve built up some experience, going after larger construction contracts is a great way to find consistent work with sizable pay.
For instance, subcontracting is a great way to gain experience with contract work without having to actually bid on the Department of Transportation (DOT) jobs. If you’re connected with a reliable contractor who’s always looking for drivers or needs equipment, you can offer your services to assist on projects without taking on full liability.
Join Dump Truck Apps and Job Boards
If you’re struggling to find a consistent stream of work, signing up for a dump truck platform like TRUX gives you a variety of tools to streamline your business. Whether it’s automating payments or keeping track of your vehicles through GPS, a dump truck platform puts you in control of every aspect of your business and supports your progress with ease. On top of giving you access to a wide variety of jobs in your area, it also gives you full market visibility to ensure you’re being paid fairly.
It’s Not the Easiest Road, But We’re Here to Help
TRUX knows firsthand the pains that come with running a profitable dump truck business. There is so much that goes into creating a successful business, everything from dealing with insurance, to chasing down payments, or dealing with unpredictable schedules.
TRUX was founded by a group of construction industry veterans committed to creating innovative solutions that solve for the industry’s biggest roadblocks Our passion is helping you streamline your business by giving you the tools you need to grow. Contact us to get started today!