Transportation

How to Start a box truck business?

Box truck business

Truck rental businesses, such as U-Haul, offer a great opportunity to start making money with your box truck. This business comes with few requirements and can start at nearly any time of the year. Although there is a fair amount of research involved in starting up this type of business, it can pay off big time if you get it right and give you an established source of income that you can rely on for years to come.

Types

There are many rental businesses: storage units, moving trucks; party rentals; and trailers/campers (travel trailers). The concept behind each business is the same: offer people or companies a service they require and bill them accordingly. Since storage space is always in high demand, this business works well because it can start with very little capital and often no credit history.

The best way to earn money

The key to making money with U-Haul rentals is knowing exactly what your expenses will be upfront so that you know whether or not you’ll be making any money whatsoever before starting or continuing to run the company. If you don’t do the math and assume that this type of business will magically make you thousands upon thousands of dollars each month, then there’s a good chance that it will fail and cause financial debt for yourself.

The first thing you will need to do before signing a single piece of paper anywhere is to figure out just how much your monthly overhead costs are going to be, including rent or lease payments, insurance premiums, and the price of the rented box truck. Once you have a good estimate on all three expenses together (including any interest), then it’s time to estimate your revenue website. You estimate that each item will cost $1,000 per month, for example. The rent payment from each tenant (person/company renting storage space) equals $1500 per month; divide it by 4 to get an estimate of how long it takes for you to break even. The calculation should look something like this: 1500/4 = $375. In this case, you can expect to break even within the first three months of business, which is a good time frame for this type of industry because it won’t be enough money to live on for the rest of your life, but it will be enough to make sure you don’t go bankrupt if something goes wrong.

Read more: Some important tips for starting an ATM business, and its benefits

How To Make Money Using Only Your Car?

If you go about renting out U-Haul trucks just like most people do (i.e. by picking up jobs that are too difficult for others to complete), then all of this will be much harder to do because there’s no reliable income stream that will keep everything afloat. Of course, some months will be better than others, but overall the revenue generated from random jobs here and there will not be enough to make a living.

With that said, if you want to go about this business like a real business and build it up from scratch, then below is the formula that’s followed by 99% of all U-Haul companies today:

  • Establish Your Own Company (independent or franchise). The first step, of course, is to either start your own company with its own LLC or sign on as an independent contractor for an already established franchise.
  • Find A Reputable Box Truck Rental Company. Now the fun part begins because you’ll no doubt need at least one box truck to get started buying things such as signage, dumpster litter bags, boxes, and other miscellaneous equipment required for hauling junk.
  • Steal The Show On Google. Since your main job is to be the middleman (or woman) between two companies who want to make a deal, you must get noticed as soon as possible. Don’t worry about buying advertising space on Google or Facebook right now because there are many more effective ways of getting noticed, such as building hype and creating buzz, etc
  • Find Junk Hauling Jobs. Now that your company has customers, it’s time to start making some real money! Although your company can technically start making money as soon as you have at least one customer, the hardest part is just getting people to use your services.
  • Get Paid For Your Work. Once you’ve completed an assignment, all you have left to do is sit back and collect your paycheck! If you have extra time on your hands, it might be worthwhile to acquire other types of commercial contracts such as office moving/packing tasks that are also very profitable. The good thing is that once you get good at one type of task, they all seem to follow the same formula.
  • Extend Your Market Reach (optional). If you’ve covered most of your local area and still have some time on your hands, then it might be worthwhile looking for customers in other cities (provided they’re close enough to drive to with a box truck). This option will allow you to expand your market reach and thus increase your earnings potential.

Charging $50 for four cubic yards of junk isn’t exactly the wisest choice because there are many factors involved here that can’t compete, not even if they were paying people minimum wage over there! Because this is such an oversaturated industry with so much competition everywhere, we wouldn’t even recommend going this route unless you have a very clear plan of action and a lot of time on your hands.

The good news is that there are countless other ways to make money with a box truck that doesn’t involve hauling junk or moving furniture, some of which I’ll describe below, along with the estimated amount of cash you can expect to make from each one:

How To Make Money With A Box Truck?

A Business Venture

It is one scenario where everything goes as planned, and people buy into your vision so much that they willingly give you their money. According to some 2014 statistics, the average profit made by U-Haul companies worldwide after expenses were $32,000. Depending on how much money you’re able to raise, this can end up costing anywhere from $50,000+ to start your own business.

Starting A Franchise

It is one scenario where everything goes as planned, and people buy into your vision so much that they willingly give you their money. Take and start by leasing trucks (not buying them) and taking care of all liability insurance and overhead costs associated with owning a company. According to some 2014 statistics, the average profit made by Franchise companies worldwide after expenses were $118,000. Depending on how much money you’re able to raise, this can end up costing anywhere from $50,000+ to start your own business.

Truck Driver

It is one scenario where the only thing you need to get started is a box truck that you already have sitting in your driveway! The concept is simple. Transport products from point A to B using your truck while being paid for every mile driven or simply delivering whatever needs transporting. Although you won’t be able to charge as much as a company would, you’ll still be able to make quite a bit. The US Department of Labor’s 2014 statistics showed that heavy truck drivers working for companies averaged around $38,000 annually. The one-time cost of purchasing or leasing the right box truck averages somewhere between $30,000 – $40,000, depending on the size and type of vehicle.

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