How to Start an Independent Dump Truck Company
If you are a licensed dump truck operator with a keen business sense you may want to think about starting an independent dump truck company. Start off your company with just yourself. Purchase a dump truck if you don't already own one. At the beginning, you can be an independent contractor on construction jobs that need the extra help of subcontractors. As your business grows you might want to hire other dump truck drivers for your company so that you can bid on larger jobs.
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Things You'll Need
- Business plan
- Legal/tax documents
- Insurance
- Dump truck
- Qualifications
- Advertising
Instructions
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Research the market in your area for independent dump truck companies. Determine whether there is any existing competition. Think of ways to make yourself competitive. For example, you may be willing to work more flexible hours to meet the needs of a project more effectively. Since you are operating on your own, you will be able to respond quickly to a project manager's needs. Research what it will take to be competitive within this market and make this the focus of your business. Another way to look at it is to think about what need is not being met by existing dump truck companies.
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Write a detailed business plan based on your research and planning. The business plan should cover the first year of your business. After the first year you will need to revise your plan to reflect your current situation. Define your business goals in a clearly written mission statement. Describe your business in detail. Include who your business will serve, how you will find those jobs and how you will remain competitive within your market. An example might be that you are willing to take on smaller jobs than larger dump truck companies. Provide financial projections for your first year. Attach any documents that you will need to form your business at the end of the business plan.
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Fill out and file a business and tax registration form as well as any other documents necessary to form your business at the local, state and federal level. An independent dump truck company may need a license or permits at the local and state levels. Contact your local and state authorities for specific regulations for your area.
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Meet with a local insurance agent to set up an insurance package for your company. Describe your business in detail so that the agent can advise you of your options. Considerations for an independent dump truck company include injuries and property damages. An insurance agent will be able to put together a package to cover your insurance needs.
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Purchase or lease a dump truck for your business based on your research and budget constraints. Consider the types of jobs you will take on. If the majority of jobs you will be taking are residential construction, you may want a smaller dump truck than if you were working on commercial construction projects. Add a sign to your truck to advertise your business while you are on job sites or driving around town.
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Acquire the necessary qualifications to operate a dump truck. A CDL or commercial drivers license is needed in most states. Check with your state authorities to determine the requirements. Take a class if needed to become proficient at operating a dump truck.
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Advertise your business in local newspapers. Join local trade organizations. Some areas will have organizations for independent contractors or businesses that are involved in the construction industry. Become a member of your local chamber of commerce. Chambers of commerce provide collective resources and often advertise in a large number of publications. They also provide many opportunities to network. Talk with your competitors; they may have extra work they can't handle.
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Tips & Warnings
Be flexible in services you provide. Don't be afraid to take on small hauling jobs in between larger construction projects.
Be sure that you have a permit have verified the permit for larger projects that you are subcontracting for prior to beginning any job.
References
Resources
- Photo Credit demolish old house image by Kimberly Reinick from Fotolia.com
