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How to start your own dump truck business
Are you thinking about starting a dump truck business? The business is based upon providing dumping, transporting and hauling services to your customers via trucks and drivers.
Well, the tipper truck business plan is really easy to start, you can initiate by having just two to three trucks. The business has its scope in enormous services and it offers so many opportunities that a person stepping into this venture has an extremely rare chance to suffer a loss.
Like other businesses, you would first need to make a comprehensive tipper truck business plan. To help you we’re providing a dump truck business plan sample for a startup, Roth Trucking.
Executive Summary
2.1 The Business
Roth Trucking will be a registered and licensed dump truck business based in Indianapolis, US. The business will be based on providing hauling and transport services for raw materials and dumps. To run the business, the owner will be purchasing standard dump trucks, side dump trucks, transfer dump trucks, and winter services vehicles from Kenworth.
For anyone looking for how to start a dump truck business, we’re providing all details of Roth Trucking in this sample dump truck company business plan.
2.2 Management of Dump Truck Company
You might have confusion on your mind like is a dump truck business profitable? Well, as dump trucks have found their services in various fields one needs to be exceptionally bad at planning things to suffer a loss in this domain.
To generate maximum profits, it is required to create a thorough management plan, including details of how to direct the team and resources to do with the ongoing projects. Roth Trucking will be employing CDL certified drivers, general assistants, technicians, IT experts and experienced supervisors to manage the company.
2.3 Customers of Dump Truck Company
The customers of Roth Trucking will be construction companies, mining and quarrying industries, property maintenance service providers, chemical and materials manufacturing companies, and organizations responsible for snow removal or dump removal after natural disasters.
2.4 Target of the Company
Our target is to provide exclusive services to our customers. Some of our monetary goals are summarized in the following chart.
Company Summary
3.1 Company Owner
Roth Hugh belongs to Indianapolis and has gained his bachelor’s degree in management from there. After working on a management position for seven years in Chrysler, Roth has gained experience and knowledge to start his own tipper truck business plan.
3.2 Why the dump truck company is being started
Ever since the start of his career, Roth is famous in the workplace for his methods of managing the team efficiently. It was just his emotional intelligence and talent to lead people, which enabled him of securing a top position in one of the top American companies.
Despite that he hadn’t any problems in his job, Roth had always wished to run his own tipper truck business plan. This desire of being his own boss led him to start dump truck business. After researching in the domain and exploring several dump truck business plans Roth found that running a dump truck business would be interesting and profitable for him.
3.3 How the dump truck company will be started
Roth decided to purchase standard dump trucks, transfer dump trucks, side dump trucks, and winter services vehicles from Kenworth. Before taking the actual startup, he will contact his target group of customers so that the company will have some projects to do from the beginning. He’s decided to make use of both his reputation and discount strategy to compel big names in the market to try his services.
All the equipment will be bought one week before the launch. Staff will also be employed one week before, after strict testing and checking. A place for an office and a big parking lot for trucks will be taken on rent in Indy. Moreover, the company will ensure a strong web presence from the very start to attract more customers and will establish an online system for customers through which they can book the trucks and make payments remotely.
The detailed start-up requirements of Roth Trucking are given here in this sample business plan for dump truck company.
| Start-up Expenses | |
| Legal | $70,500 |
| Stationery etc. | $58,000 |
| Brochures | $62,500 |
| Consultants | $0 |
| Insurance | $20,900 |
| Rent | $152,500 |
| Research and Development | $44,500 |
| Expensed Equipment | $480,900 |
| Signs | $102,400 |
| TOTAL START-UP EXPENSES | $992,200 |
| Start-up Assets | $0 |
| Cash Required | $1,205,500 |
| Start-up Inventory | $58,200 |
| Other Current Assets | $196,500 |
| Long-term Assets | $1,720,000 |
| TOTAL ASSETS | $3,180,200 |
| Total Requirements | $4,172,400 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $992,200 |
| Start-up Assets to Fund | $3,180,200 |
| TOTAL FUNDING REQUIRED | $4,172,400 |
| Assets | $1,395,000 |
| Non-cash Assets from Start-up | $985,000 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $1,585,000 |
| Cash Balance on Starting Date | $201,400 |
| TOTAL ASSETS | $4,166,400 |
| Liabilities and Capital | $0 |
| Liabilities | $1,650,300 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $230,450 |
| Other Current Liabilities (interest-free) | $148,300 |
| TOTAL LIABILITIES | $2,029,050 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $4,172,400 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,510,500 |
| Loss at Start-up (Start-up Expenses) | $626,850 |
| TOTAL CAPITAL | $2,137,350 |
| TOTAL CAPITAL AND LIABILITIES | $4,166,400 |
| Total Funding | $4,172,400 |
Services for Customers
Before starting a dumper business, you must decide the services you want to provide your customers so that you can buy relevant vehicles and acquire relevant licenses and permits. This decision of yours will be based on your market place and trends and will be affecting your business in the long run.
Roth Trucking has mentioned the following services in their tipper truck business plan.
- Hauling & Transporting Dumps: We’ll provide our trucking services to haul and transport heavy objects or rocks, coals, and dumps such as sand, gravel, grit, etc. from mining and quarrying sites, construction sites and earthwork project sites.
- Transporting Raw Materials: Since several companies require raw materials such as asphalt, coal, limestone, calcium chloride salts in large amounts so we’ll be providing our trucks and efficient crew to meet their demands too.
- Demolition Waste Removal: We’ll provide debris and damaged building material removal services by our trucks. This service is largely required to recover an area from a natural disaster as after such events there is so much mess that can only be taken away by large trucks.
- Maintenance & Winter Services: Another service provided by us includes carrying away or transporting heavy loads for maintenance of public places and properties. Moreover, we also have winter vehicles that are specially made to plow and remove snow in chilly winters.
Marketing Analysis of Dump Truck Company
Here comes the part without which you can’t have a completed dump truck business plan. No matter how talented a business owner is, they can’t make a big name without understanding the high and lows, trends and current demands of a market.
Note
So, to make your tipper truck business plan a preferable choice for your customers it’s necessary to gather all the information related to your target market that can have an impact on the future of your business.
5.1 Market Trends
According to the IBISWorld report, more than 27 thousand dump truck businesses are running in the United States and revenue generated by them is expected to increase over the next five years. The businesses collectively have generated a revenue of $19 billion in 2019 so it’s really satisfying to hear an increase in even that amount.
Well, the source has also reported a 0.1 annual growth rate for the tipper truck business plan. So, if you are stepping in this venture don’t worry about the market statistics, just start exploring dump truck business ideas and info about how to start dump truck business.
5.2 Marketing Segmentation
Identifying target customers is crucial to determine their needs and the ways to meet their demands. In this dump truck company business plan sample, we’re listing the target groups identified by Roth Trucking.
The detailed analysis of our target audience is as follows:
Operational and Strategic Planning
5.2.1 Chemical & Construction Material Manufacturing Companies: The first group comprises of the companies who need transport services by trucks to get raw materials delivered in large amounts. We’ll transport dry bulk materials such as iron, gravel, coal, silicon, metals and other heavy objects for them.
5.2.2 Mining Industries: Our second target group will be the companies that carry out mining and quarrying operations. As there is a need to plow and remove huge stones, and earthly particles from the sites where such operations are to be performed, our heavy-duty trucks capable of lifting mighty weights will be needed to help them out.
5.2.3 Earthwork Companies: The third category includes construction companies that’ll need our services to get sand, gravel, soil, asphalt and other materials for infrastructure development. This group will also comprise of earthwork industries who’ll need our hauling and dumping services.
5.2.4 Maintenance Authorities: The last group of our target customers will be the authorities responsible for maintaining city sites. From them, we’re expected to get projects like snow removal in winters and removal of damaged building materials following a demolition process or natural disaster.
The detailed market analysis of our potential customers is given in the following table:
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Chemical & Construction Material Manufacturing | 28% | 1,800 | 2,240 | 2,760 | 3,140 | 3,850 | 8% |
| Mining Industries | 35% | 2,100 | 2,980 | 3,010 | 3,450 | 4,100 | 10% |
| Earthwork Companies | 24% | 1,430 | 1,840 | 2,040 | 2,410 | 2,630 | 11% |
| Maintenance Authorities | 13% | 510 | 575 | 630 | 720 | 970 | 9% |
| Total | 100% | 6,780 | 7,540 | 9,850 | 10,400 | 11,340 | 12% |
5.3 Business Target
SMART business targets as set by Roth Trucking are given here:
- To achieve the net profit margin of $10k per month by the end of the first year
- To obtain an average of 62 projects per month by the end of the first year
- To maintain a customer churn rate of less than 1% by the end of the first three years
- To balance startup costs with profits by the end of the first six months
- To extend our business to a nearby city by buying 10 more trucks by the end of the second year
5.4 Product Pricing
Roth Trucking will have its prices in almost similar ranges as of its competitors.
Marketing Strategy
Great service
Great service. Good turnaround time and quality work. Thanks!
If you are thinking about starting dump truck business in a market place where you can encounter many already-settled competitors, then the only thing that can make you successful is the sales strategy.
In this dump truck business plan template we are providing the sales strategy plan devised by Roth Trucking to gain more and more customers.
6.1 Competitive Analysis
To take a lead upon our competitors, we’ll be coming with several competitive aspects. Firstly, our services will be highly managed and organized so that our customers may never feel any inconvenience while working with us. Secondly, we are highly customer service oriented and will amend our strategies according to customer’s feedback. Lastly, the personal contacts of Roth with some of the companies included in our target groups will also help us in gaining more projects as well as popularity.
6.2 Sales Strategy
- We will provide a 60% percent discount to chemical & construction material manufacturing companies for the first week of our launch.
- We will send brochures, letters and our representatives to our target customers to make them try our services.
- We will provide a 30% discount on all our services for the first three months of our launch.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Hauling & Transporting Dumps | 1,400 | 1,572 | 1,862 |
| Transporting Raw Materials | 1,105 | 1,241 | 1,470 |
| Demolition Waste Removal | 950 | 1,067 | 1,264 |
| Maintenance & Winter Services | 503 | 565 | 669 |
| TOTAL UNIT SALES | 3,958 | 4,445 | 5,264 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Hauling & Transporting Dumps | $1,404.00 | $1,700.24 | $1,979.64 |
| Transporting Raw Materials | $680.00 | $823.48 | $958.94 |
| Demolition Waste Removal | $620.00 | $750.82 | $874.32 |
| Maintenance & Winter Services | $430.00 | $520.73 | $606.39 |
| Sales | |||
| Hauling & Transporting Dumps | $1,965,600 | $2,673,124 | $3,686,090 |
| Transporting Raw Materials | $751,400 | $1,021,869 | $1,409,300 |
| Demolition Waste Removal | $589,000 | $801,012 | $1,104,708 |
| Maintenance & Winter Services | $216,290 | $294,144 | $405,666 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Hauling & Transporting Dumps | $1,030.00 | $1,133.00 | $1,246.30 |
| Transporting Raw Materials | $670.00 | $737.00 | $810.70 |
| Demolition Waste Removal | $520.00 | $572.00 | $629.20 |
| Maintenance & Winter Services | $280.00 | $308.00 | $338.80 |
| Direct Cost of Sales | |||
| Hauling & Transporting Dumps | $1,446,120.00 | $1,926,376.45 | $2,467,225.33 |
| Transporting Raw Materials | $455,600.00 | $606,904.76 | $777,409.42 |
| Demolition Waste Removal | $322,400.00 | $429,469.04 | $550,124.66 |
| Maintenance & Winter Services | $120,400.00 | $160,384.84 | $205,443.58 |
| Subtotal Direct Cost of Sales | $2,344,520.00 | $3,123,135.09 | $4,000,202.98 |
Personnel plan
If you are exploring how to run a dump truck business, you might also want to know that how many persons you can require to ensure the successful running of your tipper truck business plan.
We’re providing here the job title and job responsibilities of staff, Roth Trucking will be employing, along with their salaries.
7.1 Company Staff
- 1 Manager to sit in the office, schedule workers and equipment according to projects taken
- 1 Accountant to record finances and transactions
- 4 Supervisors to monitor workers while operations
- 2 Sales Executives to reach out customers and carry out sales strategy plan for business plan
- 8 Truck Drivers to operate heavy-duty vehicles
- 3 Technicians to maintain the company’s machinery and equipment
- 2 Customer Representatives to receive orders and attend customers
- 1 IT Expert to manage the company’s online system, website, and social sites
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $40,000 | $44,800 | $60,000 |
| Accountant | $28,500 | $31,920 | $42,750 |
| Supervisors | $85,000 | $95,200 | $127,500 |
| Sales Executives | $58,000 | $64,960 | $98,000 |
| Truck Drivers | $102,000 | $114,240 | $153,000 |
| Technicians | $50,000 | $56,000 | $75,000 |
| Customer Representatives | $45,000 | $50,400 | $67,500 |
| IT Expert | $26,000 | $29,120 | $39,000 |
| Total Salaries | $434,500 | $486,640 | $662,750 |
Financial Plan
The final step before starting any business is to develop a financial plan. A financial plan can help you in efficiently using the available resources while meeting your financial and other goals.
If you want to estimate dump truck business profit before even starting it, the only way you can follow is to develop a financial plan enlisting all the details of your money flow. Roth Trucking got its financial plan developed by an expert financial advisor who besides, forecasting profit and losses for the company also shed light on the ways to maximize earning within the available means.
The sample financial plan of the company is given here for a general idea.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.01% | 10.41% | 10.95% |
| Long-term Interest Rate | 11.00% | 11.00% | 11.00% |
| Tax Rate | 24.01% | 25.49% | 26.62% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5560 |
| Monthly Revenue Break-even | $145,600 |
| Assumptions: | |
| Average Per-Unit Revenue | $240.00 |
| Average Per-Unit Variable Cost | $0.70 |
| Estimated Monthly Fixed Cost | $194,560 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $3,522,290 | $4,790,149 | $6,605,765 |
| Direct Cost of Sales | $2,344,520 | $3,123,135 | $4,000,203 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $2,344,520 | $3,123,135 | $4,000,203 |
| Gross Profit | $1,177,770 | $1,667,014 | $2,605,562 |
| Gross Margin % | 33.44% | 34.80% | 39.44% |
| Expenses | |||
| Payroll | $434,500 | $486,640 | $662,750 |
| Sales and Marketing and Other Expenses | $62,300 | $65,415 | $68,686 |
| Depreciation | $31,200 | $32,760 | $34,398 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $37,800 | $39,690 | $41,675 |
| Insurance | $38,500 | $40,425 | $42,446 |
| Rent | $22,300 | $23,415 | $24,586 |
| Payroll Taxes | $91,900 | $97,328 | $132,550 |
| Other | $37,500 | $39,375 | $41,344 |
| Total Operating Expenses | $756,000 | $825,048 | $1,048,434 |
| Profit Before Interest and Taxes | $421,770 | $463,947 | $518,777 |
| EBITDA | $452,970 | $496,707 | $553,175 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $84,354 | $92,789 | $103,755 |
| Net Profit | $337,416 | $371,158 | $415,022 |
| Net Profit/Sales | $0 | $0 | $0 |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $41,300 | $49,560 | $54,103 |
| Cash from Receivables | $10,500 | $12,600 | $13,755 |
| SUBTOTAL CASH FROM OPERATIONS | $50,100 | $55,400 | $59,500 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $50,100 | $55,400 | $59,500 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $220,140 | $242,154 | $266,369 |
| Bill Payments | $124,800 | $137,280 | $151,008 |
| SUBTOTAL SPENT ON OPERATIONS | $340,900 | $374,990 | $412,489 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $350,600 | $392,672 | $424,226 |
| Net Cash Flow | $134,200 | $150,304 | $162,382 |
| Cash Balance | $201,890 | $226,117 | $244,287 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $201,900 | $226,128 | $248,337 |
| Accounts Receivable | $11,200 | $12,544 | $13,776 |
| Inventory | $2,890 | $3,237 | $3,555 |
| Other Current Assets | $9,800 | $9,800 | $1,000 |
| TOTAL CURRENT ASSETS | $256,000 | $275,640 | $301,900 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $13,200 | $14,560 | $15,400 |
| TOTAL LONG-TERM ASSETS | $740 | $510 | $301 |
| TOTAL ASSETS | $178,400 | $230,900 | $240,600 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9,401 | $10,400 | $11,340 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9,401 | $10,450 | $11,340 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9,401 | $11,340 | $13,400 |
| Paid-in Capital | $34,500 | $36,100 | $37,150 |
| Retained Earnings | $44,200 | $49,500 | $57,400 |
| Earnings | $102,400 | $120,890 | $128,950 |
| TOTAL CAPITAL | $194,000 | $224,500 | $261,300 |
| TOTAL LIABILITIES AND CAPITAL | $220,900 | $240,500 | $271,300 |
| Net Worth | $198,500 | $250,490 | $284,300 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 6.01% | 18.40% | 44.30% | 4.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 4.39% | 4.20% | 3.48% | 9.11% |
| Inventory | 1.21% | 1.89% | 1.93% | 9.75% |
| Other Current Assets | 1.65% | 2.01% | 2.45% | 25.40% |
| Total Current Assets | 153.00% | 158.00% | 160.30% | 53.20% |
| Long-term Assets | -8.02% | -9.01% | -10.22% | -10.56% |
| TOTAL ASSETS | 96.00% | 96.20% | 102.00% | 103.10% |
| Current Liabilities | 3.56% | 3.73% | 3.98% | 5.40% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 24.96% |
| Total Liabilities | 4.12% | 4.18% | 4.22% | 7.30% |
| NET WORTH | 99.50% | 101.50% | 102.50% | 103.00% |
| Percent of Sales | ||||
| Sales | 95.11% | 96.09% | 97.34% | 98.00% |
| Gross Margin | 91.00% | 93.40% | 94.60% | 0.00% |
| Selling, General & Administrative Expenses | 72.02% | 73.50% | 74.89% | 79.90% |
| Advertising Expenses | 1.98% | 1.45% | 0.56% | 0.95% |
| Profit Before Interest and Taxes | 24.09% | 25.60% | 31.44% | 2.10% |
| Main Ratios | ||||
| Current | 25.87 | 28.99 | 31.45 | 1.37 |
| Quick | 26.9 | 28.1 | 30.6 | 0.19 |
| Total Debt to Total Assets | 1.99% | 1.43% | 1.06% | 54.00% |
| Pre-tax Return on Net Worth | 69.50% | 71.20% | 77.54% | 4.67% |
| Pre-tax Return on Assets | 67.90% | 70.20% | 73.40% | 10.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 18.40% | 20.50% | 24.90% | N.A. |
| Return on Equity | 49.85% | 52.40% | 57.32% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.3 | 4.35 | 4.39 | N.A. |
| Collection Days | 90 | 100 | 96 | N.A. |
| Inventory Turnover | 23.4 | 24.3 | 26.5 | N.A. |
| Accounts Payable Turnover | 14.01 | 15.9 | 16.3 | N.A. |
| Payment Days | 25 | 25 | 26 | N.A. |
| Total Asset Turnover | 1.89 | 1.63 | 1.44 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0.01 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $140,600 | $153,200 | $171,300 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.44 | 0.48 | 0.5 | N.A. |
| Current Debt/Total Assets | 3% | 4% | 2% | N.A. |
| Acid Test | 26.7 | 27.4 | 27.9 | N.A. |
| Sales/Net Worth | 1.24 | 1.04 | 0.65 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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