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.

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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.

Dump Truck Business Plan - 3 Years Profit Forecast
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Bank/SBA Business Plan
Document for raising debt funding from financial institutions to meet the expectations of the banks, SBA, and government agencies.

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.

Dump Truck Business Plan - Startup Cost

The detailed start-up requirements of Roth Trucking are given here in this sample business plan for dump truck company.

Start-up Expenses 
Stationery etc.$58,000
Research and Development$44,500
Expensed Equipment$480,900
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 Expenses to Fund$992,200
Start-up Assets to Fund$3,180,200
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
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$230,450
Other Current Liabilities (interest-free)$148,300
Planned Investment$0
Investor 1$4,172,400
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$626,850
Total Funding$4,172,400
Any questions? Get in Touch!

    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.


    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.

    Dump Truck Business Plan - Marketing Segmentation

    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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Chemical & Construction Material Manufacturing28%1,8002,2402,7603,1403,8508%
    Mining Industries35%2,1002,9803,0103,4504,10010%
    Earthwork Companies24%1,4301,8402,0402,4102,63011%
    Maintenance Authorities13%5105756307209709%
    Any questions? Get in Touch

    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

    Marc Jacobs

    Great service

    Great service. Good turnaround time and quality work. Thanks!

    ∙ Marc Jacobs

    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

    Dump Truck Business Plan - Sales Monthly

    6.4 Sales Yearly

    Dump Truck Business Plan - Sales Yearly

    6.5 Sales Forecast

    Dump Truck Business Plan - Sales Forecast
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Hauling & Transporting Dumps1,4001,5721,862
    Transporting Raw Materials1,1051,2411,470
    Demolition Waste Removal9501,0671,264
    Maintenance & Winter Services503565669
    TOTAL UNIT SALES3,9584,4455,264
    Unit PricesYear 1Year 2Year 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
    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
    Direct Unit CostsYear 1Year 2Year 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
    Any questions? Get in Touch!

      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 1Year 2Year 3
      Sales Executives$58,000$64,960$98,000
      Truck Drivers$102,000$114,240$153,000
      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 1Year 2Year 3
      Plan Month123
      Current Interest Rate10.01%10.41%10.95%
      Long-term Interest Rate11.00%11.00%11.00%
      Tax Rate24.01%25.49%26.62%

      8.2 Brake-even Analysis

      Dump Truck Business Plan - Brake-even Analysis
       Brake-Even Analysis 
      Monthly Units Break-even5560
      Monthly Revenue Break-even$145,600
      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 1Year 2Year 3
      Sales$3,522,290 $4,790,149 $6,605,765
      Direct Cost of Sales$2,344,520 $3,123,135 $4,000,203
      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%
      Sales and Marketing and Other Expenses$62,300$65,415$68,686
      Leased Equipment$0$0$0
      Payroll Taxes$91,900$97,328$132,550
      Total Operating Expenses$756,000 $825,048 $1,048,434
      Profit Before Interest and Taxes$421,770$463,947$518,777
      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

      Dump Truck Business Plan - Profit Monthly

      8.3.2 Profit Yearly

      Dump Truck Business Plan - Profit Yearly

      8.3.3 Gross Margin Monthly

      Dump Truck Business Plan - Gross Margin Monthly

      8.3.4 Gross Margin Yearly

      Dump Truck Business Plan - Gross Margin Yearly

      8.4 Projected Cash Flow

      Dump Truck Business Plan - Projected Cash Flow
       Pro Forma Cash Flow   
      Cash ReceivedYear 1Year 2Year 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
      ExpendituresYear 1Year 2Year 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
      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    
      AssetsYear 1Year 2Year 3
      Current Assets   
      Accounts Receivable$11,200$12,544$13,776
      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 CapitalYear 1Year 2Year 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
      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 1Year 2Year 3INDUSTRY PROFILE
      Sales Growth6.01%18.40%44.30%4.00%
      Percent of Total Assets    
      Accounts Receivable4.39%4.20%3.48%9.11%
      Other Current Assets1.65%2.01%2.45%25.40%
      Total Current Assets153.00%158.00%160.30%53.20%
      Long-term Assets-8.02%-9.01%-10.22%-10.56%
      TOTAL ASSETS96.00%96.20%102.00%103.10%
      Current Liabilities3.56%3.73%3.98%5.40%
      Long-term Liabilities0.00%0.00%0.00%24.96%
      Total Liabilities4.12%4.18%4.22%7.30%
      NET WORTH99.50%101.50%102.50%103.00%
      Percent of Sales    
      Gross Margin91.00%93.40%94.60%0.00%
      Selling, General & Administrative Expenses72.02%73.50%74.89%79.90%
      Advertising Expenses1.98%1.45%0.56%0.95%
      Profit Before Interest and Taxes24.09%25.60%31.44%2.10%
      Main Ratios    
      Total Debt to Total Assets1.99%1.43%1.06%54.00%
      Pre-tax Return on Net Worth69.50%71.20%77.54%4.67%
      Pre-tax Return on Assets67.90%70.20%73.40%10.00%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin18.40%20.50%24.90%N.A.
      Return on Equity49.85%52.40%57.32%N.A.
      Activity Ratios    
      Accounts Receivable Turnover4.34.354.39N.A.
      Collection Days9010096N.A.
      Inventory Turnover23.424.326.5N.A.
      Accounts Payable Turnover14.0115.916.3N.A.
      Payment Days252526N.A.
      Total Asset Turnover1.891.631.44N.A.
      Debt Ratios    
      Debt to Net Worth0.01-0.03-0.04N.A.
      Current Liab. to Liab.111N.A.
      Liquidity Ratios    
      Net Working Capital$140,600$153,200$171,300N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.440.480.5N.A.
      Current Debt/Total Assets3%4%2%N.A.
      Acid Test26.727.427.9N.A.
      Sales/Net Worth1.241.040.65N.A.
      Dividend Payout000N.A.

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