You would need a minimum of $792,920 to open a medium–scale box truck business with about a dozen trucks in any city in the United States of America.
A box truck which is also known as a straight truck, box van, or cube van is a truck that is specifically designed to navigate urban centers without difficulty, making it the ideal option for local freight-hauling jobs.
This is why box trucks are often used by companies transporting home appliances or furniture or are used as moving trucks that can be rented by individuals. Even with a few potential risks, box trucking as a whole is an excellent career opportunity.
A box truck business is indeed a profitable business. On average, box trucks may charge $50 – $200 to move a furniture item, depending upon the size and miles traveled.
Individuals dedicating 10 or 20 hours a week can easily earn an extra $700 – $1000 per month when starting a box truck company.
As of Mar 5, 2022, the average annual pay of a box Truck Owner Operator in the United States is $110,275 a year. The box truck cum trucking industry is very open to any entrepreneur who has acquired the required capital and business exposure, they can indeed make good money from the industry.
Estimated Cost to Start a Box Truck Business
When it comes to starting a standard box truck business, one is expected to spend the bulk of the start-up capital on purchasing different types of box trucks (straight truck, box van, or cube van), renting a parking yard, and paying for utilities.
You also need to secure the required license and permits, servicing, fueling, paying your employees, and utility bills. Here are the key areas where you are expected to spend your start-up capital if you want to start a box truck business;
- The total fee for registering the business in the United States of America – is $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
- Marketing expenses for the grand opening of the box truck business – $3,580.
- The cost for hiring a business consultant including writing a business plan – $2,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $12,400.
- The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $146,000.
- The cost for office and parking lot construction – $60,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $90,000
- The cost for purchasing the first set of box trucks (straight truck, box van, or cube van) – is 350,000
- The cost of equipment and accessories – $100,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost of purchase and installation of CCTVs and car tracker software – $22,500
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $3,000
- Miscellaneous – $5,000
From the rough estimate as listed above, you would need a minimum of seven hundred and ninety – two thousand, nine hundred and twenty USD ($792,920) to establish a medium–scale but standard box truck business with about a dozen trucks in any city in the United States of America.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a box truck business to go to the market or directly contact suppliers of the brand of box trucks they would need to get the real-time prices of these items.
The truth is that, if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
Factors That Influence the Cost Of Opening a Box Truck Business
The Size, Brands, and Number of Trucks You Are Starting With
A major factor that will determine the overall cost of opening a box truck business in the United States of America is the size, number, and brand of box trucks you intend to start the business with.
Some box truck brands can be quite expensive while others are cost-effective. You should endeavor to choose the ones that would suit your business. Here are some of the best trucking brands you can choose from;
- Isuzu N-Series
- Hino 155 & 195
- Freightliner M2 106
- International RH Series
- Ford E-Series Cutaway.
The Choice of Location
Another major factor that will determine the cost of opening a box truck business is the location you want to start the business from.
In business, location is a key part of what determines the success of the business. There are business consultants cum realtors who are specialized in helping people choose an ideal location for their type of business.
The truth is that the location you choose to open your box truck business determines if you will be issued the required business license and permits. Government officials must first inspect your facility to be sure that it is located in an area zoned for such business.
Please note that in the United States of America, zoning violations and citations can be very costly for a business. It is always preferable to comply with all the zoning and land use laws before you choose a location for your business.
The Required Licenses and Permits
In the United States of America, you cannot open a box truck business without first applying for the mandatory licenses and permits.
Top on the list of what you would need is a broker’s license. You will be expected to pay a 300 dollar application fee to the Federal Motor Carrier Safety Administration to get a freight broker’s license and a USDOT number.
You would also need a building license, zonal permits, and signage permits. Please note you may have to go through several inspections before you can be issued your licenses and permits– this will also cost you money.
To get the overall cost of the licensing and permits associated with opening a new box truck business in the United States, we will advise that you reach out to your county, city council, or state government. You also need to consider state and federal requirements.
The Type of Facility
The type of facility you want to run your box truck business from is also a major factor that will determine the overall cost of opening a box truck business in the United States of America. You have the option of renting, leasing, or designing and constructing your own box truck facility from scratch.
With renting and leasing a facility, you might just have to spend extra to modify the facility, but there is a limit to how far you can go and it will be dependent on what the landlord of the facility wants. Let us assume that you want to construct your box truck business facility from the scratch.
It means that you will buy the land or property, bring up your design, construct and equip the facility to fit into what you have in mind.
You will agree that you are going to spend way more when compared to people that rent or lease a facility. This indeed will greatly influence the overall cost of opening your box truck business.
- The Cost for Branding, Promotion, and Marketing of the Box Truck Business
The cost for branding, promoting, and marketing the box truck business is yet another key factor that will determine the overall cost of opening a box truck business in the United States of America.
Trust me, if you need massive results as it relates to winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion, and marketing of your new box truck business.
It is not cheap to come by an expert in branding, promotion, and marketing that will help you compete with brands that are already determining the market direction of the box truck industry in your city.
So, if you add the cost of paying a branding and marketing expert, it will surely increase the cost of opening your box truck business.
6. The Cost for Furnishing and Equipping the Facility
Another very important factor that will determine the cost of opening a box truck business is the cost of furnishing and equipping the box truck facility.
Before you can open a box truck business, you should budget and buy security locks, flat-screen TVs, sound system, DVD players, Satellite dish and decoder, internet facility,
GPS tracker, office furniture (table, stools, and sofas), drawers, and cabinets, telephones, filing cabinets, office equipment (cash register, security, CCTV, ventilation, signage), amongst others. All these will cost money and it will influence the overall cost of opening a box truck business in the United States of America.
7. The Cost for Insurance
The cost of paying for insurance is yet another important factor that will determine the overall cost of opening a box truck business in the United States of America.
In the United States, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your box truck business.
8. The Cost for Registering the Business
The cost of registering the box truck business is yet another cost that will influence the overall cost of opening a box truck business in the United States of America.
Although the cost of registering a business is affordable, it will no doubt add to the overall cost of opening your box truck business in the United States of America.
9. Sourcing Your Supplies and Ongoing Expenses
Another major factor that will determine the cost of opening a box truck business in the United States of America is sourcing your supplies such as accessories, safety equipment, basic tools, spare parts, gasoline and diesel, brake fluid, and engine oil, et al. If you have in-house maintenance technicians, it will increase your profits.
10. Cost of Recruiting and Training Your Staff
The fact that you are opening your box truck business as a new business means that you are expected to recruit and train your staff.
The training will help you sell the corporate culture of your organization to your new employees. As expected, it will cost you money to hire expert trainers that will help you bring your new hires up to speed and that will add to the overall cost of opening a box truck business.
11. The Cost for the Purchase and Customizing of Uniforms
Another factor that will determine the overall cost of opening a box truck business in the United States is the cost of purchasing and customizing uniforms, shoes, hand gloves, caps amongst others. Your staff (drivers and assistants) and security personnel are expected to all have uniforms.
All these uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a box truck business in the United States of America.
12. The Cost of Opening the Box Truck Business
In recent times, no box truck business opens its door for business without first organizing an opening party to officially launch the business.
This means that the cost of the grand opening is part of the factors that will determine the overall cost of opening a box truck business in the United States of America.
You can choose to do a soft opening if you operating on a low budget or you can go for a grand opening party. The bottom line is that the cost must be part of your budget and this cost will influence the overall cost of opening the box truck business in the United States of America.
Note that there are other factors not listed above that will surely influence the overall cost of opening your box truck business which is why we will advise that you work with a result-driven business consultant in your city to give you the needed guide and info as it relates to the unique factors in your location.