Here is a cost breakdown of how much to start a box truck business.
Every trucking business idea requires much planning and implementation to guarantee its actualization. Part of the planning process includes assessing the startup costs involved.
The same applies to a box truck business. It doesn’t matter what type of box truck business you wish to start.
It will require adequate startup capital injection. However, the amount of money needed might differ based on the type of operation or business you want to establish.
Examples include moving services, mobile vending machines, pest control businesses, mobile food trucks, etc.
Cost To Start Up A Box Truck Business
Startup costs for a box truck business can be said to include the pre-opening startup costs covering research expenses, business plans, technology expenses, and borrowing costs.
Asides from pre-opening costs are post-opening costs, including employee expenses, advertising, and promotion.
Also, the legal structure you choose for your box truck business will determine the startup costs involved.
Because we’re talking about expenses, these will likely cover advertising & promotion, equipment & supplies, insurance, license & permit fees, and a whole range of others.
Also, your location will impact the startup costs needed. Some states or regions tend to have higher startup costs compared to others.
So, it’s not uncommon to find the cost of doing business in such areas typically higher than what’s obtainable in places with lower living costs.
Box Truck Startup Costs Breakdown
The startup cost for a box truck operation is varied.
Wherever you live in the United States, a rough estimate for this type of business will be around $792,900. Now a glance at this amount will look quite vague.
To better understand, a detailed breakdown will need to be given.
Even at that, it might not represent an accurate picture of what’s on the ground. It would help if you went out to find equipment suppliers to determine the costs involved.
With that said, the startup costs for a box truck business, as mentioned earlier, cover the legal expenses and the business registration.
Other aspects of cost include the cost of hiring a business consultant, marketing expenses, payment of rent, insurance, and stationary & utility deposits.
More startup cost details include parking lot & office construction, running costs, cost of truck purchase, and equipment & accessories.
Let’s take a look at each of these costs to have an idea of the implications for your box truck business.
i. Cost of Legal & Accounting Services
The legal expense is included in the startup cost for a box truck business.
This involves the legal expense of obtaining permits & licenses. Also, the cost of accounting services covering POS machines and software will translate to around $3,300.
ii. Registration Fee
Every box truck business needs to be duly registered to operate thoroughly. Irrespective of where you live in the United States, you’re likely to pay an average sum of $750 as a registration fee.
iii. Hiring a Business Consultant
The expertise of a business consultant is highly essential when it comes to establishing your box truck business. Such experts help with a wide range of things, including writing a business plan.
The cost of hiring a business consultant is around $2,500.
iv. Marketing Costs
Effective marketing is needed for your box truck business to create awareness. Here, the marketing expenses for the grand opening will be around $3,500.
v. Rental Fee
Renting an outlet for your operations will attract a rental fee. This fee will vary based on the size of the property. The average rent to be paid over 12 months will be around $146,000.
vi. Insurance Coverage
Your box truck business operations need to be fully insured. Different types of insurance will affect the cost. Examples include property-casualty insurance, general liability insurance, and workers’ compensation.
This will attract a premium of $12,400.
vii. Stationary & Utility Deposits
Additional startup costs for a box truck business include the stationary expense of $500 and phone utility deposits of $2,500 to $3,000.
viii. Office & Parking Lot Construction
A fair amount of the startup cost goes to office and parking lot construction which attracts around $60,000.
ix. Truck Purchase Cost
As expected, the truck purchase takes the lion’s share as you’re likely to spend an average of $350,000. The actual expense largely depends on the number of box trucks purchased.
x. Running Costs
Running cost is an essential requirement for running a successful box truck business.
This usually covers three months until the business can support itself. A running cost of $90,000 is needed to run the business successfully.
This covers employee salaries as well as bill payments etc.
xi. Store Equipment Cost
Store equipment might be a necessity for a box truck business. This equipment costs money. Examples of such include ventilation, cash register, signage, and security.
The cost amounts to around $3,750.
xii. Installation of CCTV & Car Tracker
Additional expenses incurred for a box truck business include CCTV and car tracker software installations. The average cost for such a facility will be around $22,500.
xiii. Furniture Purchase Cost
A full-fledged box truck business will require renting an office space and equipping such with the needed furniture and gadgets.
Examples include printers, computers, TVs, telephones, chairs, tables, and sound systems. These will cost around $4,000.
xiv. Website Cost
A functional website is one of the basic requirements for a box truck business. A website designed for you will likely cost around $600 or higher, depending on the type you need.
xv. Opening Costs
With everything set in place, what remains is to open for business. An opening ceremony is often performed where awareness is created about the company. The amount budgeted for such varies.
On average, you’ll need around $3,000 to get started.
Part of your startup capital should be kept aside to cover miscellaneous expenses. Here, you’ll need to have around $5,000 or higher.
The box truck startup costs discussed here cover a wide range of exp; Now, such costs are only estimations as you’ll have to carefully estimate the cost to start such a business in your location.