Dump Truck Service Business Plan and SWOT Analysis

Dump Truck Service Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Dump Truck Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Dump Truck Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready!
  • Complete Industry Research
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PDF Format
  • Meets SBA Requirements

Dump truck services are always in demand among contractors and construction companies that need to have large amounts of construction materials delivered to a worksite or a significant amount of refuse removed. The gross margins generated from a new dump truck service are very high. Usually, the gross margins associated with operating the business range anywhere from 70% to 90% depending on whether or not fuel costs are considered part of the cost of goods sold. The startup costs associated with a new dump truck service are considered to be moderate and most of these services can be started for as little as $50,000 to as much as $200,000 depending on the number and type of vehicles used in conjunction with the dump truck service. The barriers to entry are considered to be moderately low and is very important that the owner immediately establish strong relationships with construction companies and contracting businesses in order to generate revenues from the onset of operations. These businesses are relatively immune from negative changes in the economy given the fact that even during economic recession – businesses like waste removal companies will subcontract certain work to dump truck services. As such, these businesses are able to have a number of different types of customers which alleviates some of the risks associated with operating this type of business. Given the fact that most capital needed to start this type of business is allocated towards truck purchases and furniture, fixtures, and equipment – most banks and lenders are willing to put up a substantial amount of money in order launches type of business. Provided that the owner is able to provide the working capital needed to launch operations, most banks and lenders will provide a 90% loan-to-value ratio on the dump trucks acquired by the business. Given that these are highly tangible investments that can be collateralize, financial institutions are very comfortable with providing the necessary loan capital need to acquire these assets.

Of course, a dump truck business plan is going to be needed. This business plan should include a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Within the business plan a special focus needs to be paid to the number of contracting and construction companies are operating within the businesses target market radius. For a dump truck service, the target market radius is usually about 50 to 100 miles with the median being around 60 miles. It is very important that an understanding of the types of materials that are frequently used within the course of construction is known to entrepreneur that is looking to start this dump truck service. Some of these businesses also specialize in the removal or transportation of hazardous materials which can generate substantially more income for the business however this does carry a significant operating risk.

Once the dump truck service business plan is developed it is time to produce the marketing plan. For these types of companies the marketing required is pretty simple. Again, most of these businesses thrive when they have ongoing relationships with contractors, construction companies, waste management companies, and real estate developers. There is very little marketing that needs to be done to the general public given that most homeowners do not typically require dump truck services on an ongoing basis. However, it is important that the service maintain a small online presence so in the event that a person is searching for a dump truck service the business can be found relatively quickly. While some firms do maintain a modest presence on social media in order to boost brand-name visibility, this is not really a requirement for a dump truck service. The entrepreneur that owns this business can expect about 1% to 3% – at most – of revenues will be allocated towards ongoing marketing and advertising costs. Usually, these fees are mostly allocated towards marketing specifically to third-party contractors and construction businesses.

A dump truck service SWOT analysis should also be developed as well. As it relates the strengths, dump truck services are always able to remain profitable and cash flow positive in any economic climate. Also, the access the capital for these types of businesses is significant given that a substantial amount of this capital is used for the acquisition of tangible vehicles and furniture, fixtures, and equipment. As it relates to weaknesses, the underlying operating expenses of a dump truck service are considered to be moderately high given the substantial amount of fuel that is needed to operate these vehicles. Also, within any market there is always a moderate amount of competition among companies that specialize in dump truck and waste hauling services. For opportunities, these businesses can readily expand by acquiring additional trucks and hiring additional drivers that will work on behalf of the business. This is really the only way that these businesses are able to expand within their local and regional market. For threats, they’re not this time that would impact the way that a dump truck service operates.