A truck delivery business is a great way to earn a reasonable amount of money, without having to take out several licenses. Depending on the type of delivery, location, and sub-contractors you work with, these are a few things to consider before entering this field of business.
A truck delivery business can range from delivery of groceries, to delivering parcels to businesses, or packages for a company that produces toys. Further, as a delivery business, you also have to consider whether you will sell your own goods and deliver them, or simply work as a contractor delivery company, and delivery the products other companies produce. Regardless of which route you choose, there are a few requirements to building a powerful business, a profitable business, and one that receives continual business from clients you have worked with in the past.
Like any other business you work in, you want to select a desirable metropolitan area to do delivery work in. The larger the city, the more parcels and packages there are to be delivered. Even if you are a new delivery business, if you offer reasonable pricing for delivery services, you will find more business opportunities in the right metro areas. So, scouting out a few locations, finding the best metropolitan areas, and finding the locations where you can easily connect to your clients, and their customers (where you drop off deliveries), the more profitable you will become.
Licensing & Business Titles
Whether you set up as a DBA, LLC, or any other entity, you must have the required business and tax documents within the state and city you run your business in. If you simply deliver goods, you will only need one license for your business (both on the state and federal level). If you plan on developing products, and delivering them, you will also have to get a merchant’s license to work as a merchant.
Before you decide which type of delivery business you want to operate, and what deliveries you will make, it is important to visit your local state licensing agency, to find out what documents are required to run your business. If possible, you might also want to contact a licensed business attorney, who can guide you, help you get the licensing, and help you set up your new business entity, for the lowest out of pocket expenses.
Leased For Your Truck Delivery Business
Once all licenses are set up, and you have developed your business name, entity, and established a location where profits can be made, you have to decide on the trucks. Purchasing new delivery trucks can run you at least $30,000 (for smaller trucks); further, with freight trucks, they can run $75,000 and up (for used trucks).
As a new start up truck delivery business, if you are limited in capital, a great option to consider is truck leasing. Not only will you be able to use the trucks for your business purposes, you will only pay a fraction of what you would be paying, if you had decided to purchase the trucks. It is a good idea to reach out to a few leasing companies, to learn their terms, rates, mileage, usage, and so forth. Doing this will not only allow you to find the best rates for unlimited use, but will also allow you to find reliable trucks to operate your business from, for an affordable rate each month.
A new start up truck delivery business is not only going to require you have some capital set aside, but it is also going to require you to get the right business licenses lined up, so you can begin operating in the desired metropolitan location. In addition to this, you have to consider costs of marketing, ad space, developing a clientele list, and more.
To help cut back on a fraction of those operational costs, why not consider a lease agreement for your delivery trucks, as opposed to purchasing new trucks? Not only will this require less capital up front allowing you to develop and build your business up, but it is also going to allow you to operate your business from day one, with reliable trucks and freight, so you can provide delivery services for the clients who have reached out to you.
For more information on leasing trucks, simply CLICK HERE.