The scope of the transportation business has increased rapidly over the past few decades, and why not. This industry plays a significant role in increasing the trade between different cities, states, and countries, which also helped develop various economies. It is almost impossible to imagine a day without work of goods and services, and every day billions of goods get transported from one place to the other.
So starting a goods transportation could be very profitable, and you can begin a box truck business. A box truck simply means a van or a car or any vehicle used primarily for transporting goods in plastic or cardboard boxes. (See the below image for more clarity).
Image credits-Unsplash
This article will discuss in detail a proper box truck business plan. So a lot to know, a lot to discuss, and a lot to learn, and without wasting time, let us now begin.
Box Truck lease vs. Purchase
First of all, you need to arrange a box truck, and for this, you have two choices. The first one is to lease, and the other one is to purchase a box truck. If you want to earn profits from a trucking business, you should consider the below criteria before choosing between leasing and purchasing. The factors are as under:
#1 Cost involved ( Fixed and variable)
A business primarily incurs two costs one is fixed cost, and the other one is the variable cost. Fixed cost means the high cost, but you incur it once in 10-15 years, whereas variable cost is comparatively low, but you incur it regularly.
You need to invest a lot of money in buying a box truck, but it saves the money of leasing and renting. On the other hand, you can lease a box truck for less, but you need to pay its rent every month.
I know that most of you are confused while choosing between them. That’s why read the below-mentioned points first, which will help you make a wise decision.
#2 Risk involved
A wise businessman must estimate the risk involved in all the alternatives, especially those who face a shortage of funds, and I know that most of you encounter this problem.
So most probably, if you buy a box truck, you will take a bank loan, which means you need to pay EMI’s regularly. EMI simply means more risk because you need to still pay it in case of business failure or business crises. On the other hand, if you take a box truck on a lease, then in a problem, you can simply return the truck and save the rent in case of failure.
#3 Scale of the business
It is simple math; you can take 10 trucks on lease for one year with the cost of buying a single truck. So if you want to expand your business quickly, you should go for leasing instead of buying.
Which option to choose ( My Opinion)
In my opinion, a new businessman should start by leasing one truck because it involves less risk and fixed cost. Afterward, you can make decisions by choosing the best alternative for your business.
The cost involved in a Box Truck business
Apart from the cos mentioned above of leasing or interest, you also need to bear the below-mentioned cost:
#1 Renting office and Parking
You need a fixed place from which your customers can contact you and avail services. Apart from that you also need parking space for your trucks. So estimate the renting cost before making a business decision.
#2 Managing website
In today’s time, 90% of the people do not have time to visit any place to get all the details, and you also do not have money to hire a person to give points to customers on a phone call.
So it is best to manage a website mentioning all the details of your business. If you start a box truck renting company, you should say renting charge for an hour, a day, a week, or a month. Apart from that, you should mention everything that could be significant from a customer’s point of view.
How to earn from the box truck business?
There are a lot of ways from which you can earn from a box truck business. Some of them are as under:
#1 Take on lease give on rent
The first earning option is straightforward. You can take a box truck on lease for a long term and give it on rent for a short period. Leasing is much cheaper than renting, so the difference between leasing cost and rental income is your profits.
#2 Start a mobile billboard business
A mobile billboard business could help you make multiple income streams simultaneously, and it is also a good way of earning passively. I have already given detailed information about the mobile billboard business. You can read it from the link below or link given in the end.
Similar Post- Mobile Billboard Business
#3 Provide Cargo transportation services
The second option is straightforward. You can earn by providing cargo transportation services to the customers. In this way, you can make much more than renting, but on the other hand, this business model needs much more investment in advertising than the previous business model.
I think we have discussed all the significant points regarding a box truck business. If you have any other questions or queries, please ask me in the comment section given below. Till then Good Bye and as always, God Bless You All.
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