Trucking: Owning your own dump truck, crushed concrete, engine warranty

Question
Hello,

My fiance' is thinking about looking into owning his own dump truck. But the thing about it we are clueless about how to get started. Unfortunately the Guy he currently works for is not to informal. So I was wondering if you could answer these following questions for me. We currently reside in Virginia Beach Va.

1. What is the first step to take when thinking about purchasing you own dump truck?

2. How should you go about purchasing one, Loan or what have you?

3. Do he have to obtain a business license?

4. Does he have to have a business plan?

I looked at some sample business outlines for a business plan. It seems kind of complicated as far as getting the figures and what have you. I really want to help him. I also have my CDL and I think it would be a wonderful thing to look into. But like I said earlier we are clueless on where to begin. So please if you have any information at all it would greatly appreciated.

Clueless in Va

Answer
Hi Tomica.

First, what are you going to haul in the dump and how much weight is it.  You'll need one type of truck for sand, yet another for crushed concrete (mostly axle weight).  Try and look for a good used truck with an engine warranty.  New trucks depreciate to much and with a new business, that could be deadly.

Second, get a load like going to a car dealership.  Shop around, with good credit, lenders are competitive.  

Third, you should incorporate and if your running under your own authority, you'll need a DOT number.  If your going to lease the truck out to another company, you'll run under theirs.  Contacting your state's Department of Transportation will get you legal.

Finally, you don't need a business plan and your truck doesn't need a windshield, but it sure is nice!  In all seriousness, you need to know your expenses.  Start calling around.  What would truck payments be, insurance, fuel, driver salary, maintenance, tires, etc.  I see more companies fail because they just buy a truck and drive!  If you go into it blind, not knowing what your expenses are and not knowing what your projected income is, your in a real danger zone.  You don't have to get crazy in the detail, but know ALL your potential expenses.  This will help you in many decisions, including how much to spend on a truck.  A year from now, you'll be thankful you did!

Good luck!

Bob Stephens