Trucking: Having a dump truck business, dump truck business, engine warranty

Question
Hello, Bob

My name is Tanya, I live here in Greensboro/Raleigh, North Carolina, first I will like to ask you is this a good business to go into, down here in North Carolina. I have a friend who wants to have their own dump truck business. He doesn't know where and how to begin. However I explained to him that the will first need a business plan written up to make sure he knows what he want to do, he will also need a DOT number, as well as a truck with insurance, if he doesn't have a truck at least have one to purchase in mind. I have also told him that I read some of your answers that you replied back to some of the concerned people like myself, when purchasing a used dump truck make sure there is an engine warranty correct?
I just need your help in regards to helping me to help him with some ideas on what, how and where he needs to start. I will greatly appreciate your time!

Thank you so much!
Tanya!

Answer
Hi Tanya.

Sounds like you know your stuff!  Running a dump can be profitable.  It's like any other business, you need to know what your potential income is and what your expected expenses are.  This is where the business plan comes in.  I always push a business plan because I've seen a lot (and I mean A LOT) of trucking companies go out of business.  I've seen many people buy the most expensive truck they could get financed on and then not have a clue what to do from there.  They will spend more time researching options on the truck then on how do they plan on paying for it!

On buying a truck, you can't always get an engine warranty.  I would look high and low for a truck with one, though.  Engine repairs, or rebuilds, can make you or break you.  Check out www.truckpaper.com and do some research.  There are deals to be had.

One thing he may want to consider is leasing out to a company.  Let them find the loads and keep him running.  It's still his truck, but many companies help with insurance, plates, etc.  Then when he learns the business, he can run under his own authority.

I would try and talk to as many dump operators in your area as possible.  It may mean hitting truck stops or finding online trucking forums.  Dump drivers in your area will most likely be more than willing to help.

Good luck!

Bob Stephens