A dump trailer company is a business that aims at transporting materials (such as dirt, gravel, or demolition waste) for construction. A typical dump truck is equipped with an open-box bed, which is hinged at the rear and also equipped with hydraulic rams to lift the front, allowing the material in the bed to be deposited (dumped) on the ground behind the truck at the site of delivery.

Dump trailer businesses work predominantly under the excavation contractor’s industry and a report published by IBISWorld shows that the revenue for the Excavation Contractors industry has risen by an annualized 0.7 percent to $79.1 billion over five years, including a decrease of 0.6% in 2022 as construction markets slacken and government stimulus wanes.

According to the US Census County Business Patterns data and IBISWorld estimates, 80.6 percent of industry participants employ fewer than 10 people, and 64.2 percent of establishments employ fewer than five people. Only 9.3 percent of establishments employ more than 20 people.

Steps on Write a Dump Trailer Business Plan

  1. Executive Summary

Josh Richards© Dump Trailer Company, Inc. is an American-based and licensed dump trailer company. Our head office will be located in the heart of San Jose, California and our services and operations will center around construction sites and other locations in and around Seattle, Washington; Portland, Oregon; Fresno, California, San Diego, California and Sacramento, California land areas, et al.

  1. Company Profile

a. Our Products and Services

Josh Richards© Dump Trailer Company, Inc. will be involved in;

  • Reusable junk removal
  • Recyclable junk material collection and hauling
  • Removal and hauling of rubble, construction, and demolition debris
  • Waste transfer station operation
b. Nature of the Business

Our dump trailer company will operate the business-to-consumer and business-to-business model.

c. The Industry

Josh Richards© Dump Trailer Company, Inc. will operate under the excavation contractors and construction industry.

d. Mission Statement

Our mission is to ensure that we build a dump trailer company that will operate in the United States of America and Canada.

e. Vision Statement

Our vision is to be listed among the top ten dump trailer companies in North America.

f. Our Tagline (Slogan)

Josh Richards© Dump Trailer Company, Inc. – Is a Trusted, Fast, and Highly Safest Dump Trailer Company.

g. Legal Structure of the Business (LLC)

Josh Richards© Dump Trailer Company, Inc. will be formed as a Limited Liability Company (LLC). The reason we are forming an LLC is to protect assets by limiting the liability to the resources of the business itself. The LLC will protect our Core assets from claims against the business, including lawsuits.

h. Our Organizational Structure
  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Transport and Logistics Manager
  • Marketing and Sales Executive (Business Developer)
  • Accountant
  • Professional Dump Trailer Drivers
  • Customer Services Executive/Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
  • Josh Richards (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
  • Gerald Lawson (Board Member) 18 Percent Shares
  • Ruben Thomson (Board Member) 10 Percent Shares
  • Julius Anthony (Board Member) 10 Percent Shares
  • Rosemary Martins (Board Member and Sectary) 10 Percent Shares
  1. SWOT Analysis

a. Strength
  • Ideal location for a dump trailer company
  • Highly experienced and qualified employees and management
  • Access to referrals from business partners
  • Excellent customer testimonials
  • Reliable and efficient dump trailer trucks
  • Access to reliable transport and logistics software
b. Weakness
  • Financial constraints
  • Lack of  structure for the maintenance and servicing team
  • A new business that will be competing with well-established dump trailer companies
  • Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
  • A rise in construction activities will increase demand for the services offered by dump trailer companies
  • Online market, new services, new technology, and the opening of new markets
i. How Big is the Industry?

The market size, measured by the revenue of the excavation contractors and construction industry, is put at $79.1 billion in 2022, with 44,246 companies and a workforce of 281,416 large.

ii. Is the Industry Growing or Declining?

Although the excavation contractors and construction industry declined in 2020, currently, it is experiencing growth. Available data shows that steady wage expenses and increasing prices of fuel amid the low demand during the pandemic were responsible for reducing industry profitability.

iii. What are the Future Trends in the Industry

The future trends as it relates to dump trailer operators are changing, and players in the industry are improvising. No doubt, technology, and climate change will change the landscape of the dump trailer line of business going forward.

iv. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to the dump trailer business.

v. Can You Sell a Franchise of your Business in the Future?

Josh Richards© Dump Trailer Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving excavation services markets in the United States of America.

d. Threats
  • Safety hazards that lead to work accidents and injuries
  • Managing orders
  • Unknown site conditions
  • Poorly written contracts
  • Unexpected increases in material costs
  • Labor shortages
  • Damage equipment and tools
  • Liability problems
  • The transport department could change its regulatory status and decide to enforce strict regulations that can terminate new businesses.
i. Who are the Major Competitors?
  • Centerline Tank & Trailer Mfg. LLC
  • HCI Transportation Technologies
  • Rambone Const
  • Earthian LLC
  • Mikula Contracting
  • McAninch Corporation
  • F & P Construction Inc
  • Edgerton Contractors, Inc
ii. Is There a Franchise for Dump Trailer Business?

No, there are no franchise opportunities for the dump trailer business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Dump Trailer Business?

Yes, there are county or state regulations or zoning laws for the dump trailer businesses, and players in this industry are expected to work with the existing regulations governing similar businesses in the county where their businesses are domiciled.

Note that trailers used for moving excavated materials are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so. In the United States, a trailer can be rented by someone without a commercial driver’s license if it has a gross vehicle weight rating (GVWR) of 26,000 pounds or less.

  1. Marketing Plan

a. Who is your Target Audience?

i. Age Range

Our target market comprises adults above 18 years old who have the finance to run a business with us or those who can handle their excavation projects.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who we are ready to do business with or handle their excavation projects.

iii. Income Level

There is no cap on the income level of those who are looking to do excavation projects.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will do business with.

v. Language

There is no restriction on the language spoken by the people we will do business with.

vi. Geographical Location

Anybody from any geographical location will be welcome to do business with our company.

vii. Lifestyle

Josh Richards© Dump Trailer Company, Inc. will not restrict any client from doing business with us based on their lifestyle, culture, or even race.

b. Advertising and Promotion Strategies
  • Deliberately brand all our trailers
  • Tap Into Text Marketing
  • Make Use of Bill Boards
  • Share Your Events in Local Groups and Pages
  • Turn Your Social Media Channels into a Resource
  • Develop Your Business Directory Profiles
  • Build Relationships with players in the construction industry
i. Traditional Marketing Strategies
  • Marketing through Direct Mail
  • Print Media Marketing– Newspapers and Magazines
  • Broadcast Marketing -Television and Radio Channels
  • OOH, Marketing– Public Transits like Buses and Trains, Billboards, Street shows, and Cabs
  • Leverage direct sales, (postcards, brochures, letters, fliers), and print advertising (coupon books, billboards).
ii. Digital Marketing Strategies
  • Social Media Marketing Platforms
  • Influencer Marketing
  • Email Marketing
  • Content Marketing
  • Search Engine Optimization (SEO) Marketing
  • Affiliate Marketing
  • Mobile Marketing
iii. Social Media Marketing Plan
  • Start using chatbots
  • Create a personalized experience for our customers
  • Create an efficient content marketing strategy
  • Create a community for our target market
  • Gear up our profiles with a diverse content strategy
  • Use brand advocates
  • Create profiles on the relevant social media channels
  • Run cross-channel campaigns
c. Pricing Strategy

When working out our pricing strategy, Josh Richards© Dump Trailer Company, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. All our pricing strategies will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing
  1. Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the construction industry, and freelancers to help refer clients to us.

Josh Richards© Dump Trailer Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need lubricants (brake fluids, engine oil, and transmission oil et al), and trailer spare parts per time means that Josh Richards© Dump Trailer Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.

c. Payment Options for Customers

Here are the payment options Josh Richards© Dump Trailer Company, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees

At Josh Richards© Dump Trailer Company, Inc., the nature of our service does not accommodate a return policy or incentives, but we will provide a guarantee to our customers that their projects will be executed professionally.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our clients and investors. It will help us to understand their needs, experiences, and pain points. Howeregularlybasis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

  1. Operational Plan

Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.

Generally, we plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainers deals that will enable the firm to boost our excavation service offerings and also support revenue growth.

a. What Happens During a Typical Day at a Dump Trailer Business?
  • The business is open for the day’s work
  • The dump trailers are washed, cleaned, and ready for dump excavations and related projects
  • Customer’s requests are taken and they are scheduled or attended to
  • Schedule maintenance of dump trailers is carried out
  • Marketing/website upkeep
  • Administrative duties
  • The business is closed for the day
b. Production Process

There is no production process when it comes to the dump trailer business.

c. Service Procedure

The service procedure of a dump trailer company starts with a customer requesting their services. Once the request is gotten, it will be processed and the staff are assigned to carry out the job.

d. The Supply Chain

Josh Richards© Dump Trailer Company, Inc. will rely on key players in the construction industry to refer business deals to us. We have been able to establish business relationships with wholesale supplies of lubricants (brake fluids, engine oil, transmission oils et al), spare parts et al.

e. Sources of Income

Josh Richards© Dump Trailer Company, Inc. will make money from;

  • Reusable junk removal (items that can be sold by consignment and thrift stores)
  • Removal and hauling of rubble, construction, and demolition debris
  • Waste transfer station operation.
  1. Financial Plan

a. Amount Needed to Start your Dump Trailer Company?

Josh Richards© Dump Trailer Company, Inc. would need an estimate of $450,000 to successfully set up our dump trailer company in the United States of America.

b. What are the Costs Involved?
  • Business Registration Fees – $750
  • Legal expenses for obtaining licenses and permits – $7,300
  • Marketing, Branding, and Promotions – $5,000
  • Business Consultant Fee– $2,500
  • Insurance – $5,400
  • Rent/Lease – $100,000
  • Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800)
  • Operational Cost (salaries of employees, payments of bills et al) – $60,000
  • Start-up Inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $80,000
  • Purchase of Dump Trailers: $150,000
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?

Josh Richards© Dump Trailer Company, Inc. will not build a new facility for our dump trailer company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses of Running a Dump Trailer Company?
  • Gas (fuel), lubricants, and spare parts
  • Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
  • Salaries of employees
  • Dump trailer maintenance
  • Insurance
  • Marketing costs
e. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $68,000 Per Year
  • Admin and HR Manager – $48,000 Per Year
  • Transport and Logistics Manager $48,000 Per Year
  • Marketing and Sales Executive (Business Developer) – $42,000 Per Year
  • Accountant $38,000 Per Year
  • Professional Dump Trailer Drivers – $36,800 Per Year
  • Customer Service Officer (Receptionist) – $26,100 Per Year
f. How Do You Get Funding to Start a Dump Trailer Company?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from your family members and friends
  1. Financial Projection

a. How Much Should You Charge for your Product/Service?

You can actually use your discretion, but note that a typical residential excavation job runs between $1,434 and $5,161 with an average of $3,171. Though most companies charge anywhere from $40 to $150 an hour, residential jobs receive project bids. Project bids reflect cubic yards of dirt moved, anywhere from $50 to $200 per cubic yard.

b. Sales Forecast?
  • First Fiscal Year (FY1): $450,000
  • Second Fiscal Year (FY2): $750,000
  • Third Fiscal Year (FY3): $1.3 million
c. Estimated Profit You Will Make a Year?
  • First Fiscal Year (FY1) (Profit After Tax): $150,000
  • Second Fiscal Year (FY2) (Profit After Tax): $350,000
  • Third Fiscal Year (FY3) (Profit After Tax): $600,000
d. Profit Margin of a Dump Trailer Company

The ideal profit margin we hope to make at Josh Richards© Dump Trailer Company, Inc. will be between 25 and 45 percent on each job carried out irrespective of the distance covered.

  1. Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

Josh Richards© Dump Trailer Company, Inc. will grow our dump trailer company by first opening offices in key cities in the United States of America within the first five years of establishing the business, and then we will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

Josh Richards© Dump Trailer Company, Inc. plans to expand first to New York City – New York, Boise – Idaho, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Montpelier, Vermont.

The reason we intend to expand to these geographical locations is that available statistics show that the cities listed above have the highest and most thriving construction market in the United States. The Bureau of Labor Statistics (BLS) says the following metropolitan areas have the highest construction activities.

  1. Exit Plan

The founder of Josh Richards© Dump Trailer Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.