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Starting a water truck company — or any company, for that matter — is never easy. People often have grandiose ideas in their minds, but when it comes down to an actual plan, they falter. They forget about crucial steps regarding equipment, money and regulations. While it may not be a simple process, the rewards of an entrepreneurship outweigh any initial hardships.
Refer to the following guide to learn how to start a water truck company and what elements to consider.
Water Truck Business Requirements
You may feel overwhelmed with the chaos of constructing your water truck business plan, but with our expert advice and professional recommendations, you will begin operations with a breadth of knowledge. To begin your water trucking company, you will need four main items:
- A business license
- A commercial driver’s license
- A marketing and business plan
A business license means registering your business with the government. But depending where you live, the requirements set by your local or state commerce may differ. You and your employees must also obtain a water hauler’s license to respect State and Federal laws. You should renew your license annually and go through inspections including water testing, equipment maintenance and sanitation.
Your business plan serves as a blueprint for your future success. You will need to summarize your business position, outline your goals and objectives and develop tactics and strategies for implementation. Defining the areas in which you will specialize is also essential. Whether you decide to haul water for firefighters, homes, construction sites, campgrounds, residents with pools, road builders or several of these markets, it will give you a competitive edge compared to other startups.
Obtaining the correct auto insurance for your water truck is vital to ensure your liability coverages meet state minimums. You will need to research federal and state requirements involving taxes, licenses and permit regulations.
Water Hauling Considerations
There are two forms of business operations to consider when creating your blueprint — owner-operator driver and subcontracted driver.
As an owner-operator driver, you have exclusive control over your company and its operations, meaning everything from equipment and employees to water truck contracts and finances. You have the freedom to hire a fleet of private drivers, which will maximize your profits in the long run. While an owner-operator driver form may require more startup capital and operating costs, you have more potential for private control.
The other option is a subcontracted driver. Because your company itself doesn't employ your water truck drivers, it results in limited control. A subcontract may begin with reduced startup, insurance and equipment costs, but with little authority, it may jeopardize your assets and business.
Whether you should buy or rent a water truck is another consideration to keep in mind. In the case you have small contracts and won’t be using your truck for consistently large jobs, renting a water truck may be the best option. However, if you are making more significant contract deals for many different applications, investing in a water truck is more ideal. It’s important to purchase equipment that will reduce downtime and increase efficiency. Secure your finances by planning ahead or by making a down payment for the purchase of a water truck.
What to Keep in Mind as a Water Truck Owner
When considering how to start a water truck business, get on the approval list for water tender services. You must be pre-approved, and your water truck must meet inspection requirements. Securing your working capital to pay employees, purchase equipment and secure contracts should be a primary to-do. It's also imperative to build a reliable reputation. You may consider starting off by accepting smaller contracts and building upward or by advertising with local publications.
Investigating competition to see what works and doesn’t can be beneficial, as well as speaking to someone with experience in the water truck business.
Prime Source Water Trucks
Our trucks provide water to commercial, municipality and residential customers or any industry in which you choose. Our field-based specialists and sales experts will help you determine which water truck is most appropriate for starting up your business.
If you currently own a water truck business or just recently started your own water truck company, be sure to contact us for your water truck parts and service needs.
Contact us to buy a water truck or for more information regarding Prime Source services.