Brief introduction
A cargo van business is a flexible and appealing option to many people. This simple vehicle gives you the opportunity to deliver items, help with house removals and clear waste away, to name but a few business ideas.
In this guide, we take an in-depth look at cargo van businesses. We look at some of the best and most profitable ideas, the most popular types of vans, and the things you need to start your business. We also share our expert tips and advice on marketing your company so that it becomes a roaring success.
Let’s begin with the basics.
What Is A Cargo Van Business? A cargo van business involves providing transportation and delivery services using cargo vans. The services offered can include local deliveries, courier work, moving assistance, waste removal, and logistical support to businesses and individuals.
From the perspective of a business owner, cargo van businesses offer flexibility, versatility, and relatively low startup costs. Let’s take a look at some of the other benefits.
What Are The Benefits Of Owning A Cargo Van?
A cargo van business may not seem like a profitable idea, but it offers flexibility, allowing you to tap into multiple revenue streams that require little skill and cost. Here are the key benefits:
- Versatility – you can offer multiple services with the same vehicle, allowing you to tap into different markets
- Low Cost – beyond salaries, insurance, licenses, and vehicle costs, there are few overheads. You don’t need to pay for office space, for example.
- A Popular Service – cargo vans offer important and popular services. Some people don’t have vehicles so a company that provides an affordable service is almost a necessity.
- Various Sources Of Work – as well as completing work for domestic households, you could go down the commercial route and off services to industries including retail, ecommerce and logistics.
What Is The Best Cargo Van For Business?
If you’re giving serious thought to starting a cargo van business, then it’s important to be well-read on the most important tool of your new trade—the cargo van itself.
Given the nature of the work, it’s important to get a van that can accommodate all of your needs. Here are some of the best and most popular models to look out for:
- Ford Transit
- Mercedes-Benz Sprinter
- RAM ProMaster
- Chevrolet Express
The Ford Transit is particularly renowned for its durability, versatility, and Ford also has extensive dealer network support in case you run into any difficulties. Given their popularity, you may also be able to pick up a second-hand cargo van.
The Best And Most Profitable Cargo Van Business Ideas
As we’ve discussed above, one of the biggest benefits to owning a cargo van business is the flexibility that it offers.
A cargo van can be used for a wide array of business activities, and each one has the potential to put profit in your pocket.
Here’s a breakdown of some of the best and most profitable cargo van business ideas.
Deliveries
As the name suggests, a cargo van business idea you could pursue is the delivery of items. A cargo van, depending on its size, can transport a range of goods. For household furniture to items bought on websites like Gumtree and Facebook Marketplace, you have the ability to transport and deliver lots of things.
Here are some ideas to help you establish your delivery service:
- Build connections with local businesses – some small businesses do not have the resources to pay a delivery driver, and they may not have a big enough demand to have someone permanently on the books. However, they may need someone to call upon when the need is there and that’s the role you could fulfil. Getting out there in the local community, distributing business cards and flyers, is a great way to establish yourself.
- Establish yourself with local charities – just like with businesses, many charities need help with item deliveries. For example, they may have someone willing to donate items but can’t drop it off to them, and that’s where a delivery service can come in.
- Offer cheap services for online deliveries – with the popularity of online platforms like Facebook Marketplace, eBay and Gumtree, it’s possible to bag bargain deals, but oftentimes the catch is that it’s “collection only”. You can come to the rescue of bargain hunters by offering a reasonably priced delivery service for online purchases.
If you’d like more tips and advice on marketing your business, keep scrolling.
Home Removals
An excellent service that you can offer as a cargo van business is home removals. Moving house is one of the most stressful days in many people’s lives. And many people do not have a vehicle suitable enough to help them move all of their belongings. This is where you can come in with your van to save the day.
Offering not just the use of the van but also a hand in helping pack up, load and unload the van can add extra value to your service, as well as enabling you to charge a higher fee.
An important consideration with home removals is obtaining business insurance. If you break an item or if something goes missing you want to make sure that you’re covered against that loss.
Waste Clearance
With so much empty space in the back of a cargo van, one type of business activity that you can get stuck into is waste clearance.
Many people lack vehicles large enough to dispose of household items, like fridges, freezers and beds and mattresses. A cargo van can easily fit these in, and you can dispose of them on their behalf, all for a fee.
You could also offer services relating to garden waste clearance and the clearance of abandoned or vacant homes. If you’re extra thrifty, you could look to sell on any items that are being disposed of, provided they’re in usable condition.
However, before you go down the waste clearance route, it’s vital to obtain all necessary governmental waste disposal and waste carrier permits and licenses. Many items we’ve mentioned, such as mattresses, contain toxic elements that require recycling at specialist facilities. If you’re conducting waste removal, it’s vital that you dispose of items at these facilities once you’ve obtained all your licenses.
In getting these permits, you give your business an extra revenue stream, as well as displaying to customers that you care about your responsibilities as a business.
Specialist Item Transportation and Courier Service
Linked to deliveries is the idea of operating in more of a niche within the field. There are many different items that need specialist transportation due to their fragile nature. Other items may be expensive and require a dedicated delivery and courier service. For example:
- Motorcycles
- Quad bikes
- Antique items, such as heavy furniture like wardrobes and tables
- Musical instruments
What you may find when operating in this niche is that you can charge a higher rate in comparison to standard deliveries. This is all down to the fact that you’re expected to provide an extra level of care. If handling higher-value goods too, it’s also worth taking out business insurance to safeguard against any loss or damage.
How To Start A Cargo Van Business For Under $300
Is it possible to start a cargo van business for under $300? Well, it can be done if you can find a cargo van cheap enough. On top of this, you need to get a great deal on vehicle and business insurance. You’ll also need to obtain a business permit, the cost of which can vary by state.
For example, in Alabama, it costs just $1 to obtain a business license. In California, it costs between $50 and $100+, depending on the business type.
If you plan to pursue a simple cargo van business idea, there’s a good chance you won’t need to obtain any licenses or permits beyond your business license.
For example, if you’re planning to do simple, local deliveries for a number of different flower shops, then you can obtain your business license and get to work right away.
In short, it’s difficult to start a cargo van business for under $300, but not impossible.
If you’d like to read more tips to give you a better chance of succeeding, we have an in-depth and dedicated guide on how to start a cargo van business, which you can read here.
How Much Does It Cost To Start A Cargo Van Business?
We’ve looked at some costs in the section above, and you may now be wondering how much does it cost to start a cargo van business, which is a fair question.
The biggest expenditures to consider are:
- The cargo van
- Business license
- Extra permits, such as waste carrier permits
- Business insurance
- Commercial vehicle insurance
- Salary and any health insurance
There may be other costs involved depending on the nature of your business. For instance, if you operate between different states, you may need to obtain a Unified Carrier Registration (UCR) certificate.
Consideration should also be given to regular and ongoing costs, like gas for your van and any vehicle maintenance costs.
Once you’ve worked out your outgoings, broken down per month, you can estimate how much your business is likely to cost.
How Do You Market Your New Business?
One of the biggest challenges of any new business is generating enough work to cover your bills. If you don’t generate enough work, you’ll quickly fall into the red and grow tired and frustrated that nobody is using your service.
The main thing to remember when marketing your business is that you need to let people know who you are and what you do. That means you have to be in the places that they look for a cargo van business. Here are a few ideas to help:
- Develop An Attractive Website – one of the easiest ways for people to find you is to create a website and then optimize it for search engines. This process is known as Search Engine Optimization. It involves structuring your website in a way that search engines like. This way, whenever you create content, they can add it to its index and place you higher up for relevant keywords, like “cargo van business near me”. It’s a bit of a technical field, so working with an expert can certainly help
- Utilize Social Media Platforms – as humans, we like visual aids when it comes to deciding whether to buy an item or use a service. By utilizing social media, you can grab people’s attention and showcase your services. Many businesses advertise on Facebook and its proven a reliable source of work for many businesses.
- Get In Local Media – to get your name out there it can help to feature on local TV, radio or newspapers. If you can find a way, try it out.
- Do A Charitable Action That Gets Attention – to help you get the attention your business needs, you could do an act of charity. For example, if you have a waste clearance permit you could offer to clear away rubbish from a local park.
- Use Google My Business and Online Directories – one of the easiest ways for people to find you is to list yourself on business directories as well as on Google My Business, which will add you to Google Maps. Many people look at these places when trying to find help.
- Direct Marketing – if you operate in a local area, making flyers and posting them through doors is another option to generate some work.
We could write a whole article on marketing your cargo van business, but following some of these ideas will see you begin to get customers through the door. Good luck!
Frequently Asked Questions (FAQ)
Below, you can find answers to some frequently asked questions on operating a cargo van business.
Is A Cargo Van Business Profitable?
A cargo van business can be highly profitable if operated with efficiency and a focus on customer service. It also requires a solid marketing strategy behind it. Profitability can increase significantly by focusing on niches such as expedited delivery, medical supplies transport, or serving the booming ecommerce industry
What Are The Best Cargo Van Accessories For Your Business?
There are several essential cargo van accessories that can enhance efficiency and safety . These include shelving and storage systems, cargo partitions, GPS tracking systems, backup cameras, roof racks, and cargo mats. Installing these accessories optimizes storage capacity, ensures cargo safety, and improves operational effectiveness.
Is It Worth Buying A Cargo Van Business For Sale?
Buying an existing cargo van business can be smart move if it has established clients, proven profitability, and a solid reputation. However, you need to check every aspect of the business to make sure it isn’t in debt, has any liabilities or any negative contracts. Get it right, though, and purchasing a well-established business can provide immediate income and growth opportunities compared to starting from scratch.