BRIEF INTRODUCTION
Opening your own business can be an empowering and uplifting step to take in your life. You’re taking control of your future, and there’s a lot to be admired in doing so. But even simple businesses like those involving a cargo van can be fraught with complexities if you don’t plan properly.
That’s why we put together this guide: to give you an in-depth picture of how to start a cargo van business.
We take you through each step in detail, sharing our expertise and insights along the way, and you can also find a free cargo van business launch checklist.
Let’s dive in with the all-important first step
1. Create A Business Plan
Whether you’re starting a cargo van business or a florist, you’re going to need a business plan. The purpose of this plan is to get down on paper every step you need to take to achieve a profitable position, as well as providing a clear breakdown of your anticipated costs.
Your business plan should contain the following:
- A mission statement, which explains the business’s purpose and objectives
- Your type of business structure, such as an LLC or sole proprietorship
- Details of the services you offer
- Analysis of the cargo van market, such as details of your closest competitors, the services they offer, and how they market themselves
- An operational plan, which explains your daily operations
- A sales and marketing strategy explaining how you plan to promote the business. We explain more about this below.
- Financial projections, including startup costs and revenue predictions for the next year or two.
- A growth and expansion plan for when your company grows to a good size.
The more detailed your business plan, the more prepared you’ll ultimately be. If you’re looking for funding in the form of bank loans or investment, having a solid business plan will help you achieve that.
2. Prepare A Marketing Strategy
The main key to success for any new business is its marketing strategy. The last thing you want is to launch your business and to spend much of your day sitting around waiting for the phone to ring.
It’s important to remember that people need the services offered by a cargo van business. The obstacle to overcome is placing your business in the places where they look.
One of the main places, and oftentimes the first port of call, is a search engine like Google or Bing. People search for keywords like “man and cargo van near me” or “sofa removal” and if your website is optimised and set up properly, you could be the first business that they see.
To achieve this, look to pursue a strategy called Search Engine Optimization (SEO) or work with a digital marketing firm that specializes in it.
Another good place to build a platform is social media like Facebook, Instagram and LinkedIn. Facebook, in particular, is a great hub for businesses advertising their services, and many people use it to search for services offered by cargo van businesses.
If you’re looking to pursue more commercial clients, then LinkedIn may be a better platform to invest your time in.
Finding success in these strategies will see you generate consistent leads at a low cost. They can, however, take time, and there may be competition, which is why some people pivot toward paid advertisements. These can be costly, especially if you’re a new business. Long-term, it’s better to think of the most sustainable strategies for your cash flow.
3. Register Your Business
With your plans in place, you can register your business. The steps are relatively straightforward and should be consistent across different states in the country. Here’s what you’ll need to do:
- Visit your state’s Secretary of State website to register the business. You may need to pay a registration fee.
- Choose your business structure
- Sole Proprietorship – Simple structure, but no liability protection.
- Limited Liability Company (LLC) – Popular for small businesses. It offers legal protection and flexibility.
- Corporation (S-Corp or C-Corp) – Best for larger businesses or if seeking investors.
- Choose a name for your cargo van business. Make sure nobody else has anything similar, or you’re not infringing on anyone’s trademark
- If you plan to employ staff, you must apply for an Employer Identification Number (EIN) for free from the IRS website. You may also need this to open a business bank account.
That’s all that you need to do to register your business. The next step is to obtain permits and licenses. Let’s take a look.
4. Obtain Permits, Licenses and Insurance
Once you’ve opened and registered your business, it’s possible for you to obtain all necessary permits and licenses, as well as business insurance. You’ll also be able to open a bank account.
Examples of permits you may need to obtain include:
- General business license (city or county level)
- Commercial vehicle registration
- DOT number (especially for interstate deliveries)
- Motor Carrier Authority (MC Number) for certain logistics services
- Waste carrier permit if you plan to dispose of rubbish and junk
If you’re unsure what licenses you need for your business, it’s worth checking with your state’s Department of Transportation (DOT) or Small Business Administration (SBA) for guidance
5. Get A Cargo Van
With everything set up and registered, you can look to obtain your cargo van and get to work. There are numerous options available depending on your financial situation. You could buy a cargo van outright, either brand new or second-hand, or you could look to lease one long-term.
Regardless of the purchase option you take, it’s important you get the right cargo van. Here are some important things to think about:
- What are your main service offerings? Are you transporting household items or more specialist items? You may need a van of a certain size (think roof height and vehicle length) if you’re transporting certain goods. To give you an idea, a compact vehicle like a Ford Transit Connect is great for light duties. A standard-sized vehicle, like a RAM ProMaster City, can handle most jobs, and a full-size Ford Transit or Mercedes Sprinter can handle heavy logistics.
- How heavy are the items you’ll be carrying? If you’re specializing in motorcycle transit, for example, you may need a van that can carry heavy loads.
- How far are you likely to drive? If you’re going interstate, you want a reliable van that won’t break down
When you’re viewing vans and test driving them, it’s important to check for the mileage, fuel economy, cargo capacity, door access, vehicle history reports, and the interior condition. It also helps to check if you can fit additional accessories, like shelving and racking, tie downs and cargo partitions.
As an extra step, you could also run a full VIN check to identify any liens or accident history, and also take it on a full test drive and listen out for any unusual noises.
6. Develop Your Brand
With your company up and running and hopefully servicing lots of clients, it’s important to develop your brand and the reputation of your cargo van business.
One of the best ways you can do this is by encouraging customers to share reviews. This can be done on platforms like Google, Trustpilot, social media pages, and local trade directories. There’s also a lot to be said for people sharing their experiences on their own social media platforms, too.
This social proof is an excellent way to demonstrate your skills to other customers and may prove a driving force in winning new trade.
Other ways you can develop your brand include:
- Obtaining extra accreditations and licenses, and registering with other organisations to demonstrate your skills and expertise
- Giving back to the local community. You could do this by donating money to charity or offering free help and support with community events
- Grow and expand your website. The more pages and blog posts that you have, the more doorways people have to find you in the digital world
- Expand your social media platforms. Continue to post regularly and share helpful, informative or entertaining content that relates to what you do.
7. Once Established, Look To Expand
We end this list by coming full circle and returning to your business plan. At the beginning of this guide, we recommended including a section of your plan on the future and how you plan to expand.
This is one of those “good” problems to have. If the work is flowing in and you have too much to keep up with, you’re in a fine position to take the first steps of growth.
The first step is to work out how much you can afford to grow. Are you financially able to purchase a second cargo van, for example, or will you have to enter into a lease to obtain it, which could come with additional costs?
Think also about implications on salaries and whether your other bills, like insurance, are likely to change with increased activity.
Once you’ve accounted for all of this, you should have a clear idea of how much expansion will cost and how much you stand to make. If it’s viable, it’s a great step for you to take for your career as a successful cargo van businessman.
Download A Free Cargo Van Business Launch Checklist
Thank you very much for reading our guide on how to start a cargo van business. We covered a lot of ground and it can be a lot to take in. To help in that regard, we’ve created a handy cargo van business launch checklist that you can download for free and print off.
To download your copy, all you have to do is click here. It’s in a PDF format.
It provides a neat summary of the points we’ve covered here and useful prompts for you to use when getting your company off the ground.
What Do You Need To Start A Cargo Van Business: The Summary
- Write a Solid Business Plan – Include your mission, services, structure, market research, and financial projections to guide your growth and attract funding.
- Develop a Marketing Strategy – Use SEO, social media, and possibly paid ads to get visibility online and generate consistent, low-cost leads.
- Register Your Business – Choose a structure (like an LLC), register with your state, get an EIN, and open a business bank account.
- Get Permits, Licenses & Insurance – Ensure you have all necessary local/state permits, vehicle registrations, and business insurance before starting operations.
- Buy the Right Cargo Van – Choose a van based on your service needs, payload, and budget—then inspect thoroughly and consider any required modifications.