Starting a cargo van business is one of the ways to enter the logistics industry. You can begin with a single vehicle, operate on your own schedule, and scale as you gain experience. Whether you're planning to run hot shot cargo van deliveries , contract work for hospitals, or handle local freight, this guide breaks down the essentials.
Cargo van businesses serve a wide range of industries. Before buying a vehicle or filing paperwork, choose what kind of delivery work you want to do.
Options include:
Hot shot delivery: urgent, on-demand deliveries for local businesses.
Medical courier: scheduled pickups and drop-offs for hospitals, labs, and clinics.
Final mile delivery: from an e-commerce brand to warehouses, customers
Contract work: dedicated weekly/daily routes for companies.
Your path determines what kind of insurance, licenses, and even how you find clients. Start by choosing one main focus area, but know that you can combine models later. For example, many drivers with scheduled deliveries also do hot shot work to stay busy between routes.
You don’t need a 20-page plan. Just outline your main steps, startup costs, expected income, and monthly expenses. This will help you understand what you’re getting into and give you a clear action path.
| Business Plan Checklist |
|---|
| Services you’ll offer |
| Type of vehicle you’ll use |
| Who your customers are |
| Start-up and monthly costs |
| How much do you expect to earn |
| Where you’ll operate (city, region, etc.) |
If you're in WA, check Start a Business in Washington State
In Washington, this process can be done online. Make sure your name is available, and register it through the Secretary of State. Most delivery businesses should form an LLC to limit liability.
If you plan to cross state lines, you may also need DOT and MC numbers. For local-only work, those are not always required.
Insurance is required before you can legally operate. What you need depends on your service type, but usually it will need to be:
Budget $300–$700/month depending on your van, driving record, and location.
Start with what you can afford. Cargo vans are usually the most flexible option. They’re easier to drive and cheaper to maintain than box trucks.
Good choices include:
| Setup Checklist |
|---|
| Secure shelving or storage bins |
| Load straps |
| Dolly or hand truck |
| Phone mount |
| GPS or routing app |
| Safety gear (vest, cones, flashlight) |
Check Craigslist, Facebook Marketplace, or local dealers for good used van deals. You don’t need to buy new to start.
Start local. The best clients for cargo van businesses are small to mid-sized companies that need consistent deliveries.
| Where to Find Clients |
|---|
| Warehouses, auto repair shops, and medical offices |
| Auto parts stores |
| Construction suppliers |
| Print shops |
| Local courier companies (as a subcontractor) |
If you want to move into the refrigerated niche, you might want to look for grocery stores, dairy manufacturers, or any food manufacturers.
Call or email them directly. Mention that you're local, insured, and ready to help. Ask if they ever need backup delivery help or have overflow work.
Also, list your business on Google, Yelp, and other directories. Use keywords like:
- CBDriver
- GoShare
- DispatchIt
- CourierBoard
Rates depend on your location and service type. Always consider fuel, insurance, and maintenance when setting your pricing.
Typical rates:
Local flat fee: $50–$100
Per mile: $1.25–$2.50
Wait time: $25–$50/hour
Track your income and expenses from the start. Use simple accounting software like QuickBooks or Wave. Keep logs of fuel, maintenance, tolls, and client payments.
Start early and be reliable. Clients want someone they can depend on. Punctuality matters more than speed.
Don’t rush into multiple vehicles. Run solo until you’ve built a stable income. Once you do, you can:
To scale, you’ll need strong systems: good insurance, reliable drivers, efficient routing, and consistent customer service.
If you’re looking for stable income, focus on medical or scheduled delivery contracts like Medspeed. If you want more flexibility, hot shot can keep your van busy every day.
See our Cargo Van Services page to learn more about on-demand services you can offer.
A cargo van business is low-barrier and high-demand. If you’re willing to hustle, you can start with a $5K–$15K setup and get paid fast. Keep costs low, stay consistent, and deliver on time.
Whether you go all in on hot shot or build toward medical contracts, the path is open.
And if you're based in Washington, don’t forget to check out our detailed guide on how to start a business in Washington State.
Stay focused. Stay reliable. Get the job done right.
