I am strongly thinking of opening a trucking company with my own authority (starting with one truck). Fyi, driving a truck is not an option for me. So, I would need a driver. I am presently crunching numbers (costs) and getting encouraged to start small with an used truck and paying the truck driver % of the load rate. I should have enough capital to absorb short-to-mid-term costs and hiccups, which I assume will occur. I find this forum very informative, but it seems to be targeted more towards o/o's and thus does not address my situation. The issue I am having is the order in which I execute my plan and thus the title of this thread - "What came first - chicken or egg?" Some of the steps I foresee are following, but they seem to be intertwined with each other.
1. Getting my own authority (MC). But, this would require an insurance.
2. Insurance would require drive/truck info which does not exist yet.
3. How does a truck comes without a driver or vice versa?
4. Talking to brokers/companies for good load rates or lanes when I don't have enough data/info to provide them?
I want to make this happen and don't want to get too much intimidated by the process. I am sure I am not the first person (or the last) doing this and there must be a well-known process to accomplish this. What I am looking from this forum is guidance/mentoring on how to achieve this. There are some very knowledgeable people on this forum and hopefully I can leverage their experience. I don't expect flawless execution, but I am a determined person, like this business and want to execute it the best I can. Looking forward to hearing from you experienced folks. Thank you!
What came first - chicken or egg?
Discussion in 'Ask An Owner Operator' started by ska, Jun 17, 2012.
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My understanding is that within 90 days of filing for my own operating authority (MC#), I or the insurance company need to submit the liability and cargo insurance forms to FMCSA. Insurance company usually would not submit any forms until I own a truck. As I stated above, driving a truck is not an option for me. I would have to hire a driver. I guess where I am hung up is who comes first: the truck or the driver? If driver, then why would he/she willing to work for me when I don't have a truck yet nor any name/credibility? If truck, then how do I get it out from the seller and get it rolling? I am looking for ways to overcome this issue in an optimal way.
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You'll have to get the truck ready to roll before you hire a driver. Actually you can do them two steps in a day or two. A driver might be willing to help you out moving the truck after the purchase if it isn't a long drawn out process. I would call a few insurance companies and get one lined up.
Normally a driver will get experience in the industry as a company driver before they make the move to an owner operator. Then as a OO they will drive their own equipment before adding another truck/driver. Jumping into a business with little knowledge is going to make things very hard. Kind of putting the cart before the horse.
The revenue has to keep coming in. The drivers paycheck has to keep coming in or he is going to quit you. You need a customer base and/or broker relationships. Do you know the difference between cheap freight and loads that make money? Do you know how to negotiate?
Are you knowledgeable of FMCSA regulations as an employer and your requirements for driver and truck?
Do you know how to purchase fuel and handle road repairs?
Are you hiring a bad driver? Do you know how to do a 10 year background check and do pre-employment drug testing?
A few things to think about. Good luck! -
So yeah - it IS a chicken/egg scenario. If you HAVE a CDL, then you can go buy the truck and drive it back to your place of business (with the proper Non-Trucking Insurance), while you set up the MC, get insurance, your base tags, IFTA, UCR, Process of Service Agents, and testing consortium and look for a driver. Drivers can be added, removed from policies any time - their driving record will be reflected in rate changes.
Which, of course - begs the question - you WANT to get into the transport business - but you do not drive or have ever been IN the trucking business? There's a little more (at least on the compliance/record keeping end) to it, than just "getting a number and going trucking".
Rick -
Methinks you need to find a local mentor to guide you through this journey. Possible problems ahead of you.
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he will get rich i tell you on his way to the promised land of milk and honey
revelation1911 Thanks this. -
I would be interested in hearing how you came about this investment idea.
revelation1911 Thanks this. -
Not driving or being able to sounds like a disaster in the making for a one truck operation.
The driver that will be hired will do ok for awhile anyway.
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