Am I Crazy to jump in?

Discussion in 'Ask An Owner Operator' started by Jonnyboy123, Jun 30, 2014.

  1. Jonnyboy123

    Jonnyboy123 Bobtail Member

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    Jun 22, 2014
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    Hello everyone!

    i have the opportunity to buy a small trucking company with 1 company owned truck, two trailers and two O/O 's. I have no formal experience in trucking but do have a background in owning businesses. The current owner will train and I know there will be a lot to learn. Would you jump into this industry? Seems with gas prices, increased regulations coming down the pipeline and the shortage of drivers are big issues. It also seems margins are super thin.....

    i appreciate anyone's opinion!
     
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  3. 12 ga

    12 ga THE VIEW FROM MY OFFICE

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    The simple answer is yes you are crazy. With zero knowledge or experience of the industry you don't stand a chance. Simple question is why is the owner selling the business, probable because it is so tough to be successful in with experience, much less with zero knowledge such as your self. You asked and that is my personnel opinion.
     
  4. Jonnyboy123

    Jonnyboy123 Bobtail Member

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    Jun 22, 2014
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    Thanks for the reply, this is definitely a very challenging industry. The business is profitable, he's been driving for 10 years and now has 4 kids and doesn't want to be on the road anymore. It's seems like a few keys I've seen are:

    Hire and retain good drivers (treat them well!)
    book the most profitable loads you can
    manage expenses best as possible
    know how to problem solve
     
  5. Jonnyboy123

    Jonnyboy123 Bobtail Member

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    Jun 22, 2014
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    It also looks like insurance is always a huge issue and expense.
     
  6. Hamburger71

    Hamburger71 Medium Load Member

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    I was told some time ago if I were to own a truck either own just one or more than ten, nothing in the middle.
     
  7. Jonnyboy123

    Jonnyboy123 Bobtail Member

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    Jun 22, 2014
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    I've seen that, sounds weird, but it looks like it's the law of large numbers in this industry. It would be the ultimate goal to add more trucks.
     
  8. just_the

    just_the Light Load Member

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    Mar 18, 2014
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    There's money to be made in trucking, but its paramount to have a good understanding of the industry; there are ALOT of moving parts when running a trucking business. I've been reading day/night about it, and still have only barely scratched the surface. I have a business background as well (including an MBA). It also doesn't hurt for an owner to have a CDL in cases of emergency, equipment breakdown, etc. Read everything you can here: http://www.ooida.com/EducationTools/Resources/ before making any decisions would my best advice.
     
  9. Jonnyboy123

    Jonnyboy123 Bobtail Member

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    Jun 22, 2014
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    Thanks a lot! I agree 100% on having a CDL just in case. This was something I was going to pursue in the event it is necessary. There is SO MUCH information out there, and there are a lot of people that are bullish and also a lot of people that are bearish. It's hard to decipher it all!
     
  10. Passin Thru

    Passin Thru Road Train Member

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    Go for it and lease to Watkins-Shepard. We made money there. You ahve to run at least 130-140K miles/year.
     
  11. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    I'm curious…..you say 1 company owned truck and 2 trailers and 2 O/O's. Do the O/O's have their own trailers ? What is the age of the company truck/trailers ? How much to buy this company ? Do they have accounts in place ? FYI….trucking is a 24/7 operation. Be aware of drivers ripping you off. Good luck
     
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