For independent owner operators... Beginners need your wisdom!

Discussion in 'Ask An Owner Operator' started by alisonackerman, Sep 13, 2014.

  1. alisonackerman

    alisonackerman Bobtail Member

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    My husband, currently a company driver, wants to buy a truck and run as an independent owner operator with his own authority - hauling with a 53' van. We are in the very early stages of this process and have some questions.

    So...you find loads on load boards, right? You contact the broker, and then do you negotiate how much they will pay for the load or is it a set rate? (Perhaps this is stated on the load board, but I haven't been on a load board yet, since we don't have an MC number.)

    In this conversation with the broker, Is that where they ask you how much cargo insurance and liability insurance you carry or are those amounts visible to them somewhere? I've read where most brokers/shippers won't deal with you if you have less than one million in coverage, and 100,000 cargo insurance, but how do they know how much you have?

    Also, once the load is picked up and delivered, how do you get paid? Do you have to send an invoice? (I've seen where some trucking software has a place for creating invoices.) Or do they automatically send a check to the house in so many days, weeks, months; or make a direct deposit into your business account?

    And also, I've read where quickbooks isn't designed for truckers, so should we use some trucker-specific program? Is there one program that will help keep records for tax purposes and generate IFTA reports, etc?

    We live in the Port Wentworth / Savannah, Georgia area, FYI.

    Any help or advice would be appreciated. We have lots of questions, but this is just what I've been Googling all day. Thanks in advance.
     
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  3. KenworthGuyNH

    KenworthGuyNH Road Train Member

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    There's a great search feature on here..........and some long threads to read. You'll find your answers..........just don't expect it to be spoon fed to ya!!! LOL Seriously.........it's all here......you just gotta look.
     
  4. alisonackerman

    alisonackerman Bobtail Member

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    Oh I thought this was the place to have questions answered, so why are you responding?
    Spoon fed...
     
    281ric Thanks this.
  5. maggard359

    maggard359 Medium Load Member

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    Most of the larger brokers require you to be qualified with them. I would advise to haul for some of the larger brokers at first while you get the hang of things. Robinson and landstar can keep you rolling and both offer 2 day quick pay and they will mail you a check or do direct deposit. Robinson will do 50% advance for fuel for a 10.00 charge I believe, landstar don't. You must negotiate the rates, you won't see rates posted you will need to call or email. Can't stress this enough....negotiate! They are in the business to make money and the cheaper you haul the more they make and the less you will. Some brokers offer pay in 15 days then 30 then 45. Next thing you know you are waiting months to get paid and then you decide to use a factoring company. They will pay you minus their fee and once the broker
    decides not to pay they will charge you back for the loss. Stay away from those brokers, and factoring companies. The insurance you can usually get by with 750k and 100k on cargo. They can run your dot and get all that info, they won't take your word for it.
     
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  6. 062

    062 Road Train Member

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    Sounds like you need to do a lot of research. As said most all the answers are here. It's more typing that most want to do every 2-3 months.
     
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  7. Largecar359

    Largecar359 Road Train Member

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    I'm not a fan of the bigger companies, however, since you are just starting out and seem very new to this process it would probably be best to go with them. You and your husband need to be prepared to do a lot more work then your accustomed to, at least until you get the hang of things. It's a tough road starting a company, but it's worth it. The success percentage in this business is very low, most don't make it. With both of you on board it helps your chances.
     
    281ric Thanks this.
  8. xsetra

    xsetra Road Train Member

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    All brokers will require you have your insurance company send them a certificate of insurance. That is how the brokers know you have insurance.
    You need to send an invoice to the broker to get paid. Some companies will let you email or fax or transflo the paperwork. Some will only pay on the Original BOL's. It would be best to have access for at least 2 months operating funds, either savings or Line of Credit. A lot of brokers pay 30 days from the day the receive your original paperwork. That could be 45 days or more from when you hauled it.

    Factoring is a hard spiral to get on. The price can run you out of a comfortable profit margin. Do a lot of research before you use any. best if you don't. Personal decision.

    QuickBooks is my accounting software. No it is not designed for IFTA reporting not sure any accounting software is. Plenty software out there to help with IFTA. I use paper and pen to record all my IFTA. It's easy just record it everyday, add it up every week and do a report every week and come the end of the quarter its all there. The form I report using the internet I just put in the miles and gallons and the web window does all the multiplication. Easy. Good luck
     
  9. BAYOU

    BAYOU Road Train Member

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    Well your asking some of the right questions but if y'all think your going to run out buy a truck and trailer get your own numbers and only haul brokered freight ..... You're going to go broke fast!!!

    After you get a idea of what truck your thinking about getting get the VIN and call for insurance quotes, this alone may make you change your mind. Guy in my town did just that got a truck and trailer and was told $14,000 a year for insurance now it's by my house 4sale.

    If I was you I'd find a mentor let them show you some load boards and some rates. Next I'd stay away from quickBooks that was a big waste of money one thing off it changes everything I paid someone $55/hour to come to fix mine week later they said it would be best to just buy a new one and start over....ya I was over that, I use ITSdispatch for most of my books invoices and revenue coming in I also use profitgauges between both they run $69/month, I like it because it brakes everything down by miles and percentage
    [​IMG]

    I have said this 100 times if I didn't have direct customers I'd be done as sometimes I just can't talk myself into hauling brokers cheap freight yes sometimes you get lucky but not everyday.

    Whats the biggest reason you want your own Authority? Why not lease onto a Carrier?
     
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  10. skateboardman

    skateboardman Road Train Member

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    I would suggest leasing on to begin with. helps with the transition.
     
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  11. 281ric

    281ric Road Train Member

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    When I started a few years back , I wanted to lease on but no one wanted to take me as they could not prove previous experience. Having your own authority isn't the only way to make it in this industry and sometimes, I think it's more headache than it's worth and I know plenty of owner ops leased on to a good carrier that make as much or more than the independents I know.
     
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