What does it take to be an O/O?

good business sense, substantial equity, drive and desire.

 

I agree with dmg1029. It will take ten to twenty percent down on a good used truck (Do not get fleeced in a lease), enough for a base plate ($1200 to $2000 depending on number of states you want) A good company to lease to...after lots of research and talking with O/O's leased to them. I would also add mechanical aptitude and being handy with tools would be a great help.

 

little bit of money.. 20k

 

Experience in trucking first at lease 3 years before coming a o/o.

 

A business plan. Start there.

What kind of business do you want?(Flat, Van, Temp. Control......)

Is there a customer base for that business in the area you want to run?

Do you want to be a full O/O?

A lease O/O(not a lease purchase)?

Do you understand the portion of the industry you wish to open your business in?(Freight lanes, customer base, permitting, cost per mile of operation in area)


First and foremost complete a business plan.That will include much of what is above.
Figure what it costs to operate your business(operation, employee pay{yeah I know your the employee.You want paid right?}, flexible costs(fuel, maintenance{some are fixed, some are not}, then make inquiries into the customer base.

In general trucking is best figured in cost per mile as most of your pay will be figured that way.

 

From what I have been reading on here a lot of things come into play. Heres the list I have compiled:

Type of freight: Is the ratio of loads greater than the number of trucks pulling the loads

Business sense: Can you make business decisions yet make enough to keep a steady income coming in

Equipment: Is your equipment reliable and do you keep a certain set of funds for emergency

Costs: Overhead, truck payment, insurance, cargo insurance, etc... Can you make enough and still make enough profit

Legal issues: Do you have a lawyer on retainer or know one that could if you get a heavy fine for being overweight, out of service for logs etc....

Common sense: Do you know the difference in dead heading for a profit or staying put till the next day when you have a better load that is booked

Feel free to add more.

KH

 

DON'T DO IT !!!

 

1. Your business plan must include a reasonable, backed up with the numbers, of where you plan your business to be in the next year, 3 years, 5 years. I know this sounds stupid, but any business must plan for a reasonable growth in terms of size and profit. If you can't grow your business income every year you do not have a business you have a doggone hobby.

2. In addition to enough for a down payment, etc you better have enough in your business account to cover at least 3 months of payments and/or unexpected mechanical difficulties. Eg: whatcha gonna do if you blow a turbo or your rad pops or even something fairly simple like a tractor protection valve. All those cost a grand or two and can just as easy go out on trip one.

3. Besides a lawyer I also recommend that new O/O's find themselves a competent accountant and learn how to keep a set of books. A decent accountant will save you hundreds of dollars by knowing about things like legal tax deductions, etc. This is why you do not trust your taxes and books the next-door neighbor's daughter who has a 3 week H&R Block Tax course.

4. Chances are you are going to run pretty skinny for awhile; making take-home less than the average company driver. The average new business takes 3 years to "break even". That tricked out Petercar is at least 10 years in your future.