I was considering the next step of business obtaining my own authority, with so many trucking compinies is it even worth doing it?
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Well, let me think about how I want to share this with you sense no one has done so just yet. Getting your OWN running Authority gives you a strong arm in the competition but also takes capital that many O/O's do not have.
I will say this, having your own 48 State Authority will allow you to run hard and for your own rate. At this point YOU are able to go after your OWN customers. This gives you a wider customer base in which to conduct your business.
Many drivers or O/Os we are talking, just see it easyer and cheaper to Lease to a company and run under that companies Authority.
When you choose to get, or run by yourself. Be prepared first off to pay what we all know as Primary Liability insurance.
This covers YOU as a trucking company so that you are ABLE to get your own authority and run legal. I know Ohios PUCO laws now will not even talk to you or allow you to even File for your PUCO unless your Underwriter files a form-E with them.
The Form E assures the state that YOU as a trucking company are well insured and have covered all requirements, ( required ) by the State of Ohio.
Is it worth it? hmmm.... Well I know Brickman, and Myself have done this and I think I can speak for him here on this one anyhow. It depends on WHAT you are planning on doing with your trucks! In the LONG run if you get yourself a few DEDICATED customers that will help you pay that hefty amount of insurance, Yes it's worth it. But unless you are able to get those customers and KEEP em? I would say, It's not all what its cracked up to be. But thats my own opinion.
My 2 Cents,
But it's VERY, hard and it's also a cutting edge business.
At this point, BROKERS are your friends, and ALSO your EMEMY. 10-4?
Ovcourse I would need to be sitting on a much larger bank account then currently to payout while waiting on invoices etc. I have been an owner operator years ago and now again. I want more from life then just being a bottom feeder, I want more and am willing to take the risks (calculated). However I am not ready at this point in time, but just something that I am considering as a step into bigger business.
My father had his own authority. WHen I got old enough to drive I drove under it. I also ran most of that company from the time I was 16. It can be very rewarding but it can be allot of work. My opinion is that you shouldn't do it unless you are a good salesman or plan to employ one. You will need to have your own salesman to get your own customers. Having your authority and running broker loads will kill you.
If you feel that you are really ready to hit this Industry head on and do so willingly. By all means. The Industry NEEDs OWNERS to CUSTOMER relations. It's starving for such. The brokers who I refer as Mr. Pencil's are neglecting our customers. They find sometimes the most unstable, un-reliable, NON dependable ( Mexican ) drivers for the company they can so that THEY make the middle buck.
Getting your own Authority WILL be a benefit to you as a company. But the guys here will back me up when I say it's STILL going to be HARD. And It will be.
I say to you, GO GET It boy! It's out there if you want it that bad. The Industry is tight, and the Industry is hard for the small guy. We are always competing with the Brokers and EACH other. Again If you do get your own running Authority I would suggest talking to other small companies around you so that you are able to USE what you've got and still be see in the customers eye's as independent, yet helping your fellow brotherhood out as the same.
what I mean there is don't just spend the moneys out of the gate and try gathering up customers on your own at first. Work on that one as the weeks roll by. Work with another company also to help you. Most of them will do that. I've done that in the past also.
One who needs to speak up on your question too is Brickman. He's also wise in this. He's been there, got screwed and also been there and profited. Another words He also has the O/O Battle scares to help you along your venture.
All the best,
I am defiantly not afraid of the hard work, especially when building my own castle. I have in's with a few suppliers but probably not enough to cover the insurance rates, but it does look promising. Not to be fooled, its a gamble like any business adventure, I just need to be setup for the worst case scenarios.
I appreciate the advise and will continue to ponder this idea, like I said it still just a idea of something I may want to venture into. I just hate beeing the bottom feeder.
Trucking unless you KNOW the business and have been AROUND the business can BREAK the bank in a moments time. One who wants to get into the Industry with his own trucks or TRUCK, needs to have some moneys set aside before doing so. Sure there are companies that will lease you on under their Authority and pay for your trucks baseplate and fuelcards, ect...
But from what you are seeking it's a HARD ROW to hoe!
Having your own authority means to the trucking industry YOU MEAN BUSINESS! It also means DOT wants what is HIS, and IFTA, ans your home states are also in that waiting line. Not including TAX man.
To get going on a solid foundation one must have moneys to back himself up. That's been more said around here and not just from me.
WiseONE, has some good information for anyone seeking this road or endeavor. He's god the information you seek and It's all there, BLACK and white. The goods and the bad.
Anyone here will tell you that doing this on your own is HARD, and takes alot of time and affort to GET, and KEEP going. If your ready to CLOCK IN, and NEVER CLOCK out then your barking up the right tree!
From 5:30AM till sometimes 11/12AM our phones here ring. And 80% of the call's to the ( HOUSE ) are about business or about the Industry. My wife goes Bonkers!
Thats the FUN and exciting part of this game huh... lol
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