So you want to "own " your own company

I pretty did the same thing. Before quitting my job I paid cash for a truck and trailer and it sat for almost a year while I fixed it up with everything under the sun.

Quit my job and headed out on the open road and pull in much more then $1,700 per week take home.

 

Is that " much more than $1700 a week" after accounting for self-employment taxes plus setting aside the cost of replacing your equipment , I.e. the equivalent of a truck and trailer payment?

 

Not going to get into this. Before people are done you will be in the negative numbers saying you need to be putting money away for freaking tooth decay and new caps.

I have $2,684 left over every week on the average. Break it up any way you want.

Lets see your numbers, then we can add on 700,000 new items your not planning for and we'll put you in the red in no time.

I started out 6 years ago with NO experience at all. Doing just fine but I've been this forum route before and not willing to go there.

 

My numbers are posted under the thread " my numbers as an O/O leased to Crete " or something close to that.

You may be misunderstanding my intent with these questions. I want anyone considering being an o/o, especially an independent, to understand completely that this is a business first and foremost, and that all financial resposabilities must be accounted for. It is only after this has been done can a person truely know what is a fair rate to haul for. There are other factors such as the freight lane, time of week or year, type of product and any special handling, etc.., that must be considered as well.

Most start-ups fail because they have not considered all parameters. You sir are an exception and should be commended.

 

That's exactly what I am going to do before I make any concrete plans to go this route.

I don't want any "surprises" or unexpected costs I haven't anticipated. I've been living below my means for over 10 years and the most influential person in my life was my grandfather who lived through the great depression and taught me how to stretch a dollar. His stories from WW2 also taught me to appreciate freedom and the veterans who fought and died to obtain and defend it.

I'm not the type to jump in over my head without adequate research and I want to know EXACTLY what to expect.

 

Sorry JD, I usually get into this and it goes down the "Thomas C" pretty quick.

 

It is very important starting out to keep you expenses down. In fact, it is always important. I see so many new people jump in over their head. The two major things that I see where new people make mistakes is not having enough money set aside for their back up in case things go south, such as a major breakdown. The other thing is that many will buy more truck than they can afford. It takes time to get used to running your own truck. The last thing you need is to be making a big truck payment. Buy something cheaper, save your money and trade up later. I would not want to start with a $1,600-2,500 truck payment, but there are some who will. Find a truck where you payments are less than $1,000/month. Something closer to $500 would be better. If you can double up on the payments you can get the truck paid off and start saving for your next truck. We don't know what this economy is going to do. I prefer planning for the worst. If things do get ugly, then things won't be nearly so bleak with a small truck payment. If you have a payment of around $500/month, you could probably pay it off in a year. If you have your equipment paid off and the economy takes a dive, then it is much easier to sit or weather the storm. If you have a big payment there will be a tendency to run whether it is profitable or not. I don't believe in running just to buy fuel. If there is no profit then I prefer to sit.

 

I also started out in this business as an O/O, with my own authority,
owning my TRACTOR AND TRAILER OUTRIGHT...
with no experience...
so I think MEATHEAD is not an exception....

It goes to show if the person is determined, intelligent enough to understand
"profit,loss and expense's"
..then has a good understanding of how ANY business operates to be successful,
then that O/O will(read should be) be successful.

I keep my numbers to myself,
I have been profitable....
but I only work when I want to...
(and when my wife wants me too)

...not when a dispatcher force's stupid runs doing them w/unattainable legal hours
...and to accept non-profitable run's...

It's nice sometimes working only 3-4 days a week....
and also taking 2 weeks off when I want to....

then get back moving...

crusin

 

Crusin's post sounds like he's bragging. I'm sure that's not the intention, although he really has the right too. I've stayed in close contact with him throughout the process and he has done very well. I'm very impressed with what he's done and his future plans. Like he says, you have to have a head for business. That's critical.

 

I did not mean to imply Meathead is the only exception. I'm fully aware others have been successful. And as Gears stated, you, and anyone else who has succeeded, has the right to be proud and even brag a little.

My concern with those, such as yourself and Meathead, that start as independent O/Os with paid for equipment is they are willing to haul fright so cheap that they drive down rates for everyone. I understand particular lanes will be low paying regardless, but when this is done in the good paying lanes it's detrimental for others.

Plus, if an O/O does not account for equipment replacement they will be driving old worn out equipment forever. Assuming they atleast account for regular maintainance.

I'm not accusing either of you of doing this. I only want those considering being an independent O/O to understand the proper way to determined a profitable freight rate that includes a truck and/or trailer payments ( aka equipment capitalization ). My point is that even though you don't have equipment payments you should charge a rate as though you do.