I am taking the plunge

I would strongly suggest leasing to a good carrier first. That will let you learn some first hand experience. Note, I am not saying lease purchase. That is an entirely different thing.
There is a big learning curve, you need to attack the deck in your favor every way you can.

 

Nothing wrong with an older truck, just take care of it like anything else.hell some are better than new ones. Good luck

 

thats a sound idea for him. Always good to start off this way and then go to the next step.
couple of things, and I would get yourself a good tax accountant. Don't even think about doing the taxes by yourself. Hire an expert who understands the nuances of tax prep. This area you just can't do on the cheap.
also you talk about getting a line of credit via a bank. Try also a credit union. They may offer you better terms, interest rate etc. But for that a bank/CU is going to require the last 2-3 yrs tax returns. I know because I have one myself. It always helps if you have good credit.
Good luck

 

If you go to Sammons trucking web site they have a sample spreadsheet that you can download and insert your figures.
It will break down your costs into fixed and variable. It also calculates cost per mile for all these expenses.
With it you can change your average pay per mile and Chang miles driven.
It's a good worksheet to figure out what you need

 

A few items to add, Cell phone,xm/siries radio,health insurance,air card for lap-top, when figuring expense's figure every thing that comes to mind, and is tax deductible,
http://www.ooida.com/EducationTools/Tools/costpermile.asp
http://www.ooida.com/EducationTools/Tools/fuelsurcharge.asp
http://www.ooida.com/EducationTools/Tools/

 

I second or third the idea of leasing to a quality percentage based carrier to start. After you get comfortable, then decide if going your own is what you want to do. I see your from Mech. The first truck I bought, I was leased to the outfit off Brackbill Blvd. I can't even imagine trying to deal with brokers and negotiating freight rates at that point. What is flatbed school? Lease on to a good percentage carrier, learn the freight lanes you want to run, what they pay, and then get your authority once you've paid off some debt so you won't be a slave to a factoring company. Your start up costs will be lower, and your risk will be much lower. Typically brokers 20% of the revenue, while a good percentage carrier will take 10-30%. Not much savings to deal with compliance, insurance, etc. especially in the beginning. Plus you have various things like NJ business tax ID number which is $500 or more a year if you deliver or pick up in NJ even once. They like to back charge if they catch you too! Mercer, Landstar, Long Haul are just a couple decent carriers that come to mind.

 

If you lease to a company they will teach you securement. It will feel daunting at first, but it's really just common sense stuff and a couple regulation things. A strap every 8 feet for example. Nothing you need to go pay a "school" for.

 

It's more of learning what lanes should pay what rates. Some lanes a "good paying load" might only be 1.50 per mile, others might be 4.50 or more. So you learn where you should be asking for the fat rate and also where it will never happen. The mentality of getting x per mile on every load won't work. You will get in a low paying lane and get screwed, and leave money on the table on the high paying freight.