how much to start

Read the links that China posted but I'm going to say you need $100,000. It's going to take a while before money comes in. Plus you might spend $20,000 in the first year getting the truck fixed/ready etc.

 

Down payment for truck plus $15K should be enough if youre doing this on a shoestring, and your company is picking up the downpayment on insurance and billing you monthly for plates. I tell guys wanting to get their own authority they should have $20 to $25 grand in startup money plus a down payment for equipment. This gives you time for money to start flowing in. Dont do business with anyone that doesnt pay in 30 days or less, as that can be a cash flow killer when just starting out.

 

I would suggest that as a "New" O/O you try leasing on with someone. One of the many companies that are O/O only. This will give you time to start learning how to deal with agents/brokers. Also using their fuel card will save you thousands of greenbacks. It will also relieve you from many of the headaches that having your own authority has (billing/factoring, insurance cost and many tax reporting duties). However, if you intention is to jump in with both feet then make sure you have lots of capital. Sounds like your looking at a 18k truck. You will need a trailer, lets say 10k for a fair one. You will need repair funds for both. Lets say 15k to be semi safe. Fuel $. Lets go $250 a day for 45 days for now, that's another 11k. You need to be able to eat and drink for a good 45 days. Lets say $50 a day, that's another 2k (you can go cheaper but you should realize how fast money goes on the road). You need insurance. You are probably looking at at least 12k a year, probably more but we will say 2k up front. 2290 and plates and stuff. Roughly 3k there. And I'm sure I'm overlooking a lot. But to this point you are at about $61k just to operate your first 45 days before you receive any $ in. The $100k estimate was a lot more legit then it may have seemed.

It it sounds like you have a lot to consider. I wish you the best of luck.

 

When I went O/O own Auth. * I had already purchased the truck and trailer. I started w/ 10k and a few weeks later borrowed 7.5 K from a friend. my monies went into paying the taxes on equipment and title fee's/ authority, Ins. HVUT, fuel to run.

reason for the taxes is I bought from individuals then sat on the equipment till I was ready to go. I NEVER used a factoring Co. just waited for my money, over the years I now have 5k in uncollectable invoices, but still truck'in.

 

That's why you need $100,000.

 

I have a Cummins i haven't had anything serious just issues like windshield wiper motor, air condenser, relays, little stuff. But then again, i only drive 60 mph and I'm under 25k lbs 90% of the time. So i don't put a lot of stress on my engine.

Start up costs me this...2006 kw conventional model T $21k, 1997 strick van 3.5k, authority, inc, insurance, 2290, registration, an all other paperwork...about 11k. The only reason it was THIS low is because i didn't pay the full premium for insurance. Start up quote from progressive was 16.5k/yr with 2500 down. Ironically, they changed their policy after the first month an demanded the other 14k in 35 days, something about new policy requiring full premium up front for high risk business start ups. The next insurance company (STRATFORD) wanted 2k down, but i need insurance. If i paid for the premium yearly instead of monthly, I'm sure u know how to add 16k. Start Up cost me over 35k cash and 6 months downtime. After lost wages is added to money spent on equipment, taxes, n insurance...it was probably $99,999.99 to start up. So it's actually not 100k, i bought used so i saved a penny.

 

You're insurance rates are horrible. Shop around. My rate to insure 8- $100,000 trucks and 9 -$45,000 trailers with $2500 Deductible and $150k cargo is $63,000, so just under $8k per unit. Great West writes our policy.