Minimum amount of cash in the bank to start O/O

Looking at the thread title, not reading throughout the thread, my answer is that after the truck down payment, at least 10 - 15 k if you lease to a carrier that offers you a break down assistance, gives you fuel advances and pays you every week. If going independent that bar is higher, at least 20 - 30K, so that you don't have to utilize factoring leeches and quick pays too often. When I went independent I had to spend 3K for insurance down payment, 3K down payment for a new van trailer, and waited 3 weeks for the first money I did not have any major breakdowns which would cost me more then 500 per occurrence either. But at least 2 months of living expenses are to be secured, so you don't feel over stressed for the lack of money, which in this initial period is coming slow.

 

If your borrowing money of any description to start or run a business, your not In a position to be choosy on what you have to do to pay them bills.

To many people open their own business thinking that it's all flowers and sunshine and that they can have a holiday whenever they like. WRONG!
You are going to work your backside off if you really want to succeed. You are also going to be working weekends at times, late nights, hauling stuff you thought you would never do. WHY? Because it's paying your bills!!

The other part of it is spending. You have to be as frugal as possible for the first 2-3 years, especially if you have borrowed to kick off. You need to know your running costs to the cent. Never run for less than that. (That also includes your minimum allowable profit margin if your smart) Now not every load is going to be a home run. But you will have to take loads to get you to where you maybe able to get a load that is. Again don't be choosy. Do what needs to be done!

 

I have found that disagreeing with the law is a low odds strategy in business.

Look, you are obviously not interested in hearing about the negatives of your plans. But "not focusing on the negative" sounds a lot like "only seeing what you want to see".

Trucking is a high risk business. When I bought my truck 11 years ago, I did all due diligence, dyno'd the truck, maintenance records, everything. Three months later it needed an inframe. Five years ago, I got hit with health issues that took me off the truck for four months at a time. Four times in a row. I'd rather not focus on those negatives, but they still happened.

It doesn't matter how big your company is, or how long you've worked there, you are still an employee that could be "right sized" next month. You can get sick. You could get the boss from hell, and you can't leave because your 401K loan would become due. You could have an illness in the family that requires you to leave to take care of them, and you can't, because your 401K loan would become due.

HELOC's and 401K loans are simply risky. Ignoring that risk is unwise, especially when entering a risky business like trucking. If you don't have risk capital to enter the trucking business, there are lots of businesses you can enter that require very little capital.

 

300K in the bank for one truck and people are thanking this?

ROFLOL!

if someone came on here and said they had 300 grand free and clear in the bank and invested it in one truck he'd get laughed out of here.

you guys been around truckers much? they aren't hanging at the country clubs y'know....

good grief you'd need a few million in operating capital to haul the BS in this thread.

 

Of course it doesn't matter how big the company is I work for , And I know I can be replaced at any time, I've known this for the last 16 years, But, look at the other side of the equation, I also can get promoted, I also can get a raise, my health may Continue, to be great, etc. My point is Trucking can be risky, if you haven't done your homework, and if it's sole your only means of income, for me it wouldn't. I'll be coming into this business as an owner, not an operator, I'll hire my driver. As far as 401k, there's nothing illegal about taking out a loan, people do it all the time and pay their self back. It's not that I don't realize the risk involved, but you also got to look at the rewards. My cousin did this very same thing to get started and now has 3 trucks, but he didn't go crazy in the beginning and try to expand quick, just start with 1 truck at a time, the key is having a good fund set aside for maintenance and payroll, if you have this The risk levels drop tremendously, which I will have when I come in the business. God Bless, and remember positive energy is a lot better.

 

Anyone can get a truck and start a trucking business. Its not hard to do. Hauling freight is easy too. Loads are plentiful. The difficult part is turning a profit. In case you need a reminder this is a really competitive business. What are you going to haul? What exactly do you think you bring to the table that thousands of other carriers don't offer already? I'm surprised no-one has called you out on the insanity of owning one truck, hiring a driver for it, and thinking you're going to make any money off that. Your cousin did what exactly? This is a crazy idea. Look if you have a passion for the business that's one thing. You're just another one of these people that's drawn to the mirage of big money. There are people that make big money in transportation and one thing they all seem to have in common is a passion for this business. They live it, breathe it, sleep it, dream it, nightmares etc. So go ahead, quit your regular job and dive right in already.

 

And rollin coal, as usual, cones thru with words far more valuable than having 6 months worth of fuel and new tires every fall and a new trucks worth of money tucked away.

What does matter how much you have in the bank if you're bleeding the whole time? All a big bankroll will do is postpone the inevitable failure.

 

I'm a business man, you don't have to be a pilot to own an airline, and no disrespect to the truckers at all.And whose to say that I will never drive, I bet the Ceo of J.B. Hunt isn't in a truck, I bet the Ceo of Swift isn't in a truck, so why not call those guys out for being great businessmen and women. It's always those guys that say I've been trucking for 100 years and blah, blah, blah, but have nothing to show for it, but complaints, and downing the next man with a business plan, like I said, no disrespect to those that want to just truck the rest of their lives, but at some point, there are truckers that become businessmen and investors, and eventually get out of the truck and hire someone else to run, it's totally nothing wrong with that. God Bless

 

My cousin did exactly what I plan on doing to get started, if you know anything about trucking, thenjoy you know that it's a numbers game, you must know your lanes , how to calculate and be good with numbers and know how to negotiate freight, Don't haul garbage freight , pick what you like off the freedom boards, cmon, you guys know how this stuff works. And what make me different than all the other 1000s of other guys and carriers out there, I don't spend that much time focusing on the other guys, I just learn my freight and know my pricing, that's the difference I guess, it's money that can be made out here if it's done right, but you gotta find your niche, rather it's Hot shot, dry van, reefer, flat bed, etc, but you gotta do your homework, and don't just jumput out there with a truck and trailer, expecting to get rich, and don't know your lanes, and different price's for freight and distance, or else you'll loose.
It's all about having the knowledge of the business and kno wing how to run a business.

 

You really need to learn what risk is in this business.