start up capital for truck and trailer with own authority ?

100 grand
Need cash or down payment for a truck and trailer
Insurance is high first year, could be 15 grand and they may want like 50% up front
The authority isn't all that much
Plates maybe 2000, 2500
Lots of small expenses, boc3, scac, ucr, call it another 1000
Then pay for operating expenses, fuel is the biggest, while you wait to be paid. Or give up a % for quick money, but that is an expensive bad habit. If you are paying someone to drive, pay them while you wait to collect.
And be willing to lose it all if you have a major issue like an engine blow up right out of the gate. Or a major wreck and insurance drops you like a hot potato. All the while the monthly expenses keep coming. So ya, 100,000.

 

As many O/Os have said, I started a millionaire, now I am just well off.

 

Best way to make a million bucks trucking is to start with 2 million.

 

I just went through this ENTIRE process this past few months. I have written more checks in the last 60 days than I have in the last 60 MONTHS. This is a breakdown of my expenses so far:

Truck (2002 KW w/ fresh 6NZ) - $40000
Flight to get truck - $500
Diesel to get truck home - $600
Local sales tax on truck - $1300
Repairs / Upgrades to truck - $28000
Authority One-Stop Shopping (thru OOIDA) - $900
Drug consortium registration - $200
IRP / IFTA - $300 (and plate renews in April)
Insurance - $24120 (payable 50% dn / balance due in 30 days)
Elog & Back office software - $800 (including y-harness & self-installation)
DAT MembersEdge Loadboard membership - $90 / mo
Incorporation Expenses - $1000

Then......
Misc. Truck Stuff: $10000
(computer, gps, printer, scanner, new seats, new inverter, new batteries, dash cam, headache rack, chains, straps, corner protection, tarps, cooler, new mattress, hotspot thru AT&T, new antennas, DOT inspection, logo design & vinyl lettering for name / logo / #'s, etc......)

Home Office Stuff: $2500
(computer, two folding tables, filing cabinets, printer, paper & other misc. office supplies)

AND to top it all off.....
1) have to keep 60 days of operating capital liquid - until the checks start coming in
2) still have not bought a trailer - gonna have to rent for now to keep cash reserves for operating costs
3) STRESS. Butthole puckers a lil tighter every time I write a check or sign my name

I say all this not to create fear or make it seem overwhelming.... but there's DEFINITLY more to it than "Buy a truck - Collect a check". Each hurdle leads to the next. I CHOSE to not hedge my bets on newer EGR/DEF outfitted equipment so I am basically rebuilding an older truck to "new" BEFORE I hit the road. I want to know what I have and who I can count on BEFORE I go into revenue service.

All the planning in the world is not going to account for every possible scenario, and the above list is abbreviated and in no way meant to be complete.

There will be SOMETHING that pops up. That something could be a business-killer before you even get started. Don't be the guy that is one $15000 major repair bill from being bankrupt.

I've invested over a YEAR into research, talking to brokers / drivers / owner ops / banks / mechanics / etc. Shoot, just the record-keeping mandates can make your head swim. My advice is to give yourself the BEST possible foundation that you can build on. Be sure-footed, be stable, make informed decisions, ask other people how / why - then VERIFY that information independently, talk to a good accountant AND a good attorney and keep their numbers handy, and for the love of all that is holy - DONT HAUL CHEAP FREIGHT JUST BECAUSE YOURE ITCHING TO RECOUP SOME QUICK CASH.

***** I POSTED THIS ALMOST THREE MONTHS AGO. JUST GOT TRUCK OUT OF FRAME SHOP AFTER DISCOVERING EXTENSIVE RUST ISSUES - $39K LATER I'M ROLLING AGAIN...

My two cents (for what they are worth).....

 

Are you saying you're into that truck 40k plus 28k plus 39k? If so, that's 107k for a 2002 truck? Not to mention all the revenue loss in downtime?

 

40k purchase knowing SOME repairs were imminent. Basically bought a fresh 6NZ and 10 virgin tires on 10 aluminum wheels. Complete overhaul of frame & suspension (frame, airbags, brackets, shocks, kingpins, front i-beam, etc), ac system overhaul, new interior (seats, dynamat, carpet, floor mats, door panels, window covers, mattress, etc), lighting (all exterior lighting upgraded / replaced), exhaust (7" Dynaflex kit), new tune on ECM, a couple of TelTek gauges and some shiny stuff.... Yeah, adds up pretty quick.

 

But I built what I want, almost entirely the way I want it. I probably replaced a couple of things that I could have gotten away with NOT doing, but I figured while it's down let's straighten up EVERYTHING. Yes, it's a huge investment now, but its one that should pay off in spades in the long run.

 

Yes there is no problem with building it the way you want it to be, however most people are not like you ace, and as you are a great example of keeping your eye on the goal, I know most who try to follow will give in and get the truck on the road asap.

 

It has sure felt like an act of futility at times, and me ol' brown eye puckers every time another check is written...lol!! However, I just have to remind myself how many checks I'm going to be cashing later and I start to feel better!!