Starting a business

Discussion in 'Ask An Owner Operator' started by truckingu, Jan 31, 2009.

  1. truckingu

    truckingu Bobtail Member

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    Jan 31, 2009
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    First off, I am obviously new to this forum, but I love trucking.

    Now I know that Nightwind has already gave a great outline of how to start a business, but my idea business idea is a little different. I am wanting to start business where I start off by by employing just O/Os and I will not be driving myself. So far I know you need atleast the following:

    -business plan
    -$1,000,000 in general liability- not sure on cost yet, any ideas?
    -$100,000 Cargo insurance
    -MC#
    -Dot
    -State authority
    -EIN from fed
    -I have chosen llc corp

    So far thats all I know of. Basically I'm just asking for advice to give myself a good shot at being successful and to make sure I know everything I will need. Thanks and I hope everyone stays safe on the road
     
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  3. PharmPhail

    PharmPhail Road Train Member

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    If you're going to employ O/O's, why do you need authority? Won't they have it? What is it you will offer? Freight? Discounts?
     
  4. truckingu

    truckingu Bobtail Member

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    Jan 31, 2009
    Tulsa,OK
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    Most of the companies that i have as contacts for freight require that i Have an MC#. I thought it strange but they all wanted it. Also I am thinking of offering 45-60% of line-haul rate(depending upon experience, record, equipment etc.) and all my freight is at a bare minimum of $2.00 plus fuel surcharge rate which 100% of will be given to drivers. When I say line-haul i mean the true rate I bill. I know a lot of companies say they are giving 75% of line-haul, but they are lying. I have known so many O/Os that have gotten screwed over and lied to about about the actual rate. I will always offer the driver the option if he so chooses to see the actual signed invoice. I will also give %100 of all billed tarp fees. Finally, i will also give base plate incentives, pay for scales and permits.
     
    1pissedoffdriver Thanks this.
  5. PharmPhail

    PharmPhail Road Train Member

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    If all your freight is 2 and up, why wouldn't you make a killing posting to load boards without all that overhead and responsibility? What's in it for you?
     
  6. truckingu

    truckingu Bobtail Member

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    Jan 31, 2009
    Tulsa,OK
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    I am a very personable person, I always want to know who I am dealing with. Also, all of my connections want me do be doing the shipping i.e. with real employees not posting on boards cause they could do that themselves. Plus eventually I want to own my own trucks and tailors. With O/Os i always know i'm dealing with hard working people who respect the their job and company. Also, I won't have time interview every person that call me if post on a load board to see if their a good person. Rather i have O/Os that i trust and know will do a good job.

    Also, what i said I was offering sound good or do I need to make some adjustments?
     
  7. PharmPhail

    PharmPhail Road Train Member

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    I don't necessarily see adjustments. I'm just thinking you would do better without the overhead, or skipping the O/O's all together and getting your own trucks which you could support at those freight rates. Being a middle man using O/O's and shouldering more overhead just seems like a lot of unnecessary mess just for the personability aspect without any real room for increased profit unless you yourself own the equipment.

    Unless it's sensitive freight, I just don't see how the personability or trust comes into play. You trust O/O's, well only O/O's can pull off boards. If they screw up, well they're insured. The shipper doesn't care because that's one extra load of product paid for and now their order doubles because the receiver still needs a truckload of the stuff.

    So, what you want to do makes a lot of sense to me if you don't use the term O/O's for hire. I'm not sure if you're putting that out there to be kind and create a false sense of O/O when you're really looking to hire CDL holders to pay for a truck for you as a lease, which would be quite a different thing. But, this would become clear pretty quickly to anyone who would respond to your offer.

    So, by getting a better idea of what's in it for you, really, then we can assess the plan. And there's NOTHING wrong with making as much as you can with your assets and contacts. But there are better ways to set it up to keep yourself relevant and needed, and therefore more profitable.
     
  8. truckingu

    truckingu Bobtail Member

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    Jan 31, 2009
    Tulsa,OK
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    Let me first say, you have good points Pharmpail and I really appreciate you talking to me and your advice.

    Yes, about 50% or so of the freight will be sensitive. I.e. certain things are pieces of a manufacturing puzzle, so if the freight lost or damage it will set them back with their goals regardless if they get the money, they will lose money in the long run. Now the other half is a buddy of mine that is a broker and i'm also good friends of the owner that company. He knows its my dream to own a trucking company and is going out of his way to help me. Also, I plan on using some brokers to reduce dead head.

    You also correct in me not using the term o/os for hire. My plan would be keep all over my o/os even when i gain enough money to buy my own trucks. MY big thing is if your not honest you will fail in life.
     
  9. B&T Rogers

    B&T Rogers Light Load Member

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    Any true O/O would and should be asking for the original freight bill from any load they accept . There are laws in place to protect the O/O for that reason , Call and ask them to fax you a copy . If your contract is for 75% and they have lied to you about your fair share , then take them to court, hand it straight to your attorney and let them deal with it from then on, Any real company or O/O should have a attorney on retainer for this reason among other reasons as well . The B/S brokers wont make it long running a shady business if you keep on them and get what is due to your company. If everyone just looks the other way and says "I just wont deal with them again" that's not holding the Broker accountable , and they will just screw the next guy in line.....
     
  10. PharmPhail

    PharmPhail Road Train Member

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    The opposite way to say this is that you are a broker taking 40 to 55% of the deal. You honestly would have to offer a lot to any O/O to agree to something like that. All the expense is in truck payments, insurances, fuel beyond surcharge, maintenance, replacement, road expenses, some sort of salary. I'm telling you most truckers think anything above 10 to 20% to the broker is tantamount to robbery. I'm sure there's alot more details to what you want to do, and we'll be watching with great interest!

    Anyway, my primary interest in what you're doing is ideas as well. So far I've just been wondering how many trucks you have to own in your fleet before it's worthwhile to stay home and manage it. I don't know that I'd be comfortable dealing with O/O's on those kind of terms as they're likely to not like the deal after a short while. They are good businessmen as well and won't tolerate a bad deal for long. Employees will put up with less pay for longer, but with no real risk. You can't take half the money and give the O/O all the risk and responsibility.
     
  11. 1pissedoffdriver

    1pissedoffdriver Account Retired at members request

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    I swear,truck drivers are the only breed i no that seems to want to be a ''business man'' but do it half a.z.z.e.d...lmao.Until you do that you are only a wanna be ''business man'' and an ''imposter'' like me..

    Why do truckers always want the ''easier softer way''?If you wanna be a businessman then you are going to have to take the time and energy to ''do it all''...Not half a.z.z. it..

    :yes2557:If your going to take the ''easy'' lazy way out just stay driving as a lease operator,wanna be businessman like me...:yes2557:lmao...IF NOT...



    Get up off your duff and solicited your ''business''.I have friends that are in the business of plumbers,electricians,carpet installers,roofing,siding etc,etc,etc and they have to work extra hard at this DOOR TO DOOR and they have to get out there and make it happen..THEY DON'T HAVE MANY BROKERS....THEY HAVE TO WEAR 10 TITLES IN THERE BUSINESS...

    Just because you own a ''truck'' don't make you a ''business man''..

    NOW GET UP OFF YOUR LAZY BUTT AND AWAY FROM THAT #### COMPUTER AND GO DOOR TO DOOR TO THESE BUSINESSES IN YOUR AREA AND START TALKING WITH THEM..JUST LIKE ''BROKERS'' DO...

    MORAL OF MY STORY::::CUT THE BROKER OUT!!!!!! AND STOP BEING LAZY LIKE ME!!!!!!LMFAO
     
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