Business plan

Well, you're coming at this with a little more sense than most new guys we see here. Sounds like you know the basics. I recommend reading here a lot and learning.

When I started I leased a trailer ($500/mo. then) and bought a $60k tractor. Payment was about $2k a month but I knocked that out in a year or so putting everything towards it. In that same year I bought a $25k trailer and paid cash.

During this time I kept about $30k fluid and never factored. I mixed the lowest percentage broker quickpays (never more than 3%) with waiting on 30 day pay where I could to keep a steady income stream. Nowadays I keep about $50k at the ready before I spend money on anything else.

You're gonna hear from a million people that now is not the time to do this but it's never an ideal time. You might just score cheap equipment in the next few months.

Make sure you get a good handle on what insurance is going to cost you as a new venture. It can be a killer.

Trucking ain't going away. Good luck.

 

Before buying a truck, I would ask myself the following questions:
Where will I park a truck and trailer when at home

Am I mechanically inclined enough to perform simple Maintenance to include PM’s (possibly excluding oil change)?

Do I have a place to work on a truck?

If the truck has to be in the shop for an extended time (parts availability), can I weather the financial impact? And what if that shop is 100’s of miles from home?

After placing a down payment on a truck, how much operating capital will remain from the 100k?

Should I look for a smaller company to work for and remain a company driver until I see where the economy is going?

In today’s inflationary world, 100k is really not a lot of $.
Good Luck in whatever you decide to do.

 

Real estate is a lot better of a investment than a truck.

 

And I forgot to add, how much will business and personal insurance cost for a new start-up?

Health insurance premiums are crazy high. If you do not have coverage through your spouse, or if your current health insurance is a benefit through your current employer then you better factor in that cost too!

 

@Midwest Trucker could probably give you a better idea of some napkin math of how long it would take you to get back your investment or turn a profit. he owns a fleet of trucks and does what you are wanting to do

 

Very smart business decisions!

 

There really is never an ideal time to get into being an owner operator, however I would agree that now it is a bad idea. Let me explain: Euipment is EXTREMELY over priced, and fuel prices are out of control. Even though the rates are good right now, a high truck payment and your fuel expenses will take a major chunk out of your profit. Right now used equipment is really expensive because the wait is so long for new. I would recommend waiting until the prices of equipment come down, because frankly $100k won't buy you much in the current market. Good luck.