Starting Own Trucking Company Under Own Authority Advice

I read your post and it’s not even my money and I’m terrified. Your timing isn’t the best, but you’ve got an even bigger problem than that. That business plan of yours needs some serious tweaks. Leasing works at scale, if you need to pull 50 out of the line and replace them, leasing may work. For a single truck operator or small fleet those are pretty expensive trucks. Starting out you want to be putting your money into your own assets not paying off someone else’s for them. At the end of the lease they have a depreciated asset, but an asset just the same. You have nothing, and you still need a truck. They’ll sell you that wore out truck that you already paid for if you want, but I don’t know where you would see a future in that. Have you considered talking to the guy you’re working for now, see if he would take you on as an O/O. Would be advantages in that. You would be on an operation you’re already familiar with while you get on your feet and get going. And you would be establishing a relationship with your bank. You’re going to need them on side if you plan on going long-haul. Banks won’t give a new company the price of a cup of coffee without you securing it with personal assets. So start figuring out how you’re going to run your truck for 3 months while you’re waiting to get paid, with no credit. If you started as an O/O where you are now for example, he is carrying most of the operational costs with HIS credit while you get going and figure some things out. This racket may seem pretty simple on the surface but it’s anything but. O/O where you are now your operational costs are financed for you, and he may even help and guide you though some of the pitfalls. Eventually that regional tractor would support expansion, like a highway tractor if that’s what you want. I don’t know, after you look at the cost-revenue ratio of a regional tractor compared to a highway truck you may want another one of those instead. In the nuts and bolts of it, what you described is a way to work like a fool and give the money to everyone but yourself. There’s no point in operating a truck if someone else is making all the money. That’s no different than a never-never plan truck at a Mega. I can tell from what you posted what your industry knowledge level is, and I can tell you this industry is full of thieves who make their living exploiting people like you. They’re out there wringing their hands in glee waiting for you. I wouldn’t want to see you be the next one to fall into that trap. I’m going to suggest you find some solid business management, and trucking industry guidance. Like I said, that may even be the guy you’re working for now. If he hires you as an O/O it’s in his best interests that you succeed. The risks are huge. There are few mistakes to be made in this game that don’t carry a catastrophic price tag. Best of luck.

 

If you go to www.OOIDA.com you can get a lot of advice from them..

 

I like your idea of becoming an owner operator first, gain experience, get a tractor ( and trailer if needed acquired ) and pay for them both.
If you lease to a fairly small company (less than 10 trucks), you will be close enough to management to watch over their shoulder and see how they are doing things.
A good company driver is competent at driving, managing his time, and being good with the customers and other stakeholders
A good owner operator adds maintaining the truck and watching those expenses carefully
An individual who is running his own numbers adds finding loads, managing cash flow and profit and loss, staying compliant (legals), and several other small business related duties.
BTW, your personal finances and situation needs to be under control. This endeavor is going to consume 125% of your time. If you have relationships, mortgage etc, it is all going to suffer. If you are alone, it will impact no one but yourself. When you are rich and famous, then we will talk about it...
Good Luck.