Some numbers for new O/O

Yeah, I use factoring to reduce my risk of failure to pay and quicker dollar turn around. I use a dispatcher to sit in front of the computer for me deal with the brokers and optimally book more loads then I could while running my truck. Does it cost money? Sure, but it ends up making me more money then it takes and saving more of the money I make from reduced risk and lower need to file a surety claim.
What I do may not be for you. Maybe you are better at negotiating rates and finding loads on your down time then I am. Maybe you don't mind waiting a month for a broker to pay you If he/she pays at all. I've heard way to many horror story's about brokers ending O/O's from skipping town on huge freight bills or just refusing to pay. I didn't want to start with that risk. Maybe when I find a regular broker or dedicated direct shipper I'll drop the factor and dispatch but for now they are great support while I'm getting O/O feet wet.

 

Remember who you're taking to here. We've all been where you are right now, and 99% of us managed to do it without using factoring companies or dispatchers. Dispatchers are a complete joke. All they're doing is looking at the exact same load boards that are available to you and trying to book loads for you at the same rate you could get them for and taking a commission or flat fee off of your rate. It ain't rocket science booking loads. You don't have to be a master salesman to book a load from a load board. There are also plenty of brokerages out there that will pay you quickly for a rate at or lower than a factoring company. You just need to get out there and try. This place is a wealth of information and full of drivers that are more than happy to offer you tips on how to make the most of your business. I suggest you start asking them a lot of questions. You should have been doing that BEFORE you became an O/O.

 

One of the best things about being an O/O is I get to decide my path. I decide what companies to work with or not to work with. I also have to pay the consequences for my choices. I took the plung whether I make it or not but I'm going to do it my way. Yes, I agree there is a wealth of knowledge here and I intend to go through it all. However, there is more then one way to skin a cat and as and O/O I get to use my imagination to build what works for me. Maybe I'm not getting what I'm paying for and I could find loads on my down time but I'm working my business to my strengths and weakness. I'm working on building a foundation of relationships that will hopefully come back and be profitable. Build a team of professionals that all focus on there own specialties in order to reduce expenses and increase cash flow. My dispatch doesn't make any money if they don't get me moving.
Even if it evolves your family, No business operates without some kind of team. Even my insurance agent is part of my team. I have been very fortunate that I found a dispatcher and factoring that works well with me. I can question them when I want and they have answers not run arounds or excuses. They do what they do with purpose and they don't hide it and own there missteps. Plus I get along with my dispatcher on a level that is close to a brother(jokes and jabs on the regular). Yeah, Paying somebody to do a job is scary because you don't know if your gonna get what you pay for or if its gonna pay for itself or not. But I'm confident that I would not be rolling at all if it wasn't for the help of my support staff. Down the road if I buy another truck and hire a driver I will have that team in place to support both trucks. You may not agree with the way I run my business but that's ok you don't have to. You don't work for me. BUT, maybe someday you will. This industry is all about the relationships you build. The relationships turn in to contracts. At least until AI trucks take over. Until then, I'm gonna roll down the highway in my own shoes with the people I choose to work with.

 

Well put. People wanted to harsh on me because I was a lease operator at Schneider.......but I made it work and in my eyes was very successful.
You'll make mistakes and you'll hopefully learn from them; but you'll get better, smarter, and stronger every day and through every success and every failure.
As far as the factoring goes, I'd do it until I found a reliable customer or I had enough bank to go 60-90 days without getting paid. That said, when you think about the time you spend chasing receivables and the BS that goes along with it, factoring looks really attractive.
Dispatch service......for me, not so much. The only reason is that part of the fun was planning loads and thinking about one thing or another that goes into the loads.
Good luck and best wishes.

 

What kind of special freight are you doing that will make you get good contacts? The reality is if you are not doing the neg yourself and a dispatch company is then they are making the contacts not you. When rates are very high then maybe someone dispatching is good but if they are not getting great rates it is not worth it. You realize almost everyone has a Buy it now where you can book a load without even bidding or making a call to do the load. It really is not that hard to spend 5-30 minutes to book any average load. If that dispatch is getting you average loads that is all they are doing.

 

Here's exactly what I mean and why factoring is a good choice
Brokers going broke, filing bonds against 3 in the last 60 days. | Page 2 | TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board (thetruckersreport.com)

 

In today's times I'm finding that being a Lease on Owner Operator isn't as bad as I expected oppose to O/o running my own Authority. I believe things happen for a reason when I studied becoming an O/o with my own Authority and the main issue occurred when purchasing my truck and applying for insurance (ran my own Authority over 23 years ago but was able to establish insurance immediately). Even with almost 30 years driving experience, no accidents, no ticket etc. Insurance brokers said I will still need one year running on another company's Authority. Considering the World's economy due to Covid19 and the recession that occurring causing load boards rates to drop. I believe things happen for a reason. After expenses, steady work with a dedicated 370 mi turn around load taking over an average of $4900/week after all expenses it's a good situation. No loadboard search headaches, no parking issues, no trailer rental fees or purchase issues, no tolls, big fuel expenses etc. issues. Only shows me what the overall objective on why I choice to become a O/o and that's bank enough cash before retirement I'm aiming for in the next decade.

The industry doesn't seem to be getting better much financially with a lot of crooks such as load brokers double dipping, shady company owners & dispatcher, four wheelers showing no respect on the roads anymore redundantly cutting off big trucks daily. Is there a lineup for cdl drivers? I don't see it really because many are being deterred. Only makes me wonder what trucking will be in 2033?

 

Get a 2020 auto truck around $60k - a dry van around $25k for a 2018-20 - factoring company under 2% dispatching only if you need it another 2%.
No need to lease - if you’ve got your plates and MC - insurance is going to be max around 10k- 25k a year for the worst record
Don’t pay any one to lease onto - money right down the drain
This is the nuts and bolts - money to be made in trucking as an O/O- Guess nobody wants to share information on these forums- because nobody wants to see anybody succeed- it can be done!

 

Your post is number 1,318 in this thread about being an O/O. How can you say that nobody is willing to share information? Did you read the entire thread and the hundreds of others on TTR on the same topic?

 

Certainly did! Any more questions?
However if you have any constructive input - that would go a long way to help a new entrant into the market