New company question

Discussion in 'Ask An Owner Operator' started by Wolf_In_Houston, Feb 6, 2024.

  1. Wolf_In_Houston

    Wolf_In_Houston Bobtail Member

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    I am looking to put together a small trucking company. Been a kill what you eat business person for a bit, so aware of how that works. Got interested in trucking a few years ago as an investor in a small group that did some work around the Ports of Houston and Los Angeles.

    Generally speaking, my plan is to start small, 2 trucks, lease them on to a large company (Landstar, Prime, etc, etc) that will let me have control over the load/truck schedule to learn the specifics of what I am doing while still have a dispatch in my back pocket when I inevitably make a mistake. Trucks will be probably be lightly used Cascadia's, but I am not really married to that. Drivers would be W2, probably wouldn't directly provide insurance, but offer an offset for driver to find own, and I don't want them to be running endlessly on recaps (happy drivers are productive drivers, right?).

    A key to what I would like to do is an unique truck/driver management system. To achieve a truck utilization that assures profits, I would want to run the truck almost continuously (obvious reasons). However, no driver can do that. So I propose creating driver groups: three drivers in two trucks - working like the oil field, two weeks on, one week off. Doing this I can have all three drivers work 75% of the month and trucks never stop rolling.

    I know slip seating is one of the worst ideas out there, but wondering if knowing the other 2 drivers in the group will be sharing one of two trucks and will always be returning to that truck changes the equation. Furthermore, I build in regular cleanings etc into my plan.

    Thoughts and criticism is welcome as long as its constructive, I know that there are things I don't know yet...

    Thanks in advance
     
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  3. Opus

    Opus Road Train Member

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    Whatcha gonna do when they break down and you're waiting 2 weeks for a part?
     
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  4. Wolf_In_Houston

    Wolf_In_Houston Bobtail Member

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    Simple, assure that you are actually a capitalized company before starting. Having enough to just get your hands on the machinery in no where near enough capital to establish a machinery based business.

    Machinery will break, you must have enough to cover alternatives in that time. If that means I have to rent something for two weeks while that other truck is in the shop, that is the capital burden that has to be met before starting.
     
  5. Diesel Dave

    Diesel Dave Last Few of the OUTLAWS

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  6. Opus

    Opus Road Train Member

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  7. wichris

    wichris Road Train Member

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    So which drivers are going to lose out when the equipment is serviced/repaired?
    Or a rental isn't available?
    Or when the two weeks out turn into 15-16-17 days because of a problem?
    Or the two weeks turn into 8-9-10 days due to freight?
    Maybe concentrate on running them "normal" with a part time driver to fill in.
     
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  8. Wolf_In_Houston

    Wolf_In_Houston Bobtail Member

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  9. wichris

    wichris Road Train Member

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    If only trucks would brake down that close to home. They usually do that 100's-1000's of miles away.

    But iI wouldn't know anything about that.
     
  10. Judge

    Judge Road Train Member

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    The drivers still need money.
    When they get stuck loading/unloading for 8-10, 24 hours.
    You may not get detention pay, guess who still wants something.
    It’ll cost you some to keep them happy.

    Their truck goes down, got another they can drive but don’t like it cause it’s a freightliner not a peterbilt.

    Get a load for one, can’t get them on the phone, won’t answer calls/texts.
    Gotta get it covered.

    Truck breaks down, in shop, three solutions depending on how long, go get them,bring them home, get a motel room, rent car.

    Guess who still has bills and needs paycheck.
    Then go back and get your truck and pay 2-10k +\- for repairs.


    Now you have loads, everything’s good, one driver off on home time, one vacation,
    one lost. (Yes driver lost)

    Lot to juggle, I’m down to one and myself as drivers, 4 trucks.
    One was a hobby truck.

    One was an older guy who i never had problems with, (fully retired now)
     
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  11. Wolf_In_Houston

    Wolf_In_Houston Bobtail Member

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    Some of this could be answered in general terms under my high level response work in #7 above. But these are fair questions. If I could find a reliable part-time driver, sure, that works. I made an assumption that a part-time driver would be a tougher position to maintain long term.

    To the question of lack of freight, I consider that a business risk position. I would prefer to pay employees a percentage of the truck gross with a minimum (likely low payment) to driver in cases of no work. That way tide always rises for all. Issues like above with repairs/rentals etc, are my problem to cover - I don't like punishing driver for my equipment breaking.
     
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