So you want to "own " your own company

Dont get me wrong, I am not trying to be a smart$#& but it appears you answered your own question.... "I have been doing this a year..." Give it more time, then see how you feel about reefers. My father did it for quite some time. He hauled produce for a company called Prime Time Express, his equipment was pretty good so I dont remember him complaining much.

BE SAFE!

 

Going to by my own truck, been company for years. Need help on expenses other than the payment. Good company to lease on when I get done with the purchase.

 

Whew! advice; This is just a "little" touch of advice. Don't buy a truck. That is not what you asked for but there is so much to consider it is mind-blowing. Notwithstanding that advice:
1)-"Do not" get into trucking without enough initial capital. This includes a business plan. This includes buying the right tuck for the right price. Beware of the newer trucks with regenerative exhaust or one that requires "exhaust fuel". BUT! watch the age of the truck.
2)- Incorporate (L.L.C. etc...) in some fashion. DO NOT miss this step.
3)- Do not miss step 2. The implications of liability are enormous. Also watch running a company under an umbrella.
4)- expect the unexpected.
5)- If you can not get an APC do not get a truck.
6) Running teams makes money but wears a truck out faster so the income per mile (paid less for teams) must account for this.
7)- Join OOIDA. You might get a lot of replies about this but they have (among several specialty departments) a legal department that is valuable. They can even tell you possible problem companies. They also have insurance. ALSO; They have a contract department and will review a contract as a member perk plus many more things such as breakdown insurance. Check them out.
8)- Check the safety and credit rating of any considered companies.
9)- Find out a lot about fuel surcharge and any companies track record. Beware of --we pay 100% to the truck when billed. "When billed" can be a killer word if FSC is used to calculate earnings and a company has many client deals with no FSC. Remember 100% of zero is how much? To an owner-op the word back-haul usually means cheaper freight than bottom line can afford.
10) Treat the truck like a partner. It has to get paid so you can get paid. If the truck has a serious break or dies, and capital is not there, the company may very well die along with a paycheck. Fuel mileage is critical unless the rate per mile is phenomenal or a guaranteed FSC to offset. A truck that gets an overall (loaded and empty) fuel mileage of 8 mpg at say $2.89 per gallon (a guess for figures so do the math) would be $.36125 per mile just in fuel just to drive. With license fees, insurance, maintenance, the truck partner thing (It will need replacing), taxes (lots), other taxes, you being responsible for "all" costs, including ancillary things such as pen, paper, phone, etc.., PLUS something for the driver (unless you incorporate non-profit), and the cost of the business is sometimes more than companies want to pay to haul freight. Remember! If a company was not saving a lot they wouldn't hire owner-op's just buy more trucks right? $1.68 per mile may bankrupt a person. good luck.

I heard an owner-op brag he ran good and made $5700.00 last week. Further discussions found this is gross on 3392 miles so is about $1.68 cpm. His truck was "hot" and got 5 mpg. This is 678 gals. at $2.94 cpg= $1993.00 in fuel and his truck payment was $1952.00 a month ($488.00 a week) on the "hot" truck. This is $5700.00 (gross)- 1993.00(fuel)= $3704.00. He said he drew $1000.00= $2704.00- $488.00 (truck payment)= $2216. This sounded alright until he mentioned he paid $600.00 a month on trailer rental, a trailer escrow, all the taxes he paid, maintenance, qual-com, and he also had a blow-out. He didn't take out any for the truck. When it was said and done he was left with $388.00 and this was not net. He forgot insurance to include work-mans comp. What was sad was his mileage pay included the FSC.
11) Remember Uncle Sam. He won't forget you. Owning a truck (thus the business) means "you" are responsible for the taxes. Make sure you have a CPA. This is better than a bookkeeper and will be present with you concerning audits and will carry more weight.

There is money to be made but I think the big companies have a monopoly. Look at it closely. We had two paid for 2005 Freightliner Colombia's with an icebox (A/C) a microwave, a 3000 watt inverter but no APC's and our own authority but leased.
12) Do not get your own authority until ready. This opened a whole new can of worms. We sold our trucks because we refused to wear them out (lost investment) with insufficient gain.

 

im waiting on my authority too get finalize. Could you explain your down fall. You said you sold your trucks, what was the problem? Maybe your downfall can help me or the next guy or gal.

 

If you are the owner and operator of the truck incorporating or LLC offers no protection from liability and is a waste of money. The only advantage to be gained by incorporating in a one man operation is for tax purposes, and usually only if you NET more than $65K year after year.

Don't believe me, ask a TRUCKING specific CPA.

 

I'm not sure what the APC is that your talking about? Did you mean to say APU?

Not sure about your math above either. Sounds like your bitter about failing yourself but that sounds pretty darn good for that driver. $5,700 gross minus $1,993 for fuel, $488 for truck payment and $150 for trailer leaves $3,069 left.

My $3,000,000 liability and $100,000 cargo costs me $125 per week if you want to break it down that way.

You make it sound like your trucks broke down every week with a $2,500 repair bill.

Yes, there are expenses on top of just this but $3,000 is a VERY manageable amount to take care of most everything. You don't pay for something every week ya know!!!

I have my own authority and work off the load boards. I just returned from being out for 5 weeks and grossed a little over $33,000. When I came home I bought 2 new trailer tires and a rim for $730 and a belt tensioner bearing for $50. The rim I bought was actually $30 and was mine. Whenever I get 2 new trailer tires I have the rim put in to be sandblasted and repainted and the newly reconditioned one installed.

I do very well at running one truck. I pull a flatbed and at times it's very physical but it keeps you in shape for sure.

When I come home I don't step back and look at all the money I made and run out and blow it on a Harley. I keep it tucked away. When I hit the road for 5 weeks I need at least $11,000 for fuel and more for other expenses. The money I make from hauling loads I won't see for at least 4 to 7 weeks after I deliver so there's a lot of working cash needed.

If my engine were to blow up tomorrow I can stop, check into a hotel for a week and pay to have it rebuilt. Now is the time to make your money before the season slows down and put it away.

There is money to be made and I do pretty darn good at it but you do need to keep up with things breaking and the preventative maintenance. I make it a point to keep a list of things that need attention right down to a missing screw on a cabinet door hinge. I fix EVERYTHING. If you don't, one day you'll step back and say holy crapola, my truck needs this, that and the kitchen sink.

There are too many people on these forums that think you need to work for someone else for 10 years before going out on your own. They are just pizzed that they didn't make it. It's easy. It's not rocket science although for some, it is.

You need to keep running and take the bad with the good. Sometimes I make $1.30 per mile and sometimes I make $2.50 but I keep moving. Sitting for 3 days holding out for that extra $.50 cents per mile does not work. You pretty much just lost $1,500.

My 2 cents.

 

How long after you got into this industry did you buy your own truck and get your own authority?
You get your 2.50 a mile loads off of load boards?

 

I went from sitting behind a desk for 30+ years to driving a truck. I hired a private instructor to help me pass the test then went out and bought a truck and flatbed and got my authority right away. I was with Progressive for 1 year and a 500 mile radius then got real insurance.

Yes, sometimes I get $2.50 and $3.00 depending on the length of haul and the destination. I live in NH so I take a beating heading out but make a killing returning home.

 

I should also add.

This year I hired someone to find me loads and negotiate rates. I've hauled a bunch of loads for a particular broker that works for a large carrier. She works at home and I pay her $100 per week and she finds the loads, does the paper work and keeps me rolling.

She definitely keeps me jumping!!! Since she's a broker she knows where to send me and where not to. When she has PMS I really get lots of money!!!

 

LOL thats awesome meathead. So pretty much what your saying in all of this is if I was to get my own truck trailer and authority I could make a decent living off of loadboards before I would get hooked up with a person to find me some good loads?