So you want to "own " your own company

Hi is anyone familary with the Susan Zapper Progam. They help you get business credit,and your LLC. they require 4000.00 down.

 

I'm not familiar at all with Susan Zapper. You can do your own LLC and not pay someone to do it for you. $4,000 down? For what? Sounds like the 4k goes into a bank account and they give you a debit card against it. Wouldn't surprise me if there were plenty of other fees along with it as well. If this program is what I expect, I'd stay away from it.

 

Seriously, $4,000 down? I just went to her site, it looks like she is simply a salesman. You know, the "get rich in real estate by buying my book" kind. Go to the webpage for you secretary of state to do your LLC. Then go the the IRS site to get an EIN. Put the $4k in a bank account under your business name and EIN and ask for a credit card or small loan against it. Pay it on time and build some credit. There, I just saved you $4,000.

 

Ya, Cruiser is right, it's that simple. You basically start off with a new company that has nothing to do with you personally. You put the money up front on a credit card and then you borrow against it building your credit.

You are pretty much like a teenager starting out for their first time and as time goes on you will qualify for more and more credit and by the time 10 years has gone by they may give you a loan for $25,000.

 

Great post for a newbie. Also in Alabama, Huntsville. Just got my CDL and scheduled to start orientation with Swift this coming week. Hopefully will make it through, and will probably be offered a lease purchase option. I THINK I would like to go the O/O route, as I am 59 and this is a career change, but it has been recommended to wait a year before attempting it. Your advice is appreciated.

 

Being an o/o is not for those who don't know if they will even be driving a truck five years from now. Untill you are absolutely possitive that living out of a truck is the way you want to spend the rest of your working days; DO NOT DO IT!!!! I REPEAT, DO NOT DO IT!!!

 

Well said! Nightwind has the real info and the real attitude! For what its worth the rates havent changed in 30 years! Florida refrigerated had same back then! orange juice to NYC and back, maybe cranberries to mass. ugh, will it ever be $ wise and worth it?

 

Rates have not changed much in the last 30 years. The main difference is operating costs. It costs about 4 times as much to buy a new truck as then. It costs more than 10 times as much for diesel as then. Wages are also higher than then. Of course, the main difference is that the taxes are higher and more abundant. We didn't have most of the taxes then as we do today. For some reason those who run their own trucks don't seem to value their service so they run for next to nothing. When an owner takes a cheap load he is helping to keep rates down. I think that it is too easy for people to buy a truck and get their authority. You don't need any business experience or much money. All you need is enough for a down payment on a truck and insurance and you are in business.

Something that I have observed over the years is that most people are not willing to do what is necessary to build a successful business. Many will succumb to the temptation to lease a truck from a carrier at any price just so that they can call themselves an owner operator. People will not clean up their credit or save enough money to see them through until their business starts to grow and prosper. They put themselves in such a position that they are afraid to not take a load just to keep going no matter what the rate.

Every business has ups and downs. I have managed to survive many ups and downs over the years. It is part of being in business. Things are not always good. Nor are they always bad. In order to survive you need to prepare for the bad times. Things are difficult right now. Tens of thousands of owner operators and carriers have gone bankrupt or out of business the last couple of years. Starting a business isn't difficult. Surviving is another story.

 

If you do decide to become an owner operator I would strongly suggest that you do it on your own and not through any carrier. When you lease a truck from the carrier to whom you are leased you are married to them until the lease is paid off. You will likely pay much more for the truck than if you go out and find your own financing. There are lenders and leasing companies who cater to the trucking industry. You don't have to go through a carrier to get a truck. If your credit isn't up to par or you don't have enough for a good down payment then I would suggest that you wait until you do. Many lease operators and some owner operators make less than a most company drivers. There is nothing wrong with being a company driver. In fact, there are some advantages. The biggest is that you don't have to write a check when something breaks down. When you are off you don't have to worry about doing something on your truck. If you own it there is always something that needs to be done.

As an owner you do have some advantages, as well. You have the flexibility to run your business as you see fit. You have the opportunity to be successful or fail. You have the opportunity to earn more than you could as a company driver. The most important aspect of being an owner operator is that you have more freedom to do as you wish. Some carriers offer more flexibility than others when it comes to owner operators.

When you lease a truck from your carrier you are not an owner operator. You are a lease operator. You are basically a company driver who pays for his truck, fuel and all operating expenses and also doesn't have any company benefits. You will also likely NEVER own the truck. Lenders like to see at least a year or two of driving experience before they will make you a loan on a class 8 truck. The more experience you have the better.

 

Hi,
Im still waiting on my sba loan to go threw and did a temporary lease on that was a HORRIBLE experience..The guy owes me money still and the truck I bought from him had a few issues ..I still love the ole horse...it has great potential..I did aquire a customer out of the deal though and need alittle good juju my way...This is my third truck and will be my first time being in business solely for myself.
thx for reading