New company, questions from a wannabe

Your friend purchased 10 trucks? Why do you need to set up and operate a trucking company?

 

Perhaps someone should have explained that Trucking is a low profit margin business before he bought 10 trucks. Then he wants to put those trucks into your hands and you know nothing about Trucking? I'll be blunt, not rude, This business adventure won't end up well. Good luck.

 

True every person starts green. Most start as a company driver, learning as they go, then move to O/O. You need to find a fleet owner who will let you call and ask questions. I'm not saying you can't make it work, just the odd's aren't in your favor. Once you get all your ducks in a row: Insurance,Tags,Drug screening,Hire drivers,ect. you will need to find a broker or brokers to find freight for those trucks. Or lease them on with a carrier.

 

Your friend bought 10 "sleeper trucks" and only has use for two of them and wants someone with no experience to run the business for him? I mean no disrespect either but that doesn't sound right. There are many people here that are willing to help but I don't think you are aware of the nightmare you face. How much research have you done so far into the trucking business?

 

I guess if I were in your situation and knew little about trucking, I would take the 2 or so trucks that you need for your own operation and get them moving on the produce, and take the 8 others and lease them on to a carrier like Sunco. They're based out of Florida and will allow you the opportunity to keep 8 of your 10 trucks moving while you see where you can go with those other 2 trucks. In my opinion you could take on the responsibility of the 2 trucks running for you and that will allow you to get your feet wet, you say he has outbound produce so atleast you have the freight going out of Florida, that's a plus, shouldn't be tough trying to get the freight back. With the backing of a company like Sunco, they can handle the day to day dispatch of your other 8 trucks while you learn more about the business. As far as driver pay, it seems to me the norm. in most of these type of small business ventures is around 25% to the driver, you could start off as a company with employees who are paid as 1099 employees and slowly work in to providing benefits for your drivers as you gain knowledge and experience. As for your other trucks with Sunco, or whomever you would lease to, they're going to pay your truck probably somewhere between 75%-90% of the trucks gross, they will handle your brokering and what not, and again you would pay your driver a % of your revenue on those trucks. I'm not an owner operator, I have been a company driver for nearly 8 years, but if I were to venture into a new beginning like you are, this is the route I would take. Just my 2 cents............

 

Be very careful mixing the terms "1099" and "employee".