So you want to "own " your own company

If you figure that out let me know lol! Ive been glued to this thread since I found it and cant get enough...But Ive been at it soaking it up for days now and my eyes are starting to burn. If reading this thread was mandated by our HOS rules Id be way over hours right now!

By the way, this site is exactly what I have been searching for! BIG thanks to the GMAN and all you others who dedicate your time and hard earned knowledge so that others may be informed. This will without a doubt make the jump into O/O much easier and a lil less intimidating. Keep it up guys I really appreciate everything here you guys do....Roll hard and keep the shiny side up!

(BTW if this post ends up in the wrong place my bad, I still donno how to use this thing yet and still not too quick to make a bunch of posts)

 

It sounds like you have a dispatch service. That is fine. With rare exceptions, nearly everyone who comes into this business wants to have their own truck. Many of them are more in love with the idea than actually running a business and making money. There are people who should never own a truck. They would be much more successful as a company driver. There are also those who should lease their truck to a carrier rather than getting their own authority. Compared to many other businesses, this has a low capital requirement to get into a truck. They don't approach this as a business. It is hard for some to make the leap from being an employee who drives a truck to a business owner who happens to drive a truck.

 

Does anyone know of any publications (i.e., books, web pages, etc.) that would explain everything one would need to know before deciding to buy a truck and become an independent?

I've been a company driver for 9 years, and lately have been thinking of buying a truck, getting my own authority, and pulling loads for the same carrier I'm currently with.
I think it might be easier to be an O/O and run under their authority but they have a policy that I do not agree with. The policy is if you're running under their authority, your truck is required to be less than 4 years old.

But an I/C would be able to run an old Diamond T if he chooses.

I would only want to operate a truck built before 2007, as I can't see how a truck can be profitable when it's always in the shop. Every company truck I've been assigned to has had problems with it's Diesel Particulate Filter and I have been hearing stories about the 2010 and newer trucks being even worse.

 

Have you read any of this thread? The answer to your questions is on the previous page.

 

Yes, I saw that. I was reading it and was still thinking of questions it wasn't answering. I guess I'm just extremely nervous about taking on debt to buy a truck, with today's economy and the uncertainty around CSA and future government interference.

Maybe I should wait until I have fewer butterflies in the stomach.

I'm actually considering buying a used truck in the $30-40k range and continuing to be a company driver until it's paid for, and before putting it in service I'll make sure I'm starting fresh with new tires, batteries & brakes.

Starting with a truck that's paid for would really give me a lot of wiggle room when I'm a rookie in the I/C world and still learning the ropes of running a business.

 

You're going to buy a truck and park it until it's paid for?

 

I am considering doing that, yes. Not with a brand new, $120,000 truck of course. I am looking at this from every angle I can think of and this would seem a practical solution provided the loan doesn't require me to keep full coverage insurance on it until the loan is paid off.

If I can not do this without keeping anything more than fire/theft type coverage on it before it's put into service, I would be losing too much money doing it that way.

I've been stashing as much money away in CDs as I can, but was only planning on doing this for a down payment and operational funds for things such as maintenance and fuel, permits and insurance until the settlements start coming in.

A better idea might be to just keep socking money away until I can simply write a check to purchase the truck in full, plus $15k for expenses. Then I'd spend a few weekends (and lots of $$$) on the truck getting the door graphics put on and making sure I have a head start with mechanical things such as tires, brakes, PM service, etc. before putting the truck into service and start paying for insurance, plates, permits, IFTA, etc.

I am wondering how many others have started up this way.

 

Either keep working and put money away like you stated, or, if you do get a truck, put it to work! Doesn't make sense to buy something and not use it, especially something that's not going to appreciate in value.

You can also lease on with a company and run under their Authority using your truck. When you get enough money to where you're comfortable with the whole situation, you can then get your own Authority.

 

Sounds like good advice. It's what lots of people have been telling me to do.

However I will only buy a truck built before 2006 emissions requirements. So depreciation/resale isn't much of a concern at this point. A truck that's not being driven, at least, will have fewer miles on it when I'm ready to put it in service as opposed to if I wait and buy one once the money is saved up.

 

If you are making the kind of money as a company driver that allows you to buy a used truck and make payments while it sits I'd say don't even think of becoming an O/O. Especially not in this uncertain economic.