So you want to "own " your own company

Run what ever type of truck that you like, just because I like Kenworth does not mean you will, or that should buy one. I would buy an older truck that is in good condition with maintence records. Pre emissions motor, so for a cat engine nothing newer than 2007, everything else nothing newer than 2003. You don't need a brand new or expensive fancy truck to start out. Cheap is good, paid for the day you pick it up is ideal. I would be willing to bet that most new owner ops that buy new or close to new have big payments and poor business skills, and that is why the vast majority of them fail with in one year. My first truck cost me $30,000, after many years in this business I have a truck when it was new that cost four times that. Had I bought a truck like this from the begining I would probably be another statistic. "What do you think CPM will make me a profit?" That is the wrong question to ask. You need to figure out what you want to haul, what type of truck you want to haul it with, and ask for help on figuring out what your cost per mile is going to be. Then add to that what you think you need/want for profit and that would be the number you look for.

 

Thanks Oscar.. I apprecite your time and input... advice from guys like you is invaluable... thanks for helping out this newb

 

i have to say for the most part you are correct about most dry box income level, but not all of us is in that boat. my dry box is averageing much more than your flat is and for less to about the same miles. and if your thinking goverment contract its not. fact is theres a lot of dry frieght paying great rated you just have to know how to go after it

 

i have to say for the most part you are correct about most dry box income level, but not all of us is in that boat. my dry box is averageing much more than your flat is and for less to about the same miles. and if your thinking goverment contract its not. fact is theres a lot of dry frieght paying great rated you just have to know how to go after it

 

G/MAN, based on this comment, is it the right time to become an O/O or even a truck driver at that? What are your thoughts?

 

It would be an alright time to become a truck driver. If it were me and I was wanting to become an owner operator I would wait another month or two. The reason I say this is we are not sure at this point what the economy is going to do. Right now prices of used trucks are on the high side, in my opinion. If the economy slides down hill a little further I
think prices of used trucks will come down. Then when the economy looks like it will start to move forward again would be the time to purchase equipment, before it goes back up in price.

Also freight rates are not the greatest at this time. If the economy does what alot of people think it will, rates will decline further. That would make it very difficult for a new owner operator to survive. Alot of experienced owner operators and companys could very well go by the wayside as well. History has proven that.

 

Rates are soft and depending on the outcome of the election, things could get bad very quickly. If Obama is reelected we will all be paying higher taxes the first of the year. That will have a negative effect on business. I would not want to take on much debt with the uncertainty in the economy. Vans can do well up until the middle of December due to Christmas shipments. As a company driver you won't have the overhead if things get bad with the economy. I agree with Oscar the KW that prices are a little on the high side for equipment. If the economy does faulter, you will find some good deals on equipment as owners lose their trucks or decide to get out of the business. As dealer inventories build they will want to deal to move product. I am still seeing a lot of freight, but it is a challenge to find better rates. I once bought a truck in November and did all right leasing to a carrier. I think that you can still make money in the business. I am not running that much, but am still getting decent rates when I do go. As a novice, you will have a learning curve when you lease to a carrier. It might be better to wait a few months to see what will happen with the economy. If you decide to move forward make sure you have money to tide you over if the economy takes a nose dive. Also, make sure you keep payments low or pay cash. It will make it easier to get through the difficult times that most predict are ahead of us.

 

If you are suggesting someone wait based on the results of an election, then you are crazy....(IMO)


I sat down and saw what the opportunity costs were for me to follow one of two plans I had put together. Saving for 24 to 36 months or saving for 4-6 months.

I opted for the 4-6 month plan. In the end, my lost opportunity cost would have been over $50,000 in lost profit had I waited 24-36 months.

I did this with planning for depressed freight and rates. I FORCED my business plan to fail. And I couldn't get it to fail. So long as I know what that failure threshold is and stay above it, I WILL succeed.

 

I didn't say that he should wait until the outcome of the election was known. Anyone who is thinking about starting a business should be aware of the likely scenario of a major election, especially when the economy is still on life support. I didn't really want this to turn into a political discussion, but if Obama is reelected the economy will likely take a hit. One reason the economy has not recovered is due to the current administrations policies and the uncertainty of the election. Romney will most likely build more confidence in a recovery and businesses will probably start spending money. Businesses in this country don't trust Obama and that impacts their decisions about spending, hiring and expanding their businesses.

There were people in the last depression that became millionaires when the dust settled. Millions lost everything they owned. If someone plans on entering a business without experience in a down economy then they should have a good cash reserve. They could get lucky and do well regardless of what happens with the economy. You need to plan for the worst when it comes to business. As I previously stated, there is still a decent amount of freight, but rates are down. Fuel and operating costs are up. During the next few months I expect many owner operators to go out of business should Obama be reelected. Everyone needs to make the best informed decisions possible when they spend money or start a business. If I could get a good deal in a truck where I could pay cash or have a small payment, I might consider buying one, but I tend to be one who takes measured risk. Personally, I would not buy anything until after the first of the year. At that point the election will be determined and we will have a better idea of what is ahead. Historically, business decisions do hinge on the outcome of a presidential election. Anyone who wants to buy a truck right now should be aware of what can happen in the coming months. We have never seen an economy or political climate like we have today. If you buy a truck and the economy repeats what happened in 2008 and 2009, would you have enough reserves to make your monthly bills and truck payments for at least 6 months? If not, then I would wait.

 

If you care to put that much weight in a puppet position as president, feel free.


But the OP should be looking at a lot more than just a dog and pony election show.


Think about who REALLY runs the country and it isn't the oval office.