Lost and confused

If you want power-only owner ops to run for you, do you have return freight to put in those wagons, or will you pay them well enough to deadhead back for more produce? Just one thought among a hundred others.

 

Is this something you guys came up with on a Saturday night, after a 12 pack? There are dozens of trucking companies going under everyday. The industry is so competitive, the slim profits are measured in pennies per mile.

No offense, but if established companies that have been around a long time are going under, what makes you think you can do any better? These were companies that had their own terminals, mechanics, discounted fuel and tires, own insurance, etc.

Get the picture? You know how many people lose their butts in this biz? Don't be a smuck, the odds are heavily stacked against you.

 

If you serious about getting into this business, start by heading here:
http://www.fmcsa.dot.gov/about/other/faq/faqs.aspx#question1

1) Read EVERYTHING you can with regards to becoming your own MC. Make sure to figure out what will be needed to get you licensed in all states, including your own. Once you have gathered all of the information, you will then have to decide if this is something you can do on your own (in respect to getting licensed).

2) If not, there are services out there that can assist you through the whole process: http://www.dotauthority.com/mc.htm#2 Don't know the cost, but you can call them to find out.

3) So how much do you and your brother have in cash reserves for run your business? I wouldn't start a business without at least 6 months cash. That means take your estimate for your GROSS revenue for what you expect to make for the first 6 months and have that as your cash reserve. Keep in mind that some of your payouts from deliveries won't happen immediately, therefore it is up to you to pay the O/O's out of your pocket until you can recoup the payment for your services. Also, you will need business insurance and vehicle insurance as well. You need to add all of that up and make sure you have at least 6 months (12 would be better).

 

If my idea of buying a brand new truck and becoming either a lease operator or owner operator right out of the gate with zero experience except I have my CDL has been mostly shot down I can't fathom how starting a company from scratch like this would ever net you any money in the beginning.

If you have tons of money I am sure you can do this! Good luck!

 

Breakdown, towing, maintenance (routine and otherwise) and repair, rent (you DON'T want to do this out of your house), utilities, phones, hi-speed printer, dedicated fax, computer system (a necessity today), software, liability (for your customers on your property), advertising and marketing, listing fees (industry journals and brochures, website and "seeding" fee for visibility generation and search engine optimization), a full-time phone person (not answering the phones but constantly working them, telemarketing for jobs, freight and loads, contacts such as importers and exporters and facilitators, networking, etc.), trade association dues, accountant (a place where many small business fail by incorrectly believing they can do it themselves), surety bond/trust fund, line of credit and other miscellaneous expenses. Got all that? Now add 20 percent as it always costs more than budgeted or figured. Here's a good resource site for an idea of what to expect in the beginning and what it takes to make a successful run at it. Your first year is your most important. Word of mouth can make you or kill you. http://atex.typepad.com/atex/2008/03/freight-broker.html Starting out with limited capital you may want to at least get your foot wet by trying your hand as an agent before becoming a full-fledged broker.