Open To Feedback Or Advise, Contemplating Getting First Truck.

I would grow a plan before a pair.

From what you are describing regarding reserves, I would look to leave to a company, warts and all, while you build up some more cash. You live in a very tough market in terms of freight. Think about it, what does Vegas produce? But not saying it can't be done. You just really have to figure it out before jumping.

Look at companies based in area and see what they haul.

 

Just my opinion...I would lease on with someone else to get started and get my feet wet. Like Bill said, u r in a tough market area. Known some that did pretty well out there running flats, but they were leased to different companies. If u go with leasing truck on with someone then go with percentage to learn rates and market areas. That is the best way to learn. Yes it can be expensive sometimes, but we all have to live-and-learn from the good AND the bad. Be safe out there drivers.

 

as a former O/O who got out when the getting was good in 2004. sold my paid off 4 year old truck and put the money in the bank and have been collecting intrerest on it, I say put the 25k into a Roth IRA and let it grow and just find yourself a good company to drive for. you found one you can find another.

 

Vegas produces alot of broke people do not know what rate they pay!

 

I got let go from the state in Feb 2012. Worked for a company for 7 months.

In 2009, I was part of a 2600 person lay off from a 5300 person company.

Between the two, I learned a LOT of people were struggling as well. I heard the story line, "Get into Medical!!!" A lot of the people that lost jobs in 2008-2010 were getting dislocated worker, WIA and other bennies to "get into medical". I paid attention to what they were doing and things weren't good. Most were having to relocate to areas with large retirement communities to find work. The aging community IS in fact growing and you are going to be a diaper changer for the geriatrics is the reality.

I turned to Land Survey/Civil engineering. It showed good growth, pay and potential. HA.... It's a much smaller community is all. Impacted just as hard as the rest of the construction business. I even did my due diligence and worked with the local job service and their stats and sources. www.iseek.org . 2 years later, I came out with an AA. I was now an entry level worker in a new trade field, competing with last years graduates AND most of an industry that saw a down turn. Over a dozen companies that I was aware of at the time in two years went belly up and closed their doors in the time I started to finished school. It put into the market place over 300 employees with 8-15 years experience I was also now competing against for employment. That was just in Minnesota. On top of that, heavy civil construction really had gone flat. There was work, but only if you had a job already. Even the college I went to cut the program from 60-75 student enrollment to 30 students. That's NOT a good sign.

Buddy had sold his concrete pumptruck and went back to the union to get his crane operators license. His reports out of the union hall showed even the 49er's were in a bleak situation.

About that time, peoples bennies were running out. And people ARE giving up. Relegated to underpaid jobs compared to what they were used to. I was working jobs that were paying $11-13 per hour to start. Down from $19-20 I WAS making. Just before we were all laid off, we were forced to take a 10% pay cut ourselves. The board took a 1% pay RAISE. WTF?

And I never had a lot of "stuff". I own a $250 snowmobile that hasn't moved in over 3 years. I don't have a motorcycle, boat or anything like that anymore. I used to when I was self-employed before. But even then, they were all cheap inexpensive things I paid cash for.


So what do I do?

I dust off my CDL, Write myself a business plan and realize that as a company driver, you don't get squat compared to what a truck really can make.

I walked down to my neighbor who owns a Pete 379 and a step deck and buy him a beer and show him my plan and my numbers and that glimmer shows in his eye. He confirms what I was struggling to believe. He calls up another neighbor of ours and he comes over and joins us. He's got a reefer. He's got that same glimmer.

That glimmer is the hope and realization that no matter how bad things are, As an o/o with one truck, they can survive the rough times like the economy is in right now, they WILL do just fine for their families.

They both have the ability to retire anytime they want and not have to work again all their lives.

That is the same glimmer that I observed in the 4 guys that told me the same thing in 1991 in ontario CA.

Buy a truck, keep your nose clean and pay it off. Pay cash and keep your head down. Take care of the truck, the truck will take care of you.

And when you are 45-50, you can retire from life if you care to.

I started this a year ago with a business plan, the support of my wife and a desire to go back to that dream 20some years ago.

In Feb 2012, I was told by a bank, I needed $7000 to do this.
In March 2012, I started working for a local company hauling reefer for 36 cpm.
In May 2012, I had put in an application for a truck and trailer and told it chances weren't going to look good.
I went to Lone Mountain Truck in June 2012. I got approved here for a truck ONLY.
In July 2012, I got approved despite that I was given in May 2012. I got a phone call coming back from Idaho that the company that said it didn't look good, got me approved. That 80 some page business plan that took 2 1/2 weeks of constant writing paid off. A bank recognized it for what it meant and took a chance.

Between the equipment leasing company, an SBA Microloan and the cash I was able to save up in 7 months, I owned a truck and dry van.

I started with Farm2Fleet and flew out to Washington state from MN to pick up my equipment. I had all the documents in hand, I was able to pull a load immediately and come home.

I worked the load boards hard. I worked with a contact from the forum here who sent me a PM in March 2012. We have been talking and sharing things that have happened in trucking with each other since. Good, bad and in-between. What's worked, what hasn't worked. comparing rates and all.

In Feb 2013, I moved from F2F to that same company he works for. I sold my dry van and bought a reefer.

Best move I made. I knew that was going to be the direction that I wanted to go. Just wasn't sure how soon it would happen.

Food products will have to move. Meats, dairy, produce will always have to move. People need to eat.

Don't live beyond your means, take care of the truck and the truck will take care of you.

Plan for the future, not for tomorrow.

Working for F2F, I got paid 7 days after I turned in my load paperwork. The current carrier, I get paid 14 days. not a bad set-up. It removed that level of risk for me.

The first 6-9 months, expect to have "one set-back after another". It's a used truck. It's going to cost you money. I never really got into anything major, but they could have turned into major issues.

Bad kingpins first two weeks on the road. $2600. OMG. But I managed. THAT was the first time I realized that no matter how bad things were, I would be getting by, short of something catastrophic. Read that the entire drive-line. It's been $1000-2000 maintenance bills every month it seemed since then. But it's getting better now. I got a dry van first so I didn't have the headache of a used reefer AND A tractor to contend with at the same time. It was a good decision.

Since then, I have kept my nose clean, paid my equipment lease payments (equipment lease and carrier lease are two entirely different things here) and the finance company has told me if I keep this up, I can pretty much buy any piece of equipment I wanted. My "credit" with the back was/is now established. So that "catastrophic failure" I was so dang concerned about? It's not really the nightmare I was making it out to be. Equipment replacement should go rather easily should it happen.

You have $23K in cash. I started with $4K.

Plan on needed $7500 in cash to pay the down payment. I got a $30K Truck and a $7500 trailer and it's done me just fine. I have since sold that $7500 trailer and bought a $13,000 reefer. It had REALLY done me right. It is a lease with 10% buy out at that end. It works.

I used to have a company fuel card. It's easy to get complacent with this. You always have fuel. You just use it. I now have cash in advance of needing fuel. An even BIGGER accomplishment considering you need about $2000 cash a week in reserve.

I can handle any maintenance issue right now up to about $5000 with cash. And that number is growing weekly.

Best resources I have found.
Find a GOOD equipment lease company to work with. I found the local company talking with someone from GE Finance. And it paid off.

Find an organization that works with the SBA microloans. Look at the pdf on this page for the micro-loan intermediates They will be a great business source to help write a business plan and doing the prep work for starting a small business. http://www.sba.gov/content/microloan-program-0
I had limited experience with a S.C.O.R.E. representative. It just seems you mention trucking to them, they have no knowledge of that business and how to deal with it or its needs. The Southwest Initiative Foundation I deal with was open minded about it and worked with me and realized that it was a reasonable venture to support.

Find a local smaller carrier that is willing to lease you on. Let them handle the backoffice stuff like carrier packets and AR/AP. It's worth the 10-15% you'll pay them for right now.


Seriously consider relocation if home time is a concern for you. Or you'll be making stops at the house with a load on the truck all the time. I get home a lot and some weeks, it seems I am never gone. I am ok with that.

I am more relaxed according to friends and family and enjoying life again. We take time off when we want and go visit friends where we plan to be moving back to soon. I have a daughter who lives with her mom and priority now is to spend time with her as much as I can. We will wait another 5-6 years till she graduates and then move.

It's not all glory and glamour. There are days you will struggle and it will be a mental toll. Driving is actually a nice respite from the day to day business owner demands you have to deal with.

 

MN... just curious. What would take up 80 pages of a business plan?

 

I included all of my IRP filings, IFTA, UCR, MC150, cargo and health Insurance quotes, load board apps, Fuel Surcharge tables if used, factoring company applications, etc.

I wanted to show that I covered EVERY possible think that would be needed to get authority.

 

i got my first truck and trailer by driving with a flea-bag outfit that offered me to run like crazy as i am paying off the truck

$30k, truck and trailer

i did, they did, all within 18months

the truck has been good to me, the trailer was more of a problem, intially, but after about a year, all went well