how to get rolling

To the OP;

Step 1: get a JOB driving a truck (keep your record clean).
Step 2: figure out what operation you like the most; ie, flatbed, dry van, reefer, tanker, bulk...
Step 3: ask a million questions, most will be BS but keep asking and soon you will learn what is BS and what is not.
Step 4: continue as a member of this forum and read, read, read, read, and ask questions as well.
Step 5; when you have 3-5 years under your belt, have spent all that time getting an education, still have a drive to do what your wanting to do now, know what type of operation you want to do and where, than go for it!

I commend you for your drive at such a young age I just hope it is focused. I have a 27 year old daughter who has the world by the horns.
She has had drive, determination and goals her whole life, and had accomplished way more than I have in my 45 years, and more than anyone I know or have ever known. So I have 1st hand experience with a young person that had drive like you and didn't let anyone stop her. If she can do it than so can you. Just be smart about it is all. Wish you the best and keep us posted.

 

Thanks SD. Got one and two done. Still working on #3 . #4 Always will as been getting a good amount of info . #5 I have over 20 years experience OTR over 6 and rest Local or within southeast before 7 years since i been off. Now that daughter graduating college I can now go do my thing that makes me happy. Just doing a lot of research. Think I eliminated company driver, lease purchase programs they have. Pretty well focusing on buying decent used truck, maybe a refer trailer, maybe own authority or lease on is where I'm at right at moment. It's the insurance, paperwork , tax stuff trying to figure where to start and check them out also. Long road but confident. ALL info/advice accepted. I'm a determined person. Always been told that when searching for work in past.

 

With your being in Florida, a reefer would probably be a good choice. If you stay off the left coast, you could get by with an older truck and trailer. Reefers are not cheap whether you buy new or used. I would check out Northland or Lancer for commercial insurance. Both will likely require current experience, but they usually look at how long you have had your CDL. I have an agent that writes with a number of insurance companies. I like the idea of them shopping my business with several different insurance companies. Starting out, you would probably not get the rates that I pay. Although I think that I pay higher rates than I should, I still pay less than most. I also pull open deck trailers. You will probably pay more due to the reefer. I would expect your annual premium to fall somewhere between $8,000-10,000 due to the reefer and lack of current insurance. When you get ready I will be glad to pm you the name of a couple of companies if you like. I don't know if they write in Florida, but it doesn't hurt to ask. My current insurance company has several offices around the country.

There are services that will do your IFTA and bookkeeping. I do my own IFTA. I have done my own ever since I have had my authority. It really isn't that complicated. It used to be a bit more complicated due to having to fill out and do the calculations manually. Now, everything is done online in my state. I use trucking software that does the calculations automatically. I can then print out a report for the quarter and then I just plug in the gallons and miles into the state website. If you keep your books up it only takes a few key strokes to print out your fuel report for the filings. I have a friend who would rather pay someone to do it for him. I think he uses a company in California. There is another in Oklahoma that he used previously. If you choose to use an outside vendor to do your filings, you can expect to spend about $25-50/month. Full bookkeeping services can run $100/month or more. I use Trucknpro (www.trucknpro.com) There are a couple of others that I also suggest checking out. Easy Trucking (www.easytrucking.com) and The Truckers Helper (www.thetruckershelper.com). There are more expensive programs on the market, but these are probably the most popular for independents and smaller fleets. I think that trucknpro is easier to use. They just came out with a version that works well for LTL. If you pull a reefer, you will likely be doing some LTL's. All three of these programs have either an online demo or trial where you can download them to try for a short time.

If you are not a member of OOIDA, you may want to give them a call. They are an excellent resource. You will need someone to act as your registered agent in every state in which you plan on doing business. OOIDA will do this for you at no charge if you are a member. This service alone is worth the cost of membership. Several of us contributed to a sticky that lists everything you need to do when getting your authority.

Take your time. When you get in a hurry you make mistakes and in this business, mistakes can be very costly. Perhaps you could start by making a list of what you want to do. Put a good business plan together to see if this makes sense for you. Business is fluid. Don't be afraid to change with current economic trends. Being successful requires us to remain flexible.

 

Gman you have no clue how helpful your email is. Places you use and where to start. What it cost to get own authority? How long it take? OOIDA been recommended a lot. So your saying join them and let them get my authority? Like your answer on how long had CDL instead of recent experience as I had mine for over 22 years, SPOTLESS ( knock on wood) for insurance. best news so far. Still wanna shop a few you mentioned. Now that rough figure 8-10K insurance that include everything for truck,trailer,load, bobtail etc...??? I'm the kinda person that rather pay someone to do books etc.... so i can concentrate on running and getting loads till as i learn more and more and cut back and do things on own to save. Make sense? Good idea? Thanks so much again for your help.

 

You are welcome. I am glad to help. You don't need anyone to do the paperwork to get your authority. You can do it yourself in about 30 minutes. It is fill in the blank or check the boxes. A service will charge you several hundred dollars to do what you can easily do for yourself. OOIDA will do the paperwork for you for a fee. If I were to pay anyone to get my authority, I would start with them. There is a filing fee of $300. Anything over that amount that you are quoted is their fee for the service, regardless of whom you use. It usually takes from 3-6 weeks to get your authority from the time you apply. You will need insurance to be in force and on file and your registered agents to be filed before authority will be granted. I think that it took me about 6-8 weeks to get my authority, but that was a long time ago and before the internet. Everything went by snail mail. It is much easier today. Personally, I think that it is a good idea to do it yourself. You will need to refile the same form at least every 2 years. My state requires that I do an update each year before they will issue my base plates. You will need to have your authority and insurance before you can get your base plates, IFTA, etc., Before doing anything, you should check on insurance. Make sure you can get affordable rates. I was guessing on the cost based upon others with whom I have spoken. I pay less than $5,000/yr per truck. That is for $1 million liability and $100,000 cargo. That is the minimum of what most brokers and shippers require to load your truck. The feds only require $750,000 liability. You won't need bobtail if you run your own authority and own your trucks. If you decide to lease on owner operators, they would need bobtail. Most insurance companies charge more for reefer insurance. I haul a lot of over sized loads and they may hit me for a little more on the premiums, too. If you choose to get someone to do your books, I would suggest you find someone who has experience in the trucking industry. I prefer doing it myself inhouse so that I know exactly where I am at any given time. With the software that I use, I know immediately what my cost and profit per mile is running. I can also print out a profit and loss statement at any time. You could still use an accountant, but I think it is important to know where you are at any given time. I also use my software to track brokers and others with whom I do business. It really doesn't take that long to key in the load information. I have a friend who uses Trucknpro and it takes him about 40 minutes per week to put all of his load information into his computer.

If you want to see how easy/difficult it is to file for authority, go to the fmcsa website and do a search for pcs-150. This is the form you use to apply for your authority. You will need to know all of this information, even if you pay someone to do it for you. And you can use a credit card to complete the application process and pay the $300 filing fee.

 

Your so helpful. All makes sense. so i have to buy truck, get insurance and file for authority correct? So i have to have my truck set and not make money till get authority for maybe 2 months? Now I do have great credit and was possibly getting a start-up loan instead of using my money for all this stuff. What you think about that? How long is authority for? Good forever or have to pay yearly fee like Lic. Plate? Sorry to be bugging ya but I'm learning here. Just wanna cover my tail and do it right. Had a friend 7 years ago quit job we worked at. Bought a rig leased on teams with nephew with fedex, lasted 3 months then signed on with RTS and within 6 months lost rig and all. Used his old dads retirement money. I think he didn't research anything and jumped cause he never been OTR like me.I'd rather have own authority that way I let me down if I fail. And I know way I use to run (runner) i can't fail. Don't wanna make excuses blaming leased on companies etc. Just a lot to learn before buying. I know some stuff. Just need to learn OO startup stuff. Sound like I'm doing right steps? I'm Dennis by the way. I so wanna keep in touch as I investigate this further. Visiting bank and credit union tomorrow for info. Tons of more questions but brain fried for tonight. heading to bed. Check on here in a.m. and thanks a lot.

 

LOL Gman. If and when get a chance and answer last questions I wanted to ask few more before bed so i wont forget. Answer anytime and I'll keep checking in tomorrow. Thanks. Where you get your loads? How you know if their broker/agent legit and will pay as promised and how quick they pay and by comcheck? Scan them papers after delivered? What average per mile you look for or safe to keep in business? I remember back in day when driving if you have authority and deal with same agent/broker a few times and always on time etc. you will have tons of agents always calling you to see where your at to give you a load. Is that true? or old rumor stuff back in day? See I'm not picky like most. Only thing I'd prefer is staying out of Northeast tolls unless to good to pass load up. NO CANADA. Other than that I don't have expectations on time off etc.... as I know wheels not turning not making a penny. Have no desire to go beyond just me. I can do this stress free with no reason much to miss home and to rush here always. We all prefer southern 48 cause snow but I not that dang picky.LOL thanks goodnight.

 

Slow your roll friend...lol Focus on one area at a time till you get the answers and understand,,than move on to the next area. You will get all your answers off this forum but don't rely on just this forum. Talk to O/O at the truck stops, around where you live, where you work and just take it slow. Peace

 

Most insurance companies will want to list the truck and trailer you will be using on the policy. By the way, if you want comprehensive or collision on your equipment, the premiums is usually based upon 2 1/2-5% of the stated value. I am one who prefers paying cash rather than financing equipment. I saved my money and paid cash for my first truck and trailer. If you have good credit and available cash for a major breakdown, you could finance your equipment with a line of credit. Many banks don't lend money on class 8 equipment, but they may make a commercial loan for equipment. I know it is semantics, but that is the way some lenders look at class 8 equipment. The less debt the better for you. When you start with high debt you will have a tendency to take a load regardless of the rate. When you own equipment that is paid for, you can pick and choose the best loads. That usually means higher net revenue.

If you have everything in order, you could start as soon as you get your authority active. The feds will send you a copy of your authority. There is a service that will get in to you quicker for an additional fee. I think they charge about $20 or so. It will save a few days. Once you get your authority active you will need to pay your UCR and apply for your apportioned base plate and IFTA account. Your base plates, UCR and insurance down payment will likely cost about $4,000-5,000.

It does pay to do your research when entering any new business venture. Trucking is very capital intensive and should be researched thoroughly before you spend your money. You won't be able to book any loads until you have everything in order. Don't forget your signage. The cost should run about $25-50, unless you want something fancy. Once you are legal, you can start looking and booking loads. My experience has been that you blow a day just to get your base plates. You can easily spend a day or more finding and booking a load. It can take from a few minutes to about an hour to get all the contracts signed and documents faxed back and forth. It is much better to take your time and do everything right than to get in a hurry and make some mistakes. I think you are heading down the right track. As your friend found out, you can lose your shirt very quickly in this business.

 

Dennis, there is a one time filing fee of $300 to get your interstate authority. As of now, there is no annual charge to keep your authority active. Unless you fail to keep your insurance up or decide to cease operations, your authority will remain active without any other charges. Some states also have interstate authority. Those also charge a one time fee. You don't need to have interstate authority in every state. It is needed in those states only when you pick up and deliver within that state. Texas and California are the two largest who require intrastate authority.

I am at a point where I have long established contacts that I primarily use for freight. Either I call them or they give me a call when they have something that they think that I would like to haul. I always check out any new broker with whom I may do business. I check credit, current bond and active authority. I rarely haul for anyone new. The only reason that I would is when my regular contacts don't have anything worth hauling. Most brokers pay within 30 days. Most of the bigger brokers offer what they term "quick pay." These brokers will do a quick pay within 24-48 hours, but will discount the freight bill by 1 1/2-8%. I would NEVER discount a freight bill with a 8% discount. I will usually discount the bill 1 1/2-2% to receive my money in 24-48 hours. I have one company that pays me within a couple of hours after they receive my paperwork and without any discounts. Another will pay within 3-5 days without any discounts. If you don't want to deal with the discounts, you can factor your receivables. There are recourse and non recourse factors and rates vary considerably as will fees. Factors will usually check credit for you if you use them. Another way to finance your business is through a commercial line of credit. This would be the least expensive way to finance your business, but also involves the greatest risk. You areresponsible for paying the line of credit whether you are paid or not. Some of the big brokers, such as Landstar, Mercer and others offer their own fuel card and have discounts available to carriers who use them. The down side is that you cannot load the cards yourself. In order to receive the fueldiscounts you will need to haul their loads and use their card. Settlements can be put on the cards, comcheck (or similar payment), paper check or direct deposit into your account.

When you post your truck on a loadboard, you will usually have brokers contact you when they have freight in your area. It takes time to establish contacts and build relationships. I have some with whom I have dealt with the same person for many years. I can only think of a couple of them where I would pick up a load without having a rate confirmation in hand before starting up the truck.

Some people only like running in specific areas of the country. When you limit your area of service, you can reduce your income considerably. I tend to follow the freight rates. In fact, I have been running mostly a certain area until the last year or so. Freight changed, so I changed and followed the freight and rates to accommodate the market. I am sick and tired of running the northeast past the Hudson River. I am tired of being looked upon as the government's ATM. New York and some of the other northeastern states want us to pay tolls, fuel taxes (including on toll roads) HUT and any other tax that they can come up with. When New York started with the HUT again, I decided to no longer service that area. If someone wants to pay a high enough rate, then I may rethink my decision. I used to have a truck on Long Island at least once per month. The last time that I had a truck on the island the toll was $65 in and $70 out. It is a hefty toll for one bridge. The last over sized load that I took up cost me $120 just for the GW bridge. It did not include the escort or permits. That did it for me. It just isn't worth it. Until the last year, I would go just about anywhere. The last round of toll rate increases, anti trucking and anti American legislation coming out of New York, along with the renewed HUT, made my decision for me. I can make more with less hassle running elsewhere. That is my decision. It may be more difficult for you pulling a reefer. Most go to Hunts Point or California when they pull a reefer. But, there are other things that you can haul on a reefer than food.

There are some brokers who require that you be in business for at least 6-12 month before they will load you. Most don't care as long as your authority is active and your insurance is current. With CSA, many brokers are beginning to check your score before loading your truck. If it gets too high, you may find it difficult to find freight. Reliability is critical in this business. I never take a load where I don't think that I can make the delivery. In fact, I turned down 2 loads only last week due to the time constraints. There was just no way to make the pick up and deliveries on time. I have a good reputation with them and would not risk bruising it for a load. I have had some brokers who have called on specific loads due to my reputation and reliability. I have also had some call due to my safety score. It takes years to build a good reputation and one or two incidents to destroy it.

You should allow yourself time to find your comfort zone. Establishing solid relationships takes time.