starting a trucking business

Hello, my name is (insert name here). Ive never flown before but id like to purchase 10 new commercial jets and start an airline business. You think they get these kind of questions over on some airline forum somewhere? I mean what is it with this business that draws people into thinking they can just drop a half million dollars and start a business with no knowledge of it what so ever other than a few threads on a forum. Not trying to sound offensive but what ever happened to starting at the bottom and working your way up, at least that way you know the ins and outs of the business your about to embark on. If you have enough money to purchase almost new trucks burning a whole in your pocket than maybe look into purchasing rental housing or a mobile home park.

 

This is the REAL DEAL right here...thanks go out to you my friend, for telling it like it is.

It's what I was trying to say but couldn't find the proper words, so I structure my comments in a humorous way, such as I have.

Take the money you think you want to throw away into starting a trucking business...invest it wisely into rental units, anything that shows an immediate return if you can find it, and enjoy your life. It ain't going to get any easier as time rolls on.

 

FYI: Yes...I was joking. I was certain someone would take that out of context. Sure enough.

The question was asked what other business would compare to the revenue produced from trucking if I recall....I answered it in a semi-sarcastic, but practial/humorous way.

Ask any farmer that went into trucking how rich they became afterwards. Of course, there are the occasional exceptions to the rules, yes. But the majority is what I'm talking about. Or loggers that left the woods to go trucking. The guys that have been there and done that know what I mean. Didn't mean to get anybody all nerved up here. It's all good.

 

Whoever said that obviously never had any, lol!

 

You got that shot straight, LOL!!!

 

Great wisdom W900aowner. Wish I'd listened when I first got started.

 

No worries, but would like to point out.

If you intended these to be practical businesses with similar initial investments and cap rates of a trucking endeavor, these all fell seriously short.

Semi-sarcastic banter doesn't translate well in written text.

With this said, ANY business endeavor requires a certain type of individual to succeed... I would say, only 8 out of 10 can pull it off(observation I've had over the years).

 

Just sitting here reading this and want to illustrate to the op how fast it can go wrong. All I ever wanted to be was a bullhauler...long story short it never happened and I am actually the COO of an international drilling contractor. Three years ago I said I am going to buy some wagons and make my dream come true while I had the ability and a good job. 3 months and $37,000 later I sold both the trucks i bought. That $37,000 was losses.....straight losses. That does not count the losses I took on the sales of the trucks, but rather cash out of my pocket. Two trashed transmissions, one blown motor, meth lab in my truck, etc.....and that was three only months. I like to think I am very business minded being I run a multi-million dollar company, HOWEVER, this is what happens when you jump in with limited knowledge and experience in any business venture. Now with that being said I am looking at trying it again...why? Because its all I want to do. Will it be different this time? I dont know, but I know I learned from my mistakes, did more homework, and I am buying another wagon. I just think its important to realize how fast it can go wrong and how much it costs when it does, and with no reserve capital it is doomed to fail before the start.

 

mercpower, makes a VERY important point, as have others.

One MUST know what they are doing, by actually doing it for a while for someone else. Network with other owner operators, ask them questions. The point being you are going to try to mitigate potential for major mistakes.

Anther point IS how a person is with personal finances... Does one have several credit cards maxed out? Large Mortgage? Large New Vehicle payment? etc etc... Many folks run out to buy a camper, boat, motorcycle and any number of expensive toys with any and all reserve money they have.

The truly successful owner operators I've seen are rather frugal. Live way under their means... And have $50,000-75,000 in the bank AFTER they have come up with a truck/trailer down payment and have payed for any and all insurance and license fees.