Question for owner op

I answered your questions and I'm sorry if you dont like my reply.. but its as truthful as I could be. I explained my reasoning for my answers.

You can apply for a bank loan. Can it be done? Sure. But IMO the risks are greater to fail.

In order to succeed in any business, you need fo first understand the business your getting into. The easiest way to do that if you have no background in trucking is to hire on with a company and pay attention to the costs of everything. Some expenses you will have to either research or call around to find the information you need.

As I stated, there is much much more to being an O/O then just driving the truck. Tire chains is the least of your concerns. Also probably one of the chepest.

First you need to aquire a truck that is going to be able to do the job you need it to do. If you look at it strictly from a business persective.. the truck is nothing but a tool in order to get a job done. Then you need to know if you need a trailer or if you lease to a carrier.. will they provide one.. if so what will it cost and will they cover the maintenance and repairs or is that on your dime?

Will you be running under your own authority or leasing and operating your truck under their authority. What percentage of the line haul will they pay you? Will you be paying for your tag/registration or will they? Will you be leasing their truck or buying your own? Do they offer any fuel or tire discounts? Insurance, permits, inspections, will you be incorporated or just sole propriator?

Not trying to come off hard or bash you. I've been told I come across that way and guys like you misunderstand my intentions. I'm trying to help you understand the complexity of what your wanting to get into. Its much more than simply applying for a loan. You need a business plan. You need to know exactly how and where your money will come from.

I strongly encourage you to read many of the posts and stickys here on the board. There is a great wealth of information and all of your questions have already been answered in these sticky posts.

If you have any direct questions or if there is anything you dont understand, please feel free ask here or shoot me a PM and I or many of the others with experience will help you.

I'm against financing from the onset to get started. If you dont know what your doing, its too easy for someone to take advantage of you. They will feed you with everything you want to hear. Throw big numbers at you and make it sound so easy. What they dont tell you is how easy it is to fall into a hole in which you go deeper and deeper into dept until you finally drown. The reason I'm coming off a little hard is because I dont want to see anyone lose site of a dream and become discouraged if/when things dont work out. Its much easier when you work out a realistic strategy and work within your means and expand while still retaining a sustainable balance between growth and profitability.

I'm honestly here to help. If I didnt care then I'd say yeah man.. go borrow $120k and do this and do that. All the while watching you suffocate and fail because you didnt have a realistic business plan.

Hurst

 

I posted in another thread about a subject like this. I wish everyone could be an O/O but sometimes its just not in the cards. To be a sucessful O/O you have to be responsible and have a backup financial plan in place before you even think of this type of venture. You can make great money or you can go broke fast. Never go into it blind without A plan and money to back you up in case of something going south. RW

 

Everything Hurst & RW told you is so true,all Hursts ? are very impo rtant to decide. A lot of money to lay out. most places require you to have a lease and a p&l statement. The regs & fees are insane & you have to be very aware and have everything covered or it will bite you in the WALLET.Sit down with an experienced owner operator an a trucking accountant & you will begin to get an idea of what your wanting to get into. DO NOT get into a lease purchase under any circumstaces !!!!!!! Some do well,some fail, some tread water, and some drown. I wish you the best and keep asking questions, you learn something new every day in this bussines .

 

Bank loan? No

Also when u buy thr truck you have to have a dot number? Went through fmcsa website to get USDOT, MC#

You have to go buy snow chains right away? Not if your starting in summer, Oct good time to carry

Insurance? Shop around

Plates? From your home state


Any help would be nice.. I really got a dream of becoming a truck driver right after the army, i see mAny veterans doing..


Like some on here, you should get with an O/O or get some time under your belt before making the leap.

Having experience will help you when you work out your details on getting your own truck started.

 

1st truck i bought was threw the bank,all other trucks i leased threw different lenders .dont need a dot number unless your going all on your own . i still dont own tire chains . but i mainly east coast . insurance .plates all should be on company your leasing to .. make sure not to over extend yourself , .nothing on a truck is cheap ,so if your not buying new be careful.find out who pays fuel taxes .and what the pay rate where u looking .because those .90/m companies will break you before you start .... thanks for your service and good luck

 

Army dude, congrats on planning on a transition but listen to those who know.

The questions you are asking are good ones but ... let's look at them,

how do you guys did it? I had no choice, I used my savings and started driving. It wasn't easy but on the other hand compared to other things it was easy.

Bank loan? I took out a bank loan for my second truck, it wasn't a problem, been dealing with the bank since 1968 and had collateral. The loan was paid off as quick as possible to save on the interest.

Also when u buy thr truck you have to have a dot number? Nope didn't need one and still don't. My trucks are leased to companies, with exception of one which is leased to a person running his own business, he provides the numbers but it is my plates on the truck he has to pay for.

You have to go buy snow chains right away? No, it took me four years before I needed them and then I never used them.

Insurance? Covered by the companies I was/am leased to.

Plates? I always bought my own, never allow the company to do that for me because if I have to get that truck home, insurance is easy when it is plated, but if the company takes the plate they 'bought' for you, then you have to deal with that problem.

Two bits of advice - 1 is never get emotional about a company, these guys are there for their customers not for you. So if it is a great company for one doesn't mean it is for another. 2 plan things out, this business and the money isn't going anywhere any time soon, you have plenty of time to plan. Get a hold of some financial services for vets (SCORE <<< look it up) may help you and form a plan, don't take for granted that you need to do all of this right away. Oh and a third piece of advice to add is learn the business from the inside, not jump into it.

 

Driving is the easy part. There is a reason this job is classified as low skill labor by the department of labor, and it's cause the average money could do it. The business end? Not so much. You would increase your odds of success tenfold by simply spending a few months at your local community college taking a couple basic business management and finance classes.

 

There's a program available for separating military through the GI Bill that would be worth looking into. Hire on with a carrier that has an approved apprenticeship program and you will receive $1359 per month tax-free, on top of your driver pay, for up to two years. I know that TMC has such a program and they are an excellent company, from what I hear; but I'm sure there are other companies participating as well. That extra $16000 tax free is like making an extra $20,000 in salary. Add that to your driver pay and it's a darn good living for a new driver, with no risk.

 

gross or net? If gross and he is happy, you'd better not join this company; if net&#65292;I just hardly believe a one year oo can earn that much.