HELP WITH START UP

I have a successful business, it makes good money and is expanding the right way.

I have business connections that I can tap for work or advice while at the same time I can (did) get a loan approved within 48 hours without showing my books to a bank.

I understand this industry and talk to a lot of people at all levels in order for me to improve my business.

I listen to advice from anyone who sees an issue with something I do or put into policy, I don't call them names or act like I know more than they do - this is off any forum.

I have passed on a lot of my experience and many have listened and a few have become successful by using mine and other's advice.

So what puzzles me is why do people come here, ask for advice and when they don't get what they want to hear or what justifies their decisions, they get mad and act like everyone is an idiot?

To the op, just want to point out a few things.

First off I understand why no one would lend you money, your statement about making $44k in profit but then telling us that the employees use that money is a key to why. You didn't make $44k in profit if you have to use it for employees, that is a cost or liability.

Second $44k is close to what you will need reserve capital equal to your operating expenses for a quarter for one truck. Another reason why you won't get a loan. A lack of reserve capital is a big flag to a lender and speaks about inexperience. Generally having three months of gross revenue is about right for any trucking venture with some exceptions. This includes everything, from ss taxes to drivers wages to fuel tax payments. You, by the way, are not paid out of that money for any reason.

Third it don't matter what success you have as a broker, it doesn't apply here, brokering freight isn't difficult as is dispatching isn't difficult - the reason why we all say the same thing, get into a truck and drive before buying a truck or trying to figure out how to do this. What is difficult is setting up a company to be sustainable with you not being there, that is what is success. Again the bank already stated that so I'm repeating what they see. Like the IRS, they have resources that tell them how to measure risks in every venture you can imagine so they see risk.

Last is this. I know a lot more than the advice I give and have used that knowledge to integrate one distressed company into mine, a lot of work to say the least. I have another seriously distressed company I am thinking about looking at and will send off Friday the discovery/ND contract so I can see what it's really worth. I can tell you that you will most likely fail at this because of the attitude you have but more likely it will be you don't understand how to make it work. There is no book, there is no real path to follow in this but because I am seeing a few trends with what you are trying to do, most of them lead to failure. I hate failure, especially seeing someone else failing. But because I see it doesn't mean it can't be avoided.

Oh one last thing

Really?

ALL?

US citizens?

Well got to tell you that I have a lot of applications that are filled out by people with green cards and work visas. Some of them were brought here under the H-2b visa program and others through another visa program, forgot what it is called.

They may be legal to work here, but the citizen part isn't what a lot of them are.

 

First off, I appreciate your post.

Second off, Im not here to "Pile on" anyone. Citizenship is a valuable asset, if People are here in my Country of which I am a Citizen of; and they fail to become Citizens then they are a illegal. Essentially a invader taking resources, space, food, housing and other needful considerations away from a legitimate family or individual who IS a Citzen and requires the space and housing to get established and build a life, whatever it may be.

Trucking is a incredibly difficult way to earn a dollar minus all the expenses that go into making some money. My path which was defended by Arkansas in Training Rehabilitation to transition from Trucking direct into IT work of a variety of kinds. Unfortunately for me and many others, Arkansas saw fit to increase H1b visa workers to come here from India overseas to do my work after I graduate with a 2 year and later a 4 year. These workers go back to India and open a school similar to ours. Next thing you know class attracts class while students flock in to gain what they think is knowledge and hopes to live a Barbie and Ken Life style for lack of a better descriptor.

I ended up back very close to the truck. I managed to get out of school and stay out with the loans paid off. At least they were paid off.

The most important asset to a business is people. A good staff gives you joy where it matters and a fighting chance. A bad staff, well... it rots your spirit and then your bones. Every single company that I hired on with two exeptions made sure that no matter my own experience or any drama achieved to get to that level in life I am starting off bupkis. A noob, a nooblet not even a let. Several companies have made the mistake to treat me as such over length of time that I considered excessive.

I remember one in particular, KTC of Gettysburg, they had 194 when I hired on, 6 months later I was up in the top 50 from the bottom name on that paper. Those above me pretty much should die holding these higher honors and senority 50 to 70 years from then. We went through so many people so fast. Sometimes they brought it on themselves other times we ourselves brought it on. They did not encourage parking here in the South, but Truckstops in area were decent for what they were and parking was plentiful. Not so much anymore.

Another company called Frock Bros, they ran first class equiptment and I constatly applied to these people. But with around 100 trucks of the then very best KW built The driver manager made sure to take my applications every few months and did it nicely. But looking back it was very clear Hell will have to freeze over before they hired me. Partly because I was running for the competition taking dry grocery from them when they had empty reefers that could be filled with Heinz Ketchup. And the implied meanings were loud and clear, you have handicaps and we do not hire damaged people. We want perfect physical specimens from Driver Central Casting. So solly, it's not going to happen.

Another company I visited, they haul hoppers of grain etc to market via the Elevators, or the Coops that stood sentinel over the plains. They looked me over up and down and got somewhat racist in the way that I owned no tractor and I was just another company hack who do not know the agriculture side very well. (I know enough to follow a combine in 4th It's amazing to me how they allow the eye to dismiss a perfectly good young meat ready to do battle in the fields.... thank you very much.... it's not THAT complicated that they make it out to be...)

You young ones with fresh CDL, post and say no one will hire you. I say someone will. Eventually. Maybe next year. Whatever happens you have to really be strong. It's less stressor for us older ones with experience and years because companies can just throw us the truck keys and bark that I need to be in Memphis by noon tomorrow. Get out of here. Git. Shoo. Scram. Beat it. And turn back to me already deciding what to do with xyz box and driver so and so waiting in the corner. Ok fine. Pleased to meet you too.

Chances are I will know very little about the boss man in 6 months. And not likely to be around a year from today. Based on lack of socalizing and focused exclusively on business to make a dollar after borrowing from a undetermined future filled with people who are kicking cans down the road where possible failing to pay actual cash money to close the books on loads actually delivered.

No one can run a business like that. Trying to use a form of Osmosis to evaporate money from those who have it but refuse to pay it.

 

If they have a green card then to me they are a citizen and are here 100% leagally.

 

The H1B Visa Program was originally designed to fill the gap with qualified workers until a US Citizen could be trained to fill the position, and they could not stay longer than 364 days. In the mid 2000's Congress changed the rules, they can now be here 5 years, and they get a Green Card for helping us out. Problem with the system is, I can't get a job I am qualified for unless I either have an H1B Visa, or willing to train an inexperienced H1B Visa holder. Not only do they displace me, but they get a Green Card for their troubles. Corporate America is now burning through the new allocation of H1B Visa Permits by mid-July every year, and they have asked Congress to triple the allocation. According to them these "High Skill Workers" are in short supply. If that were the case I would be working. Am I unhappy about it, yes, the day you have to train someone from a foreign country to take your job and leave you without one, it tends to leave a bitter taste.

 

It seems to me a good plan would be to get your own authority and have o/o run under your authority. Being a broker you could dispatch them while making money on both ends. You wouldn't need to get a truck or hire an employee.

 

Maybe find an experienced driver to team with that can show you the ropes while you broker from the sleeper berth. Maybe you can use their experience to help you secure a loan and have more insurance options. You could even get your CDL if you think you could split time between driving, brokering, and sleeping. After 2 years you could look into financing your own trucks and starting your fleet. You probably shouldn't even have to wait 2 years, unless you're going for multiple brand new trucks or setting up terminals and going big.

 

So do you have your own brokerage? If I were you, I'd apply to get your carrier MC number. It takes about a month. During that month, find an owner operator that will lease on to you. O/O generally don't want to lease on to newer companies but your case is different since you're also a broker so you can give them good loads without screwing them over. After a while, save up and buy your own equipment or just keep leasing drivers and never worry about your own stuff.

That's actually how I started. Got my own authority before I even had a CDL. My dad was getting screwed over left and right so he asked me if I wanted to try starting a trucking company. It's been working so far and now I'm looking for a 3rd truck.

 

I agree with leasing a truck Owner. Less financing needed and you do what you already know how to do. Learn the ropes a little that way.
In the future buy your own equipment or just keep leasing owners.
Or go to the SBA and get a loan.

 

I'm not sure why you guys let the trolls work you up. The op's obviously not a broker, probably not even an agent. If he is and agent, he's a terrible/struggling agent. I'm thinking he's a entry level phone jockey at a 3pl making a zillion calls a day trying to get loads covered. He doesn't know brokerage numbers, his math is bad, and the numbers he does know are what you'd expect to see from a 3pl with warehousing but he doesn't know the warehouse pricing.

He see's the numbers going to truck and thinks there must be money there. He's tired of making phone calls and starts doing day dream math.