Roughly how much should you have aside when starting a hotshot busines

Welcome to the forum. There are a lot of guys here that know a lot of what you will need to know. The key here is to have an open ear and mind to what they say. Some is good some may not be. Not saying it will be bad it might just not fit into what your needs are. As for money aside it is good to have at least 6 months to a year worth of working capital in the bank. Starting the business and filing all the paperwork will add up quicker then you can write the checks. Focus on what matters the most and decide what are the most vital and important things you need to operate on a day to day basis. Worry about the other stuff later. Remember this is your business not anyone else's what may be right for one person may not be for you and vice versa.

 

at least 20k and a truck that is paid for lol. but seriously a lot depends on your expenses. If you can figure and have the capital then you would want to start trying to find direct customers so when your mc number go active you are not depending on cheap rates to pay your bills. I am not even active yet and have pretty much what not to do. lol

 

I think what he is saying is get the word out there let people know your around and starting but again that can be tricky too because if you walk into lets say a dealer if you want to do auto hauler and say I want your business but you cant provide valid insurance or no DOT Authority then why would the dealer want to consider you if you are not even legal to transport yet. I can only assume freight brokers would be the same way. As many people here say brokers, and carriers wont even talk to you or give you access to loads or load boards without insurance and authority. Correct me if I am wrong @ohiobred

 

yes somewhat. hell i could be wrong. lol. thats normal. but i have talked to a couple guys that are very successful, that haul freight and have told me the same thing. But i guess you have to be in business to be in business. lol. I would get out there and go to local businesses that you might want to haul for and just talk to em. hand out a card if you are close to getting your authority. never hurts to at least make connections. then you can go and talk or call folks and get em on the books. how far are you from getting your authority?

 

Agree 100%

 

Honestly, the more money saved the better. Like someone already stated everyone's situation is different. Remember cash is king and when you have a big chunk set aside you don't feel like you have to take low paying loads when things are slow just to make ends meet.

I think on of the biggest reasons for failure in this business is that guys go into financing everything, with no money saved, and run themselves and there equipment into the ground running dirt cheap freight.

 

Running your business or starting it up on credit cards will bankrupt you for sure.