Long time lurker, first time poster. I’m in my early 20s and don’t yet have any experience, but I’m looking into joining the trucking industry, especially the business side, and it seems from my scouring of these forums that many people (particularly O/Os) have a really hard time turning a profit. I understand that I know very little about the trucking world, but based on my research so far, I’ve crunched some numbers and the results seem very different than what people experience in real life.
If I go through with this, my plan would be to work as a company driver for a few months to get some first-hand experience and learn how things work and then start my own company with a few trucks. I have a source of capital to start up, and after putting every expense that I could think of into a spreadsheet, it still seems profitable. So my question is, where do my numbers differ from peoples’ real world numbers, and what else am I missing that would make this plan more accurate? Because if these numbers really are accurate then I don’t understand why everyone wouldn’t do this. Or maybe this is accurate? :/
These numbers are based on a company with 3 trucks/trailers, each driving 130,000 miles a year, with 6 mpg, and diesel costing $2.72/gallon.
Annual expenses per truck
Plates $1,700
2290 $500
Liability insurance $15,000
Cargo insurance $1,500
Annual company expenses
My own salary $40,000
Office staff $43,000
Memberships and professional services $1,425
Monthly expenses per truck
Truck payment $900
Trailer payment $400
ELD/tracking $30
Maintenance/repairs $2,000
Monthly company expenses
Office lease $2,000
Load board $150
Phone/internet $70
Miscellaneous $35
Per mile expenses
Driver salary $0.43
Driver benefits $0.09
Fuel $0.45
One-time expenses
MC/DOT # $300
LLC $500
Office furniture/equipment $4,000
With 3 trucks driving 130,000 miles a year each, this all boils down to a cost of $1.72 per mile. And it includes my own paycheck. So if I can get loads for even $2.00 per mile, the company would net $109,200 in its first year. And from my understanding, loads from load boards pay at least that much, and if I can get contracts with shippers that number will be even higher.
So, if any of you experienced truckers/owners can fill me in on why this would or would not work, I’d appreciate it very much. I know I have a LOT to learn and I’m not pretending to have it all figured out. I just want to know if this plan is at all plausible.
Thanks in advance
Starting a company - can this work?
Discussion in 'Ask An Owner Operator' started by 90838, Oct 2, 2017.
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The numbers look alright, but then real life comes. Here is how one of my two trucks looks now, so all the plans and planning had to change a bit. If this kind of thing happens to two of your 3 trucks at the same time, oh boy...
luckystar, Tug Toy, 90838 and 1 other person Thank this. -
I've got $3200 into this driveline so far. Been worked on 3 times since November.
Truck and trailer payments seem a little low maybe? I know I spent $45k on repairs the first year and then did a motor this year. So .45 per mile for repairs on 3 trucks times 130 k miles a year is $175k in the first year. So you will have around $350k in fuel and repairs alone?
Driver pay is to low in my opinion also. I'm not driving a $900 truck 130k miles a year for anyone at any price. But definitely not at .45 mile!!!
Now I might drive it 75k miles a year for .75 mile (w2) if I'm home every weekend?Last edited: Oct 2, 2017
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