Number one cause

Insufficient capitalization.

How do you make a million dollars in the trucking industry?

Start with 2 million.

 

underestimating how much money you're going to need vs how much money you think you'll be able to continue to earn

 

I’m 22 and I’m an owner operator, I started working with a broker to haul dirt when I was 20. I was driving a 93 kenworth until DOT stopped me, luckily I was able to save some bucks and bought a bobcat and a 2011 super 10 and now I’m doing all kinds of demolition work, failure only happens if you give up.

 

Those are triggers, not causes.

This is why you need capital to be liquid when you start the venture, not depend on things like credit cards or your 401k.

 

Exactly. Things like that can and should be brought into consideration when preparing. There is a level of preparation at which point failure can be contained and monitored at all times. A point at which you've identified and accounted for anything you could anticipate happening, and accounted doubly for those things that haven't shown their face yet. It's not necessary, and it's honestly a lot more exciting to just wing it with a couple credit cards, but if you don't have time to start over, or can't afford to waste the time, or have other things that are on the back burner waiting to be attended to, then it's a lot easier on the blood pressure to at least know you have enough ammo to defend yourself if needed.

 

There is a reason small fortunes exist. It took a big fortune to become a small one. A really small one. Then something minor comes along and requires a small fortune to fix in order to stay in business which no longer is possible.

Money, money and more money.

If I wanted to live my life processing 500,000 per year I would be President or something. Not scratching as a O/O.

 

That's the day right before you see me on the news.

My engine brake was shorting out, and the dash switches would intermittently stop working, and the dome lights wouldn't come on. A YouTube video led me to unplug the bunk switch input from the hazard dash switch (red and black wires, there's two sets of them). That fixed the short, which led me to look at the bunk switch. The box that holds the individual toggles had arced across one of the MANY EXPOSED traces on the floor light switch section. Got a new box from parts, everything fixed, no issues.

Please explain to me why a 150k piece of equipment has the F!=+=#!@ engine brake toggle on the same circuit as a cab floor mood light. Mexican standard.

 

In my opinion there's 2 main cause of Business Failure, & they are LACK of,

A) Working capital.

B) Business Nous...

 

Money management or lack thereof.

And I don't agree with the lease bashing statement. While most lp is a bad deal, its not a guarantee failure. I no to many guys who have succeded that way. It all depends on the contract (devil us in the details) and the company. ** I am speaking mostly of moving companies/van lines. Cant speak of freight, reefer, or flatbed companies**

 

Yup I've seen that story repeat itself many many times in the moving business. But used to taking home $5-800 a week. Suddenly is getting $8-9-10000 a month. Takes time off buys new pick up, boat, harley, etc... Wife goes shopping and no longer looks at prices. Then BAM busy season is over. Money not coming in, borrowing money from agent to pay bills. Now is taking loads everybody else laughs at. Spend all winter and half of spring digging out if whole. Doesn't learn lesson, come next busy season is burnt out. Repeats the process.