One year in business; need advice

What is interesting to me is with all these crazy insurance rates (especially in the car haul sector) and equipment costs it doesn’t seem to thin the herd at all ?
The new applicants just seem to scrounge up there initial start up money with no resources and hope for the best one right after another.

 

Here in Arkansas they do, scrounge. Im not exactly impressed by the hotshot scene and auto transport scene here. At least once a month someone is in court for non cdl type offenses trying to do big boy stuff with a beat up pickup.

 

This is what happens when people haul for rates that only just enough to make payments on truck and insurance and maintenance , when something goes bad they cant afford to fix it or say in business.

 

few questions

• why did you lose your insurance?
• whats your new down payment + monthly rate?
• how much is the 9 car semi worth?

if you really want to keep going you can sell your semi and use that for the down payment. Then keep going with the 4 car to build back up. This all depends though on why your insurance rate is so high, and how high is high?

 

High enough for him to cry in his drinks and seek hand holding here on TTR. He he he. //TEASE....

I don't know of any business owner able to cut a 25,000 dollar check and MWAH! with it once a year.

 

Exactly, all they're doing is exchanging no new truck payment for a huge monthly insurance payment. I frankly don't know why some of these guys are so insistent in doing it. There's so many company driver opportunities across the country without all the liability that comes with owning one's own business.

 

It's because of the BIG MONEY they'll make being an O/O (which I am). They end the week with a 4k - 5k in their pocket and spend it instead of have their "owner" hat on. As a "successful" owner I am forced to be a business person, so I have to budget and set aside funds for things like Preventive Maintenance on a recurring basis, Repairs (both minor and major), IRP renewal, Insurance, Damage Claims, etc. You are exactly correct to state they would be better off to be an employee with none of that liability but unfortunately they're not going to listen because their buddy told them about all the "big money" to be made in car hauling.

 

It’s kind of like the old saying if you want to be rich find someone who is and do what they did...
If you want to be broke find someone who is and do what they did...
You are destined for failure if you repeat the failed business plans of others.
This forum is a great resource for learning what works and what doesn’t.
The problem is some believe that repeating the same old bad business plans of others is going to some how have a different and positive out come for them.

 

There are so many responses to this thread, I like and agree with them all, so thank you to all of you.

Question, what’s the deal with his statement about “Metro loads?” Is he referring to Metrogistics? If so, maybe that’s a massive reason you’re going broke? Or, is he a Metro employee disguising themself as a hard up owner operator trying to make everyone think that Metrogistics is some great broker?

If the latter, Metrogistic loads are bottom feeding scum. They and many others like them should be ran out of town on a rail for the crap prices they post.

Now if he’s for real...read everything everyone here has said and follow their advise. It’s all spot on.

Im the type of person who thrives best under financial pressure, which I always seem to place myself in, intentionally. I know when I have to make it happen, it happens. I.E. a $180,000 investment in a 2014 stinger.

Those of us truly serious about what we do have invested heavily into our equipment. And while I wish it didn’t cost so much to keep them running it does and we just suck it up pay the fiddler for the dance and keep doing what we do.

There is good money in this business but you have to turn the wheels. It doesn’t come free, nor easy.

Regarding the insurance piece? Those prices are unreal! Thank God I live in TX!

 

Since you already own the equipment you can lease on to a carrier for awhile to save up money for insurance, there are many companies looking for O/O to lease on see the ads in classified section on Central. And consider moving to a different state.