Stepping Out With My Own Numbers

You're a bigger man than me. Lol. I can't stand to run those lanes.

 

I just read through the whole thread, filled with lots of info. If I may ask when you just stated out, how much did you have saved up to get started along with an emergency fund? How much did/does insurance run you a year
Thanks

 

When I leased on with a carrier I had around 10k in the bank after buying the truck. When Instarted my own authority I had around 30k after the start up costs. My insurance is 19k a year total.

 

Do you think you couldve started your own authority with around 20k in the bank?

 

I’d rather see closer to 30k. You’ll be waiting 30 or so days for your money and, if in that time you have some major repair bills, you could be down to the wire pretty easy. While you’re waiting on the money you’re still paying all your operating expenses. Running your own authority, truck and trailer, you’re probably looking at 16-17k a month in costs. Trucking is all about cash. It doesn’t matter how much revenue or your rate per mile, if you don’t have cash, you’re done.
This current environment has demonstrated that. Some companies that were decades old have gone under. When rates are depressed for a long period, it’s war between who has the most cash that stays in business.

 

Being that you started in 17 when the industry was up, over the past 2 years how bad has it dropped? Do you regret going on your own? Do you make more than a company driver or make about the same after all your expenses are paid?

 

I’m doing fine. Just speaking in general. I could pay myself more than what I do and still have profit. I’m focused on building up a lot of cash for now. I could pay myself in the upper 70s and still have profit.
I like running my own authority for the most part. I miss being leased on somewhere though. That was the sweet spot I think. Things were much more predictable and if something happened to the their trailer or the load, they’d handle it. Being able to drop and hook a lot was nice too. When a customer screws up on something, running your own authority, it’s all on you. Usually the solution sucks for you, while everyone else benefits. It’s only happened a couple times though.

 

Love reading your posts man, especially these last couple. You are SO right on the money. No pun intended. You’ll go as far as you have the desire to go in this business.

 

I also like the OPs analytical preparedness before he makes a move. So many others jump into the game without enough capital or a deeper thought of what equipment they will use and why.
There has to be quite a commitment while executing his plan too. 19 k for insurance and also equipment loan payments surely make someone vested in the game and you still have to withstand tougher times when rates are lower and everybody is complaining.
Running a new truck and reefer on the spot market even with some more or less established broker contacts is not something for someone who wants to stay home every weekend after 5 days of work or wanting to skip winter months being afraid of bad weather.
I am myself, thanks to this thread, somewhat curious about the International LT and A26 setup as a possible future truck replacement. Also the new reefer upgrade, and how it does with fuel economy is quite interesting to follow too. This thread is one of the best for educational purposes.

 

@Misesian good luck! I am following your journey on here, as an aspiring O/O it's good to hear you're making it well