Have 80K to invest and want to start a trucking company looking for advice

80K will just about buy you a fleet of two pickup trucks.

 

Armyguy, don't listen to the haters, you're a smart guy, you have the know how and common sense to make it in this field. If you can transport army then you can do otr and believe me there are a lot of dumb ### steering wheel holders in this biz.


My recommendation is on par with littlemisscabover and also suggest you look into landstar as a bco. Private message me if you'd like, thanks brother keep the faith

 

Managing moving loads in the army = zero real practical trucking experience. You'll burn thru $80k on 1 truck and trailer in less than 6 months and still not know half what you're doing. Starting from scratch off loadboards no less, the most brutal. Dry van is the easiest therefor the most competitive and rates reflect that. With your experience you'd be lucky to pull a typical go broke dry van average with a flatbed or reefer, which pays marginally better. Why does everyone think they can do it and what is with all these folks flush with cash and no experience who think that the money makes it a sure thing? You don't cook a pot roast in 20 minutes in a microwave. You don't get practical experience reading a book. Your business education is a plus but without learning the inside from the bottom up it's good for nothing. Sounds like your mind is made up you've been warned. Good luck.

 

Put it all on red!

 

I won't debate anyone about this subject. You all have your own experiences and thoughts about this and I respect you all. BUT IN CAN BE DONE !!!! !!!! I started with zero capital, and I mean ZERO. I was able to get a signature loan from a national finance company. With that loan I purchased an old ( but nice ) cabover and an old but stable hopper trailer and fuel money for about a month. True, fuel was cheap by todays standard, but never the less, it was an expense that I couldn't handle on my own. I applied for and received my authority before I purchased the equipment and this July will mark the anniversary of my very first load. I'm not rich but I earn a decent living and am able to save a little here and there.

 

I dont think he wants to drive. He wants to run a fleet , and I would politely disagree with you. Being the best driver in the world or Army transport specialist would not guarantee him sucess.

 

There is an old saying about trucking ; if you want to make a million dollars in trucking, start with 2 million ! , I would invest that 80 k in something else.

 

Armyguy1152 don't let these guys poo poo on your idea. I started my company about 3 years ago. I have never driven a truck, don't know how, and never worked in the industry. When I decided to start up I invested $30k for one truck and dry van. That was $20k down on a $40k truck and the rest paid for start up and dryvan. Before i started I researched the crap out of it. I found a couple of truckers that had had many years in the business. I picked their brains on and off for 1 1/2 years. I have been growing slowly and now have 4 trucks that I own and operate. I still operate 90% of load boards. I pay my guys as employees not as 1099's. They average $65k a year. Hire people that have alot of knowledge in the industry and be humble yet strong with them. I wouldn't get two trucks right away. Just operate one and get your systems in place then pick up the second one. Also, I would start off with flatbeds. In my opinion they are way more profitable than dry vans. If I had it to do over I would not have purchased my first trailer as a dryvan it would have been a flat. I believe in getting newer equipment when you can. I net about $4k off of each truck a month after everything has been paid and set aside. In my opinion your two biggest advantages is that you have a job that can pay your bills, this will allow you to learn how to operate without the stress of making this new business put food on the table. Second you have capital. That is huge when it comes to surviving and dealing with banks. I can't tell you how many people thought I was an idiot for starting this venture. If you are intelligent and can manage numbers then you can make it. You can do it!!!!

 

Army guy, I am going to first qualify my experience by saying this. I am also a veteran, and I have been in the trucking business now for upwards of 10 years, I've pulled everything from a van moving groceries to a 8 axle lowboy in the oil field, I have also owned several trucks, and I have employed drivers.

First of all this is a tough business, and you need to be able to think on your feet and make decisions that are going to get things done, the right choice makes you money, the wrong choice will cost you. If you aren't an experienced professional who has been on the road who knows how things are out here, you aren't going to make good decisions, it would be about as productive as putting someone who had only read a book on military history in charge of an army and having them lead from the rear.

Second, you don't even know enough about the business yet to know what kind of trailer you want to pull, you just know you want to go trucking, that tells me you don't have the knowledge to make this happen.

Third, having the money you have is good, but being able to buy a couple of trucks doesn't qualify you as a company owner, it just means you have had a windfall.

Fourth, there are a ton of rules that govern this industry, and for 50 states there are 50 different sets of rules, if you don't comply with these rules, it costs you money, big money. Having been in the industry now for 10 years I am just beginning to wrap my head around it all, and I am still not there yet.

My advice to you is instead of trying to start your own company, you need to find a partner, you have cash, you need to find a partner who knows the business in and out, who knows where to find the money, and where to leave the garbage.

Doing this on your own you might make it, but chances are you won't, finding a qualified person to help you start this business is a much better option.

 

You can build anything. Your having 80K saved is a sign that you know at least something about business. I was a banker for 19 years and saw many folks who could not repay loans of less then $150. You are getting some good advice here surrounded by negative comments. It is much easier to fail so we expect you to. You must consider that and I believe you have. Just because you join the Army instead of the Air Force, who do the real fighting, doesn't mean you are stupid. Well, not really stupid. Just a little be off maybe.

The first and most important thing is education. OOIDA is the best source on that subject. They have classes you can take. I am not sure if they are available online or not but they should be at some point. You are going to have cost getting your Authority. I believe that will be close to $10,000, you will have to check on that. OOIDA can help you with the paper work and all.

You need to get to know your local banker. You need to join the Rotary Club. You need to start networking with people in your community that use trucks in their day to day lives. Your main job starting a company is sales.

You should also look into the possibility of buying a truck and leasing that truck to a company. Also, the FED EX model of buying a Fed Ex route for sale is a way to get into the industry. A few years ago there was a group of Atlanta Routes going for 6 million. You might find a one route thing for sale.

All of the big boys started small. They succeeded. And if you look at how messed up some of the big boys are now, I don't see where your failure is guaranteed.

Do the SBA thing. It is always better to lose someone else's money then your own. Use the VA. Talk to some of Warren Buffet's people. They have a mentoring program.