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

Armyguy i'm at hood too and currently in the same boat and timeline. I'm convinced I will get my ### handed to me here and there, but I am also convinced that I am smart enough to make it profitable. In reality................It's not rocket science!

Get a hold of me if you want to talk, email me foldemorholdem@hotmail.com and I'll give you my phone number.

 

Resources to Learn the Business of Trucking

 

Thanks Ed!

The archives on the CCJ site have links that are inactive. Any idea how to access the old stuff?

 

A friend of mine operates 3 flatbeds and does ok. He drives 1 of the trucks. His wife helps find loads. He is thinking of downsizing to one truck. I would seriously consider investing in some other business. The profit margins are slim. EVERYTHING is getting more expensive. Trucks are getting more complicated, which results in lower dependability. So many rules and regulations. Liability: you could get ruined if your truck hurts/kills someone. I own one truck and have considered expanding. And I have the money to do it. But I don't for the above reasons. As a matter of fact one of my friends trucks was bought from a nondriver who bought it to run as a side business and it didn't work out . Proceed very cautiously . One truck to start imo. It would be a shame to lose your savings. On the other hand, there are a few guys out there that started small and built big companies. JB Hunt, Mike Starnes( MS Carriers), Duane Ackley ( Crete, Shaffer). Good luck. It could get tough.

 

Nothing new to add, but listen to what the others have said about learning the business first. I dont think this can be emphasized strong enough. Get your cdl and drive for a little while, learn different freight lanes and see the industry and flaws of it, this way you'll know what problems your drivers are talking about when and if the time comes and be in a better position to handle them. Seriously think about starting with one truck after all this.

 

Even as a driver hanging out at the truck stop you can learn a lot of the ways a disgruntled driver can rip you off.

 

I agree with this guy. Imo, go drive a truck youself for a year and you will learn about this industry. Plus, with a cdl you can go retrieve the truck when your driver quits and abandons it. That is, if he bothers to tell you where he left it.

 

Right there tells me you have your mind made up with what your company is going to do and how you are going to do it. Forget the advice of people who been in this business, it isn't relevant.

BUT if you want to learn, here is the best advice you can get.

Get the right tools to have in order to setup, run and protect your business.

That means before you even consider this as a business get a lawyer who can help you with legal issues (LLC? really don't bother with that) and an accountant who knows how to run a business like this (it doesn't have to be trucking but someone who knows how to make business decisions). Learn how to write a business plan, have those two people look at it and let them criticize it.

The other thing is that I wouldn't work for you even if you gave me 90% of the line haul, not because I wouldn't make money but because I feel if you are going to be in the business, you need to learn what it is like for the driver first hand, not be an observer so get your CDL and work for at least 6 months. This also gives you an idea of what you should expect in a driver - remember that's very important, more important than the truck.

As mentioned, you can buy cheap trucks, I don't see how bushings and stuff like that is important but what is is how the truck is used, the condition of the engine and drive train and so on. Tires, bushings (kingpins) and other consumable items should be replaced when you get the truck but because you are now knowledgeable of what is a good truck and what isn't. it would be prudent hire an inspection service to look at the trucks you want, have them run the OA, get the ECM dump and the dyno and tell you if it is worth the money or not. Just a little FYI, put $20k for each truck away in savings because if you have problems, it will cost you money that you have to have on hand. $15k for a truck? I would think at least $30k each would give you a decent one you can depend on. If you expect a driver to get into a $15k truck and be happy, you will get nothing but the dreg of drivers and your truck will not last with them.

AND forget about your dad's experience, unless you were in the cab working, it really isn't important right now. The same goes for all of the Army stuff about arranging loads and moving things around the world, this isn't the army, it is the real world.

 

Armyguy why dont you start as a company driver untill you learn the business? if you want to open a restaurant first you gotta start as a worker in the kitchen!

 

look on the ooida web page. they have spread sheets there