How to Start a Trucking Company with no knowledge about the Trucking Industry

You've heard the question asked..."How do I make a million dollars in trucking"? "Start out with two million and stop when you've lost all but one million!" This is a tough industry based on many markets, factors, industries, and really world trends. I would say you really need to find someone who has industry experience, which will be very tough to find someone you trust, that's not just this industry but any industry. So I would take the advice FLATBED gave and find a small outfit already established and learn from an experienced team who has already done it and improve on their start. All business is tough, nothing is easy any more, always be smart with your business, policies, and financial well being and you'd be surprised with what you can make out of this business. Good luck!

 

I was in the same boat, after reading this forum decided to go drive a truck first. After 6 months I am getting my authority. Don't have few years of experience, but I am much more prepared than I was earlier

 

I don't know for sure if there is a great return on investment, but when I used to work for the state of Indiana I realized that most of the single operator trucking companies that used to operate Intrastate would convert to Interstate in a couple of years; this led me to believe that business was good. I could also see an increase in number or vehicles for a good number of the operators.

 

Thank you immensely for the reply. It is becoming a little clearer how to proceed

 

Don't listen to them. You run a truck company not run a truck! So actually what you need to know is trucker, not truck.
simplely, you only need to know how to draw them a picture to earn money or own a truck. Keep them busy, cheat their money, promise them they will be a great OO. That is enough to be successful.
Do you think the boss need drive a truck?That is dummy.Find cheap loads,keep them busy, take them 25%, give them fuel card, no force dispatch,pay after deliver, have Lease program.They will think they are free, get money 3 times a day, have thousands cash in their pockek( normally they will think gross is what they earn), tell them you will treat them like family.
Lol just lie enough with a lot of money can run a great reputation truck company.

 

Thanks @Allow Me for the advise. I think I know much about the paper work that is involved; I actually wrote the computer programs that do most of the IFTA and IRP taxes for the state of Indiana. I just don't know about stuff like drivers, loads, routes, etc.

 

there is lots more paperwork besides ifta and state filings many people who know what there doing fail at this i have been in business 3 years and also used to be a driver and I still get stumped on things. its no joke this is a tough industry to be in and you wont make money right away you will be scrounging the load boards at first for at least the first year till you get some good broker contacts. plus you will need to let your mc number age a bit before anyone will give you the better paying loads hope you have alot of money to burn cause you will be wasting alot of money to learn.

 

Here are the nuts and bolts of it the average trucking company's profit margin is 2%. If you have no clue on drivers, loads and lanes (routes) and no established customer base your cash burn is going to be great. I have seen established guys that have ran trucking operations before crash and burn in the first 5 years of operation to have a growing and successful operation there is a lot of luck and just making the right decisions at the right time. You are in a pennies game making dollar decisions.

Just my take on it good luck if you decide to proceed but if you are just looking for a place to park some money while you continue your day job there are safer less risky investments that you can make that don't come with the headache of running a trucking business.

 

that's not entirely true the megas are making about that with all there over head but us smaller guys are making a much bigger percentage but really doesn't matter how much a company makes 1 bad decision can cost you the company. but thats not all you can do everything perfect make all the right decisions and your drivers can screw you out of your company. everything is a risk.