I am taking the plunge

It can be done, but when the money is flowing you are far better off to grab it while you can. The slow times WILL come, then you might be at home for a week or two or however long, then you will may behind the 8-ball. Kinda like that old saying about a stripper on stage - when they keep throwing money at you - you keep your butt on stage - when the money stops - that is when you go home.

 

Numbers are close,.. but expect to pay more for a few things and expect to pay additional costs that are what I (Inappropriately) call 'WTF' expenses.

While a decent truck can be found and had for $25k,.. dont expect to jump directly into that truck and hit the road just like it is. I paid only $20k for mine,.. but I drove it for 9 months as a company driver and hounded the company owner to get things repaired on the truck before I decided to buy it. Buying a truck blind,.. you dont know what you will be getting into. Even with maintenance records, with out first hand experience in that truck,.. it will be a hit or miss as to how much you have to spend on repairs. Even now,.. I am looking at $5000 - $6000 in maintenance and repairs after only 2 months on the road as an O/O. I was not expecting to spend this much this soon. But I was prepared and even with out my nest egg, I had been putting money away from my settlements.

6 mpg is attainable with flatbed,.. but with the 3 trucks I have used in flat bedding,.. none of them averaged 6 mpg the whole time. MPG fluctuates with each load. Terrain, weight, wind resistance, condition of tires/truck will weigh in and play havoc with what your expecting for mpg. My weekly fuel expenses vary greatly from week to week. I can have a great week averaging 5.8 mpg and barely use $2200 in fuel,.. or as in last 2 weeks I used over $2900 in fuel for each week with barely 5 - 5.2 mpg as a weekly average.

Part of my maintenance and repairs when I get home next week will be fixing bugs in the truck to help improve fuel mileage.

I would try to have at least $30k set aside to cover fuel and repairs until you have a steady income rolling in. Brokers dont like to pay immediately,.. so unless you pay them or a factoring company a percentage of your profits, your cost per mile will increase.

I do admire your courage jumping in and going with your own authority right from the get go. How ever I do recommend you research the ins and outs of how your going to run and get loads in order to be paid. Another thing and oyu may not like this at all. Its not for everyone. But look into leasing on with a smaller company that will be hungry to make both of you money. Your initial start up cost will be less, you can use your own trailer or you can rent/lease a company trailer until you have the cash to buy your own. I'll give you an example,...

I was a company driver for a small owner operator company. He has 6 trucks of his own and 11 other O/O's running on his authority. 12 O/O's now that I bought my truck. Here was my start up cash.

Truck - $20,000
Registration/Tag - $1670
Bobtail insurance - $139 down, $61 month
Thats pretty much it. I never stopped rolling the entire time. My transition from company driver to O/O was nothing more than signing a contract and making a few phone calls. I already have 3 laptops, I have 2 inverters and printer in the truck. I use Quicken to keep track of my expenses and paperwork.

While I do have the cash to buy a trailer. I am leaning more towards buying a brand new trailer. I am undecided as of right now which trailer will fit my needs better. I am in the market for another truck once I get the bugs worked out of this one. And I may or may not put a driver in it or sell it. All depends if I can get the truck capable of sustaining 6+ mpg with driver management. The trailers I am looking at are all above $35k. I have found that step deck offers a bit more versatility in getting better paying loads, whether its hauling equipment or taller loads that a regular flat bed can not. And I can still do everything I could with a regular flat bed,.. 50' pipe or steel plates are no problem when using my load levelers.

As for the rest,.. the company owner covers all other insurance. Bobtail is only needed when I disconnect from the trailer. I am on my own at that point. I pay $120 weekly for use of his trailer. Other than tires,.. the owner is responsible for maintenance and repairs to the trailer. I made good money as a company driver. I was dispatched very well. I never sat,.. so I was very comfortable to buy the truck and lease on here. I have a standing agreement when is comes to dispatching loads. Its agreed that anything that comes out over $2.35 a mile they do not need to contact me first. Like say if there is a load paying $3900 with FSC for 1400 mi. They will book the load and have it ready for me as soon as I deliver the load that I am on. I rarely have to dead head more than 50 - 100 miles. So it comes out as at least $2.50 - $2.70 mi. Anything that comes out under $2.30 mi they call first. I pretty much agree to anything over $2 mi. But I like to make sure its heading to an area that will pay well coming out. For example,.. I wont be taking a load to ND, NM, AZ, WY etc for $2 mi. Chances are I wont get more than $1.40 - $1.60 coming out. I'll want at least 2.50 a mile or better to go into those areas,.. then I'd rather sit for a day or 2 and wait until better paying load going out comes up. This company is very good at finding me well paying loads.

I get 80% of the line haul. I'm paid each and every week with a direct deposit to my bank account. I have use 2 different fuel card arrangements. I use RTS fleet card which gets me the cash price at all truck stops except T/A, plus I get 5% off. Then I have a credit card through my bank which gives me 9% cash back on all fuel purchases. Using the credit card you pay more at the pump, plus you have to go inside to get them to turn that #### thing on and then go back into get your receipt. With the RTS card I can pay at the pump and then like with Peelot and FlyingPee I can go in and get my receipt quickly at the kiosk. Or if I use Loves, 'most' of the time they have my receipt ready in the tray. I rarely if ever use T/A for fuel. I hate standing in line waiting to get my pump turned on or just to get a receipt. The only drinks or food I get at truck stops is if I have enough points to get them for free. Other wise I do all my shopping at walmarts and typically just stock up for the week. I ripped out the bottom cabinet behind the driver seat and put in a large hotel size fridge with freezer. I bought it at walmart for $149 on sale. Plugs into my inverter, as does my coffee maker, hot plate and I have a hibachi grill for doing hot dogs, hamburgers, steaks, sausages, chicken, what ever.

So far I'm averaging $3200 - $4200 in weekly settlements. I run hard, so its not like I dont earn it. I run where ever the money takes me. I stay out 4 - 6 weeks, then I stay home for 6 - 7 days and come out when I'm ready to hit the road again. I can go home at any time. I do not have to stay out for 6 weeks. Its just that with me staying home for 7 days,.. that is an unpaid week with no money coming in. So in order to keep the money rolling, I found that 4 - 6 weeks out works a little better. My kids are grown and I have a very trusting and understand wife. I love my family very much. And yes,.. I do miss them very much while out on the road. My wife has been out with me a couple times. She gets bored easily because I dont stop very much. She's coming out with me for the summer. We plan to stay out till Sept or so. Take a week or 2 off in Vegas and a stop at Moab and a few other places as well. This time she will be doing my book keeping and learning the ins and outs to get a better understanding of how things work,. and getting a vacation to visit different places in the process helps.

I do have plans to get my own authority. I am slowly getting my wife involved. Once I break off from where I am now, I dont want to be hassled with having to search for loads. Teach my wife what to look for and how to set up loads for what ever lane I happen to be in. Once she gets it down,.. I will be fully independent.

Not trying to discourage you from getting your authority. If you do it right,.. you will make the most money doing it that way. Just trying to give you an option that wont require as much up front capitol $$$$. I found it easier to get started this way with less risk then if I had jumped in with both feet like what you are planning to do.

I wish you the best and good luck.

Keep us updated as to how things go.

Hurst

 

and there lies the biggest obstacle against you, you do what you have to do to make it. you have already started your list of where I wont go or wont do before you have even purchased a truck.

think about it for a bit.

 

Yes you can run out and back to the house. the good carriers realize you are a business owner, not an employee. You work as much, or as little as you decide.
Note back to own authority vs leading on at a good carrier. The number one factor in that decision should be where are too getting your load from. Do you already have an established direct customer base? Or will you be relying on public load boards? If the latter, I have to ask you, have you seen loadboard rates? they are not very good, with very few exceptions. Load boards should be used to fill gaps in the direct customers, and to get you to your customers loss. Not as your primary source of revenue.

 

I see the point your making but I think the rates you see advertised on those load boards and what they are finally getting the loads moved for are 2 very different numbers.

 

not really, you may not know , spyder is leased now but had authority previously, as did i.

 

I too am starting into this quagmire of owner/operatorship and the only thing I don't see is the payback of the $55K in initial startup unless you plan to save that money beforehand and won't need to borrow any of it. I did notice though that you had mentioned borrowing at least a portion of it which should be included in your monthly expenses.