Independent O/O

The first thing that comes to mind is that I think you need to expand your timeline quite a bit to make this work. I would recommend no less than 2 years of time as a company driver, just to get the feel of the truck and learn the basics of the business. During that time, you would have to learn the area you live in, where freight moves to, and figure out what type of loads and trailer you prefer to pull. If you are in an area that takes a lot of freight in only one direction, and has no loads coming back in, then you will have to figure out where you have to go to pick up a profitable load coming back in. The safest way to do this is to let someone else worry about the hassle of finding the laod while you concentrate solely on the business of driving the truck. Gain your experience this way, and during that time take a lot of notes and gather all the info you can on how the business works.

After that time you will have the minimal skills and experience to own your own truck and leasing it to a company. Owning a truck isn't just the process of going down to the dealer and buying one. You need to know a lot of info on how to spec it out properly, how to do as much maintenance as possible on yoru own, and be able to handle the bookkeeping and things that go with the truck. During this time, which should last at least another two years or so, you are learning that portion of the business, and determing how well you can manage your costs, as well as building your reserves of money for later steps. And again, you have to determine what you are going to do with the truck, what you will be pulling and where the money is in the business. And you should be making contacts with brokers and shippers at this time, learning the ins and outs of their business as well as yours.

To get to the final stage, of having your own authority and being completely on your own probably can happen at the 4-5 year of experience mark. At this point, you are experienced enough in the truck to survive and have enough contacts to hopefully make a living doing so. You will need a list of solid customers and possibly brokers to sell your services to, and hopefully will have enough money to survive the trials of your own authority. Remember, that many of the brokers and customers you will be hauling for may not be paying your bills until 30-45 days after you do the work, so you are fronting the cash and labor for their work. If a broker goes down on you, that money is basically lost, since they have a surety bond that covers almost nothing. You will need to handle all the paperwork and billing from the truck, since you are planning to stay out almost full time.

Is it possible to do this? Yes, but it takes a lot of effort, a lot of work, and a fairly good dose of luck along the way. If you want to be successful in trucking, you really need to find some kind of niche mrket to serve, doing something that not everyone does and serving customers in a way that the other guy can't do. You won't find the keys to the kingdom by just hauling a van from place to place, since there are a great many companies much larger than you already doing so at much cheaper rates. You have to be a specialist to do well in this business. If you can do that, and put together the appropriate amount of time and experience, then you may be able to make it on your own authority. Best of Luck!

 

Burky has given you some good advice. There are a couple of points that he did not touch on.

1) Never even look at a lease purchase deal. Whatever company you work for to get your experience will probably have a lease purchase program where you make payments on one of their worn out trucks and may possibly own it a gazillion payments later. THIS IS A SCAM. Do not fall for it. You will go bankrupt doing this. Buy a truck from a company that is not affiliated with your carrier and pay cash for most of it if possible. Don't sell your soul to the company store.

2) You can't make a living on cheap freight. A lot of freight now is going for around one dollar per loaded mile and that doesn't even cover the basic costs. Until there is a surplus of freight and a shortage of trucks again it will be hard to make it as an owner operator. The most sucessful Independents are not touching freight for under $2.00 per loaded mile. They may have a lot of running empty to get that but they make more money that way than for running at $1.00 with more loaded miles.

So my advice for you is to read and absorb as much as possible from this forum and others. It will jump start your education. Good luck.

 

Good question and thanks for the input guys.

 

The laptop is the greatest tool ever for O/O's . It lets them find far more loads than truckstop loadboards and keep in touch with regular customers . To succeed as an O/O with your own authority you need at least a couple of good base customers . This isn't easy to accomplish now . I know a few O/O's that saw freight from regular customers drop drastically . There are good brokers out there and if you work with them and give them good service they will call you for the better loads that never show up on load boards . I know a couple of O/O's that often tell a broker that regularly uses them no to loads that are below their acceptable minimum . Often the broker will call back and meet their rate . Never pay shippers to let you haul their load which is what you are doing when you haul cheap freight .

 

now i read your post with interest and you have some good ideas but first you need to no what a independent is.

if you have a tractor and trailer and authority and you do not lease to anyone, you do your own thing such as find your own loads then your an independent and i might add there is nothing wrong with that i am one and wouldn't have it any other way but there is a lot to it.

there is nothing wrong with dealing with brokers if you don't have your own clients they can keep you running.
most of the advice you have received is good but bear in mind everybody has there own way of doing things thats what this business is all about whats good for some one else might not be good for you.

if your serious about being an independent here is a few things to remember.
#1 watch your overhead that will put you out of business quicker then anything else those shiny new trucks look good but they come at a helluva cost and that monthly payment comes all to quick every month. and to have a truck taken away from you by a finance company is not a goos thing.

#2 when you load for a broker remember you don't no him , he is not your friend, never take a load without getting at least 40% of the load in advance if he decides not to pay you you wont lose as much and when it comes to money you have no friends.


#3be realistic i doubt your going to get 6000 miles a week thats a bit of a stretch and I'm not talking about legal i could care less about the dot I'm out here to make money not play patty cake with the dot but 6000 miles a week is a bit much.

#4 before you even buy your truck get you a note book and spend a couple of days on the phone Carling different brokers and get to know them tell them what our about to do get acquainted and when you do get that truck and you make the call for a load chances are they will remember you and you will be Abel to get that load.

#5 no what your going to haul and what trailer your going to need to haul it such as reefer , flat bed, drop deck, for example i do heavy haul it pays a lot more and i don't work as hard so i pull a 53 by 102 drop deck and it is different.

#6 now your gong to hear a lot about cheap freight and there is a lot of it , don't put yourself in a position to where you have to haul that kind of freight and everyone will try to get you to haul it to cheap, they make more money if they can get away with it , just don't do it if you do you make less if any, with what i haul my cut off is 250 per mile and yeah i sit sometimes but in the long run i make a lot more to, and I'm naturally lazy i like to sit .

#7 you have already got a lot of advice and your gonna get a lot more and most of these guys mean well just bear in mind what works for them may not work for you, make a business plan that you can live with and stick to your plan, leave nothing to chance'

#8 when you do get started , startling with your first check, take about 10% and put it back in an escrow account and leave it alone if you do that in 6 months you will have enough put back to Handel any emergency that comes along. and there will be emergency's and a lot of little surprises.


#9 finally and probably the most important DON'T LET ANYONE TELL YOU , YOU CANT MAKE IT you can if you work at it, but if your afraid to work and get your hands dirty this is the wrong business for you it does involve a lot of work to be successful.

best of luck to you .---southerpride

 

You're in Texas which is a good (used to be great ) area for hotshot work . Get a 1 ton dually , 40 - 48 ft. trailer , stay under 26,000 gcwr ,stay in TX , and you don't need a CDL or authority . Last I heard you don't even need intrastate authority if under 26,000 lbs . Be careful though . If a product came from another state to a distribution center and you carry it to somewhere in the state that's interstate commerce . There's a lot of specifics and conditions to these laws so research them carefully

 

You guys know this thread is almost three years old, right?

 

Hadn't noticed , thanks