Is it difficult to get loads in your first year as an owner operator with own authority

I’ve been in business before but I’m thinking of starting again
Brand new company with new MC & DOT
will I be denied work being a brand new company out there
Thinking of running reefer
Thanks for your health and happy thanksgiving

 

Some brokerages won't work with a brand new carrier but most will. The problem many run into is not that a few select brokerages won't work with them, it's that they run out and buy a truck with out any business experience or acumen. They don't understand basic business practices or market dynamics.

 

Insurance cost are expensive for a new carrier

 

Anyone will work with you if youll run the stuff for free.

 

Brokers love new numbers..
Just know the market & spot rates before taking things.
Have preferred lanes and freight types planned out in your head.
With some effort you can you can pre plan some runs when you know what picks up where & when.

 

I’d say the majority of OO had no business experience at first. I wouldn’t know, but one might guess the biggest hurdle with own authority right away is that they had no experience owning a truck before, either fleece or leased on. Rather than no prior business ownership/experience being the cause of failure

 

The truck is just the tool. It's no different than the oven and stove to a guy that opens up a restaurant.

You are absolutely correct that most OO's head no business experience before getting their truck. And last I read 98% of new oo's go out of business in the first year.

Any monkey can drive a truck, it isn't difficult. But it takes a mind for numbers and business to make a profit with a truck. Heck most can't even tell you what their costs are.

 

Insurance alone 20-30k a year, and the fact that brokers see a new MC and automatically do a 40-60% reduction on rates.

 

And that's where business acumen plays a big part. Business experience teaches you to study the market so a new owner operator with prior business experience or some formal education will enter that conversation better equipped to negotiate a fair rate than a new owner operator with no business background.

 

business experience or not Brokers go full on “take it or leave it” when they see a new MC, they know they can move it at let’s say $2pm but will take gamble at $1.60. So it’s not skin off their back if Mr Business Acumen doesn’t agree.