Is it hard to get load for new authority company

TRUCKER101ROOKIE · Feb 14, 2023

Ridgeline said: ↑

OK I asked a specific question for a reason, but I see these threads all over the place with people saying it is a great time to start or some other garbage.

What I think, with years of experience is this ---->>> you need to step back and think about what I wrote for a bit.

It takes a lot of work to be a fleet owner, you are approaching this without any experience and you need to get on the road for a little bit (at lease two years) before you can plan on anything. Coming from an outsider to a complex subject, to jump into something that you have to understand what's going on from the driver's point of view.

Fleet failures are high, especially for arm chair owners - somewhere above 70%.

The number one reason for failure is underfunding, the second is mismanagement of money and resources and the third is buying and using JUNK.

There is a fourth reason - disrespecting the driver. You avoid turnover as much as you can.

Money wise, most make around 12% of an ROI, best fleets are around 9% ROI and those who make >20% or more are USUALLY cheap POS fleets who squeeze the drivers hard enough they can get blood out of a rock.

For every truck, you should have at least $20k for repairs.

For every driver you have to have at least a months worth of wages put away, three months >>> the best.

You can't run your drivers as 1099 - meaning you are not responsible for the taxes, you legally have to have a specific structure for that to happen with solid legal advice by someone who knows what they are doing. 1099 independent contractors have a contracts in place dictate everything, they define who does what and how it is done. Fleets that run the drivers as 1099 without a contract or without understanding what it is all about, they are cheap POS owners who need to be put out of business.

Finding drivers takes a lot of work and time, it isn't a case where you can just interview someone, go through the legal (FMCSA) process and hand them the keys. Onboarding can take a couple weeks, sometimes a month depending on your level of quality you expect out of the driver. Depending on the level of investigation into their background, it can cost anywhere from zero to $2400. You can't just stick one in a $100k piece of equipment and expect them to make money for you.

You asked about warranties, these help but they are not what you can depend on. You still need to have money in the bank to cover expenses like driver housing and other repairs. You will be paying for insurance because the truck is in the fleet and so on. You want to save $20k on an engine repair, you can spend another $25k on everything else. If the truck breaks down under load, then you lost the load and the cost of getting it there.

I can go on about logs, technology and so but I think you need to drive to learn as much as you can before you think you can get a fleet.

EDIT ---- IMPORTANT TO YOU TO UNDERSTAND - there is a huge difference between a good fleet owner and a good owner operator. I am a fleet owner, I have low turn over and I work at this every day - up at 4 and go to bed at 9 every day. This is my life, having happy drivers is what motivates me and I take it very seriously, because I am providing people a means to support their families which is what the really successful fleet owners mindset is.
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Thank you for responding and explaining everything in detail. I understand your point and will think about it and before I step in

TRUCKER101ROOKIE · Feb 14, 2023

Long FLD said: ↑

Everyone is telling you in all the threads you make to get your license and work for a company first in order to get experience.

What’s your plan when a driver gets fed up and leaves your truck and trailer on the other side of the country? It stays there until you can get time off work to go get it?

The point is this: the good drivers who won’t tear up your equipment and who show up and get the job done every day already have jobs. They’re not going to risk their financial well-being on someone who has zero experience running trucks. Your pool of potential drivers will all come with their own issues. They will all have reasons why they’re willing to work for someone with no industry experience.

Buying your trucks and getting insurance and activating your authority will be the easy part. What is your plan for when the trucks are sitting empty with no drivers?

What’s the number one reason why you want to buy a truck and have your authority?
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Thanks for responding. I understand your point, but i can’t find a place where I can work as a dispatcher for a little and learn everything. And I want to have my own business that’s why I want to start this young

Ridgeline · Feb 14, 2023

TRUCKER101ROOKIE said: ↑

Thanks for responding. I understand your point, but i can’t find a place where I can work as a dispatcher for a little and learn everything. And I want to have my own business that’s why I want to start this young
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I think the part you are ignoring is this - you will fail.

I asked how much you make, why would I do that?

Because you have to have money, lots of money to start something like this. I don't think you can approach anything until you have at least 60k in the bank.

TRUCKER101ROOKIE · Feb 14, 2023

Ridgeline said: ↑

I think the part you are ignoring is this - you will fail.

I asked how much you make, why would I do that?

Because you have to have money, lots of money to start something like this. I don't think you can approach anything until you have at least 60k in the bank.
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I have that much saved sir

Judge · Feb 14, 2023

Are you prepared for the expenses?
Since i’m doing paperwork.

Here’s last years Expenses.

LameMule · Feb 14, 2023

I think they're all wrong. Really all you need to do is purchase a truck and hire a driver then every broker you could ever want will be offering you hot loads at $1.50/mi. and your driver will just rake in the $ for you. Easy money!

Judge · Feb 14, 2023

You can add $550 for your part for 2290, Didn’t put mine i that spreadsheet i noticed.

TRUCKER101ROOKIE · Feb 14, 2023

Judge said: ↑

Are you prepared for the expenses?
Since i’m doing paperwork.

Here’s last years Expenses.

View attachment 452361
Click to expand...

Your chart is very helpful sir. How many miles was your driving driving monthly. How much is your drivers home time

TRUCKER101ROOKIE · Feb 14, 2023

LameMule said: ↑

I think they're all wrong. Really all you need to do is purchase a truck and hire a driver then every broker you could ever want will be offering you hot loads at $1.50/mi. and your driver will just rake in the $ for you. Easy money!
Click to expand...

Lol

TRUCKER101ROOKIE · Feb 14, 2023

Judge said: ↑

Are you prepared for the expenses?
Since i’m doing paperwork.

Here’s last years Expenses.

View attachment 452361
Click to expand...

Where’s the profits report hahahah

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