Looking to start my own trucking company

Well at your 2 dollar a loaded mile example that makes it 3000 miles a week at .70 cents a mile that’s 2100 dollars. Now you have to add your part of his FICA that you pay. Or was you gonna hoe him out and 1099 him?
What about med insurance for him what part of that were you considering cause remember a driver that runs the truck but doesn’t break the truck fly into you #####ing all the time ain’t cheap. The national average for diesel is right at 3.50 per gallon so at 7 miles per (I think that’s above being generous you’re looking at 1500 for fuel on the truck alone. So closer to 1700 total. We all know that 6 is probably closer loaded heavy ridin hard. There will be those that claim so much better but again your guy is gonna be way closer to the rule not the exception. And I’m figuring the fuel on loaded miles no deadhead. Since their is no way to figure deadhead in to this well you get it. So that leaves you 2k to insure a new authority, comp, collision, million liability, 100k cargo is probably pretty light these days and reefer breakdown insurance. Then you got washouts, lumpers, 18 no good ####in tires, brakes, the #### sucking DOT, and getting hung up at a few docks. Again my 1/3’s ain’t dead nuts but they are close

 

Ooops - sorry, but yeah, all my figures are in there if you need to dig deeper.

One thing I do is use software to track EVERY deductible expense, this way the figures are honest as to the true cost of running a one truck business. Anybody that tells you half the story of their expenses and fails to break it down annually is kidding themselves, and fooling you. There are so many variables for so many situations in the industry it would baffle a NASA computer in a few hours trying to calculate all possibilities.

I base it on my old company driver days. I could go back company team driving for 92cpm tomorrow with full benefits. So - if the truck isn't clearing at least $1.10/mile profit to the house, then it's somewhat a failure.

So I need to gross about $2.50/mile for every mile ran. Or - as @wore out and others say, and I lean towards more now than I did - look at the gross per day, regardless of mileage. $1,000 to the truck per day, paid off , owner driver - is a good figure to start with.

My profit to expense ratio has varied between 55/45 - to 70/30. Run that up against a new truck with payments and variable maintenance years with an older truck, and you'll likely find a new truck with payments traded in every 2-3 years wins against 'old iron'.

But either way, you have to have some skin in the game, which is why 'zero down lease' never seems to work, but may suit 1 in 100 folks - not all can pony up and tote the note on $250k of equipment, and then - there's a slew of guys like the OP in this thread, and no disservice to him - ask the question he did, and - well then there's reality and experience. And I'm pretty new on the experience side of things after 10 years - but I'm running out of years too.

 

One comment - MO has pretty cheap fuel, low IFTA. Better off to base fuel cost on the national average after discount to be realistic.

I run 6.25 lifetime average on the 12.7 S60 - base all my numbers off that (well they're reflected by the records), and fuel cost in the last 5 years ranges 50-60 cents per mile. Again - a HUGE amount of variables in all operations.

 

I was just looking at where I was going through tomorrow for idea when I seen that post.
I’m really outside Omaha.

 

Blunt and on point. Even if you follow what @rollin coal is advising…You will probably fail. Not you on a personal level. I don’t know you or your capabilities. Just as a general statement to the masses of dreamers. Refrigerated is a very competitive market and there are plenty of guys that are great salesman, wealthy with lots of resources, and a track record of service that you are competing against. My advice is start with a customer before you have the equipment. It’s all who you know and what you do for them.

 

As a bonus, when you’re blowing off into the coke silo, if there’s any swirling around from a lose fitting you can go back and make that turn again in no time!

 

Just an fyi, the OP is talking about cargo van freight, not semi freight with a dry van.

There is a huge difference in both freight and costs, while it is cheaper in a van to move stuff, it is also a lower revenue.

Putting a driver into the van means it is a very thin margin.

 

He clearly mentioned contemplating a tractor and reefer purchase.

 

Cargo van is what he’s doing RIGHT NOW.

 

Welcome aboard, you came to the right place. Many of us here went into this willy-nilly without the luxury of this site, and failed miserably, but not until several years of despair, and finally ditched the truck to the next poor sap, ( you?) and got that great company job. You won't find many here that will go along with your idea, not to be rude, it's just we've all been there, and not anymore. Insurance will kill your operation, and frankly, the revenue just isn't there today, not with $40 wiper blades, and such. We however, have had many asking the same questions over the years, and it's natural to think after all else fails, why heck, I can still drive a truck, and for the most part that's still true, just not your own, not yet anyway. PLEASE, don't do this. It's estimated, 85% of O/Os fail in the 1st 24 months, 21% of those are equipment failures. Drive the bosses truck, and go fishing on the weekend!