Main Reasons for High Initial Failure Rates

Discussion in 'Ask An Owner Operator' started by ElijahJohn1, Jul 10, 2019.

  1. ElijahJohn1

    ElijahJohn1 Light Load Member

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    What are the primary reasons that the failure rates for new trucking companies are 85-90% in both the 1st & 2nd years? I have a feeling it has to do with a lack of cash leading to bankruptcy, and if that is the case, would having a primary job providing around 100k be enough to circumvent that (Not bad management, accidents/bad luck)? Thanks
     
  2. 1. Knowing what your overhead is
    2. Keeping left door closed & don't haul cheap freight.

    Just a few

    Also about having a cash influx from another source will only burn thru that money. The truck needs to be profitable.
     
  3. thelushlarry

    thelushlarry Road Train Member

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    I would tell you what I think. However, I got to wait for wife to get home to tell me what I think.
     
  4. Eddiec

    Eddiec Medium Load Member

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    Are you going to be driving the truck or are you going to hire someone to drive it?
     
  5. ElijahJohn1

    ElijahJohn1 Light Load Member

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    Hiring an experienced driver
     
  6. Puppage

    Puppage Road Train Member

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    You’re a good boy, Larry.
     
  7. RedForeman

    RedForeman Momentum Conservationist

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    No. In fact, it will probably help you lose money faster.

    Your trucking venture will demand immediate attention at times. You'll either focus on that and put your day job at risk, or focus on the day job while your trucking venture robs you blind.
     
  8. Eddiec

    Eddiec Medium Load Member

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    Let me offer you some advice - Go to a large truck stop chain, and watch the fuel pumps for one hour, and see if you still feel the same.

    If you want a good experienced driver to work for you, then be prepared to pay them $75 - $80K per year on a W - 2. Plus benefits, bonuses, retirement package and paid vacation. Good Drivers already have jobs!
     
  9. Intothesunset

    Intothesunset Road Train Member

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    No modern truck is profitable after warranty is done, repairs will bankrupt you unless you can repair modern systems.
    You want experienced drivers not cry baby's own eld exempt outlaw trucks.
    Haul freight that pays for more than fuel costs.
    A driver that can't keep a truck clean is not worth hiring.
     
  10. ElijahJohn1

    ElijahJohn1 Light Load Member

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    If no modern trucks are profitable after warranty, would you say it's better to lease a couple years at a time and hope for no breakdowns, or repair an older model?
     
    Intothesunset Thanks this.
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