Need honest feedback - thinking of getting into auto hauling business

Hello Guys,

I’m thinking of getting into Auto hauling business. I’ve been doing a lot of research and feel like I still lack proper knowledge to make the next step. My expertise are in finance, management and investment, so auto hauling is totally a different territory. I’ve worked at major banks and investment firm on wall-street, so I possess strong understanding of money management. However, I want to take my carrier a step further by becoming entrepreneur and looking into auto hausing business.


I know that trucking business isn’t easy money making field. I would like to get opinion from expereinced individual in this field on several issue which I think they are major, but I would like to get your input on it.

• I would not be the driver driving the truck. I would like to be the owner and take on the dispatching position. I currently have a full time position which is remote/working from home and its pretty flexible on the work load so I would like to do both(dispatching and current job), if possible.
• My biggest concern is obtaining clients. From what I learn thought out my research is that there is lead board that a lot of leads comes from. However, those leads might be low paying, I could be wrong but from what I’ve learn is to get in touch with client directly and cut out the middle man which I’m not sure how to do. I’m extraverted individual so meeting up clients and gaining their business wouldn’t be a challenge for me but I still feel some what unease with this issue. Then there are good brokers that good leads comes from as well.
• Finding a reliable driver is also my concern. I’ve learn that almost all drivers are motivated if you pay them well and good equipment(truck and trailer)but I’ve also learn that retaining drivers are extremely difficult.
• I posses absolutely no experience in mainantnace of any auto care.
• Brand new truck with trailer cost in the $250,000+ plus since I'd be new at this I don't think its wise to get a brand new truck. Getting a reliable used truck is my best option. however, I'm not sure where to even begin. looked up a lot of trucks on truckpaper but i'm not certain if they'd be reliable.
• was thinking of doing southflorida to northeast route

With the above concern do you think my hopes in getting into auto hauling business a dream? Or I can achieve it? I know it will not be easy and I’m willing to work hard to make the business successful.


Any guidance, comment, concern are greatly apricated. Please be brutally honest and tell me this won't work and it wont hurt my feeling. It will only safe me from making wrong decision.


Thanks alot!!!

 

Hello,

Yes, I did consider insurance premium. I reviewed finance document of couple of the small auto transpiration operation that is for sell(1 truck operation and another 2 truck operation)l. I found that both of the business had about 10-15% expense on the insurance. Both of these companies operations was ran by the owner who did the dispatching and didn't drive at all which aliens with what I'm thinking of doing so yes, I'm aware of the big insurance cost that is associated with no experience of my in trucking or holding CDL licence. However, insurance don't concern me as its part of the business. You have to pay to play in any industry. I do agree that the liability is greater then the return which is my concern.

 

I appreciate your honest input on this! I agree that I shouldn't invest into something i don't know about. However, that is the exact the reason why I'm here doing my due diligent before I even consider putting $.01 on it.

The reason I came across this industry and this auto transport is the high return but after doing further research i'm finding that there is huge liability attached to that return and not to mention the hassle and headache since i won't be driving the truck myself.

I'm agreeing that if I'm not driving my own truck how can I expect someone else to do it for me and make me $?

 

Thank you for your input sir!

I guess the reason I got my eyes attached to car hauling was the big return. However, i'm finding big it comes with massive liability. Specially since I won't be driving.