I'm considering purchasing a truck, hiring a driver and contracting them out with a good carrier. Although I've driven years ago, I have no ownership experience. I live in the Dallas/Ft Worth Texas area and I really want to meet with someone one who has this kind of experience. I would be willing to travel to meet the right person who would take some time to help a "newbie" out. I have a college degree and 25 years of business management experience. I'm well experienced in running a business. But, this kind of business would be brand new to me. I just need to know if this will be profitable enough based on my needs. I need knowledge on the good/bad carriers to contract with, overall profitability of this kind of operation, typical monthly expenses, driver wages, and various other subjects. Anyone willing to help or know of someone who would be?
I'm no expert but I play one on TV. I don't know what your expectations on profit are but making any money with a truck leased on to a carrier and a hired driver will be tough. By the time you make a truck payment, insurance, fuel, driver wages, taxes and employment taxes, putting money aside for repairs and to replace the current truck AND the carrier takes a cut there just isn't much left for the owner. Not to mention the risk, what if the driver wrecks the truck and it's down for a few weeks, what if he quits. IF you have cash to start everything maybe you can eek out a small profit most months but I'd guess there are much better investments.
If you've got cash to invest and looking at a long term investment, I'd angle towards rental property or sensible stocks/bonds. If you're planning on financing the operation, ummmmm . . not sure how much you like grey hair.
The profit is realized when you have a large fleet, and have fully tweaked the operating model in order to squeeze every penny out of it. For instance, the mega carriers find profitability in being self-insured, getting big fuel discounts for volume purchasing, having 100% write-offs on equipment due to it being leased, etc. The little guys can do it, too, but will need good direct accounts that pay well, are loyal, etc. One truck, one trailer, and a driver to insure, and pay a living wage to? You'd be lucky not to come out in the red every month, especially if you're only counting on the spot-market to provide your bread & butter.
