New Logistics/ Trucking company

Discussion in 'Ask An Owner Operator' started by maffy95, Apr 6, 2024.

  1. maffy95

    maffy95 Light Load Member

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    Hello all, I havent been on in a while and was hoping to hear some ideas.

    I have been out of trucking for 3 years and really loving being home more. So here is the situation:

    I cannot get into to many specifics but I will generalize what is happening:

    I was asked to show a business plan for building a logistics company with an intial budget to start of 10 million. After talking to the investors they were liking what they heard and want to know more.

    So with that said, is it best to seek out loads directly from customers now... hire someone to start this process? We can buy new trucks relatively easy (i'll explain at a later date).

    The DOT and MC numbers are already in place as well as insurance. This is an existing company that leases trucks.
    They want to hire experience drivers and are willing to pay for that.
    Will there need to be orientation? Insurance company wants this?

    Please give me some ideas... would love to hear how you would approach this...
     
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  3. blairandgretchen

    blairandgretchen Road Train Member

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  4. wichris

    wichris Road Train Member

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    Really? Asking if you should go after direct customers?
    And they liked what they heard? LOL
     
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  5. maffy95

    maffy95 Light Load Member

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    This site never fails... always the skeptics
     
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  6. maffy95

    maffy95 Light Load Member

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    Might want to reread what I wrote...
     
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  7. maffy95

    maffy95 Light Load Member

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    my post is a problem for you that you need to pray? thanks
     
  8. shanman

    shanman Medium Load Member

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    Convoy started with 260 million. Still went bankrupt
     
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  9. maffy95

    maffy95 Light Load Member

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    pretty large loss...
     
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  10. Ridgeline

    Ridgeline Road Train Member

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    no, it is filled with very experienced people.

    We've seen this all before.

    Start with the very basics, at this moment in time with this economy, in an election year that may end up in a civil war, who in their right mind will be investing in a high risk business as a trucking company?

    This is a very serioius question that needs to be answered.

    What you miss when you try to attract investers, is what is their target return on investment and what is their tolerance for risk.

    Another question is this, if you have the experience of operating a fleet in hard times, what makes you think that you will have any success at all?

    You don't expand to say ... 20 trucks without being in the seat or being involved with the front end of the house. Being out of the game for any time more than a year is a red flag, but worse yet is to being clueless to how to even setup the fleet - you are looking at loads directly from customers you have to have something to offer them better than just what they could get from a load board, this takes managing the company for a while and knowing how to use the resources. I go into a potential customer, my reputation is ahead of my trip, they already know a lot about my fleet and why I can guarantee them preformance even over Megas.

    onboarding drivers is an art, what plans to expand the fleet means you have to make sure your back office policies and processes are air tight, there can't be hiring crap drivers which is more likely what you will attract.

    So this is all from expereience. This is a full time job just getting it ready to get off the ground and I doubt if the investors are willing to be involved with a 90% failure rate.
     
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  11. wichris

    wichris Road Train Member

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    You words, not mine. "So with that said, is it best to seek out loads directly from customers now".
     
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