Own Without Operating?

Do you have pickup truck? $4000 will buy you a nice used zero turn mower with a bagger and a small trailer. Its Fall, leaves are flying everywhere with lazy homeowners who would rather veg out on the couch. $60/hr is the going rate here.

 

Rank you nailed it. The reason trucking has soi many guys running trucks with out a clue is because it's so easy to get into.

 

Ok I'll make this easy for you. Unless you are willing to learn the business from the inside and willing to work at it as a driver to understand the basics, it is better to take the money to a casino and try to double it.

$25k is what I have in my tire fund for my fleet. It is also 1/4 of the amount of money in my emergency fund, and that was depleted a bit by an overhaul of a new truck's (bought used) engine.

This isn't a business for people to take a chance in, it is a serious business with real pitfalls and losers. We move millions of dollars of stuff for companies and people but we also are responsible for that stuff and many have been hit with cargo claims that put the company in the red, if not out of business.

Those who have been making good money make it look easy. You don't hear the horror stories of losing a home or wiping out a retirement fund trying to prop up a poorly run business. I as a few people are baffled by how some people become owners, and make money, while they can't do a balance sheet to save their lives. One of the hardest things in this business is preparing for tomorrow, and those who baffle me seem to be running day by day with thin margins and wouldn't last without the luck but they also are the ones complaining when something happens. If they would run it like a business with the science of business behind them, would make a lot of money but give up that idea of squeezing every penny out of every nickel attitude, which they will never do.

 

Trucking! Let me tell you a concise story. Two friends drove their on trucks. Both of them saved money. One decided to invest in real estate and the other invested in more trucks. For minute the friend with truck fleet looked great. Down the road in reality the real estate got up and up and up and fleets went down down broken driver escaped down. Choices.... 25k I would invest in real estate or stocks, but don't invest in stocks lol

 

If you will be running the truck yourself, and are a good driver as well as competent business man, you might succeed with a small investment like that. When you have driver, all the things you would take care of as an owner, expect a shop to do. Second, finding a driver is difficult. What happens when he or she leaves, and it takes 2 to 6 months to find a new one?

The whole thing is a bad idea, and all the posters agree.

 

Lease the equipment from a commercial leasing company (not one associated from a trucking company) and find a company that will do the dispatching. If you do this you will only have one huge problem and that is finding a driver. Because any driver that will qualify you to lease on as a owner only will be at least 65-75k. That's 1250-1443 a week, before any other expenses. Most places that you can lease on average 3500-4500 a week. So, basically 40% of revenue is spent on just labor. That basically leaves 60% for everything else, and don't forget if you don't offer traditional benefits you are going to have to offer some type of extra compensation to entice.
Man that 60% seems nice until you take out Insurance, Taxes, any rental fees, and fuel. Add in escrow accounts and other fees and you could be left with a couple hundred bucks. So, ask yourself is a couple hundred buck a week worth the initial investment? I mean it could take you a couple years to recoup just your initial investment and that is only if nothing goes wrong.

 

25k ain't enough to enter this game. MAYBE you could make it work if you did everything yourself. Wrenching, driving, paperwork, etc. and bought a cheap truck and knew how to fix it yourself. I would be scared as a startup with 50k if I was planning on hiring someone else to drive it.

My truck is nine years old and my trailer is twenty years old(but refurbished). I have 65k tied up in the two of them. Insurance is over 10k per year. Registration is $1,300 a year. There is UCR, HVUT, etc. The costs are non stop.

The only reason I have a truck is it is cheaper for me to own one than to pay what it costs to have someone else haul my equipment around on the time schedule I need it done. I move my heavy equipment 30+ times a year and when I need it moved I need it moved right then. I can't wait until a truck is in the area of when I can fit in their schedule which means I have to pay a premium price. Delays can cost me thousands per day. That's why I have the truck but I also do for hire hauling on the side to offset the cost of owning it.

 

I'm having a bad day let me take a crack at it.
Plates 1,500.00
UCR 80.00
Hvut 650.00
IFTA sticker 2.00
MC# 300.00
Dot # 50.00
BOC3 process agent 125.00
Insurance for new athority 1,500.00 (a month)
New mattress 175.00
Trailer plate 50.00
Truck annual insp. 150.00
Trailer inspection 75.00
Log and inspection books 15.00
New entrant drug test 45.00
Drug pool 100.00
Truck down payment 2500.00 minimum
Trailer down payment 1000.00 minimum
Broom 25.00
Gloves 3.00
Load locks 100.00
Fuel 1st month 4,000.00
Driver wages 5,600.00 (1st month)
Chrome CB mic 45.00
Air freshner 2.43

Total $17,092.43
That leaves almost 3K for chrome and lights.

It is totally do-able. The trucking industry is very forgiving and most brokers will pay a new driver a little more until they get on their feet.
Oh yeah, don't forget to call your credit card people and let them know you just started a trucking company, they will waive the interest for 3 to 5 years.

Alos, most states like NY, CA, AZ and the other 45 states will not give new companies fines because they are still learning.

 

I actually did laugh out loud at this post!

 

Not to mentioned the list didn't have the blinker fluid that megas cut out of their operating costs.