Owner operator worth it

DDGs on the grain end?

 

Wash out fund

 

Seems a little low on the expense fund. I would also imagine he'll be wanting a few weeks off a year vacation, maybe not. Up to you if he will be paid for these but either way will the truck still be rolling during his vacation?

 

I think you're putting the cart before the horse. I would approach the possible customers that that you've mentioned, and ask if they could use your truck, (unless they use brokers to move product which is a slightly different discussion), and at what rate (don't forget the FSC either). Why pull numbers out of the air, do as much homework as possible. I'd also want to see a copy of the proposed lease agreement, and then have an attorney and accountant both review it. $1000 for a review is lot easier to swallow than having to eat a $40k investment. Also remember that it's never a good idea to do business with family or friends. The folks that seem to have the most success in small trucking companies, are not absentee owners or bankers. And in many cases they do some of the maintenance as well. If it was that easy, everybody would breaking down the gates to get in. How long will your brother last, if he ends up taking less home than his current job? And if he stays with you making less money would he harbor a resentment towards you? What do you do when he wants home time and you have a tight month? It doesn't sound like he's gonna have any skin in the game. $40k could buy you a good chunk of real estate with a rental income. Without knowing anything about your finances, hard to give you a more positive reliable opinion. Good luck

 

I agree with finding the work but also who's dispatching the truck?? Your brother??? He'll try to go coast to coast if he can. Pay him a percentage of the line haul. Between 25-35 seems to be standard then plus 5% if he's self dispatching. Your success or failure will be upon the truck and the driver. A lot of money could end up fixing a truck but a bad driver would forever ruin you. How bout your brother come to you with a solid business plan on work plus a back up plan in case he can't lease on. Sorta like a plan A B and C. I'm don't anything about milk but I'd assume if there's any accessorials like stop pay and detention who gets that? I can speak on those numbers because I don't know anything about that part of the industry but that's a lot of miles. The key is more revenue less miles, but that's something your brother should know and should inform you.