Partnering as an o/o?

Partnerships almost NEVER work. If you did this only go under your own authority. This way you can see what it’s all about on his dime. If you partnered and leased on you wouldn’t learn much and wouldn’t make enough to make a partnership work.

If it’s a friend or family prepare to not be friends or family after time runs it’s course.

Either this or balls up and do it on your own.

 

I'm not an O/O, but I would suggest some type of contract from the get go to protect your ### in the event things go south. It's real easy to call it a "partnership" but if all you're doing for the most part is driving the truck, then I'm not sure what kind of stake you would have in said "partnership" unless you're throwing money in somewhere. Seems like it could end up being sketchy, to me at least. There will be more informed O/O's & fleet-owners who will chime in.

 

NOPE

 

Once had an offer like that while doing a side job when I worked local. Helped a guy remodel whole house.Sounded good at first but soon got the picture. He would do all bidding and get the jobs all I had to do was the work!!! Partnership? Define please.Partnership with someone who doesn’t know the business? He apparently thinks you do.Some folks may think they can make more $$$ running a Truck vs Stock market or ? All said and done will probably be disappointed. Anyone Who has retired and cashed out with enough to invest will tell you it beats the Business or Rental racket or whatever they did. I would consider it a vote of Confidence, a well intended idea.Not that it’s impossible but better to be Independant.Too many obstacles to iron out while each Partner is in two different worlds.

 

I’m gonna take the opposite side of this...

A deal like you’re describing could work, but only if you structured it properly from the beginning. There would be two distinct parties involved. Person A fronts the money and gets a return on his investment. Person B puts up no money, but brings industry experience and does the labor. Person B would get paid for his labor, plus earn an ownership stake in the company over time. Depends on what terms you can agree on, but something like 5%, 10%, or whatever per year until you reach your agreed upon ownership stake.

I’ve seen it work beautifully in the restaurant industry, and I’ve also heard plenty of horror stories. It’s risky, but if you either don’t have the ability to save up and start your own company or you’re unwilling to do so for whatever reason, then this could be a possible middle ground for you.

As for where to put the truck to work, I would suggest leasing on with Landstar. You’ll get all the benefits of being an O/O without all the paperwork, headaches, and high costs of getting your own authority. You’ll already have your hands full with the deal you’re trying to do, so keep the trucking part of it simple until you see how it’s gonna work out with your partner.

No matter what you do, you HAVE TO set this up as a corporation. Do not under any circumstances allow yourself to be personally liable by just co-signing on a truck with this other guy. You need the protection of a corporation/LLC. Talk to an accountant and an attorney to see what the best way would be for you to structure it before you get into any serious talks about moving forward.

Good luck

 

For me, high fixed costs in the beginning are just part of the big picture. I’m building a business here, and I’m willing to absorb the high startup costs in order to be even more profitable in the future. Once my truck is paid off it’ll be 5 years old with approximately 600,000 miles on it. At that point after making these ridiculous truck payments for 5 years I’ll have no truck payments so I can bank that extra money every month, or I’ll have a truck worth $40k that I can just sell and pocket the lump sum, or trade it in on a new truck, etc etc. If you have any interest in becoming an O/O you have to look at the future. Return on investment 5 or 10 years from now is way more important than your weekly paychecks now.

 

Run away from this crap.

This crap never works, trust me.

How do you know he has capital?

I am wondering if this is the clown who approached me in April with the same deal?