Question about investors in the trucking business

Discussion in 'Questions From New Drivers' started by Trucker.1986, May 22, 2024.

  1. Trucker.1986

    Trucker.1986 Bobtail Member

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    So here is the deal I have a friend whom wishes to be a partner or an investor in my startup. If he goes to the investor route how does it work? And how much would he need to invest to claim percentage and what percentage? Obviously if he goes the partner route I want him to wait untill my authority ages to were I can start hiring drivers and he will eat only on the truck we purchased together. So if I drove with the truck I purchased I will eat that alone. I don't want him to invest or partnership when I'm starting out becuase I know it will be hard and first year I wouldn't make any money. So if he pushes to invest how does it work.
     
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  3. 86scotty

    86scotty Road Train Member

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  4. tscottme

    tscottme Road Train Member

    The both of you can agree to almost any situation you both agree to. Do not even consider this until after you have a year of CDL driving, accident free and no tickets, working as an employee or company driver. Working as a company driver means ALL of the financial risk of operating the truck in todays terrible, horrible freight market is on the trucking company and not some newbie that hasn't purchased diesel fuel before. IMO, you are years away from responsibly entering into a partnership agreement. 80-90& of new CDL drivers quit long before they get 12 months of work experience. Trucking is unlike most any other business you have ever worked.
     
  5. Trucker.1986

    Trucker.1986 Bobtail Member

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    I have 6 years of box truck driving. I am aware of the horrible market and frieght. I also have a second business that will pay for everything I need with trucking. Of course I will get some experience first. I'm asking what's a fair contract for an investor.
     
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  6. Chinatown

    Chinatown Road Train Member

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  7. Lennythedriver

    Lennythedriver Road Train Member

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    Don’t do it OP. Rates are so low, most truckers are either sitting or waiting days for a load that they can at least break even on. Unless you got a good set up with the shipper and receiver, there’s not enough money in it for you as the owner operator and an investor. Both of you gonna want some profit. It’s not there right now. we are 20 months actually 21 months now into the longest low freight rate depression I believe in modern trucking history. The average trucking downturn last eight months. This one is already a 21 months and it’s still getting worse. Wait for things to turn around. They will eventually, but unfortunately, it’s gonna be a while. Start something now and then go bankrupt and then turn around when you could’ve been making a lot of money if you waited.
     
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  8. Trucker.1986

    Trucker.1986 Bobtail Member

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    May 22, 2024
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    I am prepared to make no money for a year as long my authority is aging. Quite honestly I'm doing it more for the life style. I'm doing it so if I need to take months off to attend my other business I can do it at will and not at the mercy of a carrier. I'm eating well with my personal business so money is not an issue. I will be meeting with my investor this Friday to explain its better for him to wait and be a partner. He's a good friend that's been there for me and has tremendous belief in my capabilities seeing my other business doing well. So you know I don't need it but if it's a favor I'd like to know how investors work.
     
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  9. Lennythedriver

    Lennythedriver Road Train Member

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    Lifestyle? If you’re an over the road truck driver, especially a full-time one. Yes, you could call it a lifestyle. There’s no way around it. We live out on the road. But to do it at a loss or just to try to break even because you have a romantic Ideology or fantasy about what it’s like to be a trucker out on the road? Let me tell you something, man, well that might be true to some extent those weekly paychecks at the end of the day are what keep me going. Lol. I absolutely guarantee you no money and only the lifestyle part will wear off within six months. Maybe even within the first week.
     
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  10. Trucker.1986

    Trucker.1986 Bobtail Member

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    OtR box truck driver can't be any different. You have the luxury of a huge cab. I delt with just a sleeper. So if you don't anything positive to say the discouragements are not working.
     
  11. Pepper24

    Pepper24 Road Train Member

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    Then why do you need an investor? Love guys like you the real truth is most likely you don’t have any money and trying to basically bs some guy most likely a relative who does by telling him how many millions you’re going to make if you could just get your own truck.Experience driving has very little to do with owning a trucking business if you don’t have a solid customer who is going to give you freight.Which you haven’t mentioned at all so there is none in reality It’s not how good a driver you are how good of a salesman that matters I personally wouldn’t give you a dime.
     
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