So you want to hot-shot? (Will be updated/edited frequently)

Mostly I'll be building these containers into job site offices, tool and storage units to either sale, or rent out to large construction companies. I have a few other ideas for them also but not something I want to talk about publicly yet. Things I can offer that others in the same type of business currently don't.

 

As far as outcome. I figure even if I just tinker around with this in my spare time here at home. It'll be profitable. If there's a lot of interest from construction companies in what I turn out, I can always rent a large shop and hire people to help take it to another level. For right now it's just a weekend hobby.

 

Would you guys deter someone from entering? I just want honest info on the trade. Looking at possibly making a career switch in the next 6 months to a year. If you had it to do over again, would you have chosen this?

Also, are there any guys from Mississippi in here?

 

Sometimes people lose money trying this. I suggest research try to figure out how you are going to get freight.I would do this again because of the freedom it allows me. I did not have access to these type forum where I could read other people's experience and ask questions. Really by doing the hotshot thing and using the internet to search for loads is how I learned about the internet. I am old school never knew why the kids always stared at their phones, or texted all the time.

 

Couple years ago I read an article about some college students that found good money making use for containers. They bought an old abandonded parking garage, maybe 4 stories tall and put containers in the parking spots. Aquired some seed money and transformed the containers into rental apartments. Those things are beautiful with heat/ac, bath, windows, etc.

 

Thanks for the input. Yes, I am definitely researching the best I can. I'm trying to find info for the Jackson, MS area with maybe a 400 mile radius of hauling. Haven't found what the loads are starting at per mile yet.

I'm trying to put an amount per mile estimate on expenses. I have 18 cents for the truck, 30 cents per mile for fuel, 7cents per mile for insurance and 5cents per mile for maintenance. I'm sure I'm leaving some expenses out. possibly getting only a $1.00 per mile only leaves 40cents per mile left before taxes. at 100k miles per year thats only $40k income. I know that maybe low realistically for all loads, but its a base line to think about.

I know you should set 25% aside for taxes, but how much tax relief do you get from the write offs and depreciation?

17 cents per mile on the truck is based off a $54,000 truck for 300,000 miles

 

The only time I deter anyone from getting into this line of work is when I'm talking to them and I sense that they don't have the drive to make this type of business work. Make no mistake, this can be a tough business and people who do well in it have that nothing is going to stop me mentality.

Only had a chance to glance at your numbers. You're target rate per mile needs to be much higher. Ebay and craigslist is full of used trucks and trailer for sale from guys who thought they could haul for $1.00 a mile.

I'm swamped booking loads this morning. I'll come back when I have some time and look at the rest of your numbers.

 

That sounds great. I've read through this thread a lot. If you have time, is actually like to talk to you about it.
Thanks

 

I would seriously consider waiting until next year and see how this electronic log mandate effects the hotshot business.
Guys will definitely be making less money and the other effects are yet to be known.

You need to be getting a lot more than $1.00 a mile. I wouldn't move anything for less than a bare minimum of 2.50/mile. If your willing to run for 1.50-2.25 there are lots of loads available. Many, many guys go out of business in the first two years. Taking brokered loads of the load boards will run you broke faster than you can imagine. You need direct customers who are willing to pay you a good rate and value your service.

 

$2.50 a mile would be great but the fact is, he's not going to get that on every load. And just starting out if he waits around for loads paying $2.50, he might go broke?

Figure your op cost on 8 to 10 thousand miles a month. Then run some lower rate per mile figures like Midwest1 posted above to get an idea of where you'd be if that's all that was available. Yes, you will get some $2.50 per loads but if you sit around waiting for just $2.50 a mile you could be sitting a long time in our current economy.

Once you have your op cost figured out, add a decent driver pay per mile (for your paycheck), and add a modest company profit. Every company needs to be profitable.

For example, lets just say your op cost. Plus pay, plus a modest company profit totals up to $1.40, or $1.50 a mile. Knowing that, are you gonna turn down a load paying $2.00 a mile? Me personally, no I'm gonna take that load and roll. Might even take one paying a little less if that's all that is available, depending on the circumstances, type of load, and where I'm sitting, and where it's going?

And I'm gonna try to keep rolling steady above that magic number for as many miles a month that I can. Why? Because everything I earn over that magic number is frosting on the cake. And having that frosting in the bank might come in handy during a slow spell.

Now if I had sat there and refused those loads paying less than $2.50 a mile. I might not have ran very many miles in that same month. Can you afford to wait for $2.50. A mile just getting started. Most people starting a new business can't.

Whenever I talk to a new guy that's trying to figure this stuff out I tell him to figure a higher than actual op cost, and lower paying per mile loads. This way if he sees that he can make it in this "worst case scenario" then chances are he'll be pleasantly surprised.

Getting a high rate per mile wont help much if you're not getting enough miles.