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

That part of Alabama has no manufacturing, always good to search your backyard first.

 

Here's what I would do. Take it for what it's worth.

If you really want to take the leap into this business I would keep working your day job and save as much cash as posssible. Try and pay cash for your truck and trailer. I realize it's a lot of money but when it slows down and your phone isn't ringing for loads you don't have to worry much about that next big payment. Have as much cash saved as you can. A lot of guys jump into this business finance everything and don't have any money in the bank. It's a recipe for disaster.

Get your own operating authority. It's easy and doesn't cost a lot. I know I'm going to get a lot of bad response from the rv guys but I would steer clear of hauling rv's. Call
a few of the companies in Indiana and see what there paying. Then sit down and do the math. Some guys say there making money. I personally don't see it. I guess it really depends on what you consider making good money is.

When I started I worked off the load boards and it wasn't long before I caught a few breaks and some local companies were calling me for quotes on moving there freight direct. I never even considered leasing to a broker and it's worked out.

Finally, I'm not usually one to persuade someone from doing something they really want. However, if you have a good job, benefits, insurance etc I would really think twice about leaving it to get into this business.

 

Midwest1 and Lite Bug are spot on with everything they're saying.

Yes you will meet Brokers, and even some Shippers on old boards. Whatever you do though, never solicit Shippers that Brokers have sent you to. Always represent who you'll be working for in the best possible way. Your name is all you have and when Brokers see that you do your job well and don't try any funny business they'll start calling you with everything they have.

 

Some information on this business nobody else out there will share with newbies.

You new guys coming in, or thinking about coming into this business, you need to have a clear plan, and be focused if you're going to have any chance of succeeding. And for those with absolutely no prior trucking experience, it would be smart to run your plan by multiple people to get their perspective on it. Most importantly though, you need to be able to rethink your business plan and change direction in a heartbeat. You need to be very flexible with things like, what you'll haul, and where you'll haul to. Every year I see guys jump into this business unwilling to bend at all to help themselves succeed, their money runs out and they go out of business. The bottom line is, If you're not making it doing It how you're doing it, you better be willing to change things up.

Before you jump in, run those numbers over and over again with different mileage and rate scenarios. Don't just be thinking about what it costs to own and operator a truck. Think about what everything in your life costs. Your rent, or mortgage, putting food on the table, paying all them other little bills, and putting something away for the future. If you can't cover everything running your fluctuating rate and mileage scenarios, maybe this business isn't for you? Income and costs change everyday in this business. There's times where you'll be doing great for months, even years and all of the sudden things change. For instance whoever you're hauling for can be outbid and run out of work for you. It happens. Something else, don't look at one load by itself, look at multiple loads together. Divide the money by the miles on multiple loads, not just one. Thats how you come up with a true average rate per mile. I checked those numbers by the week, month, and by the year, when I was out there running my own truck. It can help you to be a little flexible when considering a load. For instance let's say you hauled a load into Montana for $2.50 a mile but all you can find leaving Montana, taking you back home is $1.40 a mile. The smart Owner Operator is going to put the inbound, and outbound rates together and divide them by the round trip miles to see if where he'd be at on the run. Never be afraid to call a Shipper, or Broker back that is offering a rate, to ask them if they can come up a little when you're coming up a little under where you'd like to be on the run. Everybody negotiates in this industry. There's no reason you shouldn't be doing the same.

If you're still here reading this. Your work ethics, a good personality, your negotiation skills, and how flexible you are will take you a long way in this business. It'll get you noticed quick by Brokers, and Shippers who are serious about moving freight. Know your true operating cost and never spit out a rate for a load until you have taken a informed look at it. Take down the load information and tell them you'll have to call them right back with a rate. It takes years of experience before someone can offer a correct, on the spot rate . Every lane is different, with some areas it's easy to find reloads and others no so much. Be thinking about that when figuring out the rate you'll offer. If the rates suck out of the destination area, pad your rate going to that area to help cover your potential loss. You're not in the business of helping out a Broker or a Shipper that you've never done business with before. Watch out for the Brokers and Shippers that act like a long lost buddy, telling you he has a lot of work for "IF" you can haul for a little less. Chances are all he has is this single load for you. The only time you should be trying to help a Broker, or Shipper out on a load is when they've been giving descent paying loads on a regular basis. Not on the first load you're hauling for them.

Keep in mind though, when figuring your rates out that there's only so much money freight can pay before a buyer passes on buying the item, or items. When I work with a Broker and Shipper, I'm thinking about stuff like this, and I try help out, when and where I can. What I mean by that is, I'll try my hardest to figure out a rate that everyone can live with. I'd say that's a big reason why a lot of the same Brokers and Shippers call me on a regular basis. Basically what I'm saying here is, know the value of the freight before offering a rate. Alot of sells are made, and lost based on what it's going to cost to ship an item, or items.

 

This post needs to be made a sticky for ALL facets of owner operators....

 

I will 2nd that.

 

That was a great writeup @flatbedcarrier. You've been a great resource thus far, thanks for all the help in looking into this career. @Lite bug and @Midwest1 as well lol.

 

Like FBC says about the ability to change direction all the time. Example I went on vacation and when I came back I usually let the guys I have been hauling for know. Well since I only haul for a few people it becomes apparent quickly when I don't heat from somebody. Turns out my agent switched brokeragies while I was on vacation. Well you know one person can't service all the freight and he needs someone when I am not there, and since I don't have the new telephone number I can't even call to find out. Then the other time I went on vacation brokerage buys out brokerage (Access America) ( I know you hotshot guys remember them, they had plenty of freight and they paid fast and fair) well you got to hunt down the agent who is handling the freight now. ( most of you know who has their freight now ) This year get back from San Diego, our son is stationed there and visiting him and his family. We were there for 2 weeks and when I get back I e-mailed one of the newest freight connections, turns out they lost the freight contract to a different broker. Well I have called and thus far only been able to leave a message. What can you say on a voice mail other than your name and number. My point is, even if you think you are doing everything right something is bound to throw a wrench in there and mess you up. Yes I could never go on vacation but something will eventually happen.

 

Gotta say this is a great thread and while i have only read part I look forward to reading the rest as i have time.

So recently i drove with a friend of mine who is currently running 3 hotshots out of socal, 2 flatbeds and one enclosed 48ft car hauler. We drove the 3500 and trailered two cars to norcal and one back. Gave me a chance to get on the road, see some sights and i loved it. Over that week his 3 trucks grossed about 24k, apparently his expenses come to about 62% leaving 38% profit which seems phenom to me. Especially if thats taxes included. He uses a broker and factoring company as well.

Anyhow, ive since made the decision to get my cdl, going to Knight and plan to drive at least a year to get some experience and set myself up to purchase a hotshot setup and cant wait, considering a semi too though. Bit of a career change but looking forward to it.

My question, if anyone cares to share, what are your expense ratios, does it include taxes, truck payments, maintenance? I know he financed his trucks and extended warranty(4 year unlimited mileage warranty) so aside from fluid, filters and tires his trucks are covered.

2ndly, every thread i seem to read bashes LP programs and even OO big rigs, and based on cpm, friend was getting 1.50 on the lowend and 2.00+,and big rigs often the same or less, seems hotshot would bethe best bet at those rates and lower overall costs too. What are your thoughts? Ive talked to car haulers, big rig, making great money. One even bought a GT3 911 from a customer, cash. Another says he is on a dedicated route, 3-4 times a week from socal to Az and nets $10k month.

So, bigrig or hotshot? Wheres the money at assuming you have an excellent work ethic, business plan and solid accountant in your corner? Im still at leaat a year from that decision but no reason to not start getting my ducks lined up now. Appreciate any input or direction to threads or links.

 

Great thread lots of seriously good information!

I have been working for a medical transportation company towing cars back and forth through north Arkansas and Southern Missouri for a few years now. I have been seriously considering trying to pick up some hotshot work. I've seen alot of available trips on load boards in the area. My concern is I'm driving a 97 7.3 drw. Great truck and I've put alot of miles on it with more than 10,000 pounds of load. I'm not really concerned about it getting the job done but will I have trouble getting work with an older truck? Thanks for putting this thread together been a great read!