So you want to "own " your own company

hi! I know this thread is old but please keep it going. I have some questions but first let me explain my situation. My husband is an owner operator. He hauls grain in Illinois. He works under someones authority. Now within a year he plans on getting his own authority. He plans o n buying another truck to put another driver in it. He also plans on hiring some owner operators. I will be the dispatcher, I will be doing the billing, Misc. tax forms, paychecks, all the office work and the necessary paper work for our company. How do I learn all the office work aspect to run the company. He also does not want to work with a broker he wants to work directly with the shipper. especially the billing to bring the freight into the rail yard. I need to learn how all this stuff works. I am a really fast learner. Any advice will be greatly appreciated.

 

Stop posting the same question all over the board and let someone answer the first one

 

actually if you were going to be rude about it you did not have to comment on it. Im new to these threads and I do not really know how they work, but anyways nobody asked for your ignorance. But then I forget not everyone can be professional. Your reading my comments im not reading yours. Obviously you dont know the answer to my questions or you would have answered it so mind yours and stay out of mines

 

1) Woa.
2) you can learn by googling it all; this site has a lot of knowledgable people and great threads. Use the search button, it is your friend.

 

Actually,

I do have a great idea WHAT you need to do.

I had been driving and stopped for a rest stop when i read your first post.

By the time you posted it rapid fire in the third location, it pretty much told me you weren't going to really pay attention to what people were going to have to say.

Since I KNEW you had rapid fire posted it in so many place because my subscriptions notified me, I saw that pretty fast.

And all those rapid fired posts are very rude for forum ettiquite no matter where you post.

It's obvious you have no grasp on the business side of the truck, you also have no grasp on the people skills side either.

Or you would have at least waited for a half day before reposting your question.

At that point, I had no clue which thread you were truly following. I didn't know WHICH thread was going to elicit the most responces you deserved.


Beides, you said, "ANY advise appreciated,"

 

Didn't sound rude to me, just to the point. One thread is desirable because it keeps the answers consolidated. Others learn from the info, and people might miss something important if there are multiple threads scattered around, each with different folks giving input. Don't take it personally dwinns, we can help, just hang around and watch. Also, use the search function; it's invaluable and will help you find a lot of data you're looking for that has already been posted in the past. We play well with others, just relax and have a cup of coffee.

 

MNdriver Actually I can grasp the concept but if someone is new to threads rude people should not post comments unless they have something positive to say. No one makes you read others comments you read them because you want to. And obviously I don't have an idea about the business side or I would not be here asking questions on how to learn about it. Now again if you cant help with any of my questions then PEASE DON'T COMMENT AT ALL??????????????????????

 

Use the search function. When i joined in february, i used it here extensivley to write a business plan to get financed to become an O/O.

Contact your local S.C.O.R.E. office and get a local mentor. Use google or bing and search for the link yourself.

Trucking is about people skills. How you interact with others, how you accept even constructive critisism. Humble pie is wonderful served warm.

Start your own thread for something like this. It's easier for people to help you that way.

 

I would suggest that you take it slow and easy. Run your authority for a year or two before adding any more trucks. If your husband wants to have direct business then either you or he needs to start making calls on shippers. I recall a few years ago a driver who wanted to buy his own truck. He wanted to buy another and put a driver in one of the trucks about 30 days after he got his first truck. Against my advice he got another truck. It was only a short time before he lost both trucks.

Running your authority is much different than leasing to a carrier. When you run your authority you are the one who must find freight, bill and collect your money from shippers. There are no college courses you can take which will tell you how to run a trucking company. One reason so many fail is due to under capitalization and lack of experience. Some just try to grow too fast.

One of the first things you need to do is either buy a good bookkeeping program such as Quickbooks Pro or get one of the trucking specific software programs, such as Trucknpro www.trucknpro.com or Truckers Helper www.truckershelper.com . I believe you can try both for a short time before buying them. I prefer trucknpro due to the simplicity of the program. It will take you step by step in putting load information into the program and let you know how well you are doing by the load or any specific time period. It will also track maintenance and expenses, cost and profit by the mile. Truckers Helper is a good program and they have several versions, depending on the needs of your business. It is a little more complex to use, but will do everything you need to do as a fleet owner or motor carrier. I believe it supports up to 100 trucks. There is no limitation on Trucknpro. Truckers Helper will also do payroll and has a driver qualifications file with the more expensive version. Trucknpro will allow you to customize it to some degree.

You need to familiarize yourself with the requirements for running under your own authority. For instance, your husband needs to have a driver application on file even though he is also the owner. You also need to decide under what type of business entity you want to run, such as corporation, sub s corporation, LLC, or sole proprietorship. You should make that decision prior to applying for authority. Call around and get insurance rates. I have found that you can find a wide range of rates in this business. As long as your husband has a decent mvr and at least 2 or 3 years experience then you should find decent rates. There is quite a bit of expense when you run your authority. I don't know what type of arrangement you have with the carrier he is currently leased, but when you run your own authority you will need to pay for your base plates and permits up front. They don't finance them with the state. You will also need to pay your UCR and set up an IFTA account. Base plates and permits will likely run $1,500-2,200. Insurance companies usually require 20-25% down unless you can pay the entire annual payment upfront. I would expect your premiums to run at least $6,000-8,500 your first year. Keep in mind that the insurance premium will be for each truck you run under your authority. If you add a truck and the insuranc premium is $8,000, then when you add one more truck your insurance premium will be $16,000. That rate is providing your driver has a good mvr and work history. There are a number of factors which enter into insurance rates. If the driver has a few dings on his record then the insurance premium could go up. Rates are usually higher your first year and may go down as long as you don't have any accidents, claims or tickets.

I would also suggest that you find a good accountant that has experience in the trucking industry. I would encourage you to make a list of all the things that you need to have or do in order to get your authority and get up and running. It isn't cheap to get started. You are totally on your own. There is nothing wrong with using brokers. They can keep you busy. Most all carriers, even the major ones, use brokers to some extent, even if they have their own shippers. I also suggest that you have a good bankroll to get started. Some carriers will assist owner operators if they have a major breakdown. When you run your authority you are totally on your own. If everything goes as planned you may not need the cash, but if you do and you don't have money in the bank then you are out of business. An overhaul can cost $10,000-18,000 or more. Unless you factor you receivables you need to plan on at least 60-90 days before getting money back from your loads. Some brokers have quick pay and you can receive your money in 24-48 hours with some. Shippers often take at least 30 days from the time they receive your bills and invoice. It can often take 45 days or longer before you actually have a check in hand. You need to know how you will be able to afford to operate before you even apply for your authority.

 

we already pay for ifta and permits and plates. And money is not an issue. I was just wondering where to start.