So you want to "own " your own company

buying a truck right now in this economy is a bad idea trucking companys and espesially owner operators buisnesses are failing daily there is simply not enough work to go around right now

 

I agree with 112racing... In these times just getting into the business now is gonna be next to impossible to survive..

If you do not already have contacts and guareenteed work lined up before you buy, I'd never do it..

You'll go out of business FAST if your depending on loadboards to run!

 

There are no guarantees

 

Just to bring some life back into this thread I am considering buying a tractor and leasing on with a company. My goal is somewhat different than most. I want to have a tractor free and clear in three years, in good condition, so that I can use it to pull a fifth wheel RV that I will live in full time. So, I plan on trucking for five years or so and then retiring and taking my tractor with me.

I don't need to make a killing, just enough to pay my mortgages and keep my credit rating up. I expect to work my life away for the next five years or so. I have a background and degree in business management and have retired from the military. One thing I need to add to my resume is a year or more of OTR experience.

As of mid 2009, is this a workable plan?

 

Before I went O/O I would get some more stick time.

 

Without a doubt. Experience first. Then a decision. I am planning on spending no more than 50K on a tractor.

 

Sounds more like a 2011 plan or so then.

You can own the tractor outright in 3 years, that would not be too big a deal. If the truck doesn't eat too much in repairs you can stay afloat, but you really woudn't put anything away towards the future right now. Freight is sparse and low paying, about critical mass, the minimum anyone can haul for. It's about enough to meet your actual business expenses and eat, but really not much better.

If you have multiple mortgages as you indicate then I would consider this an extra risky model for you to consider as a solution. The first 8k or so goes to overhead and fuel. You may bring in 10 or 11 in a good month but there's always at least one week a month that cuts into everything and then an untimely repair around the next corner. It's really hard man and that paper math will only let you down to a large degree.

 

There are quite a few posts here already from people who have asked the same question you could search for them and read some of their stories and see for yourself..

Having your own authority is only 1 possible avenue for a O/O.. Most arn't cut out to be totaly independant.. It's a lot more work and more $$ going it alone all by yourself. Besides payiny up front for all your insurance, filing your quarterly fuel taxes, billing, and accounting, maintaince, ........ the list grows!

You'll have to be on the internet / phone constantly lining up loads.. You also have to have deeo pockets for down payments on cargo insurance, liability, and phys. damage.. Not to mention base plates, permits, and don't forget that 2290..

OOIDA can help ya with obtaining your own authority you could try and contact them? Hope this helps?

 

Good info. 2011 is about the target realistically. Two mortgages. One is rented so it only counts if it is empty. It is for sale as soon as the market turns around. The plan is to pay for the tractor not put additional money away. As far as income is concerned, we don't need much. The mortgages are all we have and we began living frugally several years ago.

In this case paying for the tractor equates to putting money away. If the tractor is paid for that is one expense I don't have going into retirement. Maintenance is critical because it has to be maintained in prime condition to make it last into retirement. Once in retirement it won't get more than 20K miles a year put on it. Probably not even that many miles. The original plan was to buy a motorhome at about $150K. This seems more workable. Guys with heavy duty tractors pulling fifth wheel RVs are getting better gas mileage and have a safer, more secure ride than pickups or medium duty tractors.

I've heard the stories of O/O clearing 70 or 80K a year after expenses. I did the math and can't see how that is possible even in the best of times. If I could pull 3 to 4K per month I would be satisfied. There are no rose colored glasses here. I have been around the business world long enough to know that nothing comes without a price. I just want enough to disqualify me fo food stamps if the wife could quit working and go along once in a while that would be a major perk. I don't see that happening any time soon.

I really appreciate your honest input.

 

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