So you want to "own " your own company

Discussion in 'Ask An Owner Operator' started by NightWind, Nov 16, 2006.

  1. Mavrick81

    Mavrick81 Bobtail Member

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    Jul 4, 2007
    Southern California
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    and i'm not pressuring him about it. he is an entreprenure so that is why i talked to him about it. it would be great if he would get his cdl so we can double the income on one truck instead of getting two trucks.
     
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  3. TBigLug

    TBigLug Light Load Member

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    Nov 26, 2007
    Jackson, MI
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    This has been a very informative thread for me. Like everyone else, I'd like to thank you for putting this information and your insights out there. As a relatively new driver to the trucking scene, I'm left with a few questions that might just be from my inexperience.

    1. Going back to the whole paying back heavy highway use taxes on a truck that has set for a while. If I buy a truck that has been off the road sitting in somebody's back yard for 4 years, do I have to pay $2,200 in back taxes to use it?

    2. What if I buy an old farm truck? Do they pay the same tax?

    3. As far as the participating state taxes and such, do you have to pay for each state you haul loads to, or just the state your company is based in? How would you know what states you are going to haul to if you are getting your loads through a broker and are relatively random?

    4. Would it be best to start with just a used truck?

    What it basically boils down to is I'd like to become an O/O. I'm looking at purchasing a 2000 T2000 for around $20,000, a used 2001 reefer for about $7,000. My loads would probably all come from freight brokers until I could line up some contracts. I don't know how I could pull $15,000 out of the air to start up after all the initial costs were paid but that's neither here nor there, that's on the to do list.

    I'm sure I'll have some more questions after I reread this post and let it sink in a little more. I apologize if my questions for my business plan are in the wrong section. If so please let me know and I will relist it in the appropriate forum. Once again, thanks for all the good info.
     
  4. TBigLug

    TBigLug Light Load Member

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    Nov 26, 2007
    Jackson, MI
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    Also, for what it's worth, I do plan on getting my own authority, not leasing with a larger company. FWIW.
     
  5. NightWind

    NightWind Road Train Member

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    Nov 11, 2006
    Sunny South, AL
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    The bottom line is be informed and do your homework. I know I make it sound hard, but I figure forewarned is forearmed and this is an investment so you need ALL the information you can get. I'm sure that some of the other members can add to what I've said. Thanks for the kind words, I do appreciate them.
    Good Luck and keep us posted!
    NW
     
    Kuzyk Thanks this.
  6. Carolina_Beaver_Teaser

    Carolina_Beaver_Teaser Light Load Member

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    Apr 8, 2007
    Mooresville , NC
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    Used truck. Yes! From BIG Fleet, Well, that depends. They do maintence, but usually with the thought that they are only gonna keep truck for 400 to 500K.

    Need a business plan? I can help you out with a template, and guidelines.

    As far as the USed 2001 reefer for $7000, BUYER BEWARE!!!!!!, Thats too GOOD to BE TRUE.

    As far as start up costs after equipment purchase / finanace. That $15000 is conservative, and EXTREMELY IMPORTANT!!! The easiest and quickest way to fail, is to try and start out on less than shoe string budget.

    Get your Ducks in arow, and your finances. You can do it!
     
  7. Carolina_Beaver_Teaser

    Carolina_Beaver_Teaser Light Load Member

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    Apr 8, 2007
    Mooresville , NC
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    TBIGLUG,
    Meant to ask, have priced your Liabillty, Motor Cargo, and Workers comp yet?
    I can recommend a good agent for that, and also a few really good brokers for reefer freight. PM Me. If interested.

    Good luck.
    CBT
     
  8. TBigLug

    TBigLug Light Load Member

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    Nov 26, 2007
    Jackson, MI
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    CBT, I know about the buyer beware. A very good friend of mine buys and sells used trailers and the price reflects kind of a start-up "gift" from one VERY sucessful trucker to a good friend. I haven't yet priced the liability, motor cargo, work comp., etc. (I still have yet to fully understand all of the business end) yet, as I am in the process of gathering all of my information and forming my plan. I plan on continuing on with my current company to try and gain more experience and learn more of the paperwork aspect of it. One thing I never do is dive in headfirst without knowing how deep the pool is. I appreciate your willingness to help and will definitely bounce some ideas off you and pick your brain in the future. For now, back on the road. Got a load to Detroit then a backhaul out of Valpariso. Thanks again.
     
  9. TBigLug

    TBigLug Light Load Member

    90
    13
    Nov 26, 2007
    Jackson, MI
    0
    CBT, I know about the buyer beware. A very good friend of mine buys and sells used trailers and the price reflects kind of a start-up "gift" from one VERY sucessful trucker to a good friend. I haven't yet priced the liability, motor cargo, work comp., etc. (I still have yet to fully understand all of the business end) yet, as I am in the process of gathering all of my information and forming my plan. I plan on continuing on with my current company to try and gain more experience and learn more of the paperwork aspect of it. One thing I never do is dive in headfirst without knowing how deep the pool is. I appreciate your willingness to help and will definitely bounce some ideas off you and pick your brain in the future. For now, back on the road. Got a load to Detroit then a backhaul out of Valpariso. Thanks again.
     
  10. sunnyside

    sunnyside Bobtail Member

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    Dec 14, 2007
    boise idaho
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    Nightwind, What do you mean by cut throat business? When people start talking about screwing someone else or the negatives of a business venture it sure would be helpfull to know specifics about your experience becuase you sound like you have knowledge that we could all learn from.
    Thanks..
     
  11. NightWind

    NightWind Road Train Member

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    Nov 11, 2006
    Sunny South, AL
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    Well it's pretty simple. Trucking companies survive on moving freight, the more freight they have the more money they make. They have sales people out every day calling on major manufacturers as well as the Mom and Pop companies that may only have one load a month. Each company tries to find out who the other companies clients are and what the other company is getting from a customer as far as rates so they can under cut that rate. Each company has something different to offer the shippers and receivers as far as service. Back in the 70's in order to get in trucking you had to either be part of an existing company or buy an existing companies hauling rights.
    Look at trucking like Wal-Marts compared to Kmarts or some local store. Every customer is looking for the best at the least price. It's all about dollars and cents. The mega fleets got to where they are by out pricing and out servicing the other companies. The Owner Operator can't provide the same services as a bigger company because their expenses are more simply because they don't have the buying power that the larger ones do.
     
    Shardrk Thanks this.
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