Start up or Wait it out

There are plenty of customers out there. I'm won't get into how or where to find them. If you can't, you should be a company driver.

I know what truckers are going through. I hear it everyday. This recession isn't hurting me. I had customers before I bought my truck. I paid cash for it. I pay cash for everything. I charge alot since I haul military freight.

I can't hold everyone's hand. I try to explain to some guys what I do and how much I make and they call me a liar. I don't care. I've been in a truck my whole life. I've been backstage. I know what the game is and play it well.

Remember one thing. You can't move freight without the TRUCK. Know this when you negotiate. Don't sell yourself short. KNOW exactly what it costs for you to do business BUT ALSO the next guy.

I'm not going to get into it - if O/O's really want to succeed, they will. Sometimes you have to slow down to go fast. The trick is knowing when.

 

And a depression is when you have no money for a cheese burger

 

Mavrick - we're in nearly the same boat. I am a 20 year career as an executive (VP of Sales) with several major international airlines (cargo divisions) and international forwarders. I am nearing the end of my "shelf life", i.e. age of 48 is about to put me out to pasture. Hard to believe but true.

All my life, I have wanted to drive for a living. I am probably one of the few senior cargo execs that purposely seeks out and speaks to the drivers hauling our cargo (I speak to quite a few pulling for Forward Air). Heck, I get chided for driving a one ton dually (Cummins) with a CB rig in it.... but I have always admired and envied the personal freedom that goes with O/O's and OTR driving and have always wanted to be a part of that.

Yes, times are hard. In my years in the cargo business, I will tell you I have never seen "good times". Don't believe anyone who tells you these are the worst - or the best - of times. The plain truth is that transportation costs will always been seen by production and senior management as being too expensive. There is a huge gulf between supply chain/logistics management and traffic or transportation management.

What you need to succeed is a solid business plan. Other posters have said it, I will too: know your costs, and spend some time building a business plan and sales strategy. Where most small business owners go wrong is in the formulation of the business plan.

Hire a good CPA. Visit every new truck dealer in town; speak to them about ownership costs, variable costs, etc. associated with their equipment. Surf the load boards, see what freight is paying out there, and then do a mock monthly "run".

I have done all of the above and more. What I thought I knew, well... MBA or no MBA, I had all the right stuff for my business plan except the cost and operating realities (I had been too optimistic). My "simulation" for a month showed me (once I had the figures from Paccar finance), that I needed to do more homework and trim expenses, but most importantly, I had to plan for and trim my INCOME EXPECTATIONS.

When it comes to selling: I've been selling cargo for my entire career. You will want to call on the Traffic Managers, these are the people generally tasked with control of transportation expense. In some companies, these are referred to as Logistics Managers.

Have a SALES STRATEGY. If you have a wife, older children, retired in-laws or other, and they are willing to help - ask them! There is one hard fast rule in SALES - it is a numbers game! The more sales intelligence you have, the better your chances of success. I am fortunate; I have a beautiful wife, who is savvy, has a great personality, and who is already out helping me build my business.

Build a SHIPPER DATABASE. That is not against any law. If you have a region of the country where you intend to run more frequently than another, build that shipper database and then be sure you plan a sales strategy to visit with, and solicit business from, your pool of prospects.

Organization is key. And know this: every successful company sells their way out of hard times. Some are better than others, but the only way to succeed is to sell sell sell. You are your Number One product, so as the other posters said, be true to yourself and don't sell yourself short.

The last rule, one that we have from Aviation:

SWEAT THE ASSETS. Aircraft are far more expensive than trucks, yet we face the same operating challenges in Aviation that I am going to face out on the road: Fuel and the "Fare Wars". One thing about America, that I have learned from living in Europe and elsewhere: we always want it CHEAP. We want Tiffany and the Walmart price.

SWEATING THE ASSETS refers to running the truck. Every minute the truck sits idle costs you money. Your operating cost per mile is lowered with each load you carry. Look at Southwest Airlines versus American Airlines. One turns an aircraft in 20 mins, the other takes 2 hours. The more miles you sweat, the lower your breakeven costs will be.

I am not recommending you carry loads below your cost, but in any case, you need to have complete understanding of the costs associated with idling, doing nothing, versus accepting a load that on the face of it may appear to be a loss. In the end, if it contributes to offsetting operating costs, i.e. lowers you unit cost per mile, it is probably a good idea to take it.

I hope my thoughts help you out. Hope to see you out there.

JT