Starting a trucking COMPANY worth it?

Hey Guys, what are your opinions on the new driving regulations and more future government regulation? Is this concerning enough to second guess possibly buying into a small trucking company? Is this going to substantially hurt profit margins?

 

If you are going to make it in any business you need to be flexible and adapt to the idiocy of the government. Regulations seem to be in hyperdrive and rates are not. Over all rates are up somewhat, but much of that is likely to do with the time of year. With elogs and more and more useless regulations, it will be challenging to make it. Thousands of companies and owner operators went bankrupt or closed during the depression that started in 2008. Those of us who managed to survive had low debt and cash reserve and were able to weather the storm. I expect that to be the case going forward. We either adapt or go out of business. You can still make a profit. We have been able to do well the last several months as have many others. Watch expenses and don't force your growth. Slower growth is much better than rapid growth when the economy is as volatile as it has been the last several years. Last year was more profitable than previous years. Hopefully, this year will be better than last.

 

I'm looking at a local small company that is for sale, one thing I noticed is their score for vehicle maintenance is high (89.9%) on their safety record. No crashes, just seems like a lot of maintenance things. Should this be a deal breaker? The last citation was 4/2013. From my understanding, some brokers won't work with you.

 

starting a trucking company can be worth it if you know what you are doing. one of the difficult things about it can be managing the business. keeping track of drivers , shipments , and paperwork can make the difference between running a successful business or going bankrupt. check out the trucktie app, it helps a lot with management and keeping your paperwork on point with auto invoice generation and stuff like that. more or less you need a good work ethic to be successful. hope this helps.

 

You do realize this thread lost its potency 4 years ago right?

 

I'm 30 and own five trucks I run three for a friend and I'm one thirds owner of 10 trucks. #### right it was worth it. Save your money first buy a truck then go for it. You need experience first driving.

 

I have to agree with many of my fellow members. Starting and running a trucking company is a long process, education is key, and vital. There are many stages, and skills one must poses to run a trucking company. Bookkeeping, Accounting, regulation updates, DOT compliance, Insurance, Pay, Benefits, And so much more. I have had my own company since 1995. Profitability is determined by many factors. Budgeting, excellent decision making skills, negotiation skills (when negotiating rate of load(s) ). My best advice is to do a lot of research, talk to O/O's, a trucking industry lawyer, look into the money, and financial responsibilities that go with a trucking company, learn profit and loss spreadsheets, and all the in's and out's of business ownership. As for buying vs Leasing/Renting. I myself have bought every one of my trucks. Though this means i am responsible for the upkeep (maintenance, repairs, and so on). Start with saving enough money to outright by your first truck. This is an option, as no truck payments, which frees up money each month for other equitable needs. I had a friend buy his truck through a seller who was selling his truck, and he worked with my friend on down payment, and monthly payments. Easier to go this way, if you can find the right person to do this with.

 

Opinion: Trucking is a business that is one of production output. The output being measured is the number of loads moved within a time period. Labor is essential to producing the output. Therefore, trucking companies must have an abundant supply of skilled labor with truckloads to match. Errors are costly in a tight-margin business such as trucking. Errors are often caused by labor in situations such as dispatch mistakes, driver's not thoroughly inspecting tractor-trailer leading to a breakdown 100 miles from home terminal, and by maintenance staff for failing to diagnosis equipment correctly on the first-attempt. There are variable costs that are predictable and a budget can be allocated to control them, but costs incurred that were variable and un-predictable have had crippling effects on many businesses.

 

I'm looking to start my own business my wife is pretty much a stay-at-home wife who works part-time with a college looking to get her into becoming a freight broker and eventually buying my own truck and haven't heard run my loads for me I've been driving for a little over 2 years I don't have very good knowledge in the trucking industry have other family members that also drive and own truck's so my question is do you think it is a good idea to have one truck and have your wife get all the experience to become a freight broker and running and set up your business in that aspect I also have about 10 grand ready to put down on a truck do you think that's enough I'm looking for some advice and help and tips thank you if you're going to be rude please do not commentthank you

 

Yes that is viable, although you may not even need a freight broker license if you plan on operating as a motor carrier because you'll be able to work with a shipper directly. However, it is always an option to broker freight in addition to being a motor carrier. 10 thousand dollars should get you started with a tractor-trailer if you have a good credit score.