Trucking with business partners

A lot of insurance splits the truck earnings into thirds.

one third to the driver
one third to running expense and repairs/maintenenace
one third to the ownership

If you all keep it set us this way as you grow your wages and expenses should still work out

Now the remaining third should be broken down with a percentage for 'contingency' reserve, as well as something towards any 'perks' to maintain the drivers and back-office, before splitting the remainder which may be small while you are just a one truck pony.

Remember if the OP does see the business grow, the amount of 'costs' for the drivers above the actual wages; Social security, unemployment, workmens comp, etc. will mushroom.

 

That’s exactly how my ex-wife collection got started.

 

Ok so you have three. Still, unless they drive the trucks themselves, after the drivers and bills are paid the other 2 guys get a Happy Meal each instead of splitting one.

 

Wondering how much of a margin are you thinking you will get with a fleet?

this is a serious question because a few of us know the facts of fleet ownership and it isn’t like “buy truck … find driver … make money” scenario.

 

it’s more of a buy a truck find a driver and start repairing truck because of the driver. Rinse repeat until you find the right driver and hope you don’t lose your shirt during the rinse repeat cycle.

 

Too many mouths for one truck. If y’all went in on 20 sure. You need high profits to pay insurance, fuel, maintenance, future investments, lawsuits, etc… This idea will be sucked dry before it starts. I’d hate to say this, but… starting a trucking business requires capital in order to provide a quality service. If you are going three ways and don’t have around a million in capital your broke and you may be joining the rest of the guys going out of business this year that don’t have capital. Again, you got to leave profits to the business for growth and just not split 3 ways and spend the income.

 

You’ll 100% need to operate on your own authority to have any chance. Also, like Short Fuse mentioned all of you guys will need to keep all profits in the business for a very very long time.

This needs to be a very long minded process and much learning will need to be done along the way.

 

Some costs can suddenly increase directly with the 'cost of business' as the fleet grows plus the totally unpredictable. Insurance dramatically rises, tripple or quadruple after a catistrophic loss AND you need it to keep the whole business operating. I've seen it happen, contingency funding is critical..

 

First mistake you should of never started until finances and pay were agreed upon. It sounds like a possible disaster but I hope it works out for all of you. Money does strange things to people. I guess you all will figure it out on your own but most people here will think this is a bizarre business deal heading for disaster. Best of luck to you all.