I need help and advice from guys who went totally on their own from soup to nuts. Upfront investment, risks, rewards, pitfalls, etc. Any help is appreciated!
Do you have an idea of operating costs to run a truck yet? This would be your projected expenses. Then you need an estimate of what lanes pay what rates for given commodities. This would be your projected revenue. If you don't know this you may think an 800 mile load into the middle of a desert paying 2.50 a mile is striking it rich. After you sit there for a week with 0 loads leaving in any direction you move empty now that 2.50 may turn into 1.25. Your truck eats for every mile, not every loaded mile. Then you need to figure out where you will earn your revenue from. If you just say brokers, which ones? Have you called them and asked if they will work with you as a new carrier? Don't just assume if you're a reefer in California you'll pick up the phone and have a $4/mi load for 3000 miles right off the crack. If you have target customers in mind, you should speak to them. They may not deal with 1 truck carriers. If not, you might ask them which brokerages handle their freight. Upfront investment. You'll figure this from your projected expenses. Also figure insurance at 20,000/year for first year. Plates 3k. Fuel to run for 60 days before seeing any money. Money for fixed expenses based on time. Insurance, equipment payments, etc. Money for repairs that arise. Need an engine? Could be $30,000. What do you do if that happens? Prepared? Or just fold and call it quits? Risks. You don't get any good work or are operating below cost. You eventually can't even put fuel in the truck and the lender reposses the equipment. You need plenty of cash for operating. Pitfalls may be a large repair. Or even if you need 8 tires for $5000. Eats into your operating money. Rewards. If you can put together a system that works for you, it's totally worth it. It's always a game trying to keep revenue high enough to make it happen. Steady work is what I prefer. Find customers who appreciate steady good service. You want to be paid like a professional? Then you must operate as one. Under promise and over deliver. Don't promise things you know you can't do in order to get the work.
I had my customers before I purchased my truck, so I was ready to hit the ground running once everything was said and done
Buying new equipment? Have $300,000 to spend or $150,000 in the bank and have good enough credit to finance another $150,000. If you have those things, give yourself 4 to 6 months to get everything set up before you haul your first load. No, it's not an exaggeration.
If the op wants to learn all of this stuff, the first thing he has to do is explain what he is doing now and what he knows now. It is futile to explain something to someone who wants insrant knowledge to make money without the understanding it isn't instant and some things takes years to learn.
I know 3 people who started this way. And their experiance in a truck was limited at best. All 3 still in business & doing well. Against all odds you might say. True for someone planning on running general freight, but someone who can find a niche & land the work before he applys for authority & buys a truck...not so much.
