When is the best time to go into the trucking business?

HA HA I was the same way. Got a lot of respect from my dealer for being that way. I had to learn everything before taking it to the shop to make sure I was not getting pushed over on. They figured out real fast I was not gonna be a sucker and helped me out several times in the beginning because of it. Had. a lot more respect for a person really trying hard and knowing as much as they could to make it. Of course now I am in a great situation with warranty and great relationship with dealer. Still get pushed in front of most other clients on warranty work.

 

There are some things you have to do right, regardless of timing. The right truck and the right customers are "have to's". The price you pay for the equipment can be influenced by timing, and perhaps the revenue -- if you don't have your own customers.

I try to time entries of new ventures so my capacity comes on line as the market starts increasing. By that time, some unfortunate souls will have left the playing field, and extra capacity can be sold easily and, importantly, few people will be nipping at your heels trying to steal it away as prices are rising.

 

Imo its when you have the money, the correct deal on the correct truck (i persionally failed on this one big time), a company and job lined up and enough money in the bank to cover almost anything that can go wrong. And we dont have dim in charge of the country driving the economy into the dirt harder then anything seen since the 30s

 

It takes capital for start up. That includes all start up, not just equipment.
Is there a demand for your services? Does it pay more than your expenses with fluff for income and future investments. Can you afford the liabilities? Is there room for growth, or is the service short term? Can you perform business? No I don’t mean drive and book loads. I mean can you get customers, build relationships and a quality of service that will keep you afloat in the tough times. Can you keeps the feds happy? Are you OCD workaholic and love competition?

I believe reflecting on the mentioned is important before making the jump.

 

Just do it. Nothing or anyone on here will be able to prepare you or give you enough advise for what you are going to go through as an owner operator. You will come back to this page and know what I mean. Best of luck to you.

 

Grab a beer or coffee
This might be long

I don’t believe there is ever a perfect time
If rates are high. So are trucks. Low rates low trucks

I tell people about this forum but also say to find the middle.
Some are haters and some just give bad advice

I got into this not for any other reason than I wanted a nice truck and to see the country for about 5 years
That was 15 years ago

I don’t have my dream truck but close enough. The dream truck would cost way more in fuel and I can’t justify that
I do watch expenses and have a shop do the work when it makes sense

Any truck or trailer purchase will be a gamble so there’s no secret sauce for that but you should have a healthy reserve of $ for that just in case scenario and if not needed then you’re ahead and that $ can start moving you up into better gear or position you to have a little more F U money
By that. I mean being able to say no to junk rate freight which is where you want to be even without it

Rates shouldn’t be the factor IMO to decide if it’s time
Freight has to move and although we might not be making that big $ per mile when it dips you still shouldn’t go broke
Sure you won’t make what you want but unless your bills dictate that you need to run 4000 miles per week 52 weeks a year to pay rent then you’ll be fine

If you can make it on 2 weeks or so a month in good times then when things turn you might have to run an extra week at that lower rate to still crack that nut but you will still have that extra wiggle room to pull you through

It comes down to. We don’t always make what we want to but unless you’re running for that $1 per mile ( and some here do and thinks it’s a good plan ) then you’ll still get by
Might be times after your expenses when you think that being a company driver would be better but that’s not the big picture. That’s just emotions or doubt
If you’re moving the right direction and run it like a business then that pendulum will swing the other way and you’ll be in a good position with knowledge when everything turns upwards

If you fail. Don’t quit unless you really have no business doing it in the first place
If you are learning along the way then any failures will simply be a learning moment. Nothing more

People pay way more money going to college and end up at subway

I’ve been in some type of business since I was a teenager with paper routes and to this day I still crunch numbers and go through a lot of paper with scribbles on it

 

There is the truth that is missed by many - THERE ISN'T A GOOD TIME TO GET INTO THIS, IT ALL DEPENDS ON THE PERSON AND THEIR SITUATION.

 

You hit the nail on the head with that comment. It’s not just those in this forum who are generally against it. Co-workers I had when I was preparing to custom order a $285,000 Carhaul rig in 2015 thought I was absolutely crazy. “No one can make it successfully as an owner-op” is what most of them said. If I had a dollar every time I heard this I would already be retired.
What they didn’t know is that I had thoroughly researched and prepared for many years to do this like “no one”, and failure absolutely wasn’t an option. Since becoming an owner op 7 years ago (for the second time in my 35 year career) several of those company drivers I work with, that also want to be owner ops have come to me seeking opinions and advice on them doing so. Some I have given tips to what worked and didn’t work for me and a few bought a rig and haven’t looked back. Others I have tried my best to talk out of it because I didn’t feel their plan/ financial situation was right to go in to business.
Not everyone has the same drive/work ethic, goals, business sense. Being an owner op works well for me, but it may or may not work for you or anyone else.

 

When rates were great the price for equipment was nuts. Now rates apparently have fallen off and equipment is slowly starting to follow.
I would wish anyone the best of luck and hope they do well. It's the guys that come here with zero clue about anything truck related that I think should take a second thought. No real plan, no knowledge of trucks or mechanics.

 

The triggering act also depends on the businesses / work environment and circumstances by which you are surrounded. For instance, I worked for an owner operator who leased on his truck to a small carrier. I knew everybody there, they knew me, I knew what to expect: they would give me a parking lot, fuel advance, bail from break down emergencies on the road. I simply knew that they would give me work and assistance. I did not feel that I was risking as much as I would have, had I gone independent from the very start.

I did not ask or much concerned myself what was the freight market like at the time - they procured most of their freight from their exclusive brokers.
In 2014 the used truck prices were not the cheapest, yet not as crazy as lately.
I secured enough cash: $20k down payment and $20k reserves and pulled the trigger buying a truck from Arrow Truck Sales.
I always wanted to be 100% on my own, so 2 years later I got my own numbers - exactly 6 years ago - I bought a van trailer and got my own authority
.
I don't care a bit, if it is called business or a glorified CDL job. I just know that it feels good not to be subordinated to someone else and make own decisions.

I think that the key element for me was always keeping the overhead as little as possible. I prioritized paying off the truck and performed repairs in small non dealer like shops, bought tires in small discount places etc.
So now the trick is to be working the arse off when they pay decent and work only what you have to work when they pay little.