Where is everyone #2!!

Nope, I have no desire to go to CA. After searching around I have found that just as much money can be made even pulling a reefer without having to go to CA.

 

How well are you capitalized? That will be your biggest hurdle and largest source of stress. As an example, I have $20k in receivables at any time .

 

I hate when dudes take a tonight load home to babysit for 15 hours while I have a guy looking to work. Guess he gets to kill an hour.

 

Ok, Please explain a little more. You have a driver with hours wanting to run, right?
Then you have guys take lds. home and take their breaks..?

Tell them to dolly that bad boy down and send the guy with hours to other drivers trl. and give him the mty. when he wakes up...

 

Personal wise I am fine, Have enough set aside to pay all my bills for a good 3 months and my mortgage is set for I would say 5-6 months without a problem. That would leave me with around 10K of working capital to have set aside in the business account. Now with his contracts, one which is a return load from FL to Chicago, he is paid with a business check on the spot when offloaded and they will also give 40% when the load is picked up. The load going from WI to FL will pay him within 3 days of him faxing them his paperwork so these places are also well established and pay very fast.

 

That would be a nice surprise to roll out of bed to! LOL

 

Dude is about 45 minutes away, easier just to wait and scold. I'd prefer to just cut this guy loose, but the full time dispatcher lets them pull this stuff all the time.

 

It seems like the O/O is trying to get a little "blue sky" out of his business. Realistically, he is not selling you a business that continues to function once he leaves. There is no guarantee the his customers will continue to use you. You also didn't mention anything about his profitability. Is he making money. When you are looking at this subtract out some sort of driver wage. What did you make per year at TMC? Let's say $60K. Let's say your buddy nets $85K after expenses and taxes. This means your business is "making" $25K per year. Most of this is going to be eaten up by equipment replacement cost. You are either going to have to replace truck and trailer or spend money on maintenance. Is it worth the risk of being a true independent for maybe $5-10K after cost and equipment reinvestment? What if you have an accident, the motor dies, or a customer goes bankrupt. Your business will be over.

I would suggest looking at a book value type number. What is an old truck and trailer worth? What cost are associated with obtaining your authority versus assuming his. In my opinion, the "offer" should be based on the value of the equipment and he should be throwing in the book of business. You want to start out from a position to succeed, not behind the 8 ball.

Also, does your wife have a job that provide insurance? If not, that will be another $200+ per week.

I don't want to rain on your parade, but this deal sound marginal at best.

 

I would be afraid of basing to much of your decision based on existing accounts.

I have a small small business supplying car dealerships, motorsport dealers, farms, etc.. with shop supplies. I took over some accounts from a guy that retired. I ended up losing a few of the customers. It was not because I gave them bad service it was just that they did business with the other guy and didn't want to cut him loose but it was easy to do to me. They all had someone else that was trying to get their business and had built a relationship with them and I wasn't given the time to get to that point.

 

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Smart advice. I don't take loads to the house. Can't do it. It's against my religion. I would have them dolly down and get the guys who will be up and running before 5am to deliver. The guys at home can stay at home and wait to be dispatched. Win-win. That way, no possible home drama interferes with delivery. And the driver at home can have a little daylight in a quiet house.