New trucking company

Sherman

Senior Member
Joined
Jul 15, 2021
Messages
144
With all of this COVID bs, vaccine mandate bs, lockdown bs, etc., I am thinking of quitting my job and starting a small trucking company. I currently make about $130-$140k a year. I have a CDL. I have enough money to purchase at least 2 big rigs and reefer trailers. I would run one myself and hire a driver did the second truck. My other option is to purchase one truck to run myself while keeping a nice nest egg, save more money and purchase more rigs as money permits.

I am tired of making other people money. I am tired of working for a major company that has too much influence over my life.

I have no vehicle payments, no credit cards, and my only expenses are mortgage, insurance, cells phones, and normal day to day stuff. I would buy the equipment for the company cash, so I wouldn’t have to worry about paying off the equipment before turning a profit. I am in a skilled trade in which I could always liquidate my assets and return to my trade anywhere in the US. If I do this, I don’t want to jump in half ass, keeping my job while running a truck or two.

Is there anyone familiar with the trucking industry that can give me a hand? I have done extensive research and have a pretty good grasp of what to expect with start up costs, taxes, obtaining an MC authority, DOT number, and the likes. I have broken down the financials and know what is required each truck to make per mile, miles required per month, etc. I am more in need of advice of the inner working of day to day stuff like how to obtain loads, using a broker, using a dispatch service, how to obtain dedicated runs and stuff like that.

Any help would be awesome.
 

Beendare

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May 6, 2014
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6,738
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In Traffic
Long time Business owner here…

Many advantages to owning your own business but what you will find is that employee issues will be the death of you.


If you have the patience to weed through and find reliable help…its worthwhile.

FWIW, I have a few friends with businesses requiring truckers with a commercial lic and they have to chip in and do the driving as they cant find any drivers,
 
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Sherman

Sherman

Senior Member
Joined
Jul 15, 2021
Messages
144
Long time Business owner here…

Many advantages to owning your own business but what you will find is that employee issues will be the death of you.


If you have the patience to weed through and find reliable help…its worthwhile.

FWIW, I have a few friends with businesses requiring truckers with a commercial lic and they have to chip in and do the driving as they cant find any drivers,
That is exactly what I’ve been hearing, especially with truck drivers. They are a different group of people.
 

GSPHUNTER

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Joined
Jun 30, 2020
Messages
817
Drivers are one of the big reasons the port of LA/LB are so backed up. Over 60 container ships just sitting waiting to be off loaded. Drivers are not reliable. Chose wisely and don't hire family.
 

jmazz

Senior Member
Joined
Aug 14, 2017
Messages
155
Location
NY
If you're a veteran, there are Veteran Business Outreach Centers across the US that can help walk you through the process of becoming a small business owner. I'm working with one now.
 

Oregonboy

Senior Member
Joined
Sep 19, 2019
Messages
403
I'm a freight broker and neck deep in the trucking industry.

Feel free to PM me, I'd be happy to chat or answer any questions.
 

bozeman

Senior Member
Joined
Dec 5, 2016
Messages
1,622
Location
Alabama
Uber Freight and have your own rig.......I liked your second option. No sense in buying another rig with drivers in this short of supply.
 
OP
Sherman

Sherman

Senior Member
Joined
Jul 15, 2021
Messages
144
If you're a veteran, there are Veteran Business Outreach Centers across the US that can help walk you through the process of becoming a small business owner. I'm working with one now.
I am a veteran. Thanks for the info.
 

BRTreedogs

Senior Member
Joined
Nov 16, 2017
Messages
3,853
Location
Central Oregon
I have a few friends that own trucks. They only real way to turn much of a profit is to turn your own wrenches.
1 truck with you in it will barely pay the mortgage.
2 trucks is a loss because you're profits will just be used to fix what your driver broke.
My buddy w 2 trucks can't even quit his day job.
You need 5 trucks. So that the good and bad drivers can cancel out each others costs.
 

Pbast81

Junior Member
Joined
Aug 18, 2019
Messages
41
DAT load board. Once you find brokers you like and pay good you just call them direct. If you do a good job for them they will be calling you. My phone rings non stop looking for trucks. BRTreedogs is somewhat correct in not having two trucks, odd numbers if you are going to buy more than one so yes the good cancels out the bad because you are going to have breakdowns. Finding driver is a whole other deal! Good luck finding dependable guys that won’t tear up equipment and if you do I’d pay them generously!
 

BRTreedogs

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Nov 16, 2017
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Central Oregon
I forgot to factor in all my friends that truck are loggers, dumps, belly and transfer. So there cost may be higher.
All I know is none of them seems to have much money.
 

Pbast81

Junior Member
Joined
Aug 18, 2019
Messages
41
I forgot to factor in all my friends that truck are loggers, dumps, belly and transfer. So there cost may be higher.
All I know is none of them seems to have much money.
That work has to be harder on equipment than reefer trucking.
 

Jim2914

Junior Member
Joined
Sep 22, 2021
Messages
22
A good friend did the same had 3 trucks. The problem was not the trucks or the loads. It’s the drivers the better pay better drivers. Drivers that care of the loads and trucks. They will not leave because someone else’s is giving an extra penny a mile, or destroy the truck. But the big issue was the Maintenance. If you try yourself then you are not driving. You only make money when them wheels are rolling.
 

GHOSTofWENDELL

Senior Member
Joined
Mar 10, 2018
Messages
212
Location
Montana
My old man ran a single man trucking business for years, I worked for him for a while as well. It's a hard way to make a living and really puts a crunch on your family time.
Like someone above said it seems to be either run one truck or run 5-7+ anything less and a couple bad trips or mechanical issues put a huge burden financially on the business.
I personally would think twice, especially leaving that large of a salary behind. If you go that way best of luck to you. We need reliable trucking businesses more than ever.

If you are in Michigan I still know several of his old clients that are looking for delivery constantly. Just PM me.
 

String&stick

Senior Member
Joined
Jan 16, 2018
Messages
718
I have 4 customers that run reefer rigs. They started out with their own tractor and trailer and then bought another trailer. . . Lease the trailer to a driver they knew that just had a tractor. . . Then buy another trailer.

Two are still driving and leasing trailers, the other two have their own trucking company and they are the office/maintenance guy. At this point one has 7 tractors and 16 trailers. But he only puts drivers in 6 trucks most of the time, that way if something goes down he can throw a truck on it and get the other fixed.

They all are making good money, but freight rates are crazy right now.

And drivers are very difficult to find!
 

Shraggs

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Joined
Jan 24, 2014
Messages
824
Location
Zeeland, MI
Might consider…., talking with Penske or Ryder leasing and put together long term deal on tractor lease with maintenance and rental. But trailer tho. Less margin on paper but keeps you driving with less maintenance risk and downtime.
 

Shraggs

Senior Member
Joined
Jan 24, 2014
Messages
824
Location
Zeeland, MI
Rental as in, you get one for a fee if your leased truck has extended maintenance issues.

long time fleet mgr, currently consulting. Willing to give my 2 cents anytime
 

Brooks

Senior Member
Joined
Mar 19, 2019
Messages
322
Location
New Mexico
I owned trucks and trailers and trucked for over 30 years. At one time it was great but you need to really look into trucking of today. Regulations out the wazoo, electronic logs are no big deal but you need to plan your day and make it count, truck repair is out of sight, crazy high. I owned my own shop and did it all in house.

The last time I had a truck in a shop the A/C went out on a driver in Kansas heading to SoCal over 100 degree temps the bill for that 4 or 5 hours was $3,200. Drivers will either send you to the poor house or the nut house ! They don’t have anything invested and they have a cell phone in their pocket to call for a ride home when they quit you and leave the truck at a truck stop.

Find good brokers because they are not all good upstanding folks, some are but not all. You sit at a customer for 5, 10,24 hours and most of the time you don’t get a penny for waiting on your load all day and night but they still want it there ASAP !! I could go on for days……good luck.
 

HOT ROD

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Joined
Apr 15, 2012
Messages
827
Location
Casper Wy
Long time cdl driver and now a cdl Instructor there is no way I would be a owner operator high mechanical cost and trying to find good drivers to drive the other trucks would not be worth it... We have one truck down with the def pump out of commission and it will be $8000 to fix and at least a two month wait for the pump..... Drive for the company fill out the dvir and go home and dont worry about it....
 
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