New trucking company

[Southforkguy]

My Uncle has his own rig and hauls chemicals. He works with brokers and his wife helps with scheduling and the accounting.

I have my own business too. Accounting and tax prep is a huge hurdle, you will learn that keeping all business expenses-deposits separate from personal is a very important part of owning a small business. I use Quick Books and a professional CPA.

 

[Southforkguy]

There is no way on Gods Green Earth would quit a union lineman job to bye my own truck and start my own trucking company.... Say good bye to the 7am 3:30 pm life, union pension company paid vacation good health insurance company paid no one has mentioned the insurance for the truck cost $$$$ plus the 750,000 in liability insurance tack hazmat on and its even more...

Me either

 

[maxp]

My dad drove for 8-9 years, I dispatched 20-25 flatbed and oversize for 2 and have driven part time here in Canada...alot of drivers get into thinking its easy money and its not...margins are quite slim in today's world...Truckwise if your running new equipment you need 2 trucks to keep 1 on the road, trade when they're out of warranty or run 20 year old trucks...emissions have caused poorly made engines...case in point the company I do some with here one winter did 9 turbos on the same 6 trucks in 6 months...mostly under warranty..2013 Peterbilts with Cummins ISX...the engines were all replaced with Cummins selects following that...oversize double drop freight is where the money is at but much more paperwork and regulation...dry van is the cheapest..dealing with brokers if you do your own invoicing will have alot of no pays...there's many receivable companies out there that'll will take that liabilities and actually save you money..Ours would send a list of hundreds of no pay companies that was updated bi-weekly...at standard rates 4-5000 miles a week give you a livable wage...just some of my thoughts...I would not consider it myself if you are a lineman...

 

[260madman]

You say your pockets are deep but they need to be deeper. We bought 4 trailers in May and sold them at auction recently. $102k in May and now sold for $198k! New trailers are $45k with no delivery date. Stoughton trailer is down 300 employees. Those same trailers were about $33k last year. Trucks are ridiculous also. Whatever they were 6 months to a year ago has essentially doubled.

Parts shortage is real. Emissions are expensive and will down you for days or months currently.

Tags and insurance are expensive. Tires are spotty availability wise. Oil filters and oil are spotty also.

I know a member posted he was a broker. We won’t touch on them. Don’t worry though, companies are outsourcing those jobs to people in South America. Language barrier and comprehension is an issue.

It’s a great time to get out of trucking. May be doing that soon with prices the way they are. The economy will tank, wages stagnate and freight prices won’t go up. Stay a lineman. Seriously.

 

[260madman]

My dad drove for 8-9 years, I dispatched 20-25 flatbed and oversize for 2 and have driven part time here in Canada...alot of drivers get into thinking its easy money and its not...margins are quite slim in today's world...Truckwise if your running new equipment you need 2 trucks to keep 1 on the road, trade when they're out of warranty or run 20 year old trucks...emissions have caused poorly made engines...case in point the company I do some with here one winter did 9 turbos on the same 6 trucks in 6 months...mostly under warranty..2013 Peterbilts with Cummins ISX...the engines were all replaced with Cummins selects following that...oversize double drop freight is where the money is at but much more paperwork and regulation...dry van is the cheapest..dealing with brokers if you do your own invoicing will have alot of no pays...there's many receivable companies out there that'll will take that liabilities and actually save you money..Ours would send a list of hundreds of no pay companies that was updated bi-weekly...at standard rates 4-5000 miles a week give you a livable wage...just some of my thoughts...I would not consider it myself if you are a lineman...

Those Cummins were terrible. Went back to Freightliners and Detroit’s and repair costs went down significantly. So much that the accountant asked what we did differently. Saved about $175k in one year on a 10 truck fleet.

 

[fmyth]

I work very minimal OT. I made way more in California than I do in Colorado, but in California I was spending twice as much as I do here. My $140k goes further here than my $250k did there, and I am home all the time. The utility where I work is in the top 10% of the wage scale for lineman in the US. It isn’t about the money. It is about being a free man, not making other people money, and being my own boss.

If you think becoming a business owner will make you a free man you are in for a very unpleasant surprise. Instead of having one boss you will have dozens including your banker, employees, customers and the many governmental agencies that regulate and tax your industry.

 

[ranchhand02]

If you have a good driver buy two trucks. If you don't have a good driver I would buy a truck for yourself and invest the rest of the money.

 

[sneaky]

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.

I have a friend who owned his own trucking company running reefers with his dad. They had about 6-8 trucks on the road. Hauled chicken for Chick-Fil-A. Steady gig. He was glad when they got out of it. He makes $100k a year now working for a construction company and doesn't have to eat those $50k repair bills anymore. He sleeps a lot better these days, and is home every night.

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[Steve300xcw]

Wow

 

[WV Mountaineer]

I don’t know first hand about the trucking business. What I do know is never, ever, ever put faith or livelihood in the hands of an employee.

My guess is if you bought two trucks, you’ll spend a good bit of the profit you make, covering the losses of the truck driven by the employee. It’s that way in any business I do know about. Can’t imagine it’s better in the trucking field.

Buy one truck is my advice.