Question
Starting my Own trucking business.?
I know now a days that gas prices are very high, and they will not go back down, because diesel is a commoditiy and it is not unlimited. As the world expands, the price of it will only go up. Now I have a vision, to start my own trucking company. I dont want to drive the truck and be an owner operator. 1. I would lease a used medium level truck to do short trips of about 200-300 miles. A used truck. Maybe costing around 30k. 2. I would locate a frieght broker to find loads for me to carry. 3. I would hire a driver that is not an owner operator. Pay him the going rate 30k-40k a year.I would pay for the fuel costs. 4. I will take all my profits in the begining and shove them into savings so that if business is slow payments on the truck can be made, and if repairs need to be made, that can happen as well. 5. I will use a frieght forwarder to make sure cash is available to me, so I dont have to wait for it, and I dont stifle my cash flow. Now before I begin I will calculate all the costs of leasing a truck, paying taxes, insurance costs, etc. And then look at the possible profits for hauling. See how many trips have to be made to cover expenses and if a profit is viable. People suggested that I use owner/operators to work for me. But whats the sense in that? Cant they just find the freight brokers themselves and not need me?
1 year ago - 1 answers
Best Answer
Chosen by Asker
Dear John, (Sorry, I couldn't resist that.) The answer to your question is yes. They can go out and find brokers themselves and they don't need you. What you want are the guys who would like to become owner/operators but don't have the credit or the ambition or are too afraid of taking any risks. I think your plans make sense but I do have a few suggestions that you may not have considered. I think that you should talk to some freight forwarders and freight brokers before you go any further. Ask them what they perceive as being the major weaknesses of the people you will be competing with. Ask if there are specific needs that aren't being filled that you can address. Find out what the rate structures are for the area you want to serve. If possible, get contingent commitments from them before you proceed. Ideally you should try to strike deals with multiple forwarders and brokers in order to avoid being too dependent on any one party whose fate is beyond your control. Good luck Jerry-the-bookkeeper
1 year ago
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