New to forum.. another "Starting a trucking Company" thread

[BigSpence]

Greetings everyone. I am in the process of researching the industry and developing a strategic plan of entry. Myself and my best friend of 15 years are looking to starting a trucking company of about five trucks and I need some help with strategy.

1. Should I lease on with a company e.g. FedEx Ground (I heard they were great to work with)

2. Get my own authority and bid on loads.

I recognize the benefits of both...leasing on with a company minimizes paperwork, prompt payments and a chance to learn the industry with less initial headaches and ....getting my own authority gives me the freedom to negotiate rates and have more control over he direction of the business.

Given that, I do not have my CDL nor will I be driving. My business partner however, has been driving for the past 2 1/2 years with a great driving record and is currently leasing a company truck and training new drivers. He may not drive either because he is making great money as it is and I also have a good paying full-time job. He is more of an operational type of guy while I will be taking care of all the business aspects.

My question then is, apart from the above regarding strategy, what advice do you have for what I am proposing to accomplish.

1. Should I buy a small trucking company or purchase the trucks myself
2. What are the best financing options.
3. Should I focus on profitable routes or plan to run anywhere ( We will be based in ATL)
4. Is JB Hunt's lease on program good? You have your own authority and get 75% of the load. Which companies have the best programs?
5. What is a realistic profit per month
6. Anything you guys can think of....hit me with it all

Thanks so much in advance....look forward to your responses
3.

[BigSpence]

wow...59 views and no reply? What gives....

[Sonny Pruitt]

sorry I had my squelch down

[GMAN]

It is a big jump from having no experience to purchasing 5 trucks. I would question your friend's judgement since he is leasing a company truck. Many of the questions you ask are very subjective. If you have plenty of money then you can learn as you go, but will lose a lot of money as you learn the business. It isn't that complicated, but there are many ways to lose money. I don't want to discourage anyone from bettering themselves, but you will need a couple of things to be successful.....money and determination. It also helps to have someone in the mix who has some experience in the business.

If you purchase an existing trucking company, you should will probably be able to find someone in operations who could stay on and assist in the transition and help you learn about the business. If you choose to buy the trucks then you will still need to learn something about the business.

The two most popular methods of financing are leasing or out right purchase. Which way you choose will depend on you financial and tax situation. I think it is usually best to purchase rather than leasing, at least in the beginning.

Atlanta is strategically located and finding freight which will bring you through town frequently should not be a problem. There is a lot of freight coming in and out of Atlanta. Keep in mind that if you run your authority, you will also need at least one trailer for each truck. And unless you want to concentrate on profitable lanes, there is no reason to be in business. The idea is to make a profit. You won't be able to do that unless you find good paying loads.

J.B. Hunt pays mileage. Someone stated that they now have a percentage carrier. If I were to lease to someone, I would only lease to a carrier who paid percentage and had decent rates. I might consider mileage if it were around $1.50-2/mile plus incidentals. It costs too much to to run a truck to lease to a carrier who only pays around $1/mile. If you run your authority, you may or may not receive 75% of the load revenue. It depends on the broker and your negotiating skills. Which companies have the best programs. You need to clarify whether you want to run your authority or lease to a carrier. If you want to lease then there are several carriers to consider. Which ones to recommend will depend on the type of operation you plan on running. Are you going to pull vans, flats, tankers, etc.,

Your profit will depend on the rates you get, where you run and your management skills.

[BigSpence]

Thanks GMAN...appreciate the advice