Trying to start my own freight company, but slightly confused.

[Patriot]

Good evening everybody. I am a young entrepreneur trying to get a taste of this business. I am thinking of purchasing my first truck in a few weeks along with a tanker trailer. I am searching to find a driver that is certified and has years of experience.

I decided to stay within the SE territory as it'll be easy for me to see where my trucks are and not have to deal with tolls and other expenses. However, I am confused as to how certain people on this board are able to tabulate the costs/expenses for their business.

I was hoping somebody had any suggestions on where to start. Some members know they're going to drive X number of miles on a load, know it costs .xx cents for the driver and they're going to net $x.xx.

[BigDiesel]

Start with lots of money or credit available.....

[Rev.Vassago]

Start with lots of money or credit available.....

^ this. Figuring out your costs isn't rocket science. It's really no different than any other business. Calculate your fixed costs, and your variable costs, then use whatever method you want to use to break them down (per mile, per day, whatever).

http://www.ooida.com/Education&Busin...tpermile.shtml

[GMAN]

If you want to get a "taste of this business" you need to consider driving the truck yourself for a year or two. That is the only way to get a true feel of the business. I am curious about a few things. Why would you want to get into the trucking business and tankers specifically? There are better ways in which to make money. To be honest, you will find it next to impossible to make a profit with a single truck unless you drive it yourself. This is a very capital intensive industry and seems to be getting worse. It isn't a business where you can just buy a truck, put a driver in the seat and make a lot of money. With a single truck and driver you will more than likely make little or no money with the rates we currently enjoy.

You mentioned that you want a driver to be certified with many years experience. What do you want him to be certified in? Perhaps you are thinking about hazmat? You need a background check and to pass the hazmat test to get the endorsement. Tankers only require passing a written test.

I am also curious as to whether you plan on running your own authority or leasing to a carrier? Costs are different as are responsibilities. If you run your authority you will need to have someone find loads and dispatch your driver. It may sound good to stay in the southeast, but with the current economy that may or may not be possible if you are to maximize your profits.

You will usually compensate an otr driver either by the mile or percentage. In either case, you will know your driver costs before taking the load. OOIDA (www.ooida.com) has a worksheet for excel on their website. It isn't 100% inclusive or accurate, but would be a good start for you to start looking at costs. I don't remember if you need to be a member to access the spreadsheet. Before you can calculate your costs you will need to decide how much you will pay for your equipment along with the interest rate. With a spreadsheet you can play around with the numbers a bit. If you run your authority insurance will vary according to the level of experience of your driver, service area and type of freight hauled. When you lease to a carrier his experience doesn't make as much difference due to the larger pool of drivers within the company. However, he will likely need a minimum level of experience.

If you are not a CDL holder, I suggest you become one if nothing else because you may need to go get your truck if you have a driver who abandons it. Another thing to keep in mind is that you will have driver turnover. Most drivers will stick around for a few weeks to a few months and go on to another owner operator or carrier. This industry has a very high turnover rate. I believe it is lower with the depression, but the last hard figures had the annual turnover rate at about 136% per annum. That means that your truck will do some sitting with no revenue. Your expenses will continue whether there is a driver or not.

Once you have some figures on your equipment we can help you in doing some rough estimates. There are several on this board who pull tankers. You can get a good deal on equipment but rates are pretty low in most segments of the business.

[Orangetxguy]

Start with lots of money or credit available.....

Big D....You are HALF right there!!!


You should have stated....Start with lot's of money AND credit available!!!


He will burn thru lots of money really really fast...then fall back on credit!!







To Mr. Patriot Lad.....Why are you chosing to buy a tanker?

What led you to the conclusion that you should start off in this industry, by buying a tanker?

[blanco]

If you are not a CDL holder, I suggest you become one if nothing else because you may need to go get your truck if you have a driver who abandons it. Another thing to keep in mind is that you will have driver turnover. Most drivers will stick around for a few weeks to a few months and go on to another owner operator or carrier. This industry has a very high turnover rate. I believe it is lower with the depression, but the last hard figures had the annual turnover rate at about 136% per annum. That means that your truck will do some sitting with no revenue. Your expenses will continue whether there is a driver or not.

this!

[RostyC]

Start with lots of money or credit available.....

This is going to be the biggest +1 I've ever done!!

[RostyC]

Big D....You are HALF right there!!!


You should have stated....Start with lot's of money AND credit available!!!


He will burn thru lots of money really really fast...then fall back on credit!!

I really wish I didn't use the biggest +1 in my above post because this post should have gotten it.

I think we need some more information also.

Why tanker?
Do you have a customer lined up or a good lead for work?
All joking aside you will need cash and credit.
How much do you have to spend on equipment? You'll also have repairs.
What is your insurance premium going to be?
Can you manage your household bills while attempting this?

You have to research, research and then research some more. Use the search feature on here and start reading.

Then, when you've done all the research, all the figuring and calculations and you reach the point where the truck is ready to work, be prepared to get smacked around, turned upside down, and pummeled by this business.

[LOAD IT]

I see you finishing 2009 with $1 million...........................if you are starting with $2 million. In all seriousness you need a plan and work for the truck. 1 truck can only support 1 person....the driver, so you wont get "rich" until you grow your fleet. Good Luck!!

[GMAN]

You do need to start somewhere. I think you will find that most successful fleet owners started out by driving themselves. Most of the successful carriers you see were also started by drivers. They started with one truck that they drove themselves and they grew their fleet as the went along. Not to discourage you but there are many ways in which you can lose your shirt in this business. It can help if you are well financed and start out by driving your investment yourself so that you can learn this business.

[merrick4]

I decided to stay within the SE territory as it'll be easy for me to see where my trucks are

Put a GPS on the truck, they also have a new things some truck dealer was telling me about that can shut the truck down, I think this was the product iGotcha GPS!

I guess he uses it when people get behind on their payments.

[GMAN]

Qualcomm has a less expensive system you can buy and use. I don't recall the name but it has tracking capability and other features for less than the regular qualcom. I believe they sell for about $1,000 or so . It will enable you to track your vehicle in real time.