Trucking: Diesel Prices, direct shippers, frieght broker

Question
With diesel prices low, is this a good time a start a trucking business? 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.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.


Answer
Troy, sounds like you have a plan but this is a difficult business to make a profit in.  Fuel prices should not affect your decision since fuel surcharges should track costs.  Relying on brokers to find loads is not a good business model.  You will need them to fill backhauls or other fill in work but after they take their margin and shop the load to the lowest bidder there will be little if any profit for the carrier.  If you could find a couple of direct shippers as a base of business you will be in a better position.  You don't state your experience but if you have not worked for a trucking business I would highly recommend working in any capacity for a carrier before venturing out on your own.  You need a good solid understanding of DOT / FMCSA regulations as well as basic operating principles.  Good luck.  Jim.