QuestionHi Bob,
Just like Kim, my husband and I are starting our trucking business. We have 25K to start and we know we are going to finance the truck and possibly lease the dry van. My biggest issue is finding a driver. Due to the both of us not having any trucking experience what so ever, what do you suggest we look for when hiring a driver? and please express your thoughts about financing a truck and leasing the van along with our 25k to start? One last thing, referring to your response to Kim's first e-mail, what is a sturay bond? and is this something we have to worry about?
AnswerHi Shannon.
The biggest factor will be who applies and who your insurance company will LET you hire. I get guys who look great on paper in my office all the time, but when you run a DMV check, they fail to mention the DUI they got two months ago. Then, if your insurance company doesn't say "NO", the premiums you'll pay will be outrageous! Don't hire anyone without OTR (Over-The-Road) experience. This way, you can learn from them as much as they will learn from you. Otherwise, you can pretty much tell who will help your company and who will be a thorn in your side. The turnover rate in trucking is high. Many top fleets go through 100% of their drivers in 7-12 months! Why? Many new drivers get out of the business and seasoned drivers get that "grass is greener on the other side" syndrome. One driver will get mad because you couldn't get him home for the weekend and end up leaving your truck and trailer in Utah somewhere. It happens, and often I might add. Which reminds me, you and/or your husband should get a CDL for events such as that.
If you have $25K, put as little money down as you can on equipment. Keep as much in the bank as possible for emergencies. An engine rebuild can run $10k or more. Tires or turbo blown, transmission shot, whatever it may be, will cost money. Unless you buy a new truck (which I wouldn't recommend your first time out), anything can happen and you must plan for it. You'll need to also pay insurance, fuel and the driver before those first checks start rolling in. Keep as much in your pocket as possible.
Freightliner had a deal with $999 down with an engine warranty through Selectrucks. I'd look into that. Otherwise, find a truck that has been fleet maintained. The are generally in better mechanical condition. If someone has a truck "with a recent engine rebuild", demand papers. It's also a good idea to take a truck your looking at buying to an independent mechanic. Pay him to take a quick look at the truck and see what condition he thinks its in mechanically. It could be the difference between being in, or out of business! It's worth the money.
As far as the van, you could lease it. Make sure it's air-ride with barn doors (no roll up) out back. I'd get a 53' long x 102" wide x 13'6" tall. Make sure the tires are good and it doesn't leak. You can lease new ones fairly reasonable.
A surety bond is for brokers. It doesn't apply to you, so don't worry about it.
Good luck!
Bob Stephens
