Trucking: Question on starting a owner/operator, small business administration, small bussiness loan

Question
My husband is thinking about starting a trucking bussiness... He has his CDL for over 1 year but has no hours driving. His background is Towing driving a flat-bed. He started trucking with schneider company but could not stand the idea of being gone for so long with no control over hours since he'd be working for a company. He recently started thinking that he could maybe start by owner operator and go thru a broker for his loads. We are thinking of taking a small bussiness loan to get him started. Do you know what steps would be advisable to start? and possiably some of the fees for start -up?? Any advise would be of great help!! We are located in Arizona PHX.

Answer
Hi Lori.

I would check with the SBA (Small Business Administration).  I know of guys who have gotten start-up loans through them.  If you have good credit, you may just right up a simple business plan and go to a bank for a business loan.  Where there is a will, there is a way!

Fees can really vary.  Your biggest costs will be the money you have to put down on equipment.  Being a first time O/O, dealers may ask for up to $10K down on a truck.  Of course, it depends on the dealer, your credit, the truck in question, and so on.  Shop around and find a good used, fleet maintained truck.  Your start up costs could be from $5k to $25k.  It's hard to tell, like I said, until you hit a dealer.

Take a look at some of the previous answers I have given.  You will learn a lot.  Also, talk to other owner-operators in your area.  I also talk to other drivers and O/Os.  Find out what freight is good, how the companies are treating them, where's a great deal on tires, etc.

I go to www.getloaded.com to find some of my loads.  This will help you out.  Only haul freight for guys with good credit, otherwise, they may "disappear" tomorrow!  Get on websites like www.ooida.com and do research.  Learn as much as you can.  If you get stuck, ask me, or post a question in their forum.  

Remember, this is a business.  Keep your start up costs low and right up a business plan.  Know how to answer the "what if" questions.  I think you two will do great!

Good luck!

Bob Stephens