Trucking: start up, dump truck business, mike byrnes

Question
interested in learning every/anything about starting a dump truck business in a resort area of Colorado. No experience in owning a business or driving... but work in Construction and would like to know work for myself. Are there any books you would suggest, or should i talk to as many people in  the business as possible. any help to get me in the right direction would be great.

Answer
Hi Flynn.

To be successful, you need to do your research.  Your off to a good start start with reading some books.  Amazon.com has a couple of books that are good for someone in your position.  One is "Bumper to bumper" by Mike Byrnes.  The other book is "Shifting Gears" by DePillo, Melone and Warkintine.  These books for give you a lot of information on trucking.

Like you had mentioned, Talk to as many drivers, owner-operators, dispatchers, brokers, etc. as you can.  Trucking is no different than any other business.  You have to find out who the big accounts in your area are, what they pay, how far the runs are, how much downtime there may be and so on.  Talking with o/o and brokers will give you an idea of what the loads pay.  This will help you when drawing up a business plan (which should be next on your list).

Get to know the market as best as you can.  Construction companies and the Colorado DOT probably keep many dumps busy with new homes and roads.  Since the housing market has slowed down (at least for now), you want to make sure that you keep running, whatever direction you choose.

Which brings me to my next point, you can either start your own company, or lease on to a company.  There are pros and cons to each.  The biggest pro for leasing is that the company that you run for finds the loads.  It's your truck, and your name on the door, but you lease to another company.  They worry about finding loads and getting you paid while you just drive.  The cons, they take their cut and freight may not always be good with them.  Compare rate of pay, insurance, deadhead miles, forced or non-forced dispatch, etc. with companies.  You'll be able to narrow it down.

If you really want to do it on your own, then start making sales calls and call local brokers.  Your revenue will be higher per load, but you will be finding loads and having to do all the paperwork.  There is a lot involved, but it can be a good way to go if you have done your research.

Go out of your way to talk to the people I mentioned before.  See a dump driver fueling up at a truckstop, stop and ask him where he usually runs.  Soak up as much information as you can.  I see too many guys that buy a truck and get their DOT/MC number and are "ready to haul".  They have no idea what's involved in running a business, and being an owner-operator is a business.  Write up a business plan, work in your fixed and variable costs, who are your customers, etc. and you'll be fine.

Good luck and welcome to trucking!

Bob Stephens