Trucking: start up, peterbilt 379, crunch the numbers

Question
Hello Bob,

My dream is to start a trucking buisness.  Unfortunatly I dont want to be away from my family all the time so what I was thinking was to get a truck and put a reliable driver in it and maybe me drive it on occasion.  The problem is I dont even know where to start.  I mean I know alot about trucks and can drive them but thats about it.  And I see people becomeing succesful all the time and I think to myself, why not me?  I just dont know where to start.  I know there is alot of risk but I have the dream and determination to succeed!  I just need a little help.  Any ideas would be great.  Thanks   Tom and Misty   Dover De.

Answer
Hi Thomas and Misty.

It's a scary jump when you go from driver to owner.  Just take your time and do your homework.  I always tell people to write up a business plan.  That should be the first thing you do.  What kind of equipment do I want/need?  What type of freight will I haul?  How will I get those accounts?  What will my expenses be?  etc.

Don't just buy a truck and hire a driver.  Find out how your going to keep that truck busy and what expenses you'll be looking at your first year.  I see too many small operators get in over their head immediately and try and dig themselves out forever.  They are the ones who don't crunch the numbers.  Be smart.

First, look at used trucks.  Try and get one with an engine warranty.  Engine rebuilds are expensive and can put a world of hurt on your business fast!  If you can't get a warranty, find a good, used fleet truck.  Larger fleets will have taken care of their trucks and are usually in good shape.  Keep you start up costs LOW!  You don't need that Peterbilt 379 with all the chicken lights...yet!

Of course you'll have to get your base plates, DOT/MC numbers, insurance, etc.  Par for the course.  Shop around for everything you can.  Every penny counts and if you can save a few dollars by shopping for insurance, parts, whatever, it will add up.

So now you have your truck and are legal and ready to haul loads.  This is where you can go to sites like www.getloaded.com and get loads and/or do some cold calling.  Broker loads are fine and pay the bills, but I want the shippers to call me.  I don't want to pay a broker the cut.  I hate it!  That's where I want my name out there.  Calling on potential customers in your area will pan out.  You want to be successful?  This is how it's done.

I tell a story about a customer of mine.  They're one mile up the road from our terminal.  I'd see a different truck there once a week. Finally, I stopped in and dropped off a business card.  When I dropped off my card, I got the owner's name and found out that they got a truckload from LA every week.  A couple of weeks later, I called and  
got a hold of the owner.  I told him that I had a truck in California every week and would like to be his carrier on backhauls.  With a terminal right up the street, we could service him and I could get my drivers home.  He gave me a rate that I'm very happy with and a haul all his freight out of Los Angeles.  Moral of the story?  I would of never got this account messing with a broker.  Now I don't have to call brokers and look at load boards when my guys are out West.  I know that I always have a load out there.  I just have to make sure I service it and don't drop the ball on my customer.

The same holds true for you two.  Anyone can buy a truck and haul freight.  What is going to set your company apart?  Sometimes it's nothing more than calling a customer.  Just showing up on their door may answer their problems with shipping.  Others, you may have to keep selling to.  Either way, go after the accounts.  If you want to haul reefer, dry van or flatbed, focus on that market.

Many of my customers call me first.  If I don't have a truck available, I tell them.  If it's a load they badly need covered, I usually try to take it.  Then when the "gravy" loads come, it evens out.

You may have to go through brokers, at first, to see who the big shippers and receivers are in the Dover area.  Then, you can contact those shippers and receivers directly.  Most of all, don't be afraid to call and/or stop by with a business card.  Sitting on your hands and saying "I'm open for business" is a sure way to fail.  

You two sound like you have the drive (no pun intended)!  Don't listen to they people who say you can't do it (because there will be plenty).  Focus, write that business plan and go for it!  When you have questions, ask me or go to forums and ask other owner-operators.  Many will be glad to help.

Also, don't forget to join OOIDA (www.ooida.com).

Good luck!

Bob Stephens