Trucking: Dump Truck Business, move dirt, truck business

Question
QUESTION: I'd like to start a dump truck business and I'm nervous about approaching the heavy-hitting contractors and asphalt "bigwigs" when I'm the brand new guy in the business. Any suggestions?
ANSWER: Hi Jesse.

I was too, early on, but everyone starts somewhere.  I think of something I read about Donald Trump.  OK, nothing to do with trucking, but it was pretty funny.  His first "big" job was years ago in New York.  He had a piece of property that he wanted to develop, but needed money.  He was to be his first development and he was young.  Some investors showed interest and wanted to see how progress was going so far on the site.  Trump had no progress going on the lot, he didn't have the money.  He hired for one day, every piece of heavy equipment and operators for each that he could get.  When the investors showed up, there was a lot of work going on, but nothing "really" being done.  He told all the workers to look busy.  Just dig holes and move dirt.  It worked and he got the money from the investors.  He said that he was scared that his investors would realize what was going on.

Now, back to trucking.  The "bigwigs" were little guys at one time.  Don't be afraid to approach them.  The key is don't overpromise your services.  Don't take on more than you can handle.  If you have one truck or one hundred, know your limitations.  One way to lose an account is by not being able to service it.  Many of your customers will pay extra if they know, for fact, that your truck will be there when you say it will be there.  When a truck is late, it costs your customers in man hours, delays, etc.  Being the new guy, I would not hesitate to make sales calls to anyone.  Tell them that your the "on time" company.  It's a good selling point where they'll listen.

Brush up on your trucking terms, so you don't look like a "newbie".  This should help...

http://www.twna.org/trucking_terms.htm

Most of all, learn as much as you can about your market and competitors.  Call them and get pricing to see what they charge.

Good luck!

Bob Stephens



---------- FOLLOW-UP ----------

QUESTION: One more question: I don't have a truck yet, and I can't afford the payment for more than a month or so without business. I want to have contracts in place before I get the truck (ie. I want to have all the paperwork in place, just waiting on a signature, then go sign as soon as I know I'll have the work.) Are these guys gonna look at me like I'm crazy, or do a lot of people try to get the work before the truck? Any suggestions on this?

Answer
Hi Jesse.

Save some money.  You may not get paid on loads for weeks, so you'll need to have some operating capital.  Companies usually don't pay immediately, so you'll have to float some money.  Save or borrow money for that.

Next, don't tell people you don't have a truck.  They will think your a "fly-by-night".  Tell them your truck(s) are on other jobs!

Good luck!

Bob Stephens