Trucking: Concrete vs. Dump, concrete business, trucking business

Question
Bob,

I am looking into starting a new career in the trucking business. I would like to start my own Concrete or Dump Truck business and wanted to get your input on which would be the better to start with. What should I expect regarding the start up expenses, finding work, future growth and earning/profit potential. I will be operating in Houston; will I need USDOT, IFTA or MC numbers? Also, do you offer consulting services; I would like to pick your brain.


Answer
Hi Stuart.

I'm not too familiar with the concrete business.  There you are a business that needs trucks versus a freight hauling company.  I don't know of independent concrete haulers, though it may be possible.

Dumps is another story.  If your new to trucking, I would look into buying a dump truck and leasing it out to a company.  Even if only for a short period of time.  This way you get to learn the ropes, so to speak.  It gets to be extremely hard if you have to drive the truck, hustle loads, get invoices out, etc.  Leasing out will help you learn the business without all the risks.  Then, jump ship and start your own hauling company.

Start up expenses can be $10,000 to $100,000.  It really depends on the equipment you want (and will need), how many trucks, etc.  Expect to put $5,000 to $10,000 down on a used truck even with good credit.  Permits, plates and insurance can run a couple more grand.  My advice is find a used truck with an engine warranty.  Engine rebuilds can run $10K or more.

If you stay intrastate, you won't need an IFTA.  You will need DOT/MC numbers, though.  Contact your state's Department of Transportation.  If your running interstate, you probably would only be running Louisiana and would only have to get a fuel use/road tax permit from them.

To the rest of your questions, finding work is a matter of advertising and cold calling.  Stop in everywhere from construction companies to paving companies and drop off your card.  The government will have contracts that you can bid on, but it may be more than you can handle, at least at first.  You maybe able to find some loads through brokers, but they'll take their cut out of the profit.  That's why I always tell people to do some cold calling.  You never will land that big account working for a broker.

In trucking, on average, every $100 is met with $92 in expenses.  That's why it's very important to write up a business plan.  Find out what the local rates are in your area for dump hauling and talk with other drivers.  

It can be hard, but once you have the foundation built, it becomes a lot easier and you can start a great company.

Good luck!

Bob Stephens