Trucking: Hot Shot Trucking Question?, hot shot business, gooseneck

Question
Hi,
I'm 25 years old and I'm interested in owning my own hot shot business. I dont have really anything to start the business with. I guess thats my question. What steps do I take in order to get all the equipment I need to start, and what the cost might be? Should I start payments on a 1 ton, and try to get a loan for a gooseneck? I'm sorry if I dont know the lingo, but I'm really interested in being my own boss, being on the road, and making money at it. Thanks for your time.
Sincerely,
Jeremy R. Wilson

Answer
Hi Jeremy.

I've answered questions very similar to yours.  For starters, look at some of my previous answers to help you out.

Your equipment costs are really going to vary on what kind of hot shot you want to run.  Are you going to haul cars?  Is it specialized? Are you going local or OTR (over-the-road)?  It could be $10K or $100K.  

It sounds like your new to trucking (not knowing the lingo), which is great, but can also be very difficult.  Especially when your trying to start up a business!  One of the first things I would do is write out a business plan.  There is a LOT more cost than just buying the equipment.  From insurance, your DOT/MC numbers, permits, tarps, chains/straps to lettering your doors, you'll have a lot of costs before you pull your first load!  I don't mean to scare you, but that's why I stress a good business plan and do your research.  You may choose to lease out to a company for a while with your equipment.  This way, you have steady runs and your start up is a little less.  You can learn the ropes and you'll certainly be better prepared when you want to go on your own. Bottom line, know your market before you make a move!

If your not going to lease out, find a good trucking accountant to keep track of everything (you should find one anyway).  Search out what your going to haul, and for who, then buy your equipment.  Be careful not to get in over your head.  There is plenty of great used equipment out there.  Remember, this is a business.

There are plenty of forums out there like on www.expeditorsonline.com that can help you out a lot.

Welcome and good luck!

Bob Stephens