Cargo Van/Own Authority Start Up

[USBOSExp]

I want to thank everyone for the input they provided. x06col, I do have some contacts that have been in the industry for quite some time that I'm planning to work with. The goal is of course to use my capital to cover the overhead starting out as cash flow will not be anything to die for in the beginning but then to expand as far as I can stretch. My wife and I are actually looking to build a solid company. I am not looking to haul loads to pay my bills. We are looking for a business opportunity. I have been driving for 8 years and she has been in sales/marketing/finance for just as long. Our initiative is about using each others skills and our connections as a solid foundation to start a company. Thank you so much for your honest and sincere post. I figured I'd ask for input here as an opinion from various perspectives can never hurt.

 

[x06col]

I understand. However, ya gotta pay the bills early on. Wouldn't get too concerned about factoring.....only at the last resort.....when you get the pipeline full there will always be some flowing out as long as you are consistent with your follow up billing calls. I was in your boots 15 years ago and frankly I was surrounded with people that expected to fail by going on their own....amazed me, but that's the mentality. I didn't have a marketing partner like yourself, I had a billing and business office partner, which is extremely important. Marketing will take care of itself for the most part by providing stellar service, but, ya still gotta get your foot in the door.

Good luck!!

 

[davekc]

I will throw out a alternative option that you can consider since I have done both. If your ability to obtain business or undercapitalized for a full blown operation, I would suggest leasing to a carrier (my shameless plug for Panther) or one that lets you run their freight but lets you book your own. They take 15 percent to provide insurance, permits, collections ect. You will find out real quick how good you are or aren't.
If successful and strike out on your own, then you can run your own operation with having Panther as a customer. In that case you would become a "partner carrier".
One has to know their limitations, and if you don't, well here is a way to find out without betting the farm all at once.
There's my penny in pond.

 

[blizzard2014]

The goal is to grow my fleet and have several drivers on the road, I just can't commit to employing these drivers right away. So I figured I'd start solo and build from there!

Any input on the BOC-3 question? Who should I contact for a list of process agents?

It's gonna take you at least six months to get set up with all of the carriers who will allow you to partner with them. Then it is going to take you another 6 months of bidding on loads and running a few cheap loads before they even give you a good load. It's very hard to build up trust with partner carriers when your MC number is less than a year old. Trust me I've been there.

Then there are some carriers and load boards and brokers that won't even touch you until you have at least six months behind your MC number and a certain amount of trucks in your fleet. If you are planning on becoming a carrier I'd definitely recommend what you are talking about. But if you are just going to be a 1 man show with a handful of cargo vans - I'd recommend becoming a fleet owner and leasing on with a bigger more estblished company.

Cash flow can be a problem too - some carriers and load boards I work with pay up to 60 days from the day that you invoice them for the load. That is a long time to have cash floating around out there. Some carriers will offer quick pay, but even then it can take up to ten days to receive a check, and they charge 3 percent of the load.

Then you have to know which carriers pay and which carries do not. I work with 1 carrier that has a notorious reputation for not paying their partners, but they always give me an express code after I deliver the load, so It's all good! You have to know these things because 1, 2, or even 3 chargebacks or non-payments when you have already paid your drivers can put you out of business! Good luck.

 

[cubansammich]

The goal is to grow my fleet and have several drivers on the road, I just can't commit to employing these drivers right away. So I figured I'd start solo and build from there!

Any input on the BOC-3 question? Who should I contact for a list of process agents?

Number one, you do not need authority if you are going to be using cargo vans for your company. Number two, most carriers you could lease to would likely be paying you somewhere between 65 and 75% of what they book the load for. When you take into consideration what it will cost you to use some of the boards, the time involved to find the loads, and other incidental costs such as fixed overhead, etc., not to mention the commission you will pay to the factoring company, your percentage could easily be zero or maybe a little more. You would be far ahead to drive for that carrier unless you were to have a considerable amount of others leased to your company. Your ambitious desires are admirable your bottom line is certain to suffer.

 

[guido4475]

Number one, you do not need authority if you are going to be using cargo vans for your company. Number two, most carriers you could lease to would likely be paying you somewhere between 65 and 75% of what they book the load for. When you take into consideration what it will cost you to use some of the boards, the time involved to find the loads, and other incidental costs such as fixed overhead, etc., not to mention the commission you will pay to the factoring company, your percentage could easily be zero or maybe a little more. You would be far ahead to drive for that carrier unless you were to have a considerable amount of others leased to your company. Your ambitious desires are admirable your bottom line is certain to suffer.

Exactly. Couldn't of said it better myself.

 

[AMonger]

Exactly. Couldn't of said it better myself.

**fumes**
It's "couldn't have said it better..."

 

[xiggi]

**fumes**
It's "couldn't have said it better..."

I knew exactly what he meant as did everyone else.

Sent from my Fisher Price ABC123 via EO Forums

 

[Turtle]

Actually, it's couldn't've said it better.

It's a rather common error, so common that it's now widely accepted, and it's related to phonetics. The <v> in contracted -'ve, have, de-voices and so it sounds like <f> - which is why you'll find native speakers writing "could of" and "couldn't of" instead of the expected contracted forms could've and couldn't've.

Certainly ain't nuthin' to go fumin' on 'bout.

 

[purgoose10]

Actually you do need an operating authority. It is an authority for vehicles 10,000# and under and requires $300,000 primary liability and $5,000 cargo. The whole idea behind this is so the feds know you are insured, drop your insurance and they pull your authority. I have had mine since 2006. As far as 1 million liability you dont need that much unless you wanna do that low payin broker or partner carrier crap. Working with shippers is a much better route and pays much better.

Somebody please tell me what insurance has to do with authority. Rocket science again. That's true with a unit over 10K but not C/Van. The insurance is for the shipper liability as well as yours, has nothing to do with authority for a C/Van because you don't need it. If you have authority it's because you want it that's all.

 

[mjmsprt40]

So, let me get this straight. If I want to become my own company, all I have to do is get the right insurance and then start trying to drum up business???? And here I thought maybe I needed authority before I called "U-Ship" to see if I could get anything worthwhile.

Somehow, I have a sneaking suspicion there's a wee bit more to it than that. Even for a less-than-10,000 CV.

 

[fastrod]

Somebody please tell me what insurance has to do with authority.

I already did but somehow you couldn't quite grasp the concept.

 

[purgoose10]

So, let me get this straight. If I want to become my own company, all I have to do is get the right insurance and then start trying to drum up business???? And here I thought maybe I needed authority before I called "U-Ship" to see if I could get anything worthwhile.

Somehow, I have a sneaking suspicion there's a wee bit more to it than that. Even for a less-than-10,000 CV.

Well if you have a sneaking suspicion then you need to get some professional advice and pay for it. This has been discussed and cussed on this forum for years, same question keeps coming up and the same answers keep going out.

 

[fastrod]

Well if you have a sneaking suspicion then you need to get some professional advice and pay for it. This has been discussed and cussed on this forum for years, same question keeps coming up and the same answers keep going out.

Here's the number for some FREE professional advice from FMCSA. 800-832-5660. What they will tell you is if you are for hire and haul across state lines you need MC number which is operating authority. This applies to cargo vans.

 

[purgoose10]

Here's the number for some FREE professional advice from FMCSA. 800-832-5660. What they will tell you is if you are for hire and haul across state lines you need MC number which is operating authority. This applies to cargo vans.

Well that's if you are over 10k.
If you don't have to log with a C/Van unless your caring hazardous would that not tell you your unregulated? If you had to log your regulated. I run 2 C/Vans, 2TT and 1 straight truck. The straight truck carry's nothing but class 1.4 explosives. I have a DOT attorney retained for my operation. If my C/Vans needed authority I would have it. If you want it then get it, no biggee to me I'm just say'n you don't have to have it. If your running the U Ship stuff I think someone told me your required to have 300,000 liability plus cargo. I'm not sure, glad I don't have to mess with that stuff.
Another example when you are hauling for several carriers and the only thing you have to give them to be brokered is proof of insurance and cargo, how come they don't ask for authority?? (C/Vans)

 

[chefjesse]

I did call them and was told if I was under 10,000 lbs then I was not regulated by them.

Sent from my DROID RAZR using EO Forums

 

[xmudman]

Wouldn't you need authority just because you're a carrier?

I understand not needing a DOT number, and I certainly appreciate the freedom of having one less shackle on my operations, but if you're a carrier, you're a carrier, regardless of truck weight.

I could be wrong, (see sig line)

 

[kwexpress]

alot of factoring companies do not require this monthly min anymore.
ATF finance can help you.not saying they are the best or cheapest.

also you might consider asking the ones you haul for if they offer a quickpay.some of the better ones I work with pay me within 48hrs via direct deposit for around 2% some will also give you 50% when loaded.

 

[interstategar]

Any size vehicle transporting freight across state lines needs authority! The best route to take if you have your own authority is to make sales calls directly to shippers in your area. Offer them a discount for any return loads they might have. If you run a cargo van with a reefer set up you can run pharma products for the big pharma companies. You just have to be persistent.

 

[zorry]

Any size vehicle transporting freight across state lines needs authority! .

ANY size ??