Game plan

[ATCO]

Ok guys, I guess I'll let ya'll in my latest game plan...
hopefully I'll be able to get all my ideas across.

I am currently filling my Limited Liability Corp. paperwork with the state of California. Once this is completed I will officially be in business. I am figuring my actual startup date to be March 1st. I am investing a total of $1,500 towards this business. With the amount I can invest, this is a VERY reasonable amount for a start-up.

I will be starting ATCO Transportation, LLC. My operating authority will be within the state of California only (Intrastate). My base of operation will be here in Bakersfield, CA. Until I have a customer base to warrant a full time operation, I will be operating part time, and working in the family business during the rest of the time. This will supliment my income, enough that I do not have to stress on the amount of business (or lack of). I will be my own carrier. I will get my own customers through a multitude of means, of which I do not wish to go into grave detail at this time. I have been busily(sp) calculating rates for my operation, and many things are falling together nicely.

My truck...
Well, I will be operating a Penske rental truck at a phenominal rate. I will hopefully be able to utilize this opportunity, and save towards a new truck or lease. I have learned something regarding rentals in particular. Provided I rent for less than 30 days, I will be able to operate under Penske's authorities (USDOT). They carry their own ins. on the vehicle, and all I have to provide is a rental agreement upon any questions about the operation (scales). I will aquire my own ins. and that will cover part of my rental agreement. When faced with the cost of a vehicle AND Ins., this will ultimatly be a very cheap alternative for the moment. I will eventually have enough business (I hope) to warrant a full time truck, which I will go after the needed CA# and MCP paperwork. I am trully suprised at how willing Penske has been with this endeaver, that I have to honestly say, that if ANYONE needs a rental, to goto Penske...

well, thats been my little secret for the past week or so, I hope it'll work out as I am forcasting it too... Wish me luck, please...


-Joe Bohannon
Bakersfield, CA
Wannabe

 

[RichM]

Good luck Joe,keep us posted and watch out for the CA DOT,they can be tough, keep your logs up to date,make sure the I's are dotted and the T's are crossed. Stay Safe

 

[Preacher]

Joe, I still want to get back with you concerning what we talked about over the phone last week. I was on the road and I was quite busy to say the least. Perhaps I will give you a call tomorrow or Wednesday.

It sounds like you have a good deal going with Penske. You also failed to mention that they are also responsible for all maintenance. I pray that your endeavor prospers and grows. Keep us informed on your progress. Don't be shy to share any failings, if there are any. It will help those who are starting out to know the ups and the downs.

God bless.

 

[Weave]

Your starting plan sounds really good Joe. A lot of places that run trucks only intrastate long term rent or lease trucks from Penske or the likes. I'll admit I don't know a whole lot about CA, but just taking a wild guess I think you should be able to drum up a lot of courier business just running between LA and Frisco. If your long term plan is to only run CA, it could be cost effective to remain working with Penske under rent or lease instead of owning your own equipment. Just something to check into

-Weave-

 

[Crazynuff]

Did you join OOIDA ? They are very helpful in knowledge of legal matters . They charge $450 to get your DOT , MC and BOC 3 . Leasing companies are a good source for used trucks . What are you doing about random drug testing ?

 

[ATCO]

>Did you join OOIDA ? They are very helpful in knowledge of
>legal matters . They charge $450 to get your DOT , MC and
>BOC 3 . Leasing companies are a good source for used trucks
>. What are you doing about random drug testing ?

I have not joined OOIDA. I see they have a traveling truck near me right now, and planned to go talk to them this week (Petro/ Wheeler Ridge,CA).

To answer your question about drug testing. Not that I have a problem with it, but I am excempt from those requirements by the state due to the GVW of the vehicle I'll be operating. The vehicle I'll be operating, like most Penske straight truck rentals will be under 26,000 GVW. In the state of CA, that means I do not have to participate in the BIT or CSAT. I do not have to carry logs as well. I however do have to run through scales, and as mentioned before am doing so under Penske's authority...

These requirements or excemptions are based on my understanding of California's state law regarding commercial vehicles. If an Insurance carrier requires me to participate in any of these excempt programs, I haven't a problem joining.

My plan further down the road is to carry all the needed permits and authorities to operate within this state, with my own vehicle(s). I would like to build the company so as to have a small fleet, and in addition add a class 8 tractor trailer.

-Joe Bohannon
Bakersfield, CA
Wannabe

Disclaimer: This business plan is provided, through the gathering of information from the research I have done within the state of California, I am in no way an 'expert' in California commercial vehicle law (Although, my understanding/interpetations of the laws are made on foundation on the CA commercial vehicle laws). This approach has not been attempted as of yet, and may not be the best means for most to enter into the expediting field. Please use your local state's laws as a referance to the operation of commercial vehicles if you are going to be running Intrastate. Use USDOT rules and regulations for plans to operate Interstate.

 

[guest]

Atco,

I like your plan! It seems that your doing your homework. If this works out for you, you will be proving that anything is possible with enough hard work, research and refusing to let any obstacle stand in your way.

Your doing exactly what I've told alot of people over the years in other industries. Anything is possible! If there is an ostacle in your way that you just can't get over, go around it! The very first obstacle you had..and I'm sure I'm not the only who thought this..was that you just absolutely didn't have enough start up capitol to kick off your own freight business. This idea of leasing trucks to start is no less than "genius" status in my eyes. I have no idea of whether your the first to do it or not, but it does show that there is always another way.

I also like your disclaimer at the end of your last post. That puts everything on the table, so nobody blindly falls into thinking this a "tried and true" stategy.

Kudos to you Atco,

Arky

 

[miko]

Atko, I am really really surprised about you beeing able to lease this straight truck from Penske over and over again, or is that not set in stone yet? What are you going to do if they will not lease this particular truck out one monday morning?
Do you mind sharing the lease cost on this?

The idea in general is great, too bad that this can not be done with a 1-ton-van.

And in regards to insurance, you will be required to carry liability insurance, but how about insurance for the loads? If you run under their authority, will they carry the responsebility?
To me, it sounds to good to be true, my head is spinning right now...
Please keep us updated, this is interessting!

 

[ATCO]

First, I hope to be able to answer your questions below. This is by far not a perfect plan, and has drawbacks. A couple of which I can get into while trying to answer your questions.

>Atko, I am really really surprised about you beeing able to
>lease this straight truck from Penske over and over again,
>or is that not set in stone yet? What are you going to do if
>they will not lease this particular truck out one monday
>morning?

You hit one of the drawback right on the head, truck availibility. Right now, I am looking at rental, not lease. This means I am limited by what is available (any truck) in the lot when I come looking. It also limits my hours as far as being able to depart on a trip (6:30a to 6:00p PST). That leaves a 12-1/2 hour window that I will not be able to 'get' a truck. Although they are willing to be accomidating to a certain degree, this is a HUGE factor. I'm basically wagering on being able to get a load and be able to get the truck during those hours. This does cause some concern and I consider it a possible "monkey" wrench in the works. If I rented the truck weekly, I lessen the likley hood of this problem, however increase the times I'm paying for a truck not working.


>Do you mind sharing the lease cost on this?

I do not wish to throw the number out there in a public place, so If I decide to share the rates, I'd do so in a PM... I will say the rates are substantially lower than whats considered their [off the] 'shelf' rate. Plus an additional $35 (daily) if I use their Ins. Which initially, until I find my own Ins., I will take advantage of. Do to the cost of the rental, the ratio of 'profit' (per my rates) would be around 60% me, 40% Penske (roughly, at this time).

>And in regards to insurance, you will be required to carry
>liability insurance, but how about insurance for the loads?
>If you run under their authority, will they carry the
>responsebility?

The 'other' big problem,
Lease agreements spell it out, under no condition is the lessor held liable for the cargo (insert: Lessee IS liable). I will be doing my research now in finding an insurance company to provide both $1,000,000 "Aggregate" (have no idea what that means, sorry) Ins. for collision and liability (per Penske - which gets me out of the $35 a day), and $1,000,000 cargo. No 2 ways about the cargo, but you'd need it anyways running your own truck. Penske does not require the cargo, and they accept no responsbility for cargo, kinda a do it at your own risk...

>To me, it sounds to good to be true, my head is spinning
>right now...
>Please keep us updated, this is interessting!

I suppose, I have presented the almost perfect view of things. There are other things about this arangment that kinda sucks. First, it's not a truck spec'd to my liking, but to one large "fleet". Their trucks are plain jane, as an example (my latest rental was) an 04' International 4300. Nice truck, however it only had 220HP @ 2300 RPM's and 540 LB-FT @ 1400 RPM's. It is governed to a max of 65 mph. I ran it over "Grapevine", and got 8 mpg (averaged entire trip/250 mi) and slowed to 45 mph through much of the uphill climb ( I was loaded with about 6,000#'s). The trucks are clean, but I would much prefer it in my 'fleet' colors... I'd rather it have Alum. rims... Most are spring ride. I cannot put in all the wonderful gadgets, I'd love to be able to use, such as a LCD screen GPS system. I have XM, but have to keep it portible. I won't have a rigid mounted CB...Oh yeah, NO sleeper
Point is tho, this is a starting point...


-Joe Bohannon
Bakersfield, CA
Wannabe