Greetings All, from a Newbie Wannabe Carrier-Owner

[Herb_Tee]

Greetings Forum Members:

My name is Herb and I have been lurking on this forum and other trucking forums for many, many weeks now, reading the very informative posts of advice and opinions of many members. I joined this forum because I am here to learn and to exchange thoughts and ideas. I want to dialog and exchange thoughts and ideas with the men and women here who are driving trucks every day, and have done so for many years. Let me start by saying that my wife and I have been working and researching thoroughly over the past 6 months to start our own family-owned OTR contract carrier from scratch. We wish to become owners of a well-equipped OTR contract carrier fleet of about 20 to 30 new 2006 Kenworth T600 tractors with company drivers to start. Then we'll follow on with contracted owner/operators as we garner more contracts to pull more contract freight and trailers. My intent is have only a small percentage of our freight as brokered loads, and then primarily as backhauls. Further down the road, we plan to open a brokerage subsidiary for our company and we'll look into pulling expedited OTR contract freight for FedEx CC, Panther II, LandStar, Con-Way Now and a few select others.

However, I admit, perhaps to the chagrin of some, that I am not and have never been a trucker, and neither has my wife. I don't even have my CDL as yet. So I definitely consider myself a "newbie" here. But I do have a strong military, small business owner and systems engineering background. I am currently a Senior Systems Engineer with the Boeing Company. I am also a retired U.S. Army officer, with 24 years of active duty service. I consider myself a strong "people person", but also a shrewd businessman with a very strong Southern Baptist-bred work ethic. I am not too "politically correct" at times. But that mold seems to fit many of you here. I hope I can put all of this together with my wife to build up a strong, hands-on, employee-personalized fleet company. We want to start by making the care of our drivers, O/Os and their families as one of the top priorities. My feeling is, if we do that extremely well first and foremost, the loads and profits will come and our drivers will pull freight to hell and back for us. Perhaps some members may think I need my head examined! Imagine, wanting to leave a well-paying Boeing engineering job to own a contract carrier, with all of its challenges, to make a living. Well folks, I feel I am up to challenge and I truly want to do this! My wife is supporting me 110% on this and is with me. I am definitely more than ready to leave the suit-and-tie world and have wanted to do so for many years. Instead of merely talking and dreaming about it, I am now planning to actually do it.

I don't want to make my first post too much longer. I just wanted to introduce myself. Also, to let you guys and gals know I'll be hanging around the forum, reading, absorbing, asking questions and discussing business operational concepts with you. Hopefully my questions and concepts won't be too silly or off-base, so please bear with me. Your comments and advice are welcomed to help us with our endeavors. Thanks for your time folks, and I'll see you around the forum. Merry Christmas to all!

Sincerely,

Herb

 

[Crazynuff]

RE: Greetings All, from a Newbie Wannabe Carrier-O

I don't really know what to say . You say you 'll want to haul expedited freight for the major expediting companies . These companies use their own contractors for expedited freight . Landstar will broker general freight but not expedited . I wouldn't even want to try to start a company out with 20 - 30 new drivers . Read posts here from fleet owners that have problems trying to keep good drivers in just 3 or 4 trucks . Turnover rate for drivers in the industry is around 120% . If you have 30 trucks you might get 6 drivers to stay a year or more . Maybe 6 or 9 more will stay 6 months before leaving . The rest will leave before that . If you want to start your own company start with owner operators . At least that way you won't have to be sending drivers around the country to recover abandoned trucks . You'll be out there competing with JB Hunt , Schneider , and the others with thousands of trucks that get bulk prices on fuel , tires , etc. . Can you really offer rates to compete with the rates they can operate at ? You need to hire a good operations manager . Interview a few candidates , lay out your plans to them and get opinions from someone with real experience . I don't want to burst your bubble but when you start out even mentioning backhauls I see real potential problems here .

 

[terryandrene]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Seasons greetings Herb:

I'm reasonably sure that you expect to hear more negative than positive comments about your dream and there will be no shortage of EO members joining those of other truck related sites to provide those comments. Crazynuff, for example, speaks the truth about dissatisfied drivers, abandoned trucks and backhaul problems being the bane of many large and small contract carriers, as well as expedite fleet owners. You need to hear of these problems because as you well know, the best way to prove the theory of your dream is to try to disprove it. If you can't, it's a go.

I think that, simply put, the best way for you to start your KW fleet is to assemble the elements of your business plan and attempt to convince yourself that each element will not pass the test of success. Failure to do that will allow you to convince your financiers, customers and denizens of web sites that you're the man to make your dream come true. Hoooaah.

Terry

 

[Broompilot]

RE: Greetings All, from a Newbie Wannabe Carrier-O

All things are possible with the right contacts. I do not know how to assist or be of any help as what you are about to do is really out of our league.

Our freight is only rush and light for the majority of us on here for instance my truck with a quarter tank of fuel will only carry 11,000lbs 10K if they are both full. So for back hauls I need to take van loads not exactly high paying.

Our $ is generated from miscaluclations, missed deadlines, new orders, or just a plain screw up. Nothing is consitant. If you really want some time off just plan on it as you will be working. Want to work you will be sitting. Not really but making any plans is difficult and dont make promises you cannot keep.

Wish I (we) could do more but sounds like your more Truck Load orientated than LTL and do not start a fleet in Expediting, very very few succeed.

 

[Heart of Dixie]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Herb
There will always be the ones who will say it cannot be done. Columbus was told there was no new world, George Washington only had 30% of the country behind him during the War for Independence, history is full of such stories. In fact the head of the the US Patent office said at the turn of the nineteenth century "Everything that can be invented has been invented". Michael Dell entered the computer business when there were already many companies out there competing for the same dollars. I have always felt that a person's character, plus wisdom and knowledge will always triumph, although maybe not as you first thought.

"It is not the critic who counts, nor the man who points out how the strong man stumbles,or where the doer of good deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by the dust and sweat and blood:who strives valiantly:who errs and comes short again and again: who knows the great enthusiasms and the great devotions, and spends himself in a worthy cause: who, at best, knows in the end the triumph of high achievement: and who, at the worst if he fails, at least fails while daring greatly...so that his place shall never be with those cold and timid souls who know neither defeat or victory".

Theodore Roosevelt

 

[ATeam]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Herb,

While you have no truking experience you have something many people lack when they first begin. You have a detailed vision and an idea of how you want to accomplish it. That is a huge plus in your favor.

You have a complex set of goals. As I read your post, it occured to me that you will likely learn things along they way that will prompt you to make course corrections. Keep your options open. Stay flexible. And when you feel frustrated, take a moment to ask yourself, "What am I trying to be right about?"

When you own your own business the stakes are higher. Not simply because it's your economic livlihood on the line, but also because it's not just about business any more. It's also about you. Don't let the desire to be right about something get in the way of clear thinking and good decision making.

 

[Tennesseahawk]

RE: Greetings All, from a Newbie Wannabe Carrier-O

First off, Crazynuff isn't right about getting freight from other expediting companies. That's how I make my living. Also, there is more than enough room for those who want to find general freight. Whether you are looking to get your own contracts, or get loads through brokers, it's all good.

As far as 20-30 trucks on with no experience in freight... I would say bad choice. If you start with a few, and work toward your goal, you'd end up learning how this industry runs along the way. They have a good system on the roundtable at truck.net... in particular, their business section. They also have sections on getting your own authority, finding insurance, taxes, trucking law, etc. Any general business questions you have, I'm sure have been asked there.

www.truck.net

I hope the moderators don't disallow the post, even if it's to another forum. There is a world of info there about the trucking industry as a whole, but doesn't seem to be any competitor to EO's field of expertise, which is expediting.

 

[Herb_Tee]

RE: Greetings All, from a Newbie Wannabe Carrier-O

>I don't really know what to say . You say you 'll want to
>haul expedited freight for the major expediting companies .
>These companies use their own contractors for expedited
>freight . Landstar will broker general freight but not
>expedited . I wouldn't even want to try to start a company
>out with 20 - 30 new drivers . Read posts here from fleet
>owners that have problems trying to keep good drivers in
>just 3 or 4 trucks . Turnover rate for drivers in the
>industry is around 120% . If you have 30 trucks you might
>get 6 drivers to stay a year or more . Maybe 6 or 9 more
>will stay 6 months before leaving . The rest will leave
>before that . If you want to start your own company start
>with owner operators . At least that way you won't have to
>be sending drivers around the country to recover abandoned
>trucks . You'll be out there competing with JB Hunt ,
>Schneider , and the others with thousands of trucks that get
>bulk prices on fuel , tires , etc. . Can you really offer
>rates to compete with the rates they can operate at ? You
>need to hire a good operations manager . Interview a few
>candidates , lay out your plans to them and get opinions
>from someone with real experience . I don't want to burst
>your bubble but when you start out even mentioning backhauls
>I see real potential problems here .


Thanks for your post and your candor about this. I am surprised you've said that expediters like LandStar, Con-way Now and others will not hire contract carriers or small fleet owners to pull their expedited freight under contract. That's not what I understood from reading their websites. Perhaps I misunderstood something, although I haven't actually spoken with any of the sales folks from the major expediters. But from reading what they have on their sites, contract carriers pulling expedited freight for an expediter is not that uncommon. Please correct me if I am wrong.

About drivers: I continually hear the "gloom and doom" problem concerning drivers and driver retention. I admit that the industry has a major problem with this. But on the other side of the coin, I've hear praises from and have read many success stories in the trade magazines from medium and small fleet owners and private trucking companies who've had very few problems with driver retention. Perhaps it all boils down to how well a company's management will pay, respect and treat, and how well dispatchers will load and run its drivers. Unless these success story owners are all lying, there's something to be said on how well a company treats, pays and cares for its drivers as a major retention tool. The equipment the drivers must drive also comes in a close second as a retention tool. The more successful companies at driver retention all seem to say the same thing. The horror stories where driver turnovers are high seems to be when the companies, fleet managers and dispatchers consistently stick it to the drivers until they finally quit out of sheer disgust. Well, I don't plan to treat my drivers in this fashion. If I can make an honest dollar without shafting my employees over and over again, then perhaps I should not get into this business. There will be challenges and things will happen where a driver gets held up, or a dispatcher makes a dumb mistake. But if it's an occasional thing, or if the company tries to make it up to the driver for going all out to pull a load after a management mistake was made

The "big boys" you mentioned like Swift, JB Hunt and Schneider...I definitely could not compete with them on the open freight market. But I don't feel I have to. As a contract carrier, I don't want to compete with the big boys, I want to pull their trailers for them under contract! Many large carriers do have provisions for contracting smaller fleets to pull loads for them. Many have maintenance loans, discounted fuel and discounted parts plans for their contract carriers as well. However, I've heard that smaller carriers can do better by developing their own accounts and net terms for discounted fuel and parts with many truck stops and through memberships with other co-op agencies like the National Association of Small Trucking Companies (NASTC). I am not doubting what you're saying at all. But I do feel that, with the proper research and planning, getting fuel and parts like tires at discounted rates for smaller fleets is not that impossible.

As for the backhaul comment, I meant that from the reference of not being able to find a suitable return contract load or a full rate brokered load. In such a case, a decent "backhaul" will do in lieu of deadheading. Once we're brokering our own loads someday, there will be no such word as backhauls in our company, unless we accept one from another broker. Good food for thought though, thanks very much.

Sincerely,

Herb

 

[Herb_Tee]

RE: Greetings All, from a Newbie Wannabe Carrier-O

>Seasons greetings Herb:
>
>I'm reasonably sure that you expect to hear more negative
>than positive comments about your dream and there will be no
>shortage of EO members joining those of other truck related
>sites to provide those comments. Crazynuff, for example,
>speaks the truth about dissatisfied drivers, abandoned
>trucks and backhaul problems being the bane of many large
>and small contract carriers, as well as expedite fleet
>owners. You need to hear of these problems because as you
>well know, the best way to prove the theory of your dream is
>to try to disprove it. If you can't, it's a go.
>
>I think that, simply put, the best way for you to start your
>KW fleet is to assemble the elements of your business plan
>and attempt to convince yourself that each element will not
>pass the test of success. Failure to do that will allow you
>to convince your financiers, customers and denizens of web
>sites that you're the man to make your dream come true.
>Hoooaah.
>
>Terry

Hi Terry & Rene:

Thanks very much. I truly like what you have said, especially about proving the theory of my dream is to try and disprove it. Very sound advice indeed, thanks. I've already said my piece about the driver retention issues to Crazynuff, and I do have my business theories on how to solve some of it. But I know it's going to be a problem that I'll constantly have to deal with. I guess the only true way to totally avoid the start-up and driver problems as a small fleet owner is to not start a trucking company at all. But I am not ready to throw in the towel just yet. Thanks Terry for the great advice. I know it's going to be a real jungle out there. But I am slowly and carefully sharpening up my machete! ;-)

Sincerely,

Herb

 

[greg334]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Ok I really don’t want to do this on Christmas but I think someone should say it; look around, think and think again. Unless you know what you are doing you are going to fail, which is something I really don’t want happen. I don’t want to be negative but this is serious stuff, you don’t want to waste your money in a highly competitive industry, do you?

Now my fellow EO members have given good advice but there are too many gaps that people will not always talk about or even know about. Being a small business owner is one thing but this is bigger than a small business.

I understand your desire and what you are going for, but as someone who understand the needs to get things done right, I not only recommend some things but suggesting reconsider what you are going to do and get really, really good advice.

Personally I would stay exactly where you are at; don’t make a move, hint what may happen or even talk about it at Boeing, nope not a word to anyone. I have very specific reasons for that comment and if you are politically astute about your corporate culture, you will understand my comments.

The other thing is being an officer in the military does not always make you a good business person, I know I had a business partner who was a captain (or a major, can’t remember) in the marines and made a horrible business man. On the other hand I worked for a guy who was a logistics captain in the army, talk about a person who had it together, every project fell into place without a hitch.

What you are talking about is not something small, investing maybe 500K at least in the bank just to get started, not to mention the money you will need to sustain the business for at least 6 months. I figure that YOUR total investment maybe around $1M and maybe $2.5M from investors to fill the needs to be competitive. Angel capital would not take place, lack of experience. There is no way you will make the money out of the box unless you are really lucky or know someone in organized crime.

My advice comes from three sources, experience, my contacts who are major players in business and my accountant and lawyer. Here is my advice;

• If you have to and going to make a capital investment into the business of say $1M or more (I can see this possible with 10 trucks) contact a company like Deloitte and Touché for risk analysis and consulting service. They do this for a living and an tell you what you could area you could specialize in, the growth potential in that area and even how to leverage your experience to be successful. DO NOT use a small company without a lot of references; this is a death sentence for your company. The big companies are worth the money when you start and may open a lot of doors for you. Don’t listen to people who tell you that you do not need this.
• Set up an appointment with the SBA and Score to start with the business planning and other needed things, they also may help with contacts with the banking people, who will most likely be your partner for at least 5 years. Go there with your ideas in writing (including your goals and expectations) be organized and dress as a professional.
• Search for a good lawyer who worked in the supply chain or logistics industry and retain them. You may need to go to a specialized law firm. Of course with any lawyer, get references and call them.
• Get a very good accountant to be the CFO of the company and listen to their advice – this maybe the most important person of the company. DO NOT think you can do this yourself, my accountant laughs at people who think they can. You are looking at a good amount of cash flow which you can not possibly manage it yourself while you are managing the company. Also STAY AWAY from any one who is a financial planner or what ever they call them today. Get a real Certified and college educated accountant. A good CFO will make decisions that will allow the company to grow.
• Get to know good people in the business, I mean look for management types who think out of the box and are willing to talk to you. You may want to hire them later on.
• Go to the trade shows, mingle and learn. Learn, learn and learn more. Make contacts, take some out to lunch and learn more.
• Don’t think that even if you have the money for the trucks, the building, insurance, license fees and the reserve, you have the money to hire the right people, I know this first hand; they are expensive. The more professional the people are, the more successful you may be. I would not worry about drivers at this point; the drivers are only one little part of the equation, but one of the most important. Drivers are easy to get, an accountant who will make you money and knows the tricks will be hard to find. As I found out, there are accountants and there are accountants. Most of them have built up their business, like mine, and won’t be a full time CFO.

What you should not expect;
• Good advice from drivers on how the business end works. It is two different worlds.
• Good advice from some of these Forums. EO is the best and you will get really good advice from EO but others I am afraid have a lot to be desired.
• Don’t even expect to talk to a bank or any other financial institution without the basics in hand, business plan, corporation papers, goals and even sometimes mission statements.
• The LLC thing to cover your liabilities, there is still liabilities with LLC where a C or S corp may be better. Talk to your lawyer.
• Success without due diligence.


I have a lot more to say but it has been a busy day and I had to have dinner with both my lawyer and accountant today, which really tired me out.

Good luck,

 

[Herb_Tee]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Hi Greg:

Your points are well taken. Without going into details about the finer points of my business plan, or how I plan to negotiate contracts with major carriers and shippers on a public forum, I'll say that I've already done much on some of the bullet points you mentioned. However, there is still much left for me to do and more research to be done. I am still not yet satisified that I have the full picture and all of the business dynamics as yet. But I've already addressed many points you've made and have had them in my start-up, operating and proforma analysis spreadsheets for several months now. Experienced driver salaries at different CPM rates (but no CDL newbies), initial truck costs, trailer costs, business insurance, truck liability insurance, bobtail insurance, cargo insurance, maintenance set-asides per truck per month for everything from tires to light bulbs, fuel taxes, equipment leases, inside staff salaries, health and dental, Workman's Comp, minimum profit miles per week per truck, it's all there.

Over the months, I have purchased many books, finance and accounting (QuickBooks Premier), business planning, and financial forecasting software packages. I've already subscribed to TT and plan to subscribed to several other trade subscriptions and industry forecasting tools before year's end. I've traveled to attend several trucking industry seminars so far, and either met with or spoken many times with drivers, fleet managers, sales folks from Kenworth and Freightliner, Qualcomm, a trucking insurance broker (Lipscomb & Pitts in Memphis), ProHeat APUs and several trucking software vendors (Prophesy DispatchSeries, PC*Miler, Rand McNally IntelliRouter, EDI software, etc.).

I've also met and spoken numerous times with an accountant who's experienced in the trucking industry, with several small carriers and a freight logistics firm as clients. He's given me lots of free accounting advice for trucking, God bless him. Finally, I've recently incorporated, obtained our EIN from the IRS, obtaining local and state business licenses, a MO Tax Exempt ID, joined the ATA and the MO Motor Carrier Association, registered our fledgling business with Dunn & Bradstreet (DUNS Account Number) and the Federal Government through the CCR for contract bidding later on. Now, I am trying to decide on which bank to open a business checking account with...either Bank of America, Bank One or US Bank.

As far as having a lack of angel investors who would invest the kinds of money for a start-up trucking company, I respectfully must disagree. In my research for seeking angel investors willing to invest in start-up transportation and related brokerage and freight logistics businesses, I found 6 such angels in Missouri alone, with investing assets ranging from $5.6 million to over $45 million dollars. The amount of angels concentrated in these business areas, when last I paid for the research analysis about a month ago, numbered at just over 400 angels in the US. But just as it is with a bank, the SBA, a venture capitalist or an angel investor, you won't get any money from any of them if your business plan, your market niche and research, your analysis, your proforma and your growth data isn't sound.

Yes, I agree with you that some investors may question our lack of experience in the trucking industry. And that factor alone might dissuade a few investors from touching me. But I don't think they would much question my resume and my business, personnel and material organization skills, managerial skills and leadership work experiences. If I am rejected by an investor due to the content or presentation of my plan, I will re-polish my plan or presentation as needed, then try again. If an investor rejects me only because I have no trucking business experience, there's not much I can do about that. I'll just keep looking for an investor who will. As a fall-back plan, my wife and I will consider bringing 2 trucking industry partners into our business. These are men who are well experienced in the trucking industry...as OTR drivers, Kenworth and Freightliner truck salesmen, logistics warehouse managers, one as a Utility trailer fleet salesman. They're both truck and equipment salesmen right now, but they've done a bit of it all. It's a partnership option we'll utilize only if we must. Bringing in partners will create a whole new personal and operating cost dynamic to the business as you're probably aware

As far as ex-military officers go, they are just like anyone else. There are good ones at what they're doing, but not everyone of them are cut out for every job...no matter what their backgrounds or occupations are. I don't think I've ever said here that all ex-military officers automatically make excellent businessmen, including myself. I know better than that because I work with many such men and women daily. They are great at what they do as employees. Being an employer or a business owner is another matter for some of them. I only speak for my own personality, capabilities and limitations and my own personal drive for wanting to do this. I'll be thoroughly and professionally challenged by what I am trying to do, there's not doubts about it. I am human will certainly make some mistakes, errors and a few misjudgments along the way. But by thorough planning and learning as much about the trucking industry as I can beforehand, I hope to minimize any gross costly errors or underestimations.

As for my current employer, I understand what you're saying. However, this is absolutely not a conflict of interest matter if that's what you're getting at. I am not building a business to personally compete in markets or on contracts against my own employer. If the day comes that Boeing decides to buy out Swift or Schneider, then I'll have to be concerned about it. Enough said about that.

I truly understand this bit of negativity some of you have for my goals in wanting to accomplish this. From my initial post, no one here could know what I've already gone through, what preparations I've made, and what I've learned and accomplished these past 6 months. But after all, I did ask for opinions and comments from the forum members. And that's exactly what I am getting. No harm and no foul for those who think I shouldn't even try doing this or that I should be a trucker or a dispatcher first before owning a trucking business. Greg, I know it's going to be tough going for me from a financial and business perspective. I have no doubts or delusions about that. But I am willing to keep going and I am confident that I'll prevail eventually. I am confident that I will find an investor that will help me start the kind of contract fleet carrier that I envision. It make take some time, but I am going to try. So far, nothing you've said hasn't already been addressed, or is in the plan to be addressed in the near future. Time is still on my side here, so I am not so easily dissuaded. I am in no major rush to start a new contract carrier tomorrow, next month or within the next year. I am still many months away from more research, industry seminar attendances, and more analysis for putting together a solid and thorough business plan and a professional presentation for investors. Thanks for your comments.

Sincerely,

Herb

 

[Crazynuff]

RE: Greetings All, from a Newbie Wannabe Carrier-O

I stand corrected on the issue of expediting companies not brokering loads . As far as driver retention goes treating the drivers well does help but you'd be surprised how many drivers still leave . I too thought of becoming a fleet owner after reading positive comments in magazines then I came to this site and read the negatives from both drivers and owners . As far as pulling trailers for JB and the others goes , I've heard their owner operators complain of low mileage , under 2,000 miles a week . Some owner operators or JB company drivers can make decent money but put in the factor of a fleet owner taking a percentage and the driver pay isn't that attractive . Why would a driver want that ? Can you offer the fringe benefits JB can ? I think you can succeed but I'd forget buying more than a few trucks . I'd use o/o's to start . On the other hand some of the most successful fleet owners in expediting own tractors . There is always a need for them and you'll make more money running less miles . The fewer drivers you have the more selective you can be in hiring . Give that a thought . Start out with a tractor or two and let FedEx CC or Panther II do all the fuel reports and load searching . Paying a driver a decent wage won't be a problem and you won't put 150,000 miles a year on a tractor . You didn't mention running teams . That brings in more potential revenue but more than doubles annual tractor mileage and makes driver retention a bigger problem , especially with the new HOS .

 

[cheerz]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Herb,

It looks like you have a great plan. You are only new to the trucking industry not new to business. There is a big difference between the two.

I am also a memeber of a different board and received many of the same comments you are. We have now had our own authority for four months and doing great. We have learned some new lessons this year but we have learned to operate profitably.

We have only one truck and are adding two more in January. We are growing "slowly". That was our plan from the start though.

Please let us know when you complete each step and keep us up on the progress that you make.

Good Luck in 2006.

Denise
Dea-Den Carriers
MC531046





"All dreams are possible"

 

[LDB]

RE: Greetings All, from a Newbie Wannabe Carrier-O

If you go forward with this, look into your wife holding 51% of the business so you'll qualify for minority business status. Your choice of T600 is a good one. Contact Fred Sargent at Performance Kenworth in Houston, 713-844-7111. He is a great guy to work with and the overall dealership is excellent as well. I tried a few other dealers and didn't get properly assisted until I started working with Fred. Good luck to you.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
EO Forum Moderator 1+ Years of Service
Expediters Online.com - The Best is Getting Better!
-----
Support the entire Constitution, not just the parts you like.

 

[teacel]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Welcome to EO, Herb

I’m sure by now you have come to realize by some of the responses you received this site isn’t a typical carrier knowledgeable site. 99% of the members or at least the participating members don’t know a contract carrier, from a common carrier. This forum is an informational site; where drivers (mostly independent contract drivers) working for expedite carriers share their experiences, issues, and concerns with one another forming a common bond. I think it is safe to say, because you posted in the newbie forum, and stated you were never a truck driver, some of the reply-ies didn’t read into anything else. For example when you wrote – “I am also a retired U.S. Army officer, with 24 years of active duty service. I consider myself a strong "people person", but also a shrewd businessman with a very strong Southern Baptist-bred work ethic.†The only thing that stuck out to some was the fact that you never drove and don't have your CDL.

In 1990 I was where you are right now. Only 5 years prior I drove for a courier/expedite company using them as a learning tool. Back then; there weren’t any sites like EO to learn from. I love this part – “Perhaps some members may think I need my head examined! Imagine, wanting to leave a well-paying Boeing engineering job to own a contract carrier, with all of its challenges, to make a living. Well folks, I feel I am up to challenge and I truly want to do this!†All I have to say today is YES!!! You are a NUT, add some nasty cuss words before the nut, and you can visualize how I am expressing my thoughts. This industry isn’t like it was 10 years ago, and if I had to do it over I wouldn’t, BUT hey, that’s me! I have too much $, and too many years invested, to do anything else, and I too am a NUT!!!

Do hope to hear more of you’re progress, and if there is anything I can be of help with, feel free to ask. If I can help, I will.

The one thing I do want to leave you with… Prepare yourself for battle! Learn to be shrewder than ever, and learn how other cultural groups think and respond. No matter what, stand your ground, and never let anyone back you down, even if it means losing a contract. There are plenty of fish in the sea. Sometimes this industry can have you hating yourself, if you let it!

 

[babs3361]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Herb:
I comind you on your vision. Have been in the business of trucking for 25 years driving T/T, and a owner/operator for 14 yrs. I have not worked up the guts to be a fleet owner because of all of the driver problems. I do know that if you want to make it as a small fleet owner do not lease on with a company that only pays .80 cents to a $1.00 as a base rate do the math on what they pay there company drivers with the benifit package. You will not make enough to pay the bills. To start with a fleet you need to get your own acounts and your own authority. If your are really wanting to do this. My advice would be to Get your own truck to drive first and experence what it is like out in the real world of trucking. We are not getting rich with one truck that my husband and I work together but we make a very good life.

 

[davekc]

RE: Greetings All, from a Newbie Wannabe Carrier-O

I don't want to encourage or discourage you. Alot depends on which you path you go down, and in what time frame. Owning a business is easy, but running it is much different.
If you are starting with one truck and moving up as you gain experience, that is one version.
Jumping in with 20 or 30 trucks is a new ball game. Commitment from investors is quite different than having working capitol provided to you and sitting on the table. Those investment dollars will likely be expensive because you would have no track record of performance to ensure a return. Why would they invest?
Something in a short period would require you to provide someone at the helm that had a proven track record within the industry.
Even on your own dollars without experience, you will have to budget capitol of at least 30 percent to cover mistakes and miscues.

As mentioned, it is very competitive. You must really know and understand your limitations and risks and react accordingly.
We are not ambitious enough to take on 30 trucks, but we have had as many as 15.
You sound like you have alot of the basics covered. But do keep a open mind that many new and long standing trucking businesses have failed. You will have to identify those failures and detemine what will keep you from following that same path.

If you have never driven, I would advise you to find someone that knows and understands all aspects of the business. Without knowing what the drivers life is really like, you are really only seeing 2/3rds of what really goes on.

Some get confused when looking at this business and only look at the equipment and operational costs. Your greatest asset will be your drivers.

Glad to have you on board either way.





Davekc
owner
21 years
PantherII
EO moderator

 

[bryan]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Hi
You will not be the first person to start a trucking company while having no driving experience.I know of one locally who jumped into the business just because he thinks trucks are pretty.He owns 5 other businesses, but his trucking company has turned into the major money maker.
I know a few of his drivers and here are their reasons for staying with him.
1)takes care of repairs as soon as the driver notices a problem.
2)if the repair is going to require an over night stay the owner makes the hotel arrangments.
3)he personally talks to each driver once a week.
4)dispatchers are experienced ex-truck drivers
5)drivers have access to computer routing and mileage software.
6)he pays ontime and usually to the penny of what the driver was told.
By the way instead of cutting the rates to get business, he is actually one of the most expensive carriers out there.
Wishing you the best of luck.

 

[DannyD]

RE: Greetings All, from a Newbie Wannabe Carrier-O

>I don't want to make my first post too much longer. I just
>wanted to introduce myself. Also, to let you guys and gals
>know I'll be hanging around the forum, reading, absorbing,
>asking questions and discussing business operational
>concepts with you. Hopefully my questions and concepts won't
>be too silly or off-base, so please bear with me. Your
>comments and advice are welcomed to help us with our
>endeavors. Thanks for your time folks, and I'll see you
>around the forum. Merry Christmas to all!
>
>Sincerely,
>
>Herb


Greetings Herb,

Welcome to EO. I wish ya the best & think you'll do fine. With your contacts at Boeing, maybe you could even start an air-freight division. I've considered, though not seriously followed up on it, becoming a pilot & delivering air freight.

Finally, rest easy on how long your posts are. I've written some novels on here. =)

Happy Holidays & the best of success to you,
Danny

 

[ATeam]

RE: Greetings All, from a Newbie Wannabe Carrier-O

Herb_Tee said,

"If I am rejected by an investor due to the content or presentation of my plan, I will re-polish my plan or presentation as needed, then try again. If an investor rejects me only because I have no trucking business experience, there's not much I can do about that. I'll just keep looking for an investor who will."

Bravo! Herb!

It does not matter how many investors say no, only how many say yes!