Regarding New Short-haul/OTR Trucking Company

TruckerBiz

New Member
Hi there,

I currently work as a dispatcher at an Idaho based OTR trucking company and have become interested in starting my own trucking business. I am looking for any advice from the community - specifically from Owner Operators, truck drivers, or business owners regarding how a company functions in the opening few months of operation.

I've done my research to a point, I've got no issues getting the correct paperwork filed away (this is easily searchable via the internet) or even developing my own business plan or developing my own market research. My main questions are this:

Why would a truck driver, either employed or owner operator, want to work at a startup trucking business?

How does a trucking business, once fully set up, get loads when many brokerages require several months experience before signing up? Do most startups typically get on the horn contacting customers directly?

Can you get contracts when your short term goal is to become profitable running less than 6 trucks?

How does one get involved with negotiating contracts with customers? Are there specific websites/forums for this, or is this something that is more done by cold calling? What has worked for you in getting your best/most important contracts?

Would you hire on to work for a startup company when the owners don't have CDLs? What would you look for regarding an employment package that would help you overlook this?

What do you look for in a "boss" as in the owner of your company, especially if its a small company?

Is it important to focus on intrastate hauling, or would one find more success focussing one several states or regional E.G. the Pacific NW? Is there more success with opening up to larger portions of the US?

How important is spot freight when starting your trucking business? Is it imperative to get trucks/drivers rolling when contracts haven't been earned, or are contracts written FIRST? And if so, how are contracts agreed upon when a trucking company has next to no experience as an entity?

How does one figure which type of freight/trailer to choose? Of course there is market analysis, but more specifically and personally, is this something that should be chosen to capitalize on current trends or would you focus more on flexibility E.G. leasing reefer now and opening up the door to different equipment types in the years to come?

If hauling freight requiring driver assistance, what is a good pay breakdown for this type of hauling? For example, if one were hauling lumber/trees from the Pacific Northwest to the east coast that had many stops and required the driver to move pallets?

***Is there any legal issues to be aware of when wishing to start a trucking business WHILE working as an employee of the trucking industry? I can't see how this would be an issue outside of using company information when it doesn't belong to you (which I will not be) but any information would be appreciated - I am a person of integrity.


I know this is a lot but I have a lot of questions. Preparation I'm sure is key so if you could share your expertise I would be greatly appreciative. Thank you so much!

BTW! If there is any information you would have that it appears that I am "clearly overlooking" that you would like to share, even if it IS related to paperwork/legality or anything mentioned or unmentioned, I welcome you to share it! Thanks again.
 
First, many brokers will work with you on day one. At 30 days, there will be even more. 90 days, 180 days, 1 year, and so on, the amount will increase

I will be at 2 years in September, and I can count on one hand the amount of times I got rejected by a broker due to age of authority.

Depending on where you live, there may be an opportunity for direct customers. The more trucks you have to offer, the easier this will be.

Right now, your only value is the fact that you can be the entire back office for someone who owns a truck, but doesn’t want to run the business side and all that entails.

Insurance will be one primary hurdle. You need to let an insurance company know your plans up front because many are uneasy about growth in the beginning. Also good to know what kind of rates you will be dealing with. Another reason some truck owners lease to a carrier is because the insurance rates where they live may be through the roof. I pay under $7k per year, but I know another guy who had a clean record, new equipment just like me, and similar experience. Due to his location, he was quoted $25k by the same agent.
 

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