Am looking into the startup of owner/operator.
Got a handle on insurance, availability and cost for being new and inexperienced.
Got a handle on startup issues,incorporation,DOT,Authority, permits/sevices etc
Got a handle on truck/trailer financing. No hurry, trucks are easy to find. Not interested in lease options. Would buy my own truck/trailer.
Dont have a handle on revenue. Now researching if a new owner operator with no experience can realistically find loads and if so, the best way? Dont really want to lease to another carrier, not so sure about that.
Not looking to get rich quick, just trying to cautiously look into the viability and possibility of starting this business.
thanks in advance
Can New Owner Operators get loads?
Discussion in 'Questions From New Drivers' started by Soonerdoggy, Apr 29, 2012.
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your smallest problem will be finding loads your insurance alone is gonna kill you. Not to mention radius restrictions. Like anything in this bussiness your gonna have to pay your dues before you go out on your own. What are you gonna do if you end up hating it??? I think you need a wake up call do you know what lanes to run? If it was a simple as you are making it out to be everyone would be an OO
pattyj Thanks this. -
I'm assuming, he's refering to also getting his own authority and getting loads off a load board. Hard way to start but the only way without expeince. Not to mention such a high chance of losing everything.Brokers will eat him up.
Otherwise with a carrier, I'm not I've heard of any of them that would take on an O/O without atleast a year experience.
Sorry to sound discourgeing but in the case of O/O, experience is everything. -
I am referring to having my own authority. Insurance is covered and priced with no radius restrictions. 1MM on truck/trlr and liability. 100k on cargo. Not as high as I expected it to be actually.
That is the question I am posing, if you read my original comment, I have all the bases(expenses) covered with cost estimates or actual hard numbers in my business plan.
My unknown is potential for revenue or source for revenue: Can a new company(me) get loads? IF so, where would be the best place to search for that? Loadboards? online?
I am here, no need to talk about me in the 3rd personHow will the brokers eat me Up? Do you have an example?
nax Thanks this. -
if you let the brokers take you for someone to haul cheap freight, that's all they will offer you.
You will either have to figure things out to go direct with a customer or deal with brokers. Which ever way you want to go.
I am in the same boat you are. I have my plan, I have my targets and I have my course of getting this thing done.
I have one person I am working with whom I am finding out if my thoughts for getting loads will work.
So far, I have had some success in that it is telling me what I want.nax, greenant and Soonerdoggy Thank this. -
Easy..No need to be insulting. Why do you think I need a wakeup call??? wake up call for what? I am simply doing research. Where have I "made it simple"??
It's a business, nothing more, nothing less. All business' are hard. There are a lot of guys making good money, there are a lot losing their butts and a lot's getting ready to. I have no get rich quick thoughts at all.
I have not started anything, just doing research to make an educated decision. Working on a formal business plan with as accurate information that I can find and that I can verify.
Ideally working for someone else would be the best way to start, that may not be an option for me due to 2 speeding tickets in 2010. So I am looking at the feasibility of going alone. As I said earlier, buying a truck is the last step and easiest part of the whole thing. I have hard numbers for insurance from an agent, estimated costs of startup and monthly operating costs.
I am now trying to get a realistic handle on revenue expectations and sources. Lanes to run? I dont know yet as I am just now looking into the revenue side, or lack there of.
I always start with costs first when analyzing, then go to the income side after I figure out the costs side. Its not about how much money you can make, its about how much money you can hold on to during the process of making it. -
I have to admit, he's right in asking....
Do you know the freight lanes you are going to run. Is it sensible to haul that load from chicago to middle of Nebraska? Even for $4.50 a mile.
Do you know when the seasons are? When the busy times are going to be to know it and such? -
I don't mean to say it can not be done. I've done my own authority myself. Actually only about 5 percent of brokers/carriers won't give you loads because of new start up company.
Sign up with couple premium load boards like internet truckstop and members edge. Get atleast one with a credit check for checking on brokers before accepting a load. And always check their credit. Creat a bad list to stay away from. Expect to be able to run 3-4 weeks before getting paid. Sign up with OOIDA and they can help alot. Also you normally have to have insurance in place for 3-5 weeks before the govenment will issure operating authority. And brokers do check this and the insurance. Expect to call your insurance to fax certificate of insurance to every broker when setting up each new broker you gonig to contract to. Also it normally take 1-4 hours to set a new broker contrct and they will not give you a load until set up.
I'm gona assume you have your own trailer. Are you going with a dry van, flat or reefer?
I find there is as much if not more money to be made signed on with a carrier and a lot less headache. The broker boards are all the left over freight that carriers didn't want or couldn't get covered. I did make money that way, but not even close as much as I am here at Mercer.
Also you will have to go through a DOT office inspection at your home base every 6 months.
I hope this was helpful and good luck. It is a very competive game working the load boards.cesar enriquez and Soonerdoggy Thank this. -
I know as a new carrier you WILL be audited once in your first 18 months.
But doing it once every 6 months is not realistic knowing and having worked for the DOT. They don't have the man-power or the resources to make that happen.123456 and Working Class Patriot Thank this. -
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