Small fleet owners - how did you do it?

In 2008 I got a line of credit against my homes equity for 40k. I bought a 91 T800 and got my intrastate dot number and insurance. Ran like that for a couple years and bought a 99 T800 and put an older hand in it. Couple years after that I bought a 2011 T660 and applied for my mc and got interstate insurance. Hired two more hands and came out of the truck. Year later bought another 2011 T660 and put a driver in it. Couple years after that bought a 2013 T660, hired another driver, hired a dispatcher, and also applied for a broker authority. Gradually since then I’ve bought more trucks, brought on another dispatcher, hired an owner op, and so on. Last year I hired a back end office manager to help with all the billing headaches, regulations, and everything else. In December last year finally bought my first new truck and put my most senior driver in it. So, now up to 8 trucks, 1 owner op, 13 trailers, 2 dispatchers, and 1 accounting person. Our brokerage is very small still but it’s nice to be able to cover loads and make extra money to be able to support the office staff and trucks. I focus on steering the ship and managing the everyday risk that comes with being in this industry.

It’s been a long and tough climb, has aged me dramatically, but the sense of pride and accomplishment is well worth it.

Grow slow and steady, don’t factor, and only work with all stars. One big mistake I made was not having warranty on my trucks. Cummins sells an encore 2 coverage that warranties everything but emissions for 4500 per engine. 2 yr 200k. Emissions bills are still very big, but not 25 or 30k big. Those hits can put you out of business when your trying to start out and grow. Lastly, if your not profitable with 1 truck, you won’t be profitable with 2,3,4,5 or however many. Figure out how to make money, save up, and take a manageable next step.

I can’t even count how many drivers I’ve had over the years. It takes time to learn how to hire the right people and you begin to see through the bs. It also takes a long time to find a steady base of drivers, especially since I’ve had 3 retire over the years that truly helped me to “make it”. The driver truly is your biggest asset next tour your office staff who supports them and books the best loads. Don’t get mind F’d about having someone else drive your truck. It’s simply a tool and the driver is someone to operate that tool. It’s not your baby.

It takes a long time to learn and the learning curve is extremely steep. There are so many variables and factors at play always lurking around the corner to take you out.

I don’t like to put my business out there and tend to keep to myself. But, if this helps give someone the confidence or guidance then hope I’ve been helpful. Last thing, don’t be afraid to be different. I don’t give a #### what other companies do, if I wanted to be average I’d do it like everyone else. Find what works the best, and strive to be great.

 

Now with the driver shortages I wonder if all-star drivers will come on board on a start-up one man show. Thanks in advance for sharing, the advice and experience

 

I was doing GREAT until Dodd Frank. And Obama.

I am one of four that did not file bankruptcy and I am still whole. Now, I lease to a carrier and let them sweat the details. I had my run, it was fun while it lasted. Now, just burned out on the entire industry. It is out there, just make sure you get good advice. this is not the place I would look for good advice. Just saying.

 

The internet in general can be sketchy on advice, but I have found people on this site that genuinely want to help and give good information.

I would also like to hear stories about how people got started with small fleets. Not that I necessarily would think about going that route myself, but it's interesting to hear how people grew and how they started. No one is asking for anyone's contacts or anything like that, just the story of how you did it and why you did it and what you encountered along the way is very interesting.

There always seems to be a common denominator when you hear success stories.

 

You need to be a salesman, believe in yourself and your product. Not much more to it. Oh, boundless energy too, it never hurts.

Me, I'm spent, the reason I lease my tractor to an outfit that takes care of the BS. But, that is just me, and I am jaded.

 

Treat your people right, don't over extend your finances, don't haul cheap, keep your trucks roadworthy and safe, and keep your word. Buy fuel, oil, and tires in bulk whenever you can, keep track of your operating expenses right down to the last penny.
Be very careful who you hire to drive. A good driver will make money for you and a bad one can destroy your whole company. When you find a good driver pay what it takes to keep him. Offer benefits and bonuses.
Know right down to the penny what your operating expenses are. If you don't know exactly what it's costing you to run you won't know if you're really making money. I know I already said that but it's vital.
Get away from brokers as soon as you can. Develop good relationships with manufacturers and haul direct. Always look for niche markets that are ignored or under-served by the megas. They may not be glamorous but they pay off in the long run.
Knock on doors, make phone calls, sell yourself and your company. Advertise. If they don't know you're there they won't call.

 

Yeah it’s harder then ever to find drivers but they are out there. It’s tough because the majority of those looking are the guys that jump from company to company. You can get 2 or 3 months out of them but that’s about it. In between these you will hopefully be lucky enough to come across long term good hands that are ready for a change. Those are the all stars. However, there are diamonds in the rough that just haven’t yet found their home. I’ve had guys leave and then call a month or three later asking to come back because we were the best place they ever worked. That always makes a guy feel good and that always doing right made a difference. I personally love to hire veterans when I can.

Anyway, to answer your question yes. Everyone is looking for something different and sometimes small outfits is exactly that. Especially if a guy takes pride in helping a new outfit get up and going. Those are normally “older” guys.

So true on knowing your costs down to the penny. When I had two trucks an old timer walks in one day and tells me exactly that. Listen to these guys. I won’t say anything unless I know what I’m talking about. Sit back and listen. Normally the most quiet person in the room has the most knowledge. And when they speak, people listen.

The get away from brokers is hard and not necessary to thrive but I’d agree having your own freight is a bonus especially if you start a brokerage as well. However, at that point you really need to be out of the truck by then. If you run for brokers you better be an extremely tough and aggressive negotiator. I hate sales but I can negotiate like nobodies business.

The niche markets couldn’t agree more.

Edit: when you do get a customer then be the company who becomes their go to. Never lost a customer in my life. Have fired a few though.

 

Niche markets are great. A friend of mine has a flatbed. He hauls lumber from the mills in Northern Cal to a lumberyard in L.A. The lumber yard pays the freight. Two loads a week, every week, all year round. That's all he does and he's been doing it for over twenty years.

 

I got one for you guys. :]

If a driver comes in for an interview, and he is ADAMANT that he doesnt do something... meaning mentions it at least 2 or more times. It means that is in fact exactly what he does.

Quote from someone I highly respect. “If they tell you that they don’t drink, don’t do drugs, nor chase women, it means they do all three!”. LOL

No bs it proves true every time. Cracks me up to this day. Works the same for vice versa “I’m so safe and check my equipment ALL the time. Nobody knows their equipment like I do”. Means they don’t know ish from shinola and never have checked under the hood or thumped tires to save their life.