Home > Forum > Starting Out

Starting out

Feb 20, 2020 at 07:04 AM CST
+ 11 - 4
I'm a farmer and a friend of mine is a firefighter. We want to do this during our off time. We plan to go in on everything together to try and cut down our cost since neither one of us want to do this as a full time job. We plan to buy a truck together so what are some things to consider as far as insurance? I know it will be pricey going out of state, but is it even possible to split that cost? Just looking for any info I'd need to know.
Replied on Thu, Feb 20, 2020 at 08:02 AM CST
+ 1

You should be asking your customer what THEY need and do exactly that after agreeing on a rate you're both happy with.

Replied on Thu, Feb 20, 2020 at 08:16 AM CST
+ 1
I did the same thing 2 years ago because there was no money in farming. First thing I'd say, is find customers before you spend one cent. If you start out without any direct customers, you'll be living off of brokered loads. In some cases that's alright, but most of the time the loads are far too cheap.

Unless something has changed since I started, progressive will be the only company that will insure a new dot number, and the price will make you sick. It will drop after 2 years accident free.

As a farmer, I'd say be honest with yourself....most farmers aren't good with numbers. They make financial decisions based on emotion. Trucking is way more competitive. Find good people and surround yourself with them. Dont haul cheap freight.Its toxic to your business and it undercuts the rest of us. That attitude of, "it pays for the fuel" and "backhaul mentality" will leave you broke in a hurry. I'm not even remotely an expert, but when it comes to poor financial decisions, i was the best.
Replied on Thu, Feb 20, 2020 at 10:31 AM CST
+ 7
Sounds like good way to lose a friend
Replied on Thu, Feb 20, 2020 at 02:26 PM CST
+ 1
The first thing that you need to look at. Have a written document between the two of you and hash it all out before doing anything. Your buddy could leave for 2 months and truck like mad and let you sit with the bills. I would recommend setting up a LLc partnership with 1 of you majority like 51 and 49 percent and the majority partner should take care of paperwork and equipment. I am not brilliant in all that but if you all jump headfirst into it say goodbye to your friend.
Replied on Thu, Feb 20, 2020 at 09:01 PM CST
You would also probably want to set up bank accounts for the truck and all revenue would go there and then pay yourselves hourly. That way the truck would pay for insurance and registration and 2290 and on and on and on
Replied on Thu, Feb 20, 2020 at 09:01 PM CST
+ 3

Why do you want to do this?

Replied on Sat, Feb 22, 2020 at 08:06 PM CST
+ 2

They see these big fancy trucks runnung up and down the road and they think man look at all the money Im making. A partnership with one truck is a no no, guarantee yall wont be friends very long. to much well you need to do this when you get back, now I have todo it. on and on, My advice dint do it.

Replied on Sat, Feb 22, 2020 at 08:07 PM CST

Being a one truck operation I would suggest just leasing on with an established carrier in the area. You can probably find one that'll provide plates, insurance, and a trailer.

Replied on Mon, Feb 24, 2020 at 09:50 AM CST
Also a big issue is that this isn't a get rich quick and run industry. There are a 101 scenarios where you can lose a lot of money in a few seconds. Scenario 1 your motor decides to expire and litters the road with oil and debris. Prepare to drop 30k or more before any of you can spin wheels again. You got work to do and cover all the bases because it will happen sometime.
Replied on Mon, Feb 24, 2020 at 09:50 AM CST
Originally Posted by: DALE CONRAD
Quote: "They see these big fancy trucks runnung up and down the road and they think man look at all the money Im making. A partnership with one truck is a no no, guarantee yall wont be friends very long. to much well you need to do this when you get back, now I have todo it. on and on, My advice dint do it."

The only way it will work out for over a year is if both parties put 110 percent of workable attitude and discipline into it. The instant 1 guy senses he got ripped yous wouldn't be able to run fast enough to avoid the mushroom cloud and then its all over friend and no money.
Replied on Mon, Feb 24, 2020 at 07:38 PM CST

Say your friend has a wreck and kills sombody,or severly hurts someone, Lawsuits out the wazoo. DONT DO IT. Who is going to put up what for colateral? your farm? His, What? I'm telling you it will not work> Just like a trucking buddy told me, and I found out the hard way, you better have enough money to support this truck when its down and pay the bill, also have money to run on. NO NO NO

Replied on Tue, Feb 25, 2020 at 07:26 AM CST
+ 3
You say your a farmer? Why buy the cow, when the milk is free? Get a job driving for a LTL company, you will run circles around every owner operator in terms of income, with zero investment.
Replied on Thu, Feb 27, 2020 at 10:39 AM CST

Many years ago, when I became an O/O, I bought the rig and my best friend became my co-driver. We worked together for years; but, he had no financial interest in my "company". And we stayed good frinds until he died eight years ago. Keep your friendship alive and do not get into a finanial partnership with him on a one truck operation.

Replied on Thu, Feb 27, 2020 at 12:51 PM CST
Originally Posted by: DAVE WINTERS
Quote: "You say your a farmer? Why buy the cow, when the milk is free? Get a job driving for a LTL company, you will run circles around every owner operator in terms of income, with zero investment."

Right on the money. I know a few folks that drive for bigger companies and they get home every day and run squeaky legal and gross nearly 80k with zero i repeat zero investment.
Replied on Sat, Mar 07, 2020 at 06:36 PM CST
- 1

I've got reefer loads weighing 40,000 going from texas to tennessee paying $1270 contact me at (626) 644-5172 !

Replied on Sun, Mar 08, 2020 at 05:18 PM CST
Originally Posted by: JESSE WATKINS
Quote: "I've got reefer loads weighing 40,000 going from texas to tennessee paying $1270 contact me at (626) 644-5172 !"

Texas is a large state and Tenn is fairly long. What's the actual mileage? This morning my team is delivering in Phoenix. In L.A. by morning. Two pickups in the Imperial Valley. I actually hate running through California. Next time we're heading for Texas I may look you up.

Replied on Sun, Mar 08, 2020 at 05:18 PM CST
Originally Posted by: JESSE WATKINS
Quote: "I've got reefer loads weighing 40,000 going from texas to tennessee paying $1270 contact me at (626) 644-5172 !"

WOW! Big money!

Replied on Wed, Mar 11, 2020 at 07:21 AM CST

If you shop right, can haul grain etc around home. Ask agent for 150 mile radius of home. will keep insurance rates down. I bought a 2010 Pete, 2013 Timpte for $52000. Does a fine job. Even made enough money I added a pusher. Hauling 33ton now. You should plan to have 35% min for machinery purchase. $10,000 for insurance. Will need WC, plan $2000+ for that. $2000 for plates, $550 for heavy use tax. $63.00 for UCR if Interstate operations. $300 for OP-1 and US DOT number. $25-50 to BOC-3 filing. And I would have $15000 for operating expenses. Create Company, LLC. Have company write you a check. Get Quick Books w basic payroll for keeping records. Pay yourself like 27%, deduct taxes just like a paycheck. Then each quater divy out a bonus. Keep a percenatge for maintenance. Maybe like 18%. You should be fine.

Replied on Thu, Mar 12, 2020 at 08:05 AM CST
Originally Posted by: JEFF TOMLINSON
Quote: "If you shop right, can haul grain etc around home. Ask agent for 150 mile radius of home. will keep insurance rates down. I bought a 2010 Pete, 2013 Timpte for $52000. Does a fine job. Even made enough money I added a pusher. Hauling 33ton now. You should plan to have 35% min for machinery purchase. $10,000 for insurance. Will need WC, plan $2000+ for that. $2000 for plates, $550 for heavy use tax. $63.00 for UCR if Interstate operations. $300 for OP-1 and US DOT number. $25-50 to BOC-3 filing. And I would have $15000 for operating expenses. Create Company, LLC. Have company write you a check. Get Quick Books w basic payroll for keeping records. Pay yourself like 27%, deduct taxes just like a paycheck. Then each quater divy out a bonus. Keep a percenatge for maintenance. Maybe like 18%. You should be fine. "

Very smart,also covering the important small details