I have been to this business for 4 years. I drove for 2 big carriers. I am doing ok, but now I am thinking about getting my own authority and driving as an independent. I have enough money to survive the first weeks, before I get paid. The only problem I have is that I don't know any reputable brokers or companies that I could work for. I would appreciate any input! Thanks.
Going Independent
- Thread starter Truckteam
- Start date
Monty
Expert Expediter
Good luck with your endeavor, something I never wished to try.
Being leased to my present carrier is a close to "independent" as I chose to be.
I don't have to solicit freight, sell freight, collect on deliquent accounts, maintain my own drug and medical program, manage a safety compliance program, etc
Yet I have over 200 "brokers" I can freely do business with, and be assured I will be paid for my efforts.
Yep, I don't wanna be any closer to "independent" than I am right now.
EDIT .... ooops I forgot to welcome you to EO ..... welcome aboard!
Being leased to my present carrier is a close to "independent" as I chose to be.
I don't have to solicit freight, sell freight, collect on deliquent accounts, maintain my own drug and medical program, manage a safety compliance program, etc
Yet I have over 200 "brokers" I can freely do business with, and be assured I will be paid for my efforts.
Yep, I don't wanna be any closer to "independent" than I am right now.
EDIT .... ooops I forgot to welcome you to EO ..... welcome aboard!
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60MPH
Expert Expediter
Number 1, brokers are not what you want in the long term, companies that you haul for directly are the way to go. You can survive by hauling for brokers but I would not make it your bread and butter so to speak, lot of competition involved with brokers and they have to take there cut too.
Does your current company you are leased to allow you to operate under your authority while leased to them?? If so then you already have your foot in the door, you can haul for them and build a small customer base at the same time with a whole lot less stress. If not you may what to look at going to a carrier that allows YOU to be a business man and have your own authority while leased to them. This is the best way to start, because if you fail to make connections, no saying you will you can fall back on the carrier. I did not have the option of doing that when I started, and it was tough to say the least.
What size unit are you in??
Good luck and have fun!!
Additionally, if we want to take an extended vacation, we can do so without fear that the customers we serve will wander off to another carrier or own-authority truck. The agency network that we serve and that serves us does a good job of keeping the customers close and developing new ones.
The same was true of FedEx Custom Critical when we leased our truck to them. The ongoing sales and service work that carriers provide give Diane and me the freedom to take extended vacations when we wish.
60MPH
Expert Expediter
Should be months not weeks, at-least 6-8 months of "ALL" expenses before you look into being on your own. Trust me you will be glad you had that money in reserve!!!
You are right. Most landstar van and sprinter drivers make more than I do per mile and I dropped 5k to start my own business. The only true advantage to being indeoendent is that I don't have to worry about a broker calling me asking me to deliver a load to an area where I don't want to go. Also, if I want to take a month off, I do not have a company calling me asking when i'm gonna come back to work. Other than that, it's kid of like spending a fortune just to make an extra 15-25 cent per mile. It's not really that cost effective to be at the top of the food chain!
chefdennis
Veteran Expediter
Truckteam wrote:
Ok, lets look at this from a bit of a different angle then you may be right now.
You have NO clients or companies that you haul for at this time other then the one you are currently leased to, and it appears you are looking to move on from them.
You are asking for info on brokers and while I have no idea how many PM's you have gotten, you have been steered to look for "companies" as clients...calling on companies as a "salesperson"..going out and making sales calls and waiting for them to materialize takes time...you could be without income for 30 days easily, or you might get a load offer as you sit at the guys desk...but there is no way of knowing...you need money to cover that time...not just for "fuel & repairs"...but ALL other expenses..
So companies take 30-60-even 90 or 120 days to pay if you want all of it..some pay when delivered, some you will need a
"factoring" company for...you need money to cover those times also...
We don't know about any other "income streams" you have or do weknow about your incomes needs away from the business, so we really can't give a real good complete answer as to what is enough...
Is the other team going to be part of this ? Will you have to pay them something while you build this business if they are not running as they normally do?
See you are starting a new business in all reality...its not just a matter of "ok i have my own authority and i need brokers...
one other thing to think about, it the other truck is running under your authority, are you responsible for their drug test and all other compliances??? That I don't know, I just just asking so you can find out if you don't know....You see there is more to this "stuff" then meets the eye on 1st look...
Ok, lets look at this from a bit of a different angle then you may be right now.
You have NO clients or companies that you haul for at this time other then the one you are currently leased to, and it appears you are looking to move on from them.
You are asking for info on brokers and while I have no idea how many PM's you have gotten, you have been steered to look for "companies" as clients...calling on companies as a "salesperson"..going out and making sales calls and waiting for them to materialize takes time...you could be without income for 30 days easily, or you might get a load offer as you sit at the guys desk...but there is no way of knowing...you need money to cover that time...not just for "fuel & repairs"...but ALL other expenses..
So companies take 30-60-even 90 or 120 days to pay if you want all of it..some pay when delivered, some you will need a
"factoring" company for...you need money to cover those times also...
We don't know about any other "income streams" you have or do weknow about your incomes needs away from the business, so we really can't give a real good complete answer as to what is enough...
Is the other team going to be part of this ? Will you have to pay them something while you build this business if they are not running as they normally do?
See you are starting a new business in all reality...its not just a matter of "ok i have my own authority and i need brokers...
one other thing to think about, it the other truck is running under your authority, are you responsible for their drug test and all other compliances??? That I don't know, I just just asking so you can find out if you don't know....You see there is more to this "stuff" then meets the eye on 1st look...
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Monty
Expert Expediter
Same here at Landstar .... matter of fact, about Dec 21, I will be placing myself "out of service" until Janurary 28th.
My wife has a retirement party the 22nd, then Christmas and New Year's, then off to Aruba for two weeks.
Landstar will not challenge the time off, and will simply accur any costs I have to them until I return to work, and deduct it from my settlement when I'm back to work.
Jefferson3000
Expert Expediter
If you don't have a handle on any income streams for a company right now, it's not gonna get any better when you get that letter in the mail from FMCSA. Keep asking around. There are few who've tried it on here and found out that it's not golden out there.
Could I give you a little advise, this is from a OLD trucker who hauled lumber to the ARK, buy one (1) truck drive it your self, no problems with drivers, CSA, and all the other crap that goes along with owning a Trucking Co. I'm in partnership with one and about to close another. Too many
problems to deal with from the ROI.
problems to deal with from the ROI.
nightcreacher
Veteran Expediter
you wont survive if you only have enough money to last 3 weeks.it could be 3 months before you ever get paid for your first load.being true independent sounds good,but you will be musch better off leasing to one of the larger carriers.To pay a broker,and then another fee to make sure you get paid right away,plus all the ins and plates and so forth,you wont have anymore money left than if you were leased to a major company
I appreciate all the information and input I have been getting from you guys. I have been doing ok as a subcontractor to Fedex and Panther. But the rates/mile are not going up, the cost is skyrocketing and I think that in the long run you have to go independent to tap into that extra 30-40% that the big companies are making on top of every run to survive. I am aware of the extra expenses associated with being independent. But at the same time I noticed more small players on the market undercutting big players with lower cost trucking. I have much lower overhead than big players, so I believe I could be competitive. The only issue is to find out how you can get into that inside circle.
My other team is aware of the challenge and ready to to take a risk. We understand that the beginning will be hard, but we hope that through dedication and great service we can win.
My other team is aware of the challenge and ready to to take a risk. We understand that the beginning will be hard, but we hope that through dedication and great service we can win.
BigCat
Expert Expediter
You say you have enough put up to not worry about getting paid right off. You also say the team in the other truck is willing to take a risk.
Do you have enough to pay them for the first few weeks incase it takes that long for you to get paid?
Are they financially prepared to not get paid if you don't have that kind of reserve?
Those are just a few risks involved that would concern myself.
Do you have enough to pay them for the first few weeks incase it takes that long for you to get paid?
Are they financially prepared to not get paid if you don't have that kind of reserve?
Those are just a few risks involved that would concern myself.
Thats true but I went independent in 2006 with a window van and found it to be a goldmine. ya never know unless you try.
It does appear that most of your replyers on this thread have the truely deep seated employee mentality. Many have done such a poor job of managing their finances that they cannot be without a paycheck for more than a week or two, others, simply don't have the need to be challenged, or the gumption for that challenge, or, the need/want for a better income. Many, deep down, wish they had the balls, energy, and pioneering spirit to attempt such a thing. I'm certain, after 4 years in the business you are acutely aware of what your expenses are........so don't need to read about the horrors of getting your recieveables pipeline full. You typed that your team and yourself are committed to the challenge. However, like the bacon and egg breakfast......the hog was committed and the chicken was merely involved. That is where most of the responses are from, they wanna be involved, but, don't wanna get any of it on them. I personnaly "stepped off" a few years ago, and never looked back. Been a hellofa ride. My only suggestion would be.....get your networking for freight in order before YOU step off.
kwexpress
Veteran Expediter
I just dropped 23k to get another truck on the road first week out grossed $4500
was supposed to be a little over 6k but truck wouldnt start on the last load so had to cancel then paid 400 bucks for tow to shop they took 9 days to fix truck mostly waiting on parts so $75 a day for a motel then the bill for repairs came to 3600.
it didnt stop there driver deadheaded home from utah over thanksgiving 1500 miles no revenue but i am glad he did cause truck wasnt fixed right. been back in the shop since hes been home. paid that bill yesturday another 600 and waiting till friday for the rest of the parts to come in then i will pay for what ever labor they do on friday another 2-400 oh and the first payment is due today.
I started with 50k in my checking should have waited till I had a hundred its gonna be a long cold winter
was supposed to be a little over 6k but truck wouldnt start on the last load so had to cancel then paid 400 bucks for tow to shop they took 9 days to fix truck mostly waiting on parts so $75 a day for a motel then the bill for repairs came to 3600.
it didnt stop there driver deadheaded home from utah over thanksgiving 1500 miles no revenue but i am glad he did cause truck wasnt fixed right. been back in the shop since hes been home. paid that bill yesturday another 600 and waiting till friday for the rest of the parts to come in then i will pay for what ever labor they do on friday another 2-400 oh and the first payment is due today.
I started with 50k in my checking should have waited till I had a hundred its gonna be a long cold winter
Yes, bad trucks and barn sour drivers can make it challenging. A fella just needs to understand the prospective drivers "warts" and decide to live with em or not. For a truck to go down that soon......may have been an underlying problem that was not thoroughly explored.
60MPH
Expert Expediter
Yea I went full boar in late 08 and it was rough, but once I found the correct markets to work and made the needed connections and thought outside the box. It came together and I actually enjoy going to the places I go to, getting there can be a little tough/challenging. No more autoworker union mentality's, most people are happy to see me. Also most services I provide are outside the scope of what a normal expedite company expects of there van driver's, and what there units are equipped with.
mcavoy33
Seasoned Expediter
Here's what I would do if I was in your shoes. Your already running 2 trucks, why not work your way up to 4 or 5 trucks before considering going on your own. Then you can put 1 truck on its own and have the other 4 running for other carriers. Then as you build your customer / broker base, you can add more trucks to your own authority, while maintaining a revenue stream from the trucks leased with other carriers.