My Business Plan....What Do You Think....???

MPG

Expert Expediter
Let me preface my business plan by saying I have no expedited trucking experience at all. I have read all the message boards and gained a HUGE amount of knowledge about trucking from nice people, in the business, willing to share info.

I feel I can make a rough estimate as to how much money can be made. It seems to me the real money is to be made on a team operation, where I own the truck and the team drives it for me. This setup requires very little real work on my part, just a cash outlay for capital equipment and training. As a secondary business I can become a headhunter for all the truck owners and companies in the country and charge them a finders fee of around $500 a team. Maybe even set up some kind of organization to make this an easier process. I can use this money to invest into more trucks. I’ll need to work out a deal with some CDL B training schools to get reduced rates on training. Maybe get to a point where I can get it worked out like the OTR companies do it. If I pay for your training you owe me one year of indentured servitude or you owe me $5000, take your pick. I could have perspective teams out on the road in a week.

On to the plan……
My target demographic:
I need to capitalize on baby boomers and displaced manufacturing workers. We all know millions of baby boomers have not properly prepared for their retirement and will need retirement income after retiring or being forced out prematurely. There is a couple million or so factory workers facing a very uncertain future.

My marketing plan:

What I plan to do is this….

Phase 1: I see no way to avoid having to actually drive the truck for at least a year or so in order to gain some creditability and some experience on the business side of things. I’ll set up a web page with anecdotal stories about this experience and paint a rosy picture of being a “paid tourist”. I’ll register the site with all the search engines and figure out how to get it show up on the first page of search results. I’ll advertise with EO to increase web traffic. Maybe throw in some pictures of the great tourist sites I’ve seen. This “paid tourist” concept appeals to a huge amount of older couples who don’t have the funds to buy their own RV. So, why not drive mine for free and get paid to do it, what a great setup. I’ll leave out the 22 hours a day of driving you’ll be doing, everyday, or your fired, owing me $5000. The RV business is a multi billion dollar a year industry, this “paid tourist” idea has to appeal to millions. This internet strategy reaches only a small part of my demographic. Most older couples aren’t out surfing the net looking for trucking jobs and displaced factory workers can’t afford a computer. But, it will give me a good pool of a couple hundred or so recruits to get started with.

Phase 2: Like I said, the internet only reaches a very small portion of my demographic. I need a secondary way to recruit. How about …… a really cool truck all done up like an RV, with a full size shower and toilet, plasma TV, all kinds of electronic gadgets, shiny wheels, like that Lil’ Duece Coupe truck, with a 16’ box on the back, you know as some kind of afterthought. I can probably get the truck companies to do some special work for me, after all I’ll be buying a bunch of trucks from them in the future. Now, with this truck I can do an infomercial (this TV time is cheaper than most of you think) and run it late at night or early in the morning and really start raking in the recruits. I can visually show everyone the great RV they’ll be driving for free, in fact they’ll be making $100,000 a year doing it. What the heck, $150,000 a year it’s an infomercial right..? I’ll be like the guy who sells everybody 3 cassette tapes and a book for $250 on how to buy $10,000,000 worth of real estate with nothing but your good looks. Wonder how he’s making his real money….. Can you picture this……..???? OK, maybe not an infomercial but at the very least I could put the pictures on the website.

If this all fails, how much of MY money did I lose. How much money did I MAKE. All my assets are easily liquefied, I can run the business from a rented office space or my kitchen table, for that matter, and close up shop on the drop of a dime and bankrupt the company. I haven’t done anything wrong, other than capitalize on peoples fears, laziness and deep rooted desire to make a fortune without having to WORK for it.

It's the American way, right...?????......Sucker born every minute....

This is a brief summary of my plan….. What do you think…????
 

X1_SRH

Expert Expediter
Let me just say "everything looks better on paper". If you are serious about this, we can all provide you with about a hundred different variables that can flaw your plan. The one that comes to mind immediately is when one of your "RV Teams" deserts your truck in North Dakota and when you go to get it you find all your flashy electronics are gone, and they are never to be found again. If you work with proven drivers you will have a lot better odds on a long term relationship. BUT..... I love the Infomercial idea. - X
 

Glen Rice

Veteran Expediter
You certainly sound like a success story in the making! You can make fun of my shower and a couple of flat screen TV's in my sleeper but at least I never heard a comment of how nasty I smelled or that I looked like I hadn't slept in days. We are the only industry that doesn't live up to the word "professional". A lawyer or doctor can be a hack and yet they are still referred as "professional". I don't see Expediting in your future. You see the men and woman that are out there everyday really love what they are doing! Imagine that, enjoying a job that we are proud of. In my case, my worst day in the truck was better than my best day in an office.
 

MPG

Expert Expediter
No they're not driving my show truck. They're driving whatever I put them in (FL-70 or the like). Remember the plan. Big deal, so I send someone out to fetch a truck in North Dakota. How much can that cost..???? $200...??? Is it a inconvienence...? Sure, but not a MAJOR setback. If the truck is trashed or gone forever, that's what insurance is for. Bring on a new "RV Team" to replace the old ones..!!! Let's see if this set works out. I need BIGGER setbacks than that.

Maybe I'm serious maybe I'm not. Let's get some meat in these forums. I don't know how many times I can read the same 5 posts over and over.

1) How much money is in this?
2) How do I get started?
3) What type of license do I need?
4) What do you think of this truck?
5) What's better van or straight truck?

Give me REAL reasons this doesn't work..... You said you have a hundred, give me three....

Why is an "experienced" driver better than just a newbie...???? Give me three things an "experienced" driver knows that someone who's never driven a truck doesn't...

Give me something more than:

1) Knowing where to park.
2) Drive for an owner first.
3) Don't spend a fortune on your first truck.
4) Keep track of expenses.
5) Knowing where to pee.

These are all no-brainers... And my plan eliminates all those newbie mistakes and my (and people I hire) knowledge can help them along.

Maybe these answers can help others.
 

MPG

Expert Expediter
No sir, not making fun of your truck at all. Just using it as an example of an awe inspiring truck. Something that makes people stop and take notice. I am sorry it's gone and hope your well. I don't want to fight. Just have meaningful discussion. I understand people enjoy this type of work. I agree with you're analogy as I sit in my office right now....
 

RichM

Veteran Expediter
Charter Member
I believe this MPG person is the infamous A TEAM and this is the A Teams Agenda. LOL Lets stick it too the inexperienced newbie and milk it with all the wonderfull prose that we can put out. When those wantabe RV folks start driving those 22 hour days then start talking to the real Expediters out here, North dakota may not be close.You may find your trucks sitting in a lake. LOL
 

MPG

Expert Expediter
Sitting in a lake paid in full.... No loss to me.

What else you got......


I'm not the "infamous A Team".

Is sarcasm a lost art nowadays. :p

Let's continue the discussion just for fun.

How about three things an experienced trucker knows that a newbie doesn't?

How about reasons why the plan won't work?

That way everyone is privy to the pitfalls of starting out a new expedited business and the scam.....I personally don't feel there are any reasons why the plan won't work. Which is scary.

Abandoning the truck seems to be the prefered method of sticking to the jerk owner. As a driver can you do anything more stupid in your life? I mean, the least that's going to happen is your driving record (DAC I think it's called) is going to have a huge scar on it. If you decide to steal stuff out of the truck then abandon it, criminal charges will be filed and if you don't appear for your court date a bench warrant will be issued. If you park it in a lake, I guarantee my insurance company is going to want to know how it got there and will assume you put it there and want their money back. Which will force them to file a lawsuit and guess what happens if you don't appear for that court date either. Seriously, for a second, just give the truck back the right way and quit properly.

Any of the above ends any hope of driving ever again.

Now if you had signed on under the terms of my plan. Not only would all the above items apply to you. But there would also be the matter of you not working your first full year of indentured servitude. Which means you would owe me $5,000. "Yeah right come and get it" you say. I don't have to come and get it. I'll turn your credit rating into a big hairy mess until you bring it to me. Don't have the money to pay me, come back to work or I'll just let that $5,000 collection sit there on your credit report for the rest of your life.
I'm not stupid enough to give you a $70,000 truck without you signing a contract and collecting all the info I need to make this a reality.

Don't think this can happen. I'm sure there are hundreds if not thousands of Swift and Scheinder trainees that will tell you it does. Everyday.

I am just having fun. But hope this turns into something interesting to read. With experienced drivers maybe sharing their knowledge. Please offer up your three tips. Stay away from the common ones please.

Mr. Rice, if I hurt or offended you in any way with my reference of your truck in my original post, please tell me. I'm fully aware of what happened. If this is the case I truly apoligize. I will remove it from the post if you like and please try to understand how I intended to use the reference. As an awesome marketing tool.

You only get one chance to make a first post on a great forum. Why not jump in head first butt naked. I have a flair for the dramatics, kind of like a WWE wrestler.........
 

MPG

Expert Expediter
Does everyone see my point NOW........????

The plan works. Scary good.......

I know someone just took notes.....x(
 

twodogsdaddy

Expert Expediter
Well I figure that you're having a little fun with us here but there are a few things that you have said that got me to thinking. But first I must add that I'm not an expediter and unfortunately I will not get to be one until later this coming spring. However, I am a former OTR TT Driver so I do have a couple of things that a newby might not know. The first would be to learn how to pace oneself so that at all times while driving one is mentally prepared and safe. The second would be that if they are driving team For those long runs) to know how to get from point A to point B in the quickest and most resourceful way possible. The third would be how to secure different types of loads...and something very useful I learned from Terry&Rene on this sight is how to put rubber sheets under each corner of the pallet after you spray the floor (I'll have to go back later I forgot what it was with) so that one person if need be can move a 1500lb pallet around...Thanks Terry I'm sure it's going to come in handy! Fourth might be good places to eat besides the truckstops and nearby restaurants.

I like your idea of an expediter school. I went to a small school here in Illinois and from there went to work for a small reefer carrier. My real education came with driving with a trainer from that company for a month. I drove solo for awhile after that and teamed with some people at different companies. Each person that I teamed with had always been a learning experience because they did somethings differently than everybody else I had been with and oftentimes these little nuances made sense. I learned where there were good places to take loads and where there were places that you might sit for awhile. I think that if you could teach someone how to evaluate what constitutes a good load and what is a bad load and how to negotiate taking that bad load for a payoff later would come in handy.
Now having said all that I must relate a little army experience I had. I was a medic in the 82nd and when I first arrived at my first permanent duty station (Ft. Bragg) some short timers were getting ready to leave and there were a bunch of guys that had been there for months. I thought it would have been nice for someone to fill me in on what goes on in that platoon and what to expect etc. Needless to say nothing was offered but after awhile I had things pretty well figured out and I got along quite well. Now we turn the clock ahead and I'm a short timer and low and behold two weeks before my discharge a friend of mines younger brother comes into my platoon. For the next two weeks I spent my time schooling him on what to do and not to do to make his life easy. Months later I came through Fayetville so I stopped into my old company...wouldn't you know that the kid never heeded my advice was on just about everybodies s.. list and was on his way into a lot of trouble.

So I guess that no matter what you teach some people they're just not going to get it. I don't know if I could ever be a fleet owner. There really seems to be a lot of risk involved. I think the most difficult is finding and keeping good drivers.
Well thanks for your contribution I wonder if any of the express companies would think about having someone train newbies on the road paying them a premium of course. Good Luck
 

StayStrong1125

Expert Expediter
> Now if you had signed on under the terms of my plan. Not
>only would all the above items apply to you. But there would
>also be the matter of you not working your first full year
>of indentured servitude. Which means you would owe me
>$5,000. "Yeah right come and get it" you say. I don't have
>to come and get it. I'll turn your credit rating into a big
>hairy mess until you bring it to me. Don't have the money to
>pay me, come back to work or I'll just let that $5,000
>collection sit there on your credit report for the rest of
>your life.
>I'm not stupid enough to give you a $70,000 truck without
>you signing a contract and collecting all the info I need to
>make this a reality.
>
> Don't think this can happen. I'm sure there are hundreds if
>not thousands of Swift and Scheinder trainees that will tell
>you it does. Everyday.

Actually, as one of your so called "schneider trainees" here, I would like to fill you in on a few things.

First, you handed the keys off to the driver. They can take it and leave it wherever they wish with no criminal charges being filed. It's not theft. In trucking, its the equivolent of 'job abandonment' and as such is not a criminal offense. You would have to find the truck, and get it at your expense, not the driver's.

Second, DAC, although terribly corrupt, is a reporting agency. As such, it falls under jurisdiction of the FCRA. You can dispute and have removed any wrongful information that a 'jerk owner' decided to put there in an apparent fit of rage, as you have eloquently described.

Third, the contract. 'Indentured Servitude' I believe you called it. I know here at Schneider you sign a contract to pay for the education and training. In the contract it is stated that you may work for 1 full year of continuous employment and be free of the obligation. However, if you quit before a year, typically you are not responsible for paying back the full tuition. It is pro-rated based on how long you did stay there. That is to say, if you quit one week before your contract was up, you are not asked to pay back the full amount.

And last, but not least, you cannot put a "permanent" mark on someone's credit report. An entry typically is dismissed from the report after 7 years, unless it's a tax lein or court judgement, which can stay for 10 years, but is traditionally also taken off after 7 years.

Also, were you to engage in such 'mafia' tactics with the wrong person, YOU could be the one ruined. One wrong person with a lawyer in the family or connections in trucking could really ruin your day. Word of mouth, court judgements and civil judgements, and the media can wreak havoc on a new business, especially when the individual is a self proclaimed "newbie" to the industry.

Why dont you just do the RIGHT thing? Is it that hard? Why try to screw someone over for life just because someone didnt want to be held under your thumb for the length of the contract? Seems you would be well suited for business, and could establish a great friendship with DAC, Schneider, Swift, and the like, and join the ranks of the typical scumbag business owner.
 

MPG

Expert Expediter
I guess sarcasm is a lost art after all….Oh well

StayStrong-

If I handed you the keys and you abandoned the truck and I report it to DAC-As an abandonment-How is that a fit of rage or corrupt on my part. It’s the TRUTH. Spin it however you want.

If you stole things out of my truck it is most definitely theft and is criminal in nature and will be handled by the authorities as such.

If you parked my truck in a lake, my insurance company and the authorities will most definitely want to speak with you.

I think most with a low FICO score think it's corrupt, too. But, you won’t get a good loan with it.

Thank you for explaining the contract. I’m sure that’s a real eye opener for some of the folks debating starting out OTR to take advantage of the FREE training. Then switching to expediting after six months.

Court proceedings can be drawn out for years. If I happen to have lawyers in my “family”, it’s even cheaper to drag it out forever. Meanwhile I’m making millions. BTW A lawyer becomes a “family member” when the first check cashes.

The mark will be taken off after 7 years if it’s a late payment, bankruptcy etc. True, so I only get to ruin your credit for 7 years. Unless, I start a collection company while I’m at it and re-report the debt after it goes off your report, then you start the clock over. If your going to be a “scumbag”, go big or stay home.

Swift and Schneider seem to be doing pretty well despite all the lawsuits. “Connections in trucking”-Trucking is probably the most dog eat dog business there is. That’s why pay rates have been stagnant for years. It’s all about looking out for number one. Screw everyone else, hard and dry. Why would someone “with connections” take two minutes out of their day to mess with me. PLEASE. This is isn’t sixth grade recess it’s BIG business. What would the media report…??? That I’m a legitimate business man doing something that’s done everyday, already.?? Sounds like good advertising….Let’s do it…

This country is set up to benefit business owners and those with money. Not the working man.

Twodogsdaddy,

“there are a few things that you have said that got me to thinking”....cool.... And thanks for the tips. I as a newbie, wouldn’t have thought a single person could move a 1,500 lb. pallet.

Also, if my plan becomes a reality, how does it effect YOU….?????
 

louixo

Veteran Expediter
Charter Member
MPG...What ARE you drinking???!! I want to buy a case. Here´s a couple reasons for you. You would need to work 600 hours a week just to get started with all the things you´ll be doing, plus a bank of manned phones to field all the inquiries, not to mention fielding the loads you have to bid on. You´ll need a safety department to keep all your newbies current and legal. Don´t forget legal. Accounting you can probably do it with QUICKEN 2005, if they put out a trucking company owners addition. It's a nice dream, and if you consider this sarcasm, please reconsider..ít´s comedy. So is your business plan. No offense. Many good ideas start with dreams. Follow yours. Maybe you should open up an organic fertilizer plant. You may not even need horses. And who knows, maybe someday several of us will be working for you!
 

Lady Expediter

Expert Expediter
Greetings,

Personally I think this plan has alot of merit.
Would yes, take alot of work, etc... but does not anything worth while...and it can be done from a WIN-WIN position instead of from a dog eat dog position.

I have been driving since 1997 and still consider myself some what of a newbie as I am still learning and growing and having new experiences out there OTR/as I still drive and then as a business enterpreneur.
I went to a trucking school for my training,then drove as an employee 48 and canada tractor-trailer, then drove for and owner as a independent driver/contactor, then purchased my own tractor O/O, then purchased more tractors and hired on other teams/driver's as a fleet owner.

As with anything in life...there is bumps in the road and sometimes there are those WOW - surprising days, where life is ALL wonderful!
Personally for me I do enjoy what I do and I am grateful to be able to be born an American :) and have the benefit's we do to express, dream, desire and fulfill, if we so choose to put forth the work/actions required to live the life we design.;)

God Bless Us All.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Does kinda have a A team agenda ring to it.
Almost frightning
Davekc
 

MPG

Expert Expediter
OK this whole "Business Plan" is intended to poke fun at an "infamous" member.

I thought it would play to a larger audience, but it didn't. Most of you couldn't see through you're rage to see it. Some did though.

I thought my reference to WWE Wrestling would have tipped most of you off but it didn't.

If you want to I can keep shooting down the reasons it doesn't work though. I don't think you can because, it's exactly what Swift,Schnieder...etc. are doing everyday. In fact, I can't figure out why Swift or Schneider or all the BIG companies haven't just started an expedited division and scooped up all the expedited freight they can. They have the trucks and the manpower to do it. Maybe someone can tell me...??

Now that I think about it. I can answer my own question. It's the wait time you guys always talk about. No company driver is going to sit for days for free. Seems like you could work out an agreement that benefits both parties though.
 

StayStrong1125

Expert Expediter
Actually, you would be amazed at the amount of crap a company can get a driver to do for free. They could do it. And I expect them to make a go of it soon. Look forward to that.



Wise man once say, "He who drives truck in white pants...soon drives truck in dirty white pants."
 

MPG

Expert Expediter
StayStrong,
I would expect them to. This also plays into my decision making process.

Thanks
 
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