About Bob Stephens Expertise If you need advice on truck and trailer purchasing, DOT regulations, start up costs, I can help. I also can help new drivers pick a company thats best fits them, what to look for in a company and what to expect if your new to truck driving. If your starting a business, what commodities to haul, working with Brokers and more.
Experience 16 years in the Trucking Industry. 8 years as an over-the-road driver traveling cross country. 4 years as a local driver in Chicago and Tampa, Fl. 4 years as co-owner of a small trucking company.
Organizations American Trucking Association
Education/Credentials AA, 1991, Liberal Studies, Purdue University
Awards and Honors Numerous Safe Drving Awards with the American Trucking Association.
Question Hi Bob,
My husband and I are going to try and start a truck company. We are now trying to buy a truck in which he will be going from a company driver to an owner operator. After we purchase our first truck, he was,planning on driving for some months to try and pay off the truck and I was gonna go to broker school to learn more about the business part of it. My question is to you is, is there anything we need to know and are we going about it the right way? Any advice that we need to do to prepare?
Answer Hi Kim,
I've answered very similar questions to yours and am glad to help. First thing, when you buy that truck, make sure you get an engine warranty! I've seen countless, and I mean COUNTLESS guys go out of business because "the engine in the Pete blew" and there is no money for a rebuild! Back to company driving! Oh, and don't forget, you still have that truck payment on the first of the month. I don't want to sound harsh, but beg, borrow or steal so you can get an engine warranty.
Next you have to decide what your ultimate goal for the company is. If you want to run your trucks, and broker loads for other companies, then some sort of broker training is for you.
You will need very good credit so that you can get a Surety Bond. An individual's credit, and/or financial strength, is investigated with extreme thoroughness. Only then is a "bond" issued. Costs vary depending on your personal credit history. For as little as $550 per year to as high as a one-time fee of $10,000.
Accordingly, if for some reason the broker fails to pay the transportation company, the bonding company must pay. As you can imagine, the bonding company is very careful about who they insure.
You will also need to be licensed with FMCSA (Federal Motor Carriers Safety Administration).
Most brokers carry contingent cargo insurance to pay shipper loss or damage claims if the carrier and its insurance company refuse to pay. Contingent cargo coverage provides shippers a second level of protection, as long as a claim is valid. You should be carrying liability insurance as well as 'errors and omissions' insurance.
Licensed property brokers who belong to the industry trade group Transportation Intermediaries Association (TIA) are required to abide by a strict code of ethics when dealing with shippers and carriers. You should look into this, www.tianet.org. Also look into www.nitl.org.
Now, after that long-winded explanation you say "No, Bob, I just want to find loads for my truck(s)", then it's a different situation. You don't need to worry about being a broker because your not a "middleman". What you need to do is some sales work. If you want to build a successful company, I always tell people to drop in on local businesses. Sure you can go through other brokers, but why pay them? I use sites like www.getloaded.com when I have to find a load. Most of the time I call companies that I have built a relationship with. Those relationships come from countless sales calls. Most of the time, I had to get past the "gatekeeper", that is, the person in charge of keeping salespeople away from the boss. Sales isn't easy, but if I didn't cold call, I wouldn't have some of the dedicated runs that I have today. That simple. Keep knocking on doors, sales is hard, but they will eventually open!
Next, look into getting some accounting software. There is some great software geared (no pun intended) towards the trucking industry. You need to know where the money is going and what is coming in, not just a balance in the checking account.
To learn more about the business end of trucking, go to sites like www.ooida.com. www.fleetowner.com or www.etrucker.com. I haul a lot of reefer loads, so I like www.refrigeratedtrans.com too.
Now if you need help getting your DOT/MC numbers, permits, etc. There are many sites that can help you with that. www.dotauthority.com is one, but price shop around.
Finally, kind of going full circle, buy good used equipment. When I started, I bought used fleet trucks and trailers from big companies. I knew the maintenance was always done and my problems were always minor. Don't get caught up in all the "chrome and lights" that guys like me gravitate for. Putting money into a truck that isn't necessary only hurts your bottom line. When your better established, then get the perks. For now, be humble with your equipment.
Finally, write out some sort of business plan. It will help you stay focused on what you want to achieve and when.
I hope I helped, Kim. If you run into and problems, feel free to ask!
