Need Advice for New Owner Operator Wanna Be

[BGM472]

I am not seeking the pro's and con's of OTR - I own many t-shirts not as the driver, but as the spouse. My husband is considering, actually decided and running full steam ahead into buying his own truck, no trailer.

I need real advice. Business advice. In today's economy the industry is tough. That is a given. So what are the odds of a newcomer making it. A little background info includes:

He has driven OTR for 6 years and as secondary income to his day job for 15 years prior. He has the menatlity, desire and willingness to surrender his family for his dream. With that said, he has what is needed to drive the needed amount - it is the business side which concerns me.

Whether I remain his wife through this endeavor or not, is something I don't know - regardless, I wouldn't want to see anyone setup for failure and potential bankruptcy. So, I am seeking realistic advice from those who know.

My husband knows very little about what he needs to do. His first line of attack is go buy a truck. Has no money down and none in the bank. Not an understatement - he has no money unless he borrows it from family, which supposedly someone has offered to do. He has talked to a company willing to lease him - hasn't seen the contract yet. He doesn't know the difference between general liability insurance and vehicle insurance. He can't balance a checkbook, doesn't pay his bills - filed bankruptcy twice in the past (prior to me coming into his life); he has no computer skills, no tax skills, no accounting skills. He doesn't know exactly what all he has to apply for except what a few people who do this have told him.

As a business person myself - I have gone online and read the pro's & con's. The balance sheets do not seem positive. The net income to the driver seems minimal. Maybe I have looked for the negative, and in fairness want to see all sides. Everything I have read tells you to have at least 3-6 months of money saved to cover all debts for the business and home before you jump feet first into this industry. He believes for a few thousand dollars he can start this business and need nothing else but a good lease and a warranty for the truck. All else is minimum costs. That is not what I have read. Additionally, he believes you can have licenses, vehicles, tags all you need in a couple of weeks. I have seen where some licenses take up to a month. I am seriously concerned for his future. Maybe I am not being fair - so someone please either share the sucess of how to accomplish this, set the reality, or help me find a live resource to help him really understand what he his getting into.

I don't want to see him fail, I would like to either find him the right resource to set realistic expectations to help him succeed or a live resource to talk him out of it until he is more prepared. I can't say a word positive or negative as he knows I am not firmly behind this for both personal and financial reasons, but with that said I would never want to keep someone from their dream - yet, if he is going to lose everything and one he has for it - I want to ensure he can thrive.

Please help and point us in the right direction!

[vwaggs]

Honestly. Start researching laws on how to file bankrupt first. Then when it happens you'll be prepared.

If you didn't head the above advice, my suggestion would be to become a Landstar O/O. That will be the only place you might have a chance. Remember fuel will be going back up to $4 or more a gallon. Many O/O's just parked their trucks and became company drivers. If you have a truck payment at that point you are toast because its either pay for the truck or pay for your house. Truck repos went up dramatically. Repo companies reported it was amazing because instead of chasing guys all over trying to find the rig to repo, guys would call and say here it is, come get it. They knew there was no chance they could pay for them. Also to consider, in 2014, all trucks must have an engine that is 2010 or newer.

Good Luck.

[TrailerTruckin]

Well, Well, Well, buying a truck in these times is not a good option. I've been trucking 20 years next week and have been a O/O for the last 12, up until last year i was leased to two different companies in the entire 11+++ years. I am now on my own with my own authority but that being said if this gentleman doesn't have any "business" sense he will NEVER make it. I know that may sound harsh but it's the truth, this business is dog eat dog right now. The big companies are swallowing up all the broker freight right now just to keep their trucks moving and drivers happy and they are doing it real cheap. Now for the fact that he think its as easy as buying a truck and going to work i hate to break it to him it's not that easy. What happens when you blow a tire at 3 am and have to be 300 miles down the road by morning? You'd better have enough sense to figure out where to get it fixed as quick as possible and get moving again. There's no more of the company leading you by the hand through these things anymore "it's your problem now" and they could care less all they care about is "you better be on time" He better sit down and do the math fuel right now is on the way up... about .45 in the last 3 to 4 weeks. Fuel is gonna cost in the neighborhood of .45-.50/mile plus payment, insurance, maintenance, road tax, licensing, it all adds up. Better sit down and put a pencil to it, most O/O'S i talk to leased to different companies are struggling to get 2500 miles a week and that makes it real tough. GOOD LUCK

[BGM472]

Thank you to both of you. Not surprised by the feedback. Obviously not all O/O's are as honest with the reality of today's market. He has been listening only to those that are either very fortunate right now, or too proud to tell someone otherwise. Unfortunately, those encouraging him to forge ahead don't have to worry when he comes up short and alone. Any other advice you can lend will be appreciated - I don't know where to turn without appearing to be undermining him - which again, I would not stand in the way of a dream - but hard lessons learned through tough love aren't always fair either.

[pro1driver]

Originally Posted by BGM472

Thank you to both of you. Not surprised by the feedback. Obviously not all O/O's are as honest with the reality of today's market. He has been listening only to those that are either very fortunate right now, or too proud to tell someone otherwise. Unfortunately, those encouraging him to forge ahead don't have to worry when he comes up short and alone. Any other advice you can lend will be appreciated - I don't know where to turn without appearing to be undermining him - which again, I would not stand in the way of a dream - but hard lessons learned through tough love aren't always fair either.

since he has no business sense, nor can he balance a checkbook, i would strongly suggest he get educated fast. there can be online courses he can take, of if he is home a few days each week, he can attend night school.

sure, he can hire some one to do his business papers and such, but then he'd be paying some one else that money, instead of keeping it in his wallet.

no bank is going to give him a loan, unless he has a signed "intent to haul letter" from a customer, or customers.....

sure, he can get the money from family, but then, there WILL BE a time when that cash cow dries up as well. he will most likely have to re-pay the family members he got the money from, and if he ain't earning any money, they ain't gonna get paid.......lessening any chances of future loaned out money (cow dries up).........

it has been said, its not a good time to start a business. at his going rate, he will surpass the statistics that say with-in the first year, many businesses fail.

i too have heard "fantasy" stories from o/o's that claim they are making big bucks and have never been busier.

i'll bet you dollars to donuts, none of those guys are willing to tell him the "bottom line" money they ACTUALLY get to take home each week........

none ever do.............

[Cerberus_Kelpie]

Hello BGM472,

NOT being an Owner Operator or a former O.O., yet having had experience with a few as driving for them and seeing 1st hand how their businesses operated, I can honestly say that your hubby is dreaming of Miss Fortune which, as she does, will lovingly entice him into the house of Misery and Despair.

(1)My husband knows very little about what he needs to do. (2)His first line of attack is go buy a truck. (3)Has no money down and none in the bank. Not an understatement - he has no money unless he borrows it from family, which supposedly someone has offered to do. (4)He has talked to a company willing to lease him - hasn't seen the contract yet. (5)He doesn't know the difference between general liability insurance and vehicle insurance. (6)He can't balance a checkbook, doesn't pay his bills - filed bankruptcy twice in the past (prior to me coming into his life); (6b)he has no computer skills, no tax skills, no accounting skills. (7)He doesn't know exactly what all he has to apply for except what a few people who do this have told him.

1. Obviously.
2. BAD IDEA!! Just "buying a truck" is not a good idea since some companies have SPECIFICS regarding WHAT type of truck (Day cab, Road) Height of 5th wheel, Length of truck, YEAR of truck, etc..
3. Without outstanding Credit which he does not have, he'll need a co-signer AND he'll most likely have enormous monthly payments.
Without a minimum 5-10k in reserve BEFORE buying a truck, he is broke before he gets the truck off the lot.
4. Get an Attorney to formally explain and identify WHAT the Contract stipulates BEFORE SIGNING.
5. Then he has no clue about BOBTAIL Insurance, Trailer Insurance, Haz Mat Insurance, Disability Insurance, LIFE Insurance, OTHER Insurance.
6. Does not pay his bills.....WHY BOTHER trying to be a Owner Operator??
Does he believe he can endlessly file Bankruptcy and every day will be sunny and 70??
6b. HOW then does he do his Log Book if he cannot calculate? How will he be able to factor in expenses like Truck Payments, Insurance payments, FUEL, Maintenance, FOOD, etc.., or does he think all that is some other persons problems like his Accountant or Lawyer??
7. Buy a Tonka Truck and stay in the sandbox!!