Posted on: 29-11-07 22:49:30
Quote:
Originally posted by desi_driller
Spaceman,
I fully agree with you but considering I do not have AZ license but being a Mechanical Engineer by profession, i can understand many thing about truck. What I am thinking of buying a new/ late model truck.- so that maintanance isuue can be avoided to a certain extent. may we pool our resource & go for 2 or more truck,& try to give truck on fixed rental on per day basis ( all misc. expenses on account of Driver/Renter/Trucking Company). As somebody advised it is better to have less profit with less tensionn then having more profit with more tension.
I am doing all research & post my findings shortly
Why would anyone rent the new truck from you if the same truck can be had on lease/loan from dealer directly...incase your rent is less than the lease/loan payment, I dont see the point of this business.
The many business owners I have seen in this business are mostly owner- operators, I believe thats the only way you can make enough money, infact good money. Assuming you can make 70,000 annually, and you hope to hire a driver, what is the expected salary for the driver? - not less than 35000. In the balance 35000 you need to account for fuel, maintainence, insurance AND your profit, in addition to lease/loan payments.
I dont feel this maths is very difficult.
If you plan to own a huge fleet of trucks, then it is a very different issue, but then the volume of business you need to generate is absolutly phenomenal. The only people who can make money on fleets are those who offer FULL service, committed FTL and LTL, every day.
All the best and would like to know the results of your research.
Hiren
Quote:
Originally posted by desi_driller
Hi All,
Does anybody has any idea for starting a small trucking business? I am looking for buying a small Truck & give it to a compmay for long term lease. I am not looking for owner operator kind of thing. I will buy the truck & hire a driver & give it to a company.
Any Info/experience is most welcome.
Regards
I know a few individuals who are owner operators, and from what I understand, hiring and retaining drivers is quite difficult, if one himself is not going to drive. Also driver has to be paid regardless of load availability; especially on one way loads. Then there is a problem of desi companies and middleman, who will not pay and go bankrupt. Declaring bankruptcy is way too easy in Canada.
Trucking has market cycles, and year end is busiest and begining year is almost no work at all. With older trucks, especially ones with few million miles on them, need repairs every other trip. Unless someone close is truck mechanic who knows repairs, almost all profit is lost. So this business will prove viable if one has financial backing to survive downturns, good networking, and a fleet of few trucks.
