Give It A Go Or Call It Quits?

So I started a trucking company to help out a friend, then he got his license suspended. Go figure. Did all my research AFTER I spent all the money just like your supposed to. Bought a new 3500, got a DOT and MC, started the LLC and he was off hauling campers just like the lady I work with who got me interested in this gig. Did I mention my buddy has an at fault accident on his record? That made the insurance company a very tidy profit. So we’re off, after a couple stupid mistakes on my friends part we were making money or at least he was and I was able to cover my expenses. Like I said this all started to help out a close friend who was down on his luck, I didn’t mind and kind of expected to not make much if any money for myself in the beginning. I figured we could get it going, I would learn all I needed to know over the first year or so then I could quit my job and drive too. Well as stated earlier his license was suspended for nonpayment of tickets from the aforementioned at fault accident. So like an idiot I hired on a kid who worked for me as a mechanic at the dealership I managed. He said he had a clean record and I believed him since as a technician he has to disclose any tickets to me his manager and our insurance at the dealership never said anything about the two speeding tickets on his record. Fool me twice shame on me, My wife says I’m too trusting in people, I hate when she’s right! But in true idiot fashion I went out and bought a 20+5 gooseneck and had it de-rated down to 12k so we could stay non CDL until driver number 2 gets his CDL. Well being young with two tickets did not make my insurance cheaper, go figure. So in a last ditch effort to cover my expenses he’s on the road right now hauling his first camper and of course now he doesn’t want to be away from his girlfriend that long. He said she might want to be his co-driver, not sure how I feel about that yet but at least she supposedly has a clean driving record. Figures, only the owner and the driver’s girlfriend have clean driving records. I am looking for advice on my next move, call it quits or ??? I would like to drive but with kids I’d want to stay local, not sure if you can make a living that way. Any advice will be greatly appreciated and sorry for the long rant.

Since your wife has already told you, I won't say it again. What I will say is that if you can afford to shut down, that's what I would do. None of those three are doing you any favors.

Laura

So I started a trucking company to help out a friend, then he got his license suspended. Go figure. Did all my research AFTER I spent all the money just like your supposed to. Bought a new 3500, got a DOT and MC, started the LLC and he was off hauling campers just like the lady I work with who got me interested in this gig. Did I mention my buddy has an at fault accident on his record? That made the insurance company a very tidy profit. So we’re off, after a couple stupid mistakes on my friends part we were making money or at least he was and I was able to cover my expenses. Like I said this all started to help out a close friend who was down on his luck, I didn’t mind and kind of expected to not make much if any money for myself in the beginning. I figured we could get it going, I would learn all I needed to know over the first year or so then I could quit my job and drive too. Well as stated earlier his license was suspended for nonpayment of tickets from the aforementioned at fault accident. So like an idiot I hired on a kid who worked for me as a mechanic at the dealership I managed. He said he had a clean record and I believed him since as a technician he has to disclose any tickets to me his manager and our insurance at the dealership never said anything about the two speeding tickets on his record. Fool me twice shame on me, My wife says I’m too trusting in people, I hate when she’s right! But in true idiot fashion I went out and bought a 20+5 gooseneck and had it de-rated down to 12k so we could stay non CDL until driver number 2 gets his CDL. Well being young with two tickets did not make my insurance cheaper, go figure. So in a last ditch effort to cover my expenses he’s on the road right now hauling his first camper and of course now he doesn’t want to be away from his girlfriend that long. He said she might want to be his co-driver, not sure how I feel about that yet but at least she supposedly has a clean driving record. Figures, only the owner and the driver’s girlfriend have clean driving records. I am looking for advice on my next move, call it quits or ??? I would like to drive but with kids I’d want to stay local, not sure if you can make a living that way. Any advice will be greatly appreciated and sorry for the long rant.

I believe it's time to sell off and cut your losses while you arent in too deep a hole to climb out. As the owner it is your job to check their license status rather than taking their word for it. As long as you won't do your job you can expect to be shat upon by the friends you are trying to help. Unless you have 7 figures plus in the bank put a stop to the madness. If your friend is down on his luck there is often times a reason for it (his poor life choices) and lying to you when you spent your money to help him proves my point. The stupid mistakes weren't just on your friends part. Cut him loose, shut it down.

That's a lot of work, money, and timefor me to shut it down. I would look into hiring a driver after you run everything on them if I were in your shoes.

In the late 90s I worked with a guy at the post office, he decided to buy 3 Dodge dually trucks and hire drivers to haul campers as well. He had a hard time keeping drivers and wasn't making much when he did have drivers. After a while he shut it down, sold 2 of the trucks and kept one as his daily since he lost his shorts on the resale value on the trucks. He had big dreams but like yours, they never came to fruition. It is difficult to find qualified drivers with clean records that are willing to sleep in the back seat of a pickup while on a load. You have already experienced many of the issues. I believe you already know you need to sell but are here for validation that it's the right move. If you think you can find a qualified driver then DO A BACKGROUND CHECK to include his driving record, no more surprises but you already know what you need to do. You didn't do this for you, you did it to help a friend and he burned you.

Sounds like you can can count on YOU. I’ve been there, done that.

Why are you looking to us? You’re either an investor or a doer. If you’re an investor, make an investment decision. If you’re a doer, with limited funds but strong work ethic, make a work decision.

I agree these others are not doing you any favors.

It sounds like a mutual fund would serve you better.

Any hope of driving myself? Is it a dream to make money staying local non-CDL?

That's a lot of work, money, and timefor me to shut it down. I would look into hiring a driver after you run everything on them if I were in your shoes.

I agree, I don’t want quit if there’s a way to make it work.

Hmm. As a business owner, it sounds like you are not in control of your operation. Your wife is definitely correct, sorry to point out. Aside from that, put down all your expenses (overhead) down in one column, include rent, food, household expenses. Across from that, put down what revenue you, yourself can generate. Hopefully, you can generate enough revenue (completed sales) to pay for your weekly or monthly expenses.

If you can not cover your expenses without help, hire someone you DONT know, thats NOT a friend, after doing a background check, MVR check and references check on them. Their labor then becomes an expense, billable to the job. The revenue of each job they produce should be double the amount you pay them. Keep in mind, that after you pay them, you are still paying overhead on top of them (GL insurance, Workers Comp if applicable, MC and DOT , Commercial auto and freight insurance, fuel, maintenance and repairs, Yard and shop rent, etc, etc. In general, for a business to keep the lights on, they need to make 44 percent at the production level, that may well get whittled down to 6 percent or lower after OH and misc costs.

This is assuming its your butt on the line-Its your business, your DOT number and MC Authority. Your assets. You started it, you make it go.

Over the years, every so often I would forget the lessons of keeping it small and my ego would start controlling my business, Id make it huge and loose a bunch of money until I relearned the lesson. Keep it small. Keep it under your control. If you can keep control of your business without having employees, your doing yourself a favor.

Owning a profitable small business can be very rewarding, but it takes tremendous work, diligence and attention to detail.