Haulin Assets

#12. Financing Your Startup and Operating Costs

In the last episode we showed how much it cost us to start Haulin Assets, and we discussed how your situation might be similar or different. Now it’s time to roll up our sleeves and get to work by figuring out how to gather all the money you’ll need in order to get that truck moving down the road and making money!

For most people, coming up with the money to start their trucking company is the most challenging part of getting going. As the saying goes:

“The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and then starting on the first one.”

Below is the list of ways to get money we talked about, and there are even more we didn’t talk about. Let’s start with the first one. Maybe you only have $500 in savings, well, that is a start.

Move to the next option and maybe you can sell $1,000 worth of stuff. You’re not there yet but getting closer, so keep moving down the list.

Maybe you can get a $3,000 loan from a bank. Now you’re up to $4,500. Just keep moving on down the list and you’ll eventually get there.

Once you have gone through the list and you still don’t have enough, start at the top and go through it again. It may take time, but one thing all successful business owners have in common is that they don’t give up easily.

Here is the list.

• Savings
• Sell some things you don’t need
• Non-profit micro-lenders
• SBA Microloan Program
• Bank loans
• Loans from friends and family
• Bring on a partner
• Credit cards
• Factoring (more to fund ongoing expenses, not startup costs.)

More Resources

We have a page on Motor Carrier HQ's website that provides some more insight and has some additional resources on how to finance your trucking company. I go into more detail about each one of the options I listed above. You can check it out here.

And be sure to check out other episodes and full show notes, as well as comment sections, at https://www.haulinassetsllc.com

#11. How Much Does It Cost to Start a Trucking Company?

"How much does it cost to start a trucking company?" is probably the most common question we get asked. In this episode we are going to answer this question with a real life example. When I started my trucking company a few months before writing this post, I took meticulous notes documenting each and every expense I made.

In this episode, I talk about each and every startup expense I made and tell you exactly how much it cost. Since every person’s situation is going to be different I also give a best case scenario and explain why I think your situation might be different than mine. I hope this discussion will help you start to get a clearer picture for how much your startup expenses will be. Additionally, my team and I have created some tools to help you figure out about what your costs will be.

Be sure to check out the Motor Carrier HQ Startup Cost Calculator here. You can use this helpful tool to calculate your own startup costs.

And get the full shownotes at haulinassetsllc.com

#10. Owner Operator vs. Employee Driver

What’s the difference between driving as an owner operator or working for a company? We got a lot of questions about this topic, so we did an entire episode about it. Check it out!

 A couple of episodes ago, we started doing a question and answer piece at the end of each episode. Thanks to all of your questions, we decided to do an entire episode about a topic a lot of people were asking us about. Episode 10 is all about the pros and cons of being an owner operator vs. an employee driver.

 For a lot of people, it boils down to something like this:

 “I make $70K+ a year, why should I start my own company?”

 That’s definitely true for some truck drivers, but I don’t think trucking is really all about the money for everyone. In this episode I talk a lot about what being a business owner is all about. I think it really boils down to:

• Do you have the desire?
• Do you have the drive?
• Do you have the skills necessary?

There's lots of material associated with this episode, so check out the full show notes at https://haulinassetsllc.com/episodes/

And find the tools you need to get started as an Owner Operator at https://www.motorcarrierhq.com/

#9. Insurance

Getting commercial insurance for your truck is an intimidating process. We hope listening to this episode will help you so you don't go into the process blind and can make the best, informed decision for you. To learn even more, check out our page on the same subject at Motor Carrier HQ.

What to Expect From Episode 9

In this episode we talk about how to purchase insurance for your truck. This will be one of the biggest purchases you make, so it's important to be smart about it. You'll learn a lot listening to this episode and reading the page on Motor Carrier HQ's website. Here is the order you should typically do things in.

1. Apply for your motor carrier authority so you have an MC number and USDOT number before you call.
2. Gather the information your insurance agent will need for a quote. (We go into detail about that on Motor Carrier HQ's page.)
3. Call at least two different insurance agents and get quotes for at least two to five insurance companies.
4. Evaluate the quotes. Keep in mind, price is important, but it is not always the most important.
5. Be prepared for the down payment. You are usually going to have to put at least 10% down, usually more like 15-25%. We're talking $3,000 or more.

Check out the full, detailed show notes at HaulinAssetsLLC.com.

#8. Buying a Trailer

Once you know where you are going to find your loads (see ep.7), you should be able to determine the type of trailer you are going to need to buy.

In this episode we talk about how to decide what type of trailer to buy and I give some tips for when you are actually shopping around.

Step one is to determine how you are going to find your loads, once you know that, it should point you in the direction for the type of trailer that is going to be best for you. We'll go over the pros and cons for each trailer type:

• Flatbeds
• Dry Vans
• Reefers

We'll also go over a few important buying tips, for when you're ready to go out and kick the tires.

Lastly, for our new Q&A segment, we had a couple of people ask about leasing on to a carrier as a method to purchase a truck. I talk about the pros and cons of that route. Thanks to everyone who submitted questions!!

As always, check out the full show notes at HaulinAssetsLLC.com.

#7. How to Find Loads

Finding loads is probably one of the most important topics we are going to cover in our podcast. If you aren't finding enough loads or the right loads, your business is going to struggle.

In this episode on finding loads, we are going to cover the basics and not get into too much detail. We'll hit this topic several times as the year goes on and get into more and more detail each time we do.

What to Expect From Episode 7

We talk about the four main ways companies get loads:

• Directly from shippers
• Through brokers
• Searching on load boards
• Using a dispatcher

To read more about why we suggest that most new owner operators use a good dispatcher, and what makes a good dispatcher, check out the full show notes at HaulinAssetsLLC.com.

#6. Financing Your Truck and Trailer

In this episode we talk about the different types of lenders and some of the things they look for. We also give you some tips to help give you the greatest chance of success. It all really boils down to finding the right lender who best matches up with your particular situation. You may be a square peg, and some lenders might be a round hole. You won’t get anywhere trying to get your square peg into their round hole. Look for that lender that loves square pegs, and you will have found your match.

Once you have found your lender, be prepared for the following:

• You will have to fill out an application with each lender you get serious with.
• You will probably have to put down a 10-20% down payment.
• You are going to have to provide the lender a bunch of info. (See the list below.)
• After you think you have given them everything but the kitchen sink, they are going to come back and ask for the kitchen sink. Then, they might even come back again and ask for the bathroom sink.

Good luck!! If you have any questions about the process or if you have found a trick we didn’t talk about, let us know in the comments under the full show notes, at http://haulinassetsllc.com/.

#5. Buying a Truck

This is a fun episode. Who doesn’t get excited about buying the truck that they are going to use to make them money. Heck, you are probably going to live in this thing 24/7 for days, if not weeks at a time. If there is a decision you want to get right, this is it. Here are some of the things we are going to talk about:

• Buying new vs used
• If you buy used, how many miles it should have
• If you should buy a warranty
• What you should look for in a truck
• The cost of the truck

Head to http://haulinassetsllc.com/ for the full show notes.

#4. Changing Your Mindset

In this episode I really focus on the importance of thinking like an owner. This journey really starts with YOU and a desire for something different. For me, that was deciding I wanted my hard work to make more money for myself and not for someone else. I also wanted to be in control of my destiny, not have someone else in control of it.

Here are some of the changes in mindset we talk about.

• Have a good attitude
• Think like an owner
• Be prepared

I hope this episode helps you think of ways to think more like an owner. What other ways do you think like an owner? Let us know in the comments section at our website.

Head to http://haulinassetsllc.com/ for the full show notes.

#3. DOT Numbers and MC Authority

Big step #2 of starting a trucking company, after setting up your business, is applying for your
DOT Number and MC Number, aka Operating Authority. You can't do much in trucking without
one or both of these numbers. How do you know which one you need or if you need them at all?
My buddy Tyler from Motorcarrier HQ and I cover all the basics in this episode.
Here are some of subjects we discuss in detail:

• DOT Number
• MC Number
• Operating Authority
• BOC-3
• Insurance (We just kind of scratch the surface. This will be its own future episode)
• Vehicle weights
• UCR
• FMCSA Compliance
  • Drug and Alcohol
  • New Entrant Audit
• Additional Permits
  • New York
  • New Mexico
  • Kentucky
  • Oregon

Most for hire trucking companies will need to apply for an MC Number in order to get their
operating authority. For your planning purposes, keep in mind it takes at least 21 days from the
day you apply and are issued your numbers, until you will legally be able to cross state lines as a
for hire trucking company. Once you do apply, the contact info you provide becomes public and
you'll start to receive a ton of solicitations for everything from compliance companies to
factoring and insurance. Watch out for snakes in the grass that try to take advantage of you.
There are a lot of shady companies, especially ones who try to make you think they are the
FMCSA (Federal Motor Carrier Safety Administration).

Every situation is different, what licenses and hoops you have to jump through might be different
than what your friend had to do. If you have any questions you can always talk to one of the
experts at motorcarrierhq.com, heck you might even get to talk to Tyler. They will talk to you
about your specific situation, absolutely no obligation. You can learn more by clicking here.

Head to http://haulinassetsllc.com/ for the full show notes.