May 5, 2023
12:18 PM
I’m literally sitting here with an open Zoom waiting for an interviewee to show up, so I decided to write. They have about 1 more minute before I exit… LOL!
Someone asked me how much money they need to start a trucking business...
Having enough capital is so pertinent in the trucking industry. I don’t care where it comes from, but enough working capital is needed. The question you may ask is “What is enough?”. Honestly, I can’t tell you. Everyone will have different expenses when it comes to insurance, truck notes, fuel costs, driver pay, breakdowns, etc. Let’s just say $30K is not enough to jump up and go start a trucking business and have a safety net. Can you sustain a trucking business with $30K is the right question?
“So LV, you mean to tell me that if I have $30K sitting, I can’t start a trucking business?”. What I’m saying is, if you have $30K sitting, you better leverage your credit to have a cushion in this industry. A $10K breakdown is easy in transportation. Just this week, I had a discovery call with a potential client and explained to her that the lane that I could potentially put her truck on would be $450-$500 in fuel each day. At the end of our conversation, she said, “You mentioned fuel being $450-$500 per day, did you mean per week?” No ma’am, you heard it right- $450-$500 per day. I heard someone say “Trucking is a big boy game!” and it definitely is.
I remember within that 1st 8 months in trucking, having $100K sitting in the account, having an unlimited American Express Platinum Credit Card, all of my drivers had American Express cards and you think life would be good, right? Life can only go up from here, right!?- Wrong!
Even in 2023, we are still trying to crawl out of the valley and all I hear is God saying remain faithful. A total loss of a truck, inconsistent drivers, a truck sitting, and another in the shop for a month. What happens when you instantaneously go from 4 trucks to 1 moving truck? How do you pay for that insurance or how do you pay for the credit card bill for that cycle? Remember 4 trucks to 1!
Are you going to dump a lump some of your cash on a credit card knowing that you only have the income of one truck now?
Are you going to cancel the insurance for the trucks that are sitting, then turn in the truck plates and once you get new drivers, have to pay another $2,000 per plate to get it up and running?
Or are you going to leave the insurance on the trucks that are sitting until you get a driver in them and just pay it?
All of these financial decisions are in the midst of both apportioned plate and insurance renewal. Whew, God! And yes, previously with the trucks moving and consistent drivers, dropping $20K-$40K per month on a credit card was easy, but what now?
I thank God for the relationships that were built to be put in the room. I just continued to remain faithful to God (Although I did have my first-ever real-life panic attack). I had to continuously remind myself that I couldn’t complain and pray, I couldn’t ask for God’s help and worry- Remain faithful LV.
Although there are only 3 trucks now, we are on a local dedicated lane with a solid team and consistent work. The bills are being paid and the trucks are moving.
So my message to you in your tough seasons is- Remain faithful!
Signing Off,
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