Over the weekend, my wife and I began to talk about the years when we first began our business. It was 1996 when I purchased a new Freightliner, FLD 120 which would launch me into operating on my own authority.
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| This 1994 FLD 120 48" was the first truck I chose the specs for. It was the foundation for my own truck to begin Albert Transport, Inc. |
I'll be honest in saying I was a bit nervous as this was my first business venture. However, my wife and I did the necessary planning for over two years prior to making the decision to start my own trucking business.
Our planning involved researching freight lanes, shippers, costs, commodities and equipment. Next, it was time to develop a "business plan." This is a necessary tool and would be the road map we would follow for the next few years. Having never written a solid business plan, we sought out the expertise of the Small Business Administration (SBA) in our local area. We set up an appointment and met with a man who advised us on many areas of business.He enlightened me to the fact that 80% of new businesses fail in the first 6 months. Also, 80% of those who fail, had less than 6 months of prior planning. He assisted us in building goals, creating a solid plan and setting two back up plans in case the first one failed. These appointments were held over several months. He had lots of questions for us. One of which I remember well and comes to my mind often. He asked... "Why would anyone want to use your service?" This question makes you think long and hard on how you will set yourself apart from your competition. I wanted to give him an answer at that moment, however, it wasn't quick enough for him and he put up his hand and said "stop, I don't want to hear you answer right now." He told me to go home and come back next week with at least 3 reasons why my customers will want to use "my" service verses the competition. This exercise would turn out to be the most important question ever asked to me related to my business. Sixteen years later, his words still ring in my ears and I'm constantly thinking of that question even today.
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| My first brand new FLD 120 sitting in the driveway... note the truck doesn't even have it's license plate installed. |
My experience prior to the start up of my business allowed me to be knowledgeable on some of the operating costs of trucking. My job was to drive, prepare shipments (load/unload) and run a small fleet of trucks. Having prior experience ordering trucks, I had a good idea of what I wanted when it came time for me to order my own. I used to figure my cost per mile while operating the company trucks.
In starting my own business, having some prior knowledge and utilizing the free services of the
SBA helped tremendously. I would encourage anyone looking to step out and become an owner operator or fleet owner to do the necessary planning. There are plenty of resources out there to help you get started. Be sure to check with your local community college as they offer business classes on computers, business planning and marketing.
Remember: After you purchase your own truck, you become a business person first and a truck driver... second!
Stay tuned as I'll cover more on this subject in future posts. Be safe,
Henry