Michael Del Vecchio ⋅ Killingworth , CT U.S. Army, Staff Sergeant ⋅ 3 years served

I helped another vet do this - contact me.

Brian Richardson ⋅ Columbus , IN U.S. Army, Sergeant ⋅ 8 years served

Charles,
For your sake (and for potential lenders) get a business plan completed. You will want to flesh out the costs, expenses, revenue streams, customer profiles etc to give you the greatest chance for success.

How will you attract customers? What will you do different, better, with more value than other trucking companies? I wouldn't try an compete on price alone. That can get you into trouble and you probably can't compete on price if you are new to the game.

Is a short term lease feasible? That might give you more options from the start. Then as you see how things go, you can save up or be better positioned for a loan in the near future.

www.streetshares.com might be a place to start. It doesn't cost you anything and you might get some good feedback on your proposal.

Feel free to reach out to me if I can help you further.

Brian Richardson
brian@VetLaunched.com
www.VetLaunched.com

Charles Boxley ⋅ Huffman , TX U.S. Army National Guard, Sergeant First Class ⋅ 13 years served

I have been doing trucking since 2008 but have been working with trucks since I was a kid. I know how to drive and already do heavy haul work, I also know how to repair the truck myself. I don't have a business plan yet but I do have current customers that would and are willing to stay with me if I start my own company. My credit is over a 700 but I don't have any capital right now. I'm looking at an express loan at the moment, I will have my DBA and EIN applied for by Monday then I will be applying for my US and TX DOT numbers. What I'm not sure about is would it be better to finance a truck and trailer then try to get a smaller loan for operating cost, or to get something like a SBA loan and just have one payment for the whole thing.

Constance L Joy ⋅ Virginia Beach , VA Bank of America ⋅ 10 years experience

Charles,
Do you have a business plan? What kind of money are you looking for? Do you have any contracts in place for when you start to assure repayment? Do you have any capitol yourself? these are just some of the things you will have to have ready at the start. How is your credit? If not so good get a partner who does have good credit. Do you have any experience in the area you want to go in?

SBA and the IRS is a good place to start. They give workshops and training classes on employer responsibilities. You have to know exactly what you are going to do in order for it to be set up correctly to avoid issues with IRS. I may be able to point you in the right direction but I will need to know more. Good Luck

Bill Ham ⋅ Atlanta , GA Phoenix Residential Group / Broadwell Property Group ⋅ 16 years experience

Start with your local SBA chapter (Small Business Administration). They can help you look for loans for a new company. Even with a loan there is still a need for capital. You will need some down payment money and you will likely need some experience in the field.
Look for some partners with the start up money and experience in the field you want to go into. Google these two offices for more direct help.

Office of Veterans Business Development

Small Business Administration

Loree Thompson ⋅ Franklin , OH Randstad Professional Staffing ⋅ 30 years experience

In looking for financial backing, there are several things to consider. If you are starting from scratch, there seems like there ought to be a 'rich uncle' or a windfall of some sort to get you off the ground. In my investigating, if you do not have capital to back a loan, and no history, it is very difficult unless you want to use an unconventional method...i.e. those kind that break your leg if you're late on a payment. Still, there are some solutions.

The best advice I've seen so far is to start with an established company and gain some credibility and experience. Granted, you may have driven for the Guard, but you cannot build a relationship with commercial business that way. Here's what I mean:

If you drive for X-Carriers and deliver to YZ-Business and AB-Business, Joe at YZ and Harold at AB get to know your face and your reputation for delivering on time and without damage. See? Now, I'm not talking about stealing customers, but if you get established, you can save for your own business. Then, as you are transitioning, you can mention to your customers that you are thinking about going out on your own - do they know anybody who needs your services.

There are other alternatives. I will continue to follow this.

We're not there yet :)

James Yaple ⋅ Austin , TX Department of Veterans Affairs ⋅ 25 years experience

Charles,

I'd suggest buying as new of a unit as you can to avoid breakdowns and repair costs. Big thing about finding a loan is your credit rating.

There are a lot of trucking companies that have programs to set up owner-operators. Sometimes they "sell" you the truck or help arrange financing. Common carriers also can provide evidence of an income stream that banks want to see in order to make a loan. A rig is more than some people spend on a house and if you don't look committed to do the work, then the banks will be hesitant.

This is an example of a program I'm talking about: http://www.jbhunt.com/jobs/driver/driving_opportunities/lease/

Good luck,

James