Monday, June 28, 2010

Now it's just a Waiting Game



In a little less than 72 hours a MAJOR MILESTONE in my life will be accomplished. My OWN trucking company will be established and in business. Pretty exciting. I picked up my new signs for the side of my truck last Friday. This is my $600 license plate that also gos 'live' Thursday. You'd think for that kind of money you would get two plates; but no, only one.

I also opened my business checking account - gotta have someplace to deposit all that money that's gonna start rolling in! Many of the forms I will use I have downloaded templates off the internet and then modified with my company info. My Delivery Tickets are 4-part tho and had to be special ordered along with new business cards. That's all done.

I can't think of anything else lacking. My next step is finding a local driver with his own diesel truck that can pull my old trailer and service the one account I have now. And then find some more freight to haul locally to keep him busy. The PERFECT candidate will be someone who has a truck and a client (shipper) - or two or three - and needs help to grow their delivery service into a legit trucking company (like mine).

Is there anybody out there?

The picture above depicts a couple of special things I have done in establishing my own Hot Shot delivery service. The rules and regulations governing driving 'for Hire' change dramatically when the total weight of your truck, trailer and load exceeds 26,000 lbs. Currently I am only legal up to that point. Beginning Thursday, when my Authority goes active (hopefully), I will be legal up to 32,000 lbs total gross.

It's not very often that I go over 26K but I will not miss any loads in the future because I was not properly licensed to haul. If there is one thing I have learned in the past three years of doing this, flexibility is your key to success. The more things you are able to do, the more likely you are able to get where you want to go. The cost for me to 'upgrade' my weight limit is only a few hundred dollars. The biggest change is in the compliance requirements.

That blue sticker on my sign is for my International Fuel Tax Agreement. I now have to report my fuel purchases and miles travelled in each state - quarterly. This program evolved many years ago because of the variance between states on fuel prices and the taxes each state derives. Trucks typically carry from 100 to 300 gallons of fuel allowing them to go great distances between fill-ups. They would fuel where it was cheapest and then pass thru states with higher prices (taxes).

The result was states lost revenue from fuel taxes but where still having the expense of road maintenance when heavy trucks rolled down their highways. IFTA leveled that out. You get credit in the states where you bought your fuel (and paid tax) and then potentially owe a tax in states you travelled but didn't buy fuel.

I will evaluate the increase paperwork and cost of being able to legally run over 26K pounds for the first year. I also am hoping this IFTA sticker will reduce the number of times I'm 'pulled-around-back' at the scale. The normal passenger registration on a pick-up truck is valid to about 8,000. My truck is rated to 11,500 lbs but is not 'legal' over 8K with a passenger plate. In IL you can buy a 'weighted' plate, which I had. My plate allowed me to go to 12K but the scale operators outside IL didn't know with-out seeing my registration. So they pulled me around back.

My new signs include my new maximum weight per my registration - 32,000 (12K on the truck and 20K on the trailer) - and a current IFTA sticker. Hopefully, the sticker will be a big clue to the scale operator that I am 'probably' legal with-out having me show my registration. We shall see.

In the mean time, I have been spending all kinds of money on this new biz and did not have one single load ALL WEEK! The good news is that I had plenty of time to get everything done. But I need to generate some income.

I will be around here (Belleville, IL) for two more weeks. I need to add at least one driver and get another client or two before Jul 12. If I can get things in order here then I will be able to go back to CA for some special family things happening later in July. One of the neatest things about this next Left Coast Trip is that my youngest son has expressed interest in going with me. That and I will potentially meet some family I have NEVER met before as well as see some I haven't seen in many, many years. But I HAVE to get another (reliable) driver.

Friday, June 25, 2010

I think I'm Done, with the Gov't Part Anyway

I spent yesterday morning in Springfield, IL finalizing (I think) the state requirements for my Operating Authority - permission to haul freight. I left town with a new license plate ($404 for nine months!) and a couple of fuel tax stickers for the side of my truck; so I would consider things a success.

And speaking of Illinois, I have an almost unbelievable tale involving the Illinois Interstate Commerce Commission. In my post last Saturday, I took a swipe at them for not returning my phone call after leaving them a message. It was not a very malicious comment (I do have a sharp tongue sometimes) but factual. You can scroll down a couple of post to read for yourself.

Last Monday, two days after posting, I get a phone call from Dave with the ICC. At first I assumed it was a return call - two weeks later - from my voicemail. NO! Dave calls me and is looking for 'the guy who wrote the blog.' I know alot of people read my blog - even tho my 'followers' shown to the left are few - but the State of Illinois is looking in? I got a huge kick out of it at first. After I got over the initial pride of my wide-read blog, I began to wonder; how did they find little-old-me with the gazillions of postings on the web HOURLY! Now I'm getting scared. George Orwell's "1984" and Big Brother are REAL! What else are they looking for? A great deal of the science fiction on TV and in the movies isn't fiction!

Anyway, Dave was fantastic, a super nice guy. We talked for awhile. I was driving and had to pull over, I was in such shock at first. He gave me several contact people and phone numbers as well as his own. In fact I faxed some things directly to him to expedite my application. I think he is a valuable resource to have on my 'friends list.'

Tuesday I paid my new insurance premium. Just yesterday, I saw the fed website had the updated info. Everything has a July 1 effective date so it's difficult to tell if all requirements have been satisfied. It LOOKS like it, but my authority - while GRANTED - is not ACTIVE yet. I'm assuming (danger - danger - danger Will Robinson!) that because my insurance is IN PLACE but not IN FORCE until 7/1 that this is the reason. Guess I'll find out next Thursday.

I am still waiting to actually RECEIVE my state authority. But here again, indications are that things are done on my side (Dave gave me my MC number) and it's just a matter of time to process. There are notices that get published - like my dba name - and then waiting periods for someone to challenge I suppose.

Also yesterday I ordered my new signs for the side of my truck. They will be done today. I need some delivery tickets printed, ones with MY numbers and address on them. I also need to open a business checking account; banks are funny about depositing a check made out to a business into a personal account. I will take care of both those things today, assuming I don't get called into work. Which I HAVE NOT been all week. Remember my earlier post? Feast and Famine.

Today I also want to design a flyer that I can leave with potential clients. I have to get business cards ordered (JUST remembered that one). I don't think it would be very professional to go solicit business and then leave my name and number on a post-it note. That is a MAJOR item on my 'Things-to-do List" - go solicit new business. And get another driver lined up. Because once I have a driver - and something for him to do besides sit around updating his blog - I will be able to do what I like -- Travel the USA! I am anxious to get back on the road.

And speaking of fun, last nite was a blast (mostly). It has been hot as blazes here - upper 90s and humidity to match. Summer just started officially but the weather has been more like a late July thing. Until yesterday. My ride up to Springfield - about 100 miles - was with the windows down. I could have taken the bike but I was so wound up about WHAT I needed to do that I never even considered it until I was on the way.

Last nite was Bike Nite again around town. The Pasta House one is sponsored by the Harley dealer in O'Fallon, IL who I was extremely active with several years ago when they were located here in Belleville. It was like old home week again for me. I saw people I haven't crossed paths with in 3 or 4 years. It was very kool!

(sidebar: I think I may have a few new peeps reading this so I should mention, I try to protect the privacy of my friends on here. I do not mention identifiable names of private individuals with-out asking them first if ok. Public entities are another matter. I have no qualms about slamming or praising as I feel appropriate.)

The weather was absolutely perfect late yesterday. Clear skies, temps in the low 80s, low humidity and an almost Full Moon last nite! (OH-OH! The full moon is Saturday night. Danger - danger - danger Will Robinson!) This morning it is also spectacular out. But the weatherman says we will be back in the muggy stuff by tomorrow. No sweat (literally), we shall enjoy today!

And speaking of weather - one of my favorite topics. One of my friends challenged me yesterday thinking that I 'hated' to be in Illinois. Not exactly true. What I hate is the WEATHER - much of the time - in Illinois. Perhaps more specifically, I hate the winters here, and the fact that there are no beaches. (Sorry Lori, lakes are different) But I love the people. There is truth in the perception that people in the Midwest are more laid back and easy going. I have lived here most of my life but I have also travelled extensively - both nationally and internationally. I feel qualified to make this observation. Besides, I write a blog read by people I don't know. I must be legit! (Tongue-in-cheek)

So, to recap what we have learned today: Be VERY careful what you say on the internet. Which seems like a very appropriate follow-up to my Sunday post regarding Facebook. Hmmmm, ironic.

Sunday, June 20, 2010

Facebook Fenomena

It's a lazy Sunday morning. I was a good boy last night (again) and was in bed by 9 PM watching TV until midnight. I got up very early this morning - before sunrise - as a result. So I have been online the last couple of hours (doesn't time just STOP when you're on the Internet? Why is that?) which includes checking in on Facebook.

Facebook was first launched in Feb 2004 as a social networking site for Harvard University students. More than 1200 people registered with-in the first 24 hours. It is still a privately held, multi-billion dollar company that has become a household name used in TV shows and movies. Even 89 year-old Betty White (Golden Girls) made a reference to fb on her Saturday Night Live skit recently. Everyones doing it.

I have found it beneficial to stay in touch with friends and acquaintances that I normally might not see too often. I also have some family members who are quite religious about posting their day-to-day events. I use fb to share pictures with people who may - or may not - be interested without sending them individually to each. It's easy.

But like my blog here, I am extremely careful about the things I put out there in this very public forum - both pictures and words. Many times I see postings from others and I don't think they realize the extent that their stuff may be seen. I said something about Bill but it's okay because he's not on my friends list. But John is. And he's friends with Sue; who knows Bob; who's Bill's best friend. Oops!

We all have idiosyncrasies within the walls of our house. It's 'our' castle and (as long as no one's watching) we are free to do as we please, within reason. Even within the confines of our cars, we feel a certain insulation from the outside-world and are prone to do and say things we would never think of standing on the street corner. (Can you say "Road Rage"?)

But when we are in public - at least most people - we have a different standard of conduct (normally better). It's rare when we curse some stupid knuckle-head to their face. I'm not sure if it's being polite or the fear of conflict, or maybe even both, but we act different in public.

But sitting behind a keyboard in the confines of your bedroom can give you a false sense of security. Before you know it, you're putting something in one of the most public forums in existence - the internet - that you would never even consider doing while standing on the street corner. What are you thinking?

So the next time you 'tweet', blog, fb, myspace, wretch or whatever - consider for just a moment: Would I do this standing on a street corner?

Saturday, June 19, 2010

My New Business is Almost Open

Things are moving along nicely (seemingly) with my qwest to get my own federal Authority to conduct interstate trucking commerce. In fact, all I need to do is write (another) check for my insurance to get that in place and the deal should be done. At least the feds part. I will make the decision by mid-week on who gets my money so that the policy can go "in-force" on July 1.

The state is another story. The 'point-of-contact' for the Illinois Commerce Commission (who oversees trucking in IL) has yet to return my phone call. Nothing unusual there. My tax-dollars hard at work. (Note to Self: future blog topic - "Big Government = Big Headache" another example of bigger NOT being better!)

I have been able to glean info from other sources tho and I think I can complete that part of the process with-out guidance from the ICC. I have been peppered with fees and permits and filings and licenses and postings yada-yada-yada! With-out exception they have all required some sort of payment ranging from $11 to register my business dba with the county since I'm a sole-proprietor to hundreds of dollars for insurance filings. Money-money-money! If you have ever opened a small business you understand.

But I still think that in 10 days - by July 1 - we will be legit and driving down the road with MY name on the side of the truck. THAT'S kind of exciting. And financially I should recoup my start-up costs in two months - pretty amazing. Why didn't I do this two years ago? Oh ya, the compliance thing! The trucking industry is one of the most regulated industries in this country. I WILL get a safety audit from the feds with-in 18 months. My concern is that I will miss some requirement - for example you must have an accident log. Mine is real simple - it's blank after the headline! But ya gotta have it. And the list of requirements is many-many pages long. If you are suffering insomnia some evening, check this out: Federal Motor Carrier Rules & Regulations.

I am still in Belleville getting this all done. My business 'garage' address is here. There are many reasons for this - as opposed to having a FL based biz - but suffice to know, that's the way it is for now. We can 'move' later if we want.

I have been very busy working here, I'm happy to say. I had two very excellent days this past week which made for a good week. My bottom-line guide is $$ per mile. And I use the actual miles driven as opposed to just the loaded-miles. This number includes the dead-head miles and I think gives me a much better picture of my financial health. I'm burning fuel; spending time; and wearing-out tires, brakes and oil on my truck while driving empty so that's an expense. The norm in this industry is to consider your loaded miles and then just keep your dead-head miles at 10% or less. I prefer having 1 number to look at.

The nice thing about having a direct customer - as opposed to picking loads up off the internet load boards - is they usually pay much better. There is no middle man (or two or three). I have averaged more than $2/mile for the last three weeks. And I sleep in a real bed every night. The bad thing - besides NOT being in FL - is that we only have one customer and their work load is down significantly with the economy (they are a construction-related business). So the jobs have been inconsistent - feast and famine!

Part two of my business plan, after getting my authority, is to add more drivers and then add more customers. If you were a shipper, would you prefer to deal with a middle-man (broker) or directly with the carrier? I'm counting on folks picking "B". Of course, you had better be able to deliver when they call.

My time here in Belleville is a little bit depressing, probably because I miss not being in Paradise. I have to hang-out in the mornings waiting for the phone to ring, which it doesn't do every day. On the days it does ring, I work. Sometimes it's just a couple of hours and occasionally it's 16-18 hours - like yesterday. On the days it does not ring - I'm usually bored out of my mind! In a couple of weeks, I will be able to go out in the afternoons and solicit new business.

So that's the latest. Oh, except one small sidebar. Thursday nites around here is Bike Nite at several places. This past Thurs I went to the Pasta House in Fairview Hgts - 5 miles away. I ran into so many old friends! I was very involved in the Harley Owners Club (HOG) many years ago - both on a national level and locally. One of the local chapters, which I was the Asst Director for at one time, sponsors the Bike Nite here. Many, many familiar faces that I haven't seen in several years. In fact, I did not get to talk with all the people I saw that I wanted too. (Sorry Butch, Cheri, Marty, et al) Guess I'll go back next week.

Sunday, June 6, 2010

Happy Sunday

This past week was very steady with work. I had something each day even if it was a little biddy thing. But there were two very nice days also in there making for a pretty decent week. Especially considering I drove just over 500 miles total and was in a real bed EVERY nite, I'd say it was an excellent week.

One thing in life you can always count on is 'change', things always change. I had a post once before about change and, in general, feel that change is usually for the good, albeit sometimes painful. If you don't embrace change but rather allow it to upset you and affect your mood, then you are destined for more un-happy times than you need be.

This change for me revolves around the 'Authority' (Federal governments permission to conduct interstate commerce) that I drive under. Last summer, I terminated my lease with a company in IN and began working with my oldest friend - Dennis - here out of Belleville, IL. We got the necessary things in place that allowed me to drive under his authority. But he is in his 70s and maintaining compliance with the Federal Motor Carrier Safety Administrations rules is more than he wants to do.

The result is that I will now get my own authority. I have actually considered this for the past couple of years but have been intimidated by these same compliance issues. I felt it was easier for someone else to worry about the feds and just let me drive. It was worth giving up a small percent of my gross to use someone else's authority. But there are some third-party administrators you can hire that will help in the compliance department for a fee. That's the route I'm going, at least to start. The feds monitor new trucking companies very closely for the first 18 months.

I actually have put together an action-plan for the next six months that includes hiring at least one new local driver to service the account we have here in STL and a new truck for myself. I want to put the new driver in my present truck. This will allow Dennis to stay involved with the client (whom he has worked with for 20 years) but have a younger driver available to do the work. This will happen under my authority so we can maintain compliance and I can also continue to do my thing. Looks good on paper!

The first part of this - my application - will happen with-in the next 30 days. I will then look to add on a driver - or two or three - from there. Perhaps I can even add some other owner-operators interested in a situation similar to what I have now.

And speaking of now, I gotta go. I'm meeting some friends for breakfast in a few minutes and then we will go on the Motorheads Poker Run. This is typically a very large ride and the weather today looks perfect so a big turn-out is likely.