I'll start by saying that I'm located in Denver, CO

And some background info:
I am a local delivery driver for a major food company, I've worked for this company for 8 years and have been in the same line of work for about 13 years. I've done everything there is to do here, merchandiser, sales, supervisor, warehouse, etc... The branch where I work at is restructuring and I will have to choose from either moving to a different location or doing a different job(most likely warehouse). I honestly don't want to do either.

I've been thinking of other things to do and becoming an owner/operator is high on my list. I currently bring home $1k per week, have the best benefits for me and my family in this line of work, and a month of vacation time.
I could spend about $50k on a truck but would like to stay at around $35k

So here are the questions:
What type of work is there in this area that can net me a similar amount of money, keeping in mind paying for benefits out of pocket??
What type of truck is the most versatile, something I can use on all seasons???
Should I look for a niche market?? if so can you guys provide some examples of niche and specialized jobs??
I'm a family man and enjoy being around my family, can I make money working locally and being home every night???

That's all I can think for now, thanks guys in advanced for any help and guidance.

 

Be ready to spend big bucks on repairs on any piece of equipment you buy. I'm talking $20-30k in your first year alone. Everyone I've talked to who's bought a used truck has found the same thing.

Are looking to lease that truck on with someone or get your own authority. Either way, get it in your mind right now, you're a business owner now not a driver. Start thinking like one now. Sit down and create a pro forma cash flow based on what you want to do. Then see if your questions still stand.

 

Stay where you are. Your making more money and a lot less stress.

 

I have around $50k and one of the reasons I want to buy at around $35k is to have some cash on hand for those unexpected business expenses.

I wouldn't say stress is less or more, just different kinds of stress.
If staying was a viable option, I wouldn't have even thought about buying a truck. I have already relocated from NY to FL to CO, I like it here so relocation is out of the question. I can't go back to the warehouse due to an old injury sustained at the same warehouse, so that is also out of the question.

 

In 2 years, repairs and services have cost me close to $35,000. From charge airs to wiring harness to include a power divider.

It's great you have a capitol base to start with. I'd suggest you do a few things now.

Complete a pro forma statement of cash flow. This is basically a budget of what you expect to spend and income. More an estimate than anything.

Write yourself a business plan. You are asking a lot of the right questions but it ultimately what you finally do is up to you. I have cost sheets that show the difference between a 2007 and a 2012 model truck. Kind of hard to justify a new truck when you see it costing you in excess of $45,000 over 3-4 years though.

What do you mean what truck is most versatile? They all basically do the same thing. Pull a trailer down the road. The question would be, what do you want to pull down the road?

It's ultimately your business, what do you want it to be. I did my numbers and I came up with. The company driver didn't want to believe the numbers. The business side of me said these really are real outcomes.

 

All true what's said above.

 

You're most likely best to stay where you are!

You already know how to drive a truck, that's a fraction of being an owner operator. You have to learn to be a businessman now. Listening to Kevin Rutherford on satellite radio is a start. Here's a link to an ebook: http://rawze.com/book/The%20First%20...Op%20Guide.pdf Lots of good information in it.

 

Thanks , hard data is good to have and hard to come by, keep it coming.
By versatility I mean, a box truck, dump truck, day cab??? If I get a daycab should I buy my own trailer??? if so, which trailer would get me work year round????
Some cargo pays better than other and its also different depending on region and time of year.

Firebird thanks for your input, I'll get to that pro forma statement of cash flow that you and Mndriver suggested

As stated earlier, staying where I'm at is not really feasible.
I've own two businesses before, although totally unrelated to trucking, and did quite good.
Thanks for that link, I read through the fuel economy chapters and its quite the good read, I'm going on vacation in a couple of weeks and I'll be taking this with me.

 

There's going to be a ton of questions on this spreadsheet.


First Things first....

The expense on the right are based on real life experience. The reality is, you can say that the left is a DEF truck and the right is a Pre-DEF truck.

As it sits, this spread sheet is set for someone JUST starting out.My outlook is much different due to my truck is almost paid off.Makes a HUGE difference in where my savings accounts will look.

The highlighted areas are really the only “inputs” I need to change. Some of them are self-explanatory.

Insurance: For an Independent O/O, this might be a realistic first three years insurance cost.The “insurance Rate” of 3.5% is a typical rate charged for physical damage / liability based on the value of the truck.So a truck of $30,000 that would be $1050, a truck of $92,000 would be $3220.That would be added TO the cargo portion as well. That’s why the “Ins Increase” is listed.

The mileages at the top for the two trucks are realistic.My actual mileage on an 07 Century and what a 2012 660 was getting for a truck I was looking at buying last winter.

The payments at the bottom are based on the term and interest shown.Most what I have been quoted recently for commercial rates.

The area that will be the MOST confusing is the area on Savings. If it’s a negative number, it favors the older Non-DEF truck.Positive numbers favor the new truck. An older truck is one that has 700,000+ miles on it when you purchase it. So expect to replace the engine soon after it’s paid off after a 36 month loan. If that’s the case, just pull the whole works, do an out of frame and do the tranny at the same time. Where you see that “1 Year”, that is the amount of time between when each truck will be paid off. The “savings account” amount is basically taking your payment and putting it into a savings account drawing 1.5% interest in the bank for equipment upgrading. So in this actual instance, It would be a wash to start out and either buy a truck for $30K or a newer truck for $92,000.

Having said that, remember this though.Monthly fixed expenses can eat you up in a heartbeat. So a Truck payment of $1500 monthly will HAVE to be made whether you are running or not. If your equipment is paid off, that’s one payment you just don’t have to make to another person. And don’t ignore that little block on the bottom for “interest paid”. After 3 years, that’s a couple months of NOT having to run.

 

There's going to be a ton of questions on this spreadsheet.


First Things first....

The expense on the right are based on real life experience. The reality is, you can say that the left is a DEF truck and the right is a Pre-DEF truck.

As it sits, this spread sheet is set for someone JUST starting out.My outlook is much different due to my truck is almost paid off.Makes a HUGE difference in where my savings accounts will look.

The highlighted areas are really the only “inputs” I need to change. Some of them are self-explanatory.

Insurance: For an Independent O/O, this might be a realistic first three years insurance cost.The “insurance Rate” of 3.5% is a typical rate charged for physical damage / liability based on the value of the truck.So a truck of $30,000 that would be $1050, a truck of $92,000 would be $3220.That would be added TO the cargo portion as well. That’s why the “Ins Increase” is listed.

The mileages at the top for the two trucks are realistic.My actual mileage on an 07 Century and what a 2012 660 was getting for a truck I was looking at buying last winter.

The payments at the bottom are based on the term and interest shown.Most what I have been quoted recently for commercial rates.

The area that will be the MOST confusing is the area on Savings. If it’s a negative number, it favors the older Non-DEF truck.Positive numbers favor the new truck. An older truck is one that has 700,000+ miles on it when you purchase it. So expect to replace the engine soon after it’s paid off after a 36 month loan. If that’s the case, just pull the whole works, do an out of frame and do the tranny at the same time. Where you see that “1 Year”, that is the amount of time between when each truck will be paid off. The “savings account” amount is basically taking your payment and putting it into a savings account drawing 1.5% interest in the bank for equipment upgrading. So in this actual instance, It would be a wash to start out and either buy a truck for $30K or a newer truck for $92,000.

Having said that, remember this though.Monthly fixed expenses can eat you up in a heartbeat. So a Truck payment of $1500 monthly will HAVE to be made whether you are running or not. If your equipment is paid off, that’s one payment you just don’t have to make to another person. And don’t ignore that little block on the bottom for “interest paid”. After 3 years, that’s a couple months of NOT having to run.