PER READER REQUEST- TO DISCUSS THE MARIJUANA TRANSPORT BUSINESS, AND HOW I WOULD SET UP A BUSINESS, IF I DECIDED THE MARKET WAS WERE I WANTED TO SET UP. THIS MAY END UP MULTIPLE PARTS.
Due to federal law stating that Marijuana is still a controlled substance, and Federally Illegal–as well as a large swath of the states–which are Still illegal, or very limited…..The State laws where marijuana is legal even has it’s own myriad of rules and regulations on who, what, how, when, as well as some requiring permitting, ect. So, know the rules and regulations very well, so you know what you can and cannot do, as well as where.
With that being said:
WE ARE IN NO WAY, ABSOLUTELY, giving any legal advice, merely, giving a run down on some business things —if “transportation for the marijuana industry” is actually LEGAL, OR ILLEGAL where you live. I recommend you talk to a qualified attorney –and seek counsel for their advice……any stupid shit you do is on you, and therefore we take NO RESPONSIBILITY—if some dumb ass does some illegal shit—–therefore, this is some things to consider and how we feel should be the best course of action…..to follow the laws, rules, and regulations where you live or work…………….
Now, as far as opinions as to the best course of policy–The best is a state where, like Washington, they do not wish to openly publicise the transport of — between any retailers, farms, patients. This wish it to be discreet to the public eye. Less likely chance of their state being targets for heists, due to the other states that want to use armored vehicles–California—where these transport companies are wanting it to be made known who is moving the Marijuana. Just saying —- Do what would work for you.–
Hence the importance of knowing your exact state laws where you desire to transport–
I am going to go over some things as I see it best. Read my disclaimer above.—
–The Formation and a plan to the start–
C- Corp is a must
State DOT authorization- Typically USDOT #
Insurance Required by above authority
Electronic Dispatching by Telephone Text 12 hour shifts- Require Vehicle Contractors- have minimal insurance of at least 300k liability, and 100k per—-
State License to transport– Nope gotta be authorized to do that–by the board as well—from how I am reading the laws.
I would begin Direct mailing campaign during the approvals–stating that the business is open or opening as soon as you can—doing Courier Runs and Deliveries. 1 driver moving is all you need—if you get 3 the better….Recruiting started immediately for insurance approvals. They regulate pretty hard…operators are hard to find.
Owner should be able to handle a truck as well. If you really needed to— you could run this out of your truck/suv/car with decent Hotspot with 20G a month at least—bare minimum—Since now the Electronic logging—I can see Where the efficiency is better than the old paper and pad—-however–better have a paper and pad—- or notebooks on standby for backup–
Investors–I would always be looking for a few to discuss purchases—however–with that being said these are typically people who I have known throughout the years or by chance. Who knows. Some of them probably wouldn’t give two shits if you sent to them or not—When the business is ready they will appear. Always Be Closing. This is just an opinion—Look for a solid foundation—that is all I can say—-some do, some don’t, Oh Well— Who’s Next.
Find a Talker and put them on the phone—Teach them to close fast—and tell them make them like you—have them calling every business within 50 mile radius who could use the service for delivery, pickup, Expedited, Local and long distance– Have a few load boards—
When that new driver signs on — ask them for his start date- Shift starting–what they drive—-have a week long training–Co Shirt–most likely driver uniforms–Cargo pants- Button Down– Tablet for dispatching with Logbook- and Assigned Tablet for use with company email-
When the driver gets in—Assign Trainer 1 week the trainer can be dispatching from passenger seat- yes—-they should be able to handle a few drivers and the trainee at the same time–sometimes its a bit much but–with the business—Freight is freight–Use a Professional.. When it gets down to it—-If training newcomers without CDL—use a CDL Trainer- or Professional who has years–over 10yrs preferred- Experience as a Operator.
This shows 2 things- Driver Dispatcher and Dispatcher Driver–Makes the Dispatcher responsible as well for his own training—-
In a state like Washington in the Northwest– I would hire 5 dispatchers—I would say 5 outside recruiters and 1 in house recruiter. Tell them to fill up my 5 plus myself –15 operators each……
The Talker– Calling every business— just to get the name out will see some freight—but will get more—he will also be allowed to drive in between appointments to target scheduled areas by door knocking.
While waiting on State Approval—-remember, with the State DOT number and Insurance, you can start moving loads intrastate —you can be moving freight…..you need to make sure you are performing your business–earning income once created—–just because they haven’t given the Marijuana Transport approval does not mean you cannot move freight while you are getting approval—This not only allows you to build this but already have the business running—and working out any thing to operate smooth as possible. The business is the same- book a load from point A to point B with a customer—-Payment on pickup- Payment on delivery—Fund your payment net 30 using a factoring company…This could fund wheels turning.
I would recruit for Vans, MiniVans, Luxury, SUV, Pickups- F350 or up to Rollback F650
I would set up a few Airfreight Pickups when they are available through DHL, FedEx, and probably a few others. Amazon—Yeah I know Jeff —-
I would take LTL —-name your destination instate—build a load out—schedule pickup to load immediately or schedule for the new guy—-if it fits in the vehicle.
Schedule out as far as possible- Take your salesman calling from the field–to the manager only—Team needs is discretion– 1 manager per 15 dispatchers in office. 15 Drivers per dispatcher.
75% to Independant contractors
25-35% of Gross for inhouse drivers.–
Nope —-I am not going to tell you how much to charge…… All I am going to say is this:
If you don’t set your rate–Someone else will.
No Matter What, there will always be someone else Cheaper.
I would rather be the last man standing, than the first man out.