Over the course of the past few months some friends of mine, and myself have discussed a question that I pose to many

What if you had an unlimited source of funding, what kind of carrier would you start and where?

I have gotten answers from all over the spectrum from retiring from the trucking business, to naming locations they would prefer to open a Carrier.

The reality of this is; no matter who you ask, or where they are you never can tell what the answer will be whether vague or detailed. Most have a generalized answer. To me the generalized answer is not enough. This just says to me that you have a few favorites, but would not really or have not considered it enough to warrant an investment.

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After much consideration and thought this is my answer

My three cities would be Chattanooga, TN; New Orleans,LA; and Houston, TX. These three are my main choice with my three alternatives being Nashville TN; Dallas Tx; and Shreveport LA. This pattern works on the theory of triangulation and how I have taught and been taught to control a “freight zone” to build a business by specializing and understanding the full zone you desire to implement your marketing and operations.

Once this primary area of operations would be my only concern until I sought to advance the operation at a future date by adding agents with terminal locations and trucks.

The Carrier would also immediately open an in-house brokerage division at one of these terminal facilities.– This brokerage division would contract with independent agents, as well as have in-house sales team divided into inbound and outbound—Like a call center-

The Carrier would utilize our own fleet, specializing in Towing, Recovery, Heavy Haul, Automotive, and Equipment.–Towing and Recovery would be a more localized approach to the business; while the Heavy Haul would specialize in regional moves.

Recruitment would take company drivers as well as owner operators running our umbrella. Why both? Company drivers would be the localized guys, while some may run some regional stuff, the owner operators would be geared toward moving the regional things.

Which this puts me into a zone of ability–to accept 6-9 car haulers into the fleet for more national exposure. However, unless I find a demand for a division—this would always be a possibility to produce profits.

Insurance

Insuring this carrier would be through a self insured policy. This would enable the ownership the possibility to insure other carriers. Lowering liability for the main operation, as well as providing a solid business base through this means.

This self insured policy/business would be self standing and operational, with positive reinsurance positions–and solid standing base to assist the trucking businesses that purchase our policies. Spreading the liability out, over the best and safest drivers in the country.

While the self-insurance business was being put into place; Obviously we would have to find a fleet policy to handle the business insurance needs but the end result would be self-insurance.

End financial result

The reality of the basis and plan, the result would be the equivalent of $5-10 million would get this plan in place with positive net results for those partners who wanted a steady base and profitable steady results in the 16-35% range. Accounting of the brokerage would make the results show better range of profitability– just look at the majors with brokerage firms in-house their profitability shows major returns as high as 3x greater, than the actual operational standards of the trucking asset business.

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