Starting out on my own help!

i work for a company on a 44 ton artic tipper (sand,gravel,stone,coal,boimass) and i am thinking about going on my own in a 2 or 3years wen im 25
so just getting things in motion… and asking advice where to start? where to look for work? is there such things as contracts? im local to immigham and hull docks.
im only 22 so im planning ahead is o/d still profitable, as i can see there is a huge outlay in the frist place to start? wats the best work to go into bulk? container? fridge?
i love the idea of been my own boss my own truck etc

I think best person to talk to is harry monk.

But you will need to consider if your gonna be your own transport manager or pay an external one. Average for a month is 400 quid a month. So I’d start with the transport manager cpc.
Myself and also you will need your own operators licence place to park the truck at least 8k in bank at all times for the licence. And at least 20k to start up

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20k to start up is that to buy a truck trailer insurance etc? and i have to do more cpc? :open_mouth: ahaa

My advice (I’m not an OD but I am a CPC holder) get your Transport CPC done now or at least as soon as you can.

It answers a hell of a lot of the questions that you will have now.

Also it’s handy to have should you want to change roles and go into the office later in life.

It also gives you a really good understanding when combined with actually driving of how the industry ticks over. It’s definitely helped me tame a few daft planners before now.

Get a sound basis before you start and you will give yourself a better shot. THEN start digging for work and planning to set up.

Any advice regarding possible work maybe out of date by the time you want to take the plunge.

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many thanks for the reply yes i didnt think about work now… and work in a few years could be different… do you think the work will drop or pickup? ive got a year and half left with my current company and so i have plenty of time to think and ponder and try and save!.. how much is the transport cpc? if you dont mind me asking? do i need the extra cpc for the o license?

Work changes constantly. That’s where the knowledge and contacts you are going to start building up now will come in handy years down the line.

Cost of Transport CPC - honestly no idea now - not cheap cheap but it’s a lifetime qualification so look at it as an investment in your career.

I did mine by home study but, and this isn’t a dig, those not knowledgeable about the industry already or academically sound, I’d do the course.

A quick google says £1000+. So shop around.

You can hold an O license without doing the CPC but someone who holds one has got to be nominated - and yes they do have to do some work - the days of just signing the application and doing pretty much bugger all else have long gone.

That’s going to cost you. Month in. Month out.

Instead of shelling out, get it yourself. It will pay for itself within months. And also gives you more control over your own business IMHO.

If your set on it, do your research, get experience, keep your ears open and listen and watch what firms do what and who chops/changes what work they do.

Above all - do it for the profit - not cos you want a truck of your own.

It’s a business not a hobby. Treat it as such.

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Why become an OD/Operator? If you get offered a lucrative contract just get an external TM and drive the lorry for as long as it lasts. If you want to have just one lorry on general haulage or containers it’s not worth the hassle really. If you want a few lorries on general haulage or boxes concentrate on being a business manager/owner, not a driver.

I see a lot of people start up and work hard for a few years only to fold up or give up without having much to show for it because they were drivers not businessmen. Biggest mistake most people make is constantly re-investing their own money in the business or expansion. A business is there to generate profits (for you) and a profitable business should be able to attract external investment (to expand etc.).

Remember the best business can go bust for reasons completely out of their control (big customer going bust is favourite). If Brexit had a catastrophic effect on the road haulage sector (which it might), would you be able to be philosophic about it and close your business happy in the knowledge that you’d taken plenty of money out of it while it was going? Most haulage firms couldn’t. Most new business plans I see don’t even show a time scale for return of initial investment, if I’m lucky they show a return on investment of 5-10% p.a. (which in reality is eaten up by inflation and bad debt).

If you want to go for it, I recommend doing a few years driving, get your CPC and do a stint in the transport office. Then decide if it’s for you, remembering the stress of the transport office is nothing compared to the stress of being the owner.

reedy94:
many thanks for the reply yes i didnt think about work now… and work in a few years could be different… do you think the work will drop or pickup? ive got a year and half left with my current company and so i have plenty of time to think and ponder and try and save!.. how much is the transport cpc? if you dont mind me asking? do i need the extra cpc for the o license?

Will work pick up or drop off - who knows? Firstly it depends on what sector you are in and even then depending on how far in advance they work. As someone that’s run their own business for 26 years, I can tell you that it’s difficult to predict the future. The same for which is the best market to approach, the answer now, may not be the answer in the future.

AFAIK, it’s unusual for a one man band to hold a contract as such. With 22 vehicles, we only hold one contract, the rest is regular, but in theory they could take their work away at any point.

If you look around there have been several threads on becoming an OD, it would be worth half an hour reading them.

Thank you for the replys very helpful

Dannyboy84:
Myself and also you will need your own operators licence place to park the truck at least 8k in bank at all times for the licence. And at least 20k to start up

Don’t think that is quite true as you can have that on a credit card agreement and still comply.

raymundo:

Dannyboy84:
Myself and also you will need your own operators licence place to park the truck at least 8k in bank at all times for the licence. And at least 20k to start up

Don’t think that is quite true as you can have that on a credit card agreement and still comply.

Yes, as long as you have immediate access to the funds any means will suffice. I.e overdraft, credit card, cash in bank etc

Castillidie:

raymundo:

Dannyboy84:
Myself and also you will need your own operators licence place to park the truck at least 8k in bank at all times for the licence. And at least 20k to start up

Don’t think that is quite true as you can have that on a credit card agreement and still comply.

Yes, as long as you have immediate access to the funds any means will suffice. I.e overdraft, credit card, cash in bank etc

Its £7850 for the first vehicle at the moment and £4350 for each subsequent wagon. It’s more than worth considering, especially if you are buying or leasing rather than hiring, that you will need margin on your licence to put on a short term hire while yours is broken and in the workshop. If you are planning to run one, you will need an O-Licence for two. If you are hiring its not as much of a drama because if it breaks you can just demand a replacement from the hire company and specify that one instead. Its fairly easy to manage one vehicle one authorisation now with the online self service system.

My financial standing requirements are met with agreed overdraft limits. As the wagon is hired and on a full R&M I won’t have any massive bills to worry about so in theory I should never need to use it. It costs me £16 per month to keep the government happy while freeing up my money to grow the business.

As for the chap above who suggested external investment as opposed to re-investing in the business: If you seek external investment those investors will want to see a return on their money, so while you will see a lump sum coming in now, you will see reduced returns from the business later on because you will need to share the profits with those investors. If you re-invest part of the profits into the business, any additional profits that investment generates are all yours and you are free to do with them as you wish.

Thats why the only time I want to see other peoples money going into my business is when I retire, they give me their money, I give them the keys and find a beach somewhere.

CBucknell:
I work for MONTRACON, we sell used trailers here in Derbyshire, 99% in great condition too. everything from skeletals to double deck curtain siders. email me at Callum.Bucknell@montracon.com if your interested or just want to know what we have currently

Im surprised that posts lasted this long