I am currently doing my HGV license. I’m 22 and this will be my second business. I have a good friend who has been driving lorries for about 6 years and we are looking into doing a partnership haulage firm (well we have already started).
It is something we hope to have up and running by the end of next year. We are in the process of starting up a ltd company (waiting for the paperwork to come through).
We are expected to spend around £35,000 in total to get the Operators license, 1 lorry, insurance and other expenses. We have been looking into the operators license and understand the ins and outs except for the Transport Manager. Due to keeping start up costs down we would be looking at hiring someone with the TM CPC to inspect the lorry rather than spending almost £2000 in total for one of us to get the qualification.
Our question is how often does the lorry need to be inspected? Is it possible to hire someone in just to so this and pay for his services? If so what is the average cost? This would be until we have enough earnt money for one of us to get qualified.
The idea really is to just with one lorry but both of us driving doing long hauls, keep on until we have enough to get 2 lorries, hire a driver etc, build it up over the years and see where we go.
We are still researching so any tips or advice is appreciated.
Most trucks are on six weekly inspection schedules (some have and I think this would be specified in your O licence. The Transport manager is not responsible for checking the vehicle but ensuring they are being checked. Have a look around local dealers and independent workshops as they will all be familiar with this and can give you an idea of costs and explain the checks they do.
When you say you are looking at both of you driving long hauls I take it you mean double manning?
There’s a few owner drivers here and most of them will firstly say make sure you have the work available before throwing all your cash at it. One of the biggest mistakes is people start up thinking there’s loads of work available at £■■ per load/mile when that may not be the case.
Good luck.
Thanks for the reply. Yes we would both be driving long hauls. That way we can cover 18 hours of driving in total.
We have researched and seen there are lots of small jobs and contacted them so the work isn’t an issue.
That’s interesting about the TM we were under the impression they were the person who inspected the vehicle. So basically we would have to get it inspected by a garage and that checked and made sure it was inspected by a TM?
The transport manager is responsible for monitoring your legal compliance on vehicle maintainance, drivers hours, etc. It is a garage that carries out the inspections. I would budget around £100 per inspection (assuming no remedial work is required), plus the same again if you have a trailer. Alternatively have you thought of getting a truck on a fully maintained lease? That way you don’t have the capital outlay, it is far easier to budget and all your inspections are included.
I think it’ll be a struggle for lease finance without either a track record or guarantor at that age.
Don’t want to pour cold water on the enthusiasm but you would be better off doing the CPC yourself and if the stumbling block is finance you would be better off saving up some more and getting into a better financial position before taking the plunge.
The transport manager doesn’t inspect the lorry, your designated garage/fitter does that, and it’s generally at six-weekly intervals.
Your transport manager ensures that you remain legally compliant. It will cost you about £2,500 a year to hire in an external transport manager, or around £1,000 for one of you to obtain the CPC doing a classroom course, and less than half of that if you do home study. Plus, it seems that VOSA are taking an ever increasing dim view of external TM’s at the moment, so it really would be a “no-brainer” for you to get your own.
Your start up costs of £35,000 are realistic, and if you are prepared to put down a £10,000 deposit on a truck then you won’t have any problem getting finance for the remainder by one of the usual suspects, although as a new-start you will pay a high interest rate.
You say that you are currently doing your HGV licence. I would honestly recommend that you spend a couple of years as an absolute minimum as an employee before you even think about putting your own truck on the road.
My garage charge £35 per hour and allow 90 minutes for trailer and same for trailer so £105 minimum for inspections. The older tackle you buy the more it costs to keep it roadworthy in my opinion.
Thanks for the reply. Yes we would both be driving long hauls. That way we can cover 18 hours of driving in total.
You both will VERY rarely have to drive 18hrs non stop before having your daily rest unless your loads are going to far flung Euro land and back.
Remember not every place your loading/tipping is 24/7 365
I agree with all the above. Get a couple of years experience as a paid driver first and then think about going solo. Drivers are in high demand at the moment and this will give you chance to get your TM CPC and gain some more experience of the industry before committing your money.
I also agree that being double manned is not a huge benefit unless you are doing Euro work.
My other concern is insurance. At 22 with no previous experience or no claims bonus your premium is going to be extortionate if you can even find cover at all.
FYI unless you have previous management experience of running a transport company & planning/selling work to customers directly then you are basically off your ■■■■ unless you have at least a year of full time class 1 TRAMPING experience with a general competition haulier under you belt, in my opinion. I know because i done it the wrong way 10 year odd ago.
I think the vosa guidelines for an external transport manger for one truck is one day per week, so I would say a CPC holder might want a bit more than quoted above unless they’re doing it as a bit of a favour, But to be honest it’s better to do it yourself, especially as you have very little knowledge of the industry.
As for double manning the vehicle, probably won’t be very cost effective unless you can find a good contract. There always seem to be a lot of double manned east European trucks on the train and I’m sure they’ll be able to undercut any rates you ask for.
Maybe staying local and double shifting the truck would be a better option, I know it might be such a big adventure as hauling across Europe for a couple of youngsters, but might stand a better chance of making business sense.
Silver_Surfer:
FYI unless you have previous management experience of running a transport company & planning/selling work to customers directly then you are basically off your ■■■■ unless you have at least a year of full time class 1 TRAMPING experience with a general competition haulier under you belt, in my opinion. I know because i done it the wrong way 10 year odd ago.
Obviously off his ■■■■ but because he’s an enthusiastic young chap we were all being polite.
.
and I think this would be specified in your O licence. The Transport manager is not responsible for checking the vehicle but ensuring they are being checked. Have a look around local dealers and independent workshops as they will all be familiar with this and can give you an idea of costs and explain the checks they do.
