Introduction:
Sometimes, the most unexpected places and circumstances can lead to remarkable opportunities. This was precisely the case for me when I found myself in a chance meeting with two individuals at a DMV in Virginia. Little did I know that this encounter would help propel the trajectory of my trucking business and present me with one of the first significant business decisions of my entrepreneurial journey.
From day one, a business owner must stay alert for opportunities
In 2021 when I was doing the initial registration for my truck and trailer because there were still some lingering COVID-19 restrictions, most of the DMVs in Virginia were by appointment only and were booked for weeks. However, Virginia had a couple of DMVs throughout the state that were open and available for walk up, same day service. The walkup location closest to me was in a small rural town about an hour north of me. I went on a hot day at the end of June and when I arrived there was a line of people circled around the building. While waiting and slowly inching along, I discovered that the two gentlemen in front of me both had jobs related to trucking. One was an inspection officer, and the other owned a trucking company with an impressive fleet of 20 trucks.
By the time we had finally concluded our long day at the DMV (with me successfully registering my company, but the other carrier was missing documents and needed to return at a later date) the latter and I agreed that, for a rate of 20%, I would operate under his authority until my operating authority was granted by the Federal motor Carrier safety administration (FMCSA)1. This was fortuitous because it takes FMCSA about 3 weeks to approve your application, thus this arrangement would allow me to begin working and earning revenue a week early. In that first week, while having no knowledge of how to smartly book loads, I was able to make $6,500. I made this despite having a load cancellation because of the July 4th holiday. After that first week, my application was approved and I began running on my own under my own authority.
As a business owner you may be faced with pivotal business decisions early on
The carrier and I stayed in touch, speaking periodically, and about a year later when the market had cooled he called and asked for my help. He said that various circumstances had put the fate of his company in jeopardy. One of his drivers had an accident which barred him from working with one of the brokers and accessing their load board. Furthermore, he had a lawsuit underway with a different broker, which denied him access from their load board as well. As a result, he was having trouble finding loads for his drivers. So, in an eerie turn of events, he asked if he could run under my authority to get access to the load boards again. He said that he would pay me 20%, the same as he charged me, and promised me that 20% of 20 trucks revenue would be substantial revenue for me. With this proposal, I was faced with my first major decision/opportunity as a business owner.
After giving it much thought, my intuition was telling me to say no but I felt obligated to help him because he helped me in my time of need. Luckily, I was saved by my insurance agent, who informed me that I would only be able to add an additional truck after I completed my first year of operations, and that I would be able to add multiple trucks after my second year. Additionally, he advised me that this is a common scenario, and that typically when a poorly run company migrates under another company, it typically destroys the new company as well. I thanked him for his advice and I told the other carrier that, for insurance reasons, I must decline his offer and wished him luck. I have no idea how he fared because we never spoke again after that.
Lessons learned: knowing your values can help you make the right business decisions
From an unexpected meeting at the DMV to a consequential partnership and the subsequent pivotal decision, these events underscore the essence of the trucking industry—where chance encounters and critical choices can shape the destiny of businesses. While the partnership I made may have taken an unexpected turn, the experience reinforced the need to know my values and make decisions in accordance with them. To successfully run your trucking company you will need prudence, strategic thinking, and a constant focus towards the success of your enterprise. This experience served as a valuable lesson, highlighting the balance between loyalty and potential financial gain against personal readiness and the need for sound business decisions. It also reinforced the importance of surrounding oneself with knowledgeable advisors and maintaining a clear vision for the future.
1. The Federal Motor Carrier Safety Administration is an agency in the United States Department of Transportation that regulates the trucking industry in the United States. The Federal Motor Carrier Safety Administration’s primary mission is to prevent commercial motor vehicle-related fatalities and injuries. – http://www.fmcsa.dot.gov/