Starting A Business In Houston, TX

DC2R

Hey guys! Im a rookie trying to start a contractor business here in Houston, TX. I would like to be in the hauling business hauling sand from and to job sites.
This is what I know I need to start this business so far:

1) No need to own any trucks (know truck owners)
2) Have at least around $10,000 available.

1) No need to own any trucks (know truck owners)
I will explain #1, from what Ive heard and seen around Houston, TX and some contractors do it, they dont really own any dump truck, but to know alot of dump truck owners that are looking for every day jobs, this business you work by trips. You will go up to the constructor and offer your services, if they need it I will have to ask if they only want me to pick up sand and dump it at their site or take loads from their site to dump it some where, find the mileage and give them price for the trip (example: lets say I tell them $40 per trip, they accept that deal, I will go up to the truck owner and tell him about this trip and offer $35 per trip) lets say the truck owner accept, I will be making a profit of $5 for each trip, times the number of trucks that work...

2) Have at least around $10,000 available.
From what Ive seen here in Houston, everytime the truck driver finishes a trip, they give him a ticket in the site he dumps the sand. Each of those tickets they will turn them in to me at the end of the week, it takes a week for all that to be processed and then theyll have their check in the mail... Some truck owners dont like to wait for that process, so they need their cash right then and there, so what Ill do will be change every ticket for them and pay them in the spot for all the tickets (keep them happy to keep them working for me)... Of course ill have to keep track of everybody I change the ticket for, to keep those on my records. After that ill turn all those tickets in to the constructor and they will send my check... The whole point to have the $10,000 available its to be able to pay the truck owners there in the spot with out having them to wait a week, I mean they have to pay for diesel and if something breaks in their truck they need the cash to fix it, some of them just dont want to wait...

I would have to start contacting constructors and offering my services, but I just wanted to know if any of you guys can give me any advice before I start this business and if theres any license I would need to get before starting this. I would really appreciate it, any info you guys can give me will be very helpful. Thanks.

dirt diggler

I'd put the $10K in a CD

DC2R

Any other advice?

dougchips

Find out how much insurance will cost you if one the truck drivers make a mess. Generally people that what to get paid the same day have problems that might conflict with them driving on public roads.

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dirt diggler

ok ...




as someone who needs hauling services

why should I call you when there is someone else with a dump truck??

DC2R

Yeah I see exactly what you are saying, but I mean I guess each driver has his own insurance that covers any damage that they might have with the truck in or outsite the job site, if they keep their truck with all the regulations for the truck according with the state that's their problem it doesn't necessarily affect me, if I'm wrong let me know, but I see your point of view. Thanks!

DC2R

Ill try to give the constructor the best price, he either takes or he doesn't, if he thinks its a little high ill try to work with him, simple he either takes it or he doesn't if he doesn't life goes on, there's a lot of contruction here in Houston ill go to the next one and offer my services...

KentWhitten

nvm

dougchips

If I hire DC2R to haul sand to my job sites and one of "your" truck drivers run over my trees, back into my car and run over my child who was playing in the yard----I am coming after your insurance and your house. Before I let your trucks on my job site I will have a copy of your insurance on file.

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4theroc

Its a very good idea, pretty much you want to serve as a broker. Which you can make pretty good money doing, however if you wanna make big money, it looks like you need to get contracts with suppliers and haul stock to their yards. In other words you need to turn out a minimum of 100 loads a day if you want to make okay money. but the way i see it, whats the point if you cant make $800-$1000 a day?

DC2R

I totally see what you are saying. I guess I have to do some research on that, when I go offer my services Im sure if they require this theyll ask for it.

DC2R

Well Ive been a driver for quite a while now and basically the contractor is the middle man in this particular business... If I have 10 trucks working for me, all 10 trucks make 10 trips a day, thats 100 trips all together, like I put it before if I make a profit of $5 per trip out of each truck, than I'll be making $500 a day, I know its not a lot if thats what you are trying to say but Im just starting... Do you guys think its a good idea to start this way or its there something I forgot about, plz guys if you have any advice for me let me know. Thanks

C buck

You basically are gooiing to be a trucking company. other guys with trucks are going to lease on to your company and you keep them busy while making money off of them. I don't know what the laws are in TX but you are going to need some sort of state numbers and licenses that the guys working for you will need to have on their trucks, at least thats how it is around here. 4theroc is right, you will have to run 100 loads a day to make it worth your while. Most companys of this sort start off as being the guys with the trucks and over time will get more and more trucks untill they have so much work they need to hire other trucks on. My advice, take your 10k invest it in your own truck and go start driving for some other broker.

DC2R

I really wouldnt know about the licenses needed, but from the time Ive been doing this it work (driving) we dont have any kind of number from the contractor, we just have our insurance for the truck and thats it, a day before we call him around 9pm and ask him where do we need to go in the morning and for how much are the trips he tells us that and thats it... But who knows you probably are right, Ill have to check on that too.

DC2R

Any one else???

bill r

Certain groups of individuals are simply very independent by nature, and strongly resist being organized into managed groups. Dairy farmers, for instance; and I think independent dump owner/operators might be another. It might not always be to their advantage, but it is always their nature. I'm not in hauling, but I definitely have the same personality trait. Good luck with it.

edit: You're thinking to add organization to what appears to be a rather chaotic marketplace. But I'll bet that, if you continue to study it, you'll find that that market is actually very, very organized.

C buck

DC2R; You have a good idea, and there's quite a few people that already do that. Not to say that you should'nt go for it,but a biz of that sort needs to do alot of work, have alot contracts, and simply have alot customers that you do alot of work for to be profitable. So like I said before your best bet would be get your own truck(or continue driving as you are now) get to know alot of contractors and other guys that already do this, see what they have to say about it and see how much work you'll actually have. Good luck ya

DC2R

I totally agree with you! I have to continue studing this business, I know theres alot of money to be made here I also know its not going to happen over night but I need to start from the bottom, slowly getting more contacts and contracts...

DC2R

Yes you are right, theres alot of ppl that already do this and make some good money, for example the guy I work for, this guy doesnt even speak english and but he finds a way to come up and he does by just been the middle man and offering good prices that constructors just cant let go. I know in the beggining its going to be hard because I dont have alot of contacts and no experience, but as time goes by ill get all that.

dougchips

DC, call around to people that buy sand/dirt and ask them if there is a demand for your service. " I am looking to start a trucking service with a fleet of 25 independent trucking companies to service your dirt delivery needs. Since my company will have so many trucks waiting for your calls, we can offer flexible delivery times and prompt service. Basically we deliver your dirt where you need it and when you need it."

Then you can call the truckers that have nothing to do and ask them if they can give you a cut rate to find them work. If I had trucks sitting in my yard and drivers sitting at home, I would discount my rates to get some work.

BTW, I know nothing about dirt or the dirt hauling business. Good luck and check into that insurance.

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