Anyone who ever opened a business, or considered the idea, knows that there are way more than 8 things to consider when buying a trucking company. But the truth to be told this article would become a book all on its own if I start even mentioning all that’s involved and all it takes when you thinking of buying a trucking company! Perhaps it would even lose itself in its own weight. Just remember buying a trucking company has many pros and cons, but if you enter the transaction properly prepared the pros will far out way the cons.
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To put it mildly, the reality is there are several things to consider, some I will cover some I won’t get to. This is intended to simply offer you a few helpful tip and suggestions. It’s a short guide to hopefully assist you and better prepare you for the possibilities of buying a trucking company. The most important thing I will tell you is proper research. Research everything:
- Carefully study the market demographics of the region you wish to operate in.
- Check out the local competition and ensure it is feasible to operate in the area.
- Before you buy know exactly what you’re getting into, learn everything you can!
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So remember, researching is the most important thing you can do when buying a trucking company. I guess I have often mentioned the importance of research and being fully aware of everything before you act. Even when I throw out suggestions, I want you to not just take my word for it but really understand the topic before you jump in. Some might say I truly beat the dead horse to drive home the importance of really being prepared. Perhaps, but no one can ever accuse me of not pushing research and becoming more knowledgeable in the topics I post about.
With that said, these are basic concepts to consider whether you are starting a lawn care business, opening a truck stop, or buying a trucking company. It is paramount that you really study and learn everything you can. Learn about the industry, if you are new to trucking. Learn what and where the need is greatest in the area you will be operating.
But there is more you can do, another important thing you can do when buying a trucking company is to look into the staff. Who will stay on and who will not. Learn about the vendors, both within the industry and those who support your operation. Make sure you have a clear picture of the overall operation when you are considering buying a trucking company.
So before you start thinking about buying a trucking company you need to consider a few things:
- How much capital do you have readily available, to purchase and start operations?
- In what area are you looking to operate your business in (city and state)?
- Are you planning on being local, statewide, regional, and/or national?
- With you have actual drivers, contract drivers, owner operators, or a combination?
- What type of freight are you planning on transporting (dry goods, liquids, etc.)?
Now once you have done your basic homework there are other considerations, actually several more. But here are the basic 8 things to check when buying a trucking company:
1. When Buying A Trucking Company, Check If The Trucking Company Is For Sale By Owner…
This might seem obvious but not always. Many times a company is owned by a larger conglomeration of businesses. So it is best to know who you will actually be dealing with when buying a trucking company. This goes back to the research.
Source: www.businessbuddy.me.uk
There are several pros and cons to buying a business directly from the owner, though an agency or through a third party:
Buying a trucking company directly from the owner, -that is easy. This is the actual person or company who owns the business. The good thing about buying a trucking company from the owner is you have an actual point of contact. You can speak with them and negotiate directly with them.
Sometimes you can even work out a better deal, like lower down payment, owner financing or other perks. A drawback is that neither of you are real estate agents and you might not know all the laws regarding the sale of a business. Also the business owner might feel their property is worth way more than market value.
This is especially true when the owner was the one who originally opened the business because, after all he was the one who put the effort to open and run the business. This company was his baby; a baby that he raised and grows up and makes it to be what is now. Regardless the reasons behind for selling the business: he/ she might be aiming bigger goals and becoming corporate, or just somewhere on the run he/ she realized that having a trucking company it was not the right business for him.
Source: www.i1os.com
When buying a trucking company through a real estate agency, -they do a lot of the legal leg work for you. Often they not only help you find the business; they negotiate the transaction and can find out important things like legal historic background of the business and such. Unfortunately they also require a commission based on the final sale. Usually owner financing isn’t an option.
When going through a third party – you can find some great deals while buying a trucking company. Third party agencies can be banks selling foreclosures and government seizures. They can also be legal representatives (other than the real estate agency) who are assigned the task of unloading a property, perhaps from a will or a business that is downsizing. Often with these situations there is little or no negotiating and typically you must have full payment at the time of sale. This is especially true if you buy at an auction.
So as you can see it is very important to know who actually owns the business, or more correctly who you will be dealing with, when buying a trucking company.
Source: www.americanopportunityfla.com
