Study Hall: How to Start a Trucking Business with Alix Good Energy - podcast episode cover

Study Hall: How to Start a Trucking Business with Alix Good Energy

Mar 04, 202226 min
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Episode description

In this clip trucking business expert Alix Good Energy explains how to become successful in the tucking industry. 


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Transcript

Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy nom the United States

Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Do what's right. Leave now. Under President Trump, America's laws, border and families will be protected.

Speaker 2

Sponsored by the United States Department of Homeland Security.

Speaker 3

We got the backstory, and you know you stayed down till you came up, but we now I want to I'm interested in it. Come up. So all right, you stayed in your mom's crib for nine months. No haadcut just walk the dog just on some real Will Smith just figuring it out right, all right, So what happened? Like you just had like an epiphany and it's like I got it, Like what can you explain me how you woke out of that darkness and re emerge to the unlight.

Speaker 2

Yeah. So when I went out of business with the box trucks, my sole purpose of my research was to identify what I did wrong and apply the correct information to my operations. And the first thing I realized is like, yo, I need to get the eighteen wheeler. Like the box truncks is cool, but the eighteen wheeler is going to

definitely like open up my options now. It was so funny because when I would be on the low board with the box trucks, I would have to do the search for twenty six foot, right, I can only look for lows that would fill up the twenty six foot on the trailer. But I would just sometimes just get cure, let me see what the eighteen wheeler loads it like, so it'll be like eighty loads available for box trucks, but four thousand loads available for eighteen wheelers. And I'd

be like man like them eighteen wheelers is eating. So that was the first thing I realized during my research, It's like, yo, I need to get an eighteen wheeler. So when I got the eighteen wheeling and I started rolling with that one, it was like night and day. It was like night and day. You know what I'm saying. And you know, I learned how to negotiate. I learned how to read the market. I learned how to position my trucks.

Speaker 3

So you said that before as far as all right, so just to get the first eighteen wheeler, did you finance that? Did you lease it?

Speaker 2

How do you my first eighteen wheeler? I was able to get that for really cheap. This dude that I know, he was going through a divorce and I think his wife was trying to take everything. He was like, YO, just give me a price. I literally paid about seventy eight hundred dollars first, it was a nineteen How.

Speaker 3

Much does it cost like on average for.

Speaker 2

A good truck that you you know that we recommend getting, It's gonna be anywhere from fifty to sixty thousand, and that's brand new. You about two thousand, sixteen, twenty fifteen, all right, So I use the truck, yeah, but you always only I got an old one.

Speaker 3

You only recommend use trucks, right.

Speaker 2

Yeah, yeah, absolutely? Why because a brand new truck is gonna run you upwards of one hundred something thousand dollars, right, and it's gonna get you the same results as a as a semi US truck. You know what I'm saying. It's all about getting a truck that you know the warranty. You gotta go warranty on it, it's inspected. And if you get you a really good US truck, it's gonna get you the same results. But you're being able to you'll be able to make your money back.

Speaker 4

So between forty five to sixty for US one fifty to sixty, how's the financing on that? Is there a certain amount you have to leave down to get that type of job?

Speaker 2

So it's just different ways. So if you're an investor, right, if you don't have a CDL. By the way, I don't have a CDL, never drove a truck before, don't plan on driving. You're not trying to drive, you know what I'm saying. That's why I got so much respectful drivers. Is I don't do it. I can't do it. So as an investor, you're gonna put down an average of

about thirty percent down, right. Thirty percent down is what I've been seeing for the last few years with UH you know these UH banks at the actual dealerships, right, there's different ways that you can come into the game. You can actually go through the truck dealership, right, and if you go through that route as an investor, it's gonna be thirty percent. But if you have a CDL, it's gonna be a little bit less down let's say

around fifteen to twenty percent. And the reason why it's less for somebody who actually owns the CDLs because the risk is a lot less for the banks. They're looking at it like, hey, look, if you're an investor, you don't have a CDL, you get a truck and you don't have a driver, there's a higher chance that you're gonna default on your loan because your trucks is gonna be sinning versus somebody who has a CDL. They can actually just hop in their truck and go generate some

money to pay their notes. So, again, thirty percent is the average down on a fifty to sixty thousand dollars truck for an investor with no CDL and about fifteen to twenty percent down is the average that I've been seeing. If you have a CDL, we call them own the operators due to own their trucks and operate their trucks as well. What I recommend, though, the best scenario as far as getting into the game, no, is just having like decent credit and having relationships with your own bank

a credit union for example. Right, some of these credit unions all finance you up to one hundred percent, right, so you don't have to put money a bunch of money down for the truck. So in no scenarios, you'll be looking at getting into the game about with about ten grand because now or you got to pay for is your insurance down payment, your license, your DT numbers,

your tags, et cetera. So that's the cheapest way to get into the game is getting financing directly from your credit union, just bringing them a bill of sales, like, hey, look, this is the bill of sales. Can you guys finances truck. You're going you wanna get the best interest rate through your credit union, And that's the best.

Speaker 4

Way I did my first like two cars to my credit union. It was just like they take the money right out your check. So it's like you never have to worry about it. And the interest rate, like you said, is a lot lower.

Speaker 2

Absolutely, that's so you said.

Speaker 3

As far as okay, reading the market, what does that.

Speaker 2

Mean reading the market? Like? Okay, So the trucking literally changes every week, like literally every week, like Atlanta could be the hot zone this week. As far as freight, when I say supplying the man, I'm talking about loads to truck ratio. You knows what I'm saying. So like, for example, I think the last time I checked, Atlanta had about thirty nine hundred loads and they had about fourteen hundred trucks. Right there's certain parts of the city

right now. Wisconsin is one of them. Hot right now. Wisconsin had about I want to say, about five thousand loads and like eight hundred trucks available in the last business day. What does that mean to y'all?

Speaker 3

Block You're gonna be able to charge the high amount because it's not enough.

Speaker 2

It ain't truck trucks out there. So now we have all these shippers, all these shippers that's fighting for trucks now, So what are they going to have to do to make sure that their load gets to move. Hey, top dollar, that's what the negotiating power comes in that. So if you don't understand, Okay, this week Atlanta, Virginia, Tennessee is hot, I need to position my trucks up there. If you

don't know that, you're gonna miss out. And that's what I specialized, and I specialize it in and knowing where to position my trucks at to get that top dollar because all it is is connecting the dot. We're going from one city to the next city to the next city, right.

So a lot of times what I was messing up at is I would just take the big, the best paying load going wherever, not realizing that when I got there, it wasn't no loads there, right, So I'm thinking like, Okay, I'm about to eat on this three thousand dollars load, not realizing when I get to Iowa, for example, right, I'm gonna have to drive probably five hundred miles to get to another good load. So now I don't put most of my profit back into the fuel tank to

get to that next market. So it's not just about booking the load that day. It's about looking at where the load is going and what that market is looking like as well.

Speaker 3

So you said it changes weekly, do you how do you know? It's like website?

Speaker 2

How?

Speaker 4

I think you said something about trucks having seasons, Like how does that work?

Speaker 2

Yeah? I mean we got peak seasons, we got slow seasons, we got times where producers are is real high at that time, and you know, like that's around April or like July is produce season. You know what I'm saying, The freight rates go up because it's more it's more demand for trucks. Right, But we have we actually have on some of the low boards, we actually have a feature that shows you all the hot zones in the whole country, so we can literally go on there and see what's going on in the market.

Speaker 3

Right, anybody has access to those low boards or.

Speaker 2

You have to. You have to have an active authority in order to have actions.

Speaker 3

What does that mean?

Speaker 2

Your dot number, your doot number is a number that's on the side of all the trucks and you have to have that activated in order for you to have access to that low board. So the general public just couldn't go on and look at the lowboard.

Speaker 3

They probably wuldn't understand it even if they did. Nah, it's like reading Spanish.

Speaker 2

Yeah, I mean it's similar to like a search engine for like travelocity, like if you're traveling, it's similar to that. But if you just knew nothing about it, you would definitely need to get trained on how to actually operate with it.

Speaker 3

So you have like a map in your office where you have like, Okay, I'm gonna go from Atlanta to Philly to New York to Chicago and this is gonna like how do you calculate the math on it to say, because like you said, that was a good point, like you might it might be good money going to Idaho, Iowa, but now you got to come back to Atlanta, and

you don't really have any other stops in between. So like if you have a set idea, okay, you need to hit at least five stops everywhere, it's like five hundred miles something like that, or you don't do more than five hundred miles, like fifty miles something like that, or is that like a formula or.

Speaker 2

Well, whenever, my book and load and I brought a couple here for example just to show you guys, right, But whenever you book and load, it's important that you know how much money you're going to be making after the load is complete. So I just bought it. Like the load. We're doing the load right now as we speak.

One of my drivers picked up below yesterday. Right, the load is picking up in Tennessee and Laverge, Tennessee picked up yesterday on the twentieth, and it's going to Franklin, Massachusetts, delivering on Monday. Right. They're paying me twenty four hundred dollars for that load. Right, So when I look at that load, I got to figure out how many miles is from the origin to the destination. So I did the math. It's about a thousand miles. So now I got to figure out how much fuel is it going

to take for me to to complete that load. So we're gonna take the rate that the load is paid. So we have twenty four hundred dollars, right, and then I know that it's one thousand miles. So I hadn't figure out how much fuel am I gonna need to get this job complete? So we're just gonna take a thousand miles. We're gonna divide that by six miles per gallons. Because that's the average that each truck us six months. Yeah, you get six eight eight miles if you got a

good truck. But I'm just gonna do worst case scenario, right, So divide that by six, right, So I know it's gonna take me one hundred and sixty six gallons of diesel in order to complete that load from Tennessee to Massachusetts. Right, So I'm gonna do is I'm gon times that times the average amount of diesel the price for diesel, which is about three dollars and twenty five cents right now, right,

So that's showed me right there. Out of that twenty four hundred dollars, I'm gonna have to use five hundred and forty of.

Speaker 4

It on fuel just to get there and get back.

Speaker 2

Right. So me personally, everybody pays eight drivers differently. I pay my jovers a percentage, right, so I pay my job is twenty percent of whatever that load is paying. So just remember that, imber right there. So we're gonna do twenty four hundred times twenty percent. It's four hundred and eighty dollars. Remember that number. And then going up there we got toes. So I'm gonna say I think going up, there's gonna be about one hundred and eighty dollars in toes, right, So if we do twenty four

hundred dollars minus was it five forty? Ask how much does the driveway eighty forty for eighty minus one eighty and tolls? Yeah, so we had eleven ninety nine on the profit. That's your profit, that's my profit that I'll see on Monday. So she picked up the load yesterday. Jove, this is wild with you guys. Right now, my truck is driving right now as we speak, right and by the time I wake up on Monday morning, it's delivering at seven am. She's going to deliver by the time I wake up.

Speaker 5

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Speaker 6

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Speaker 2

What's Up?

Speaker 5

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Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from El Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy Noman, the United States

Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and deported, you will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Do what's right. Leave now. Under President Trump, America's laws, border and families will be protected.

Speaker 2

Sponsored by the United States Department of Homeland Security. I'll be able to get eleven ninety nine in my bank account about five thirty PM. That's another thing about trucking that I love is that it's liquid. Every single day, I'm getting deposits in our business account. You know, I don't got to wait thirty days to get paid. Right. You pick up a load on a Monday, we deliver

on a Tuesday, We get paid on a Tuesday. So at the end of the day, we have a factory compan A factory company is a third party bank that literally purchases our invoices from us. Right now, my volume is so high. I started off at three percent. I'm down to one percent right now. So I get charged one percent to get paid the same day, and they wait thirty days to get paid. Does that make sense? Right?

So when you talk about people who are are in other industries like real estate, or they do deals where they need finance, you know how attractive it looks to a bank to see daily deposits into your account. When I go to my bank, they harass me, you don't a lot of credit. You you don't want a lot of credit today because I'm a lower risk. Because they seeing that money coming in, that daily deposit coming in.

Speaker 3

That's dope. So all right, how do you get drivers? Like, what's the process to that?

Speaker 2

Yeah, and that's the hardest part of our industry. Like, I'm not going to sit here and just tell y'all the good part, right, you know what I'm saying. If anybody just tells you the good part of anything, just run away from them. Right. That's the biggest obstacle in our industry. Whow because we're talking about the human factor right here. We're talking about people, right, personalities, and with the drivers, they don't have to necessarily be the most

polished people. You know. This is an industry where we hire feelings, you know what I'm saying, Like, you know, they don't have to have education. It is what it is. Right. So the thing about drivers is that this is a very challenging job. This job requires them to be away from their families, right. This job requires them to be driving at some times eleven hours straight. In the day of drivers only allowed to drive for eleven hours straight.

They're allowed to be on duty for fourteen hours they're allowed, and then they have to shut down for ten hours. Right. Everybody can't drive for eleven hours straight every single day, that right. So I got so much respect for jobs man, and just shout out to you know, to the drivers out there, man, like the world will stopped without y'all. You know what I'm saying. So I just got a lot of respect for y'all. And that's why I treat

my drivers really, really well. My you know, and we're gonna get into the portal and all that what I train on. But you know, I know sites that I go on sites and I I put on an attractive ad. That's the first thing I wrote it down. Man.

Speaker 4

When I saw the ad, you were like, we're gonna pay you more by accident than ever shorten you on purpose.

Speaker 2

And I was like, wow, that's not even on my ad. That's what I tell my job is actually after I get them, but I tell them all the time because one of the biggest things when I'm doing these driver interviews, I'm like, yo, why did you leave your last job? Like what made you leave? In eighty percent of the time, it's because they previous employee was playing with their money. Right, That's the number one excuse that I hear while drivers

leave companies is they playing with the money. So I tell them all the time, like, look, I'll pay you more on accident. Before I short you on purpose, it's my honor to pay you. You're helping me feed my family. I don't have a CDL. You know, we both got a role to play, so it's my honor to pay you and just treating them with respect. And I don't treat them like they work for me. I treat them like business partners. You got to play. I got a role to play. Your role is to make sure that

load gets there on time, right, safely and communication. And my job is to make sure that your truck is safe, it's operating correctly, the loads are there, and you get your paycheck.

Speaker 3

Yeah.

Speaker 4

One of the things you do with your trucks is you put extra equipment inside of the truck just in the event that there is something that happens.

Speaker 2

From a mechanical standpoint right there, that's the maintenance. Yeah, that is what it's called. It's not just about reacting when the truck breaks down. Is how can I decrease my trucks possibility of breaking down? You know? And what I've shared with people is how I was able to decrease my breakdowns about twenty one percent in twenty nineteen. This is the little things that I've done little little, little extra things that you can do to just help

help yourself on that road. You know, whatever belts that your truck uses, right, we got an alternated belt, we got a AC belt. Just put an extra set of belt in, extra set of belts in your truck. Right, keep any freeze, keep all in the keep fuses, keep light bulbs, keep an extra spare tire on too. Right, little fixes that can have you shut down for five hours waiting on roadside if you already have the part there, it's gonna save you some time and save.

Speaker 4

You some money, save you a lot of money. Right, they're gonna charge you just to look at it.

Speaker 3

So how do you all? Right, So you have a truck, you have the whole operation, you have drivers and all that, but you had to have product to move right. So is it most companies like free lance or do you have set contracts with the people long term? Is it a combination of both?

Speaker 2

Like?

Speaker 3

How does that work?

Speaker 2

So when you first come into this game, you know, the low board is pretty much your best friend at that point, right when you just freshen the game, you gotta develop relationships. So the load board is where we started off at the load board. That's the website, right, that's the website. And what what's the web loadboard? Dot com dot com d as we have. We have the that board and we have truckstop dot com. Okay, those are the two big ones. So on this low board

there's brokers. You know, these are the people who have the loans that we have to call and negotiate with. Right. So what I did was we just started doing We just did good business. Right. We stressed being all time, we stressed delivering a good service. And what happened is we would just be meeting all these different brokers every day from booking different loads in different cities and then me personally, I ended up doing this load that I really liked. But it was a load that picked up

in Georgia and it went to Cleveland, Tennessee. And it was twice a day. Right. You would pick up in Atlanta, you would go to Cleveland, Tennessee, which is right there by Chattanooga's like two hours away, right, and they was paying us seven fifty to go two hours away and back. And we was doing it twice a day. Okay, so we was generating fifteen hundred dollars a day. Going up twice and I loved it. Right. We did it for

like a week. It was like this project day was working on, right, And then I looked at the numbers that week. I was like, Yo, this is dope. So I hit the broke up, like, Yo, how often do y'all do these loads? He was like, man, it's funny you asked that. Man, we just got an extension on this project. We're gonna be doing this for the next nine months. Wow. Right, So I'm like wow, he was like, yeah,

you know what. Maybe we had like about five different companies on this all load, but y'all actually executed the best. Y'all communicated whenever something was a delay, you called me immediately. You let me know what was going on. He was like, man, with you know, how many trucks do you guys have? Would you guys like to, you know, do this full time? And at the time, I think we was at about five or six trucks. I was like, y'all give you all my trucks. And man, when I tell you this

is two thousand and seventeen, we ran this load. We ran this a load for the whole year, right, And that was the year I really I was able to level up on my cast.

Speaker 4

That was the entire business.

Speaker 2

It was just that, yeah. Was they was moving one plant from Cleveland, Tennessee to Atlanta. We was moving an entire plant for a fortune five hundred company to Atlanta. That nine months ended up turning into two years. Oh wow, and then then it ended up turning into nine years.

Speaker 3

Now, how profitable is your business as far as like truck or on average? Like how how much you can a truck make?

Speaker 2

Right now? And I like to under promise and overachieve, right, I don't like to give the high numbers. I like to give the low ball numbers. Right with the way that we do it, each truck should be able to generate you anywhere from fifteen hundred to three thousand a week take home after all expenses are paid. That's what the truck that's not breaking down. That's what a good driver,

and that's what a full week of work. We don't see any reason why you should be able to at least take home about fifteen hundred dollars a week per truck.

Speaker 3

And of course you can have multiple trucks.

Speaker 2

Yes, it's a volume game.

Speaker 4

After that game, that's how you got your trust right, the first truck paid for the second truck.

Speaker 2

And money management is how you is how you scale up. You know, I had to make a lot of sacrifices in the first couple of years. And instead of when I made my profits, instead of using the money and buying frivolous things, I would just reinvest it back into the company. I would reinvested in new equipment. Right. And then when you jump up to four, five, six trucks, then the money that's what it gets real crazy a fleet. And you know what I'm saying. I said, I've been

doing this. I've been doing this game for like but six years now, and I just really started like buying stuff like this year. You know what I'm saying, Like I just started really like enjoying life and traveling. I made my sacrifice. I reinvested in my company.

Speaker 3

Right. That's the common that's the common theme for almost every one of our guests.

Speaker 2

Almost.

Speaker 3

It's funny you say that because literally we've had people from the music and just people from real estate developers trucking now and the one common theme is exactly what you said, Like you got it's all money in, Like you got to put the money in and that's something that it sounds simple, but nobody wants to do that. As soon as you get profit, people want to live off that on some selfish like just go to the mall and just ball out. And it's like, that's not

how it works. And it's like you try to explain that to people and they still don't understand.

Speaker 2

You got to pay your dues. You gotta pay your dues, man. And you know, like I said, this year, I bought my dream car. I went what you call the sixty three coop.

Speaker 3

Okay, yeah, I say the spending that.

Speaker 2

Came with it, that came with it, yeah, man, you know, like I paid my dues. So like any success that I've seen, I'm unapologetic for because I put in the work for it.

Speaker 3

Now, we never apologize about making a profit. That's what we're in business for.

Speaker 4

You're in a business, like you said, it's a seven hundred billion dollar industry, absolutely, and you're like, honestly, you're the first person I know that's doing it. It's so crazy.

Speaker 3

Can I say the first black person?

Speaker 2

For sure? Sure? We are minorities in this industry. With minorities, yo, let me tell you something. I went to Louisville, Kentucky. It's this big truck show that they do every year in Louisville, Kentucky, is called a match truck show, right, thousands of people. I mean, they bring these trucks. It's like tricked out trucks. They got classes there. It's the

biggest convention in the trucking industry, right every year. I went there last year and I'm walking through the crowd, y'all, and I had a couple of my students with me. It was all eight of us, right, and we played a game. The game was how many minorities can you find in this crowd? It's mind blowing how much of a minority we are in in the shit. And I'm gonna tell you, I'm they just messed up and let me figure it out. They said, eleven, that's stop letting

me in. My graduates from my school being forced back drop bag drop, Mike, drop back drop, b drop.

Speaker 6

Coach. The energy out there felt different. What changed for the team today. It was the new game day scratches from the California Lottery players. Everything. Those games sent the team's energy through the roof. Are you saying it was the off field play that made the difference on the field. Hey, little play makes your day, and today it made the game. That's all for now, Coach.

Speaker 1

One more question played the new Los Angeles Chargers, San Francisco forty nine Ers and Los Angeles Ram Scratchers from the California Lottery.

Speaker 6

A little play can make your day. Peacely, responsibly.

Speaker 1

It must be eighteen years or older to purchase plate or claim

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