We last sat down with Mike in September 2021 and learned about his experience in the trucking industry and the many ups and downs that come with forging your path as an Owner-Operator. We talk about how Mike had achieved something that many Owner-Ops dream of - growing his fleet. And while it can be rewarding, it can also be daunting and risky. So what exactly is behind Mike's success in owning and operating three trucks?
Today we sit down with Mike again and interview him on what this expansion has looked like for him and his business. We learn about how he grew his fleet, the brand he's built, and his hopes and dreams for the future. Spoiler alert, it has not been without his fair share of more ups and downs, including a haunted truck and trying to stay afloat in today's ever-challenging market. Let's jump in.
Mike, can you paint us a picture of what your business looks like today?
My business started in 2015 with me and my first truck, and today, I am an Owner-Operator and a Fleet Owner. I established an LLC for my company, which has now grown to operate three trucks. I still drive one of those trucks and hired two drivers for the other two. We are a power-only unit operation.
Can you walk us through the timeline of your expansion?
In 2015, I started with a lease-purchase program as a company driver (where I worked with one of my current drivers). They helped me get my LLC in Missouri, and after that, I ended up leaving that company to work with another. We transferred the LLC over to Wyoming. Now we'll transfer it to Texas since I recently bought land and plan to re-locate there this summer.
I acquired my first and third trucks through my former company. My first truck is a 2016 special order Volvo. I purchased it cheaply and it's now all paid off. I purchased my second truck independently in 2021. It's a 2002 Kenworth w900 (see left photo). It just chose me and spoke to me. And then, in 2019, I entered into a lease purchase with a custom-ordered truck, which I'm still paying off today. It's valued at $195,000, and I have $80,000 left to pay.
I love all of my trucks, but my first one holds a special place. I don't let anyone else drive it besides my driver for one reason only - it's haunted.
Wait a second, haunted?! Say more!
Well, it has something in it. It especially doesn't like women or girls. I've learned this through patterns. It's a special order Volvo, and a husband-wife team drove it. 70,000 miles into driving the truck, the wife went insane and was committed. After that, I drove it, and since I had been recovering from PTSD from my former company and for working too hard, it didn't bother me, but when I had my girlfriends in the truck, the same things were happening. The truck would roll the windows up and down. It would throw food at them. People also that have driven in it tell me that they feel something in there.
So why do you still have this truck?
It's my first paid-off truck! It now has 700,000 miles on it and it is just a great truck. Plus it loves me - there's a connection there.
Alright, back to business. What were the necessary steps to adding trucks to your fleet?
It was minimal and straightforward. For my trucks here at TrueNorth, all I had to do was purchase the truck outright, share all of the information with TrueNorth (copy of title, etc), and TrueNorth took care of it. TrueNorth saved my first truck - my 2016 Volvo - by transferring the title. I wouldn't have been able to afford it otherwise. When I paid off the lease purchase and got the title, I lived in Washington state. Little did I know that Washington state said you had to pay the taxes (truck registered in Oregon - not a sales tax state). The biggest decision I had to make in this process was whether I wanted to get TrueNorth's plates or my own.
How do you describe Ballard Northern and the brand you'e built? What do you want the world to know about it?
Ballard Northern is a small yet approachable company. I am understanding and empathetic. My relationship with my drivers is a partnership. It's symbiotic. For example, my drivers get the choice of whether they want to be more of a 1099 Owner-Op or if they want to be an actual company driver.
My motto with my company is to help drivers provide excellent work and try to get into more specialized loads to get good and happy customers and keep good and happy drivers. It's been my continual focus to give drivers as much as I can and as much as they deserve while still turning enough revenue to succeed and grow symbiotically.
I've been through many companies, most of which don't listen to their drivers. They treat their drivers poorly and I wanted to put a stop to it. I wanted a place like TrueNorth where people felt respected and valued. I always thought that maybe I'd get a better result because they'd be happy to be in a place where they're finally treated differently - as humans.
That's why I find going to TrueNorth funny because my business model and how I do things are very similar even before it existed. When I joined in June 2021, I learned I operated similarly. And since joining, my business has been more successful than anywhere else.
How do you find quality drivers? What do you look for?
Mostly word of mouth or referrals. I see my drivers as business partners and really get to know them.
I'm looking for mellow, professional, and, most importantly, anti-discriminatory people. It's essential for me that they are inclusive, especially with people of different races, religions, and the LGBTQ community. Plus, my whole family are immigrants, and I have a firm stance on how people talk about immigration.
Another thing I do is pay for people to go through truck driving school. Most companies say you need to be with us for a year, but I pro-rate someone the whole year, so it doesn't break them if they leave.
What does your business model look like financially?
I've got two different business models:
- My truck at the other company makes me no money - it just covers operations. It's an investment opportunity for the driver. And my company takes out 40% of his earnings to cover the ongoing lease purchase, and then everything else goes to the driver.
- For my two trucks at TrueNorth, I pay a fixed salary of $1,200/week, and then I offer incentives such as bonuses if they make extra money or get clean inspections. I like this model because even if they take a week off, they still get paid.
Either myself or one of my drivers dispatches everyone. We meet daily to look at our business, see what is going well, and what needs improvement.
What is your dream for your business?
I would love to be the size of Werner Enterprises, where there are thousands of trucks, and take my business internationally. I plan to build a terminal on my land in Texas and eventually one in Ontario.
I want to grow and be like TrueNorth in many ways by providing a similar service in a different, more human way. Trucking is getting outdated, and I think about how much a change is needed. It starts with one person.
Are you interested in getting your own operating authority?
Yes - but not right now, given today's market. It would cost extra money that I don't have.
Speaking of the market, how have you managed/adjusted to the current conditions? What has it meant for your business?
Let me be clear I am not making much money right now - I am just maintaining what I've been doing until the conditions get better, with hopes to continue growing after that. Specifically, we're trying to find partners for loads and doing smaller runs that pay better. And, of course, driving slower.
As soon as possible, I'll be looking for trucks that are 1). older, pre-emissions (without diesel exhaust fluids and DPF filters to accommodate driver preferences and also cut down on acquisition costs), and 2). have 86-inch sleepers - since every driver in my company has at least one dog.
What advice would you give to other Owner-Ops dreaming of growing their fleets?
Two things in particular -
- Prepare to fail, and don't be afraid of it. The most successful people in the business don't care about failure. They only care if you're still there and finding a solution to make it work.
- Take everything you hear at truck stops with a grain of salt. Don't allow people to be in your head.
Mike concludes by sharing,
Growing up, I had loving parents, but society saw me as dumb and told me that I wasn't good enough to be successful. Since I got into trucking, it's been something that has just made sense to me. When they told me I couldn't drive a truck, I did. Then they told me I couldn't be an Owner-Operator or be a Fleet Owner or have a great company, and I did.
Yes, he did. And he is. Mike's only 31 years old, and it's clear that his hard work and perseverance have taken him incredibly far. This is only the beginning of all that's to come. We can't wait to follow Mike's journey as an Owner-Operator as he continues to build his fleet and navigate whatever the market may throw at him.
Other relevant articles:
Tomlinson Talks: "Bet on Yourself" as an Owner-Operator
Business Partners for the Long Haul - Part 1: Hiring Great Truck Drivers
Business Partners for the Long Haul - Part 2: Retaining Great Truck Drivers