Becoming an Owner Operater

[SpaceGhost58]

Hello all,

As a former expediter a few years ago I now seek advise and help from this forum.
First let me say that I have really been helped by reading the posts in this forum and it has actually re-kindled my desire to start my own business in expediting.
I wish there was one of these (forum) back in 99 when I went blindly into this profession not knowing just what I was getting into.
They were very dark days indeed both personally and professionally.

When I was on the road I knew that this was what I wanted to do....but not owning my own vehicle was a major obstacle and I had problems with the O/O and eventually left the expediting profession.

I know it's not for everyone but now after being laid off for over a year now, I am ready to do my homework and see if this is something that I can make happen.
So I will be reading all the post's on business plans etc....I hope to do this right and be able to aquire my own vehicle.
Owning my own business is what I know I want and I enjoy the freedom of the road.
I would appreciate any inputs and comments you can give concerning my business venture.

My plan and goal is to have a Sprinter to use for my vehicle.

Feel free to e-mail me as well

Thanks again and God Bless!


SpaceGhost58

 

[RichM]

I am sure you have heard this before but try to figure your operating costs per mile and your fixed costs. Fixed costs are expenses that go on every day whether you roll 1 mile or 1000. Example would be to figure your truck payment per day,your insurance per day,etc. Operating expenses are the usual fuel,tolls maintenance ,depreciation on the vehicle etc. It is a good idea to pay yourself a small salary in the beginning rather then take all of the trucks income. this way you build up a reserve to cover maintenance,time off for yourself and unexpected expenses. I base my costs per mile on doing about 100,000 miles per year.I budget 3% of the gross revenue for motel expenses.No matter how nice your truck and sleeper is you need to get out of it for a night once in a while.At the end of the year if we have not spent 3% of the gross we take the amount left as a Christmas bonus.I assume you are buying a new Sprinter so you should have decent warranty coverage for a while.In spite of that figure on 5 cents per mile for maintenace.This is somewhat high but you will then have a maintenance reserve when you need it.The biggest mistake I have seen new expediters make is just spend all the revenue as it comes in.Then something unexpected happens and they go broke real fast.Do not forget the IRS and the State Tax folks.They need and want bucks and don!t take excuses. I would try to meet other Sprinter users to get an idea of what it costs to run this vehicle. I watch my speed and rarely idle and get 11-12 MPG out of a Freightliner D unit.I know a lot of guys that brag about getting 9.5-10. One extra MPG over the course of a year adds up to quite a savings.These are all basic business plans and as you get into it you should be able to figure how much gross revenue you need on a monthly basis to break even.Don!t forget to add your salary and road expenses into your costs.Good luck.If you can send me your private home address I will send you a copy of how I do my quarterly reports and also the advantages of Incorporating some time down the road.

 

[Lureveto]

I am an owner with two trucks on the road. One is team operated and the other is driven by a single. I am about to get into a truck for a personal friend and drive as a DRIVER on a % basis. I am doing this to generate revenue and to keep active. If I could make money driving my truck I would stay in it and that would make me happy. The truth is I can make about as much driving for somebody as I can in my own truck getting 100% of the revenue. Think about that Sprinter. I heard that a transmission is over 6000 dollars. Why not go with the most popular B unit in the industry. You can see what that is by going to your local truck stop and looking at what is parked out front. Drive for somebody else and you will not have to worry about all those charges when you are down for a few days. I was told once that when you buy your own truck you are still a poor truck driver,owning it makes no difference. What ever you do don't lease your truck to the same people I'm with,,,,,there are too many there now. GOOD LUCK !

 

[Fkatz]

There is a fellow on here that can tell you quite abit of information and he is Tony, from Pittsburgh Express, Teacel on this forum. He is an independent owner with his own accounts. Remember you have to have your own authority, baseplate, Cargo Insurance 1,000,000., Liability Insurance, Bobtail Insurance, If you are going to carry Hazmat loads,you have to have 5 million $$ coverage. Check with Tony and he can tell you.

Frank Katz
Frank's Tax & business Service
Kings Mountain, NC 28086
704-739-4039
[[email protected]]