How Do You Perceive Your Business Reality?

ATeam

Senior Member
Retired Expediter
In another thread about carrier choice and the relative importance of miles and revenue per mile, Blizzard said, "But, hey, it's all in an individuals perception of reality."

That prompted a response from me that, on second thought, made more sense as a new thread on the perception of reality topic. Here it is:

Very true, Blizzard. Very true.

That then brings us to the decisions we make about how we choose to perceive reality. Different loads, different weeks and different months tend to be remembered differently and the differences can skew our beliefs and perceptions.

For example, Diane and I had a fantastic month in June. Number-wise, it was the second-best month we have had in our year with Landstar and one of the best months we have had in nine years of expediting. Included in that 17,000-mile month was a cross-country run that paid $2.95 per mile, all miles. Another long run paid us $1.95 per mile, including that rate on over 1,000 miles of deadhead so we could get back to civilization after delivering in remote Canada. One run paid over $13,000 to the truck! In the entire month we ran nothing for less than $1.75 a mile, all miles, and only once did we run at that "low" rate. We were feeling the glow, that's for sure.

But feeling the glow (or feeling the pain) is where trouble can set in if you let your feelings influence your perception of reality. When we were feeling the glow, it became very easy to forget the pain we felt a few weeks ago when we sat in Milwaukee one day and then Chicago for the rest of the week and could not buy a load out.

Granted, we then had a directional need to get east or south to make a pick up that was scheduled for the next week (and loads were offered that would have taken us north and west), but it did not seem like too much to ask to get east or south out of Chicago (Chicago!).

It was very painful and disappointing to sit in that area for a week. At that point, we were seriously thinking, not about changing carriers, but about opening our minds to begin researching that possibility. Without question, that was the worst and most painful week we have had since signing on with Landstar, and that pain affected our thoughts and our perception of reality in a negative way, just as the June joy affected our perception in a positive way.

Negative feelings tend to prompt negative thoughts that support them. Negative thoughts tend to prompt negative feelings that support them. So too with positive feelings and thoughts. And the set of thoughts and feelings you have at any given moment affect how you perceive the world around you.

(Examples: If a staunch Democrat has a negative view of Republicans, the likelihood is increased that he or she will perceive someone new with a negative bias if it is quickly revealed that the new person is a Republican. If someone is really, really angry about how a former carrier treated him, bad news about that carrier will be more easily seen and received than good news. If a driver at a fuel island walks around the front of the fleet owner truck he is driving, smashes his head into the mirror mounted on the fender so hard that he falls to the ground and is then laughed at and ridiculed by the nearby drivers who see it, that single incident may lead the driver to vow to never have such mirrors on any truck he will own in the future and may even lead the driver to reject a great opportunity with a great carrier because that carrier requires such mirrors.)

Knowing that our perceptions of reality are influenced by present circumstances, emotional events, and by some memories being more vivid than others because they were formed when strong emotions were also present, Diane and I try to be mindful of and objective about our perception of reality when we are making big and little business decisions.

To that end, maintaining a spreadsheet is very helpful. I believe that if you cannot cite, over multiple and selected time frames (days, weeks, months, years), your cost per mile, cost per day, revenue per mile, and revenue per day, your perception of your business reality will be determined more by inaccurate memories and emotions than anything else.

Does a great month outweigh a terrible week? Of course it does. But what about the other months and weeks? They all count. What about the months and weeks that do not easily come to mind? If you are not remembering them too, your perception of reality will be inaccurate.

Some people run their expedite businesses by the seat of their pants. Others run them with their hearts. Being human, Diane and I do both. But we also try to maintain an accurate perception of reality by maintaining a spreadsheet and a statement of net worth. More than we want to know how we are feeling about the business, we want to know how we are doing financially, and we find that out by keeping score.
 
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PreacherRich

Seasoned Expediter
Love the post!

One thing that I know that has helped me several times is keeping a journal. Not just posting loads and numbers but writing down your thoughts and feelings at a given time. You will be amazed looking back, how much you grow and your perceptions change. Many times, looking back and remembering the victories, defeats and what we learned through them will help us keep a balanced outlook of today.
 

ATeam

Senior Member
Retired Expediter
Love the post!

One thing that I know that has helped me several times is keeping a journal. Not just posting loads and numbers but writing down your thoughts and feelings at a given time. You will be amazed looking back, how much you grow and your perceptions change. Many times, looking back and remembering the victories, defeats and what we learned through them will help us keep a balanced outlook of today.

Excellent addition to this topic. I do that in my daily blog but forget to mention that very important activity. It is truly amazing how the same event will be viewed first in the present moment and then a few days later when you read what you wrote about it. As you say, journaling your victories and defeats, as well as your day to day activities, thoughts and feelings is a powerful personal growth tool. Journaling on a regular basis and reviewing your writings in private will increase your business wisdom and improve your business focus more than anything else.
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
I find setting goals for each week or month very helpful. We have a goal of how much money we want to earn during a specific time period. (After expenses and fixed costs). Once that goal is reached we can either chose to stay out longer or head home to pursue our other interests. It is also a good way to gauge how well your business is operating and to reflect upon the good and bad choices that were made during that time period.
 

BobWolf

Veteran Expediter
Owner/Operator
If I have a reasonable paycheck at the end of the week after paying expenses its a good week.
That of course is up to preception from one person to annother.

I heard it said during a sales training session I took a few years ago that people basicly self suceed or self destruct because they work arround a set sales or income level, lets say fourty five grand mininum to one hundred thousand a year max.
As most aproache or pass that $ 100,000.00 goal they feel comfortable they slow down pass on decent jobs, or take exessive time off, spend more on personal items rather than on business improvements than normal etc. as they see thier sales or income near or pass the lower $ 45,000.00 threashold they slash spending, fire people from thier team, work harder, longer hours, take cheaper jobs even at a loss,(the famous high volume low rate approach), or additional jobs in hopes of createing an income to get up to a comfortable level.

I would rather work for a few customers, charge what allot of people say is expensive SAY NO TO CHEAP FREIGHT, stay consistantl and be flexibility enough to service my customers so they can see the service justifies the rate, try to keep expenses in check. Last but not least, if the money gets good lay away on the slush fund, and invest in improvements. Set your net income bar reasonably high and as you aproach ask your self. If I can get here why not annother five or six grand? Just make sure the goals are realistic and atainable.
Even when the money is good do not pay yourself first instead improve your business so you can live better later or at least be able to ride out the bad times and stay in the game.
Most of this is easier said than done and I dont follow this perfectly especialy these days, you dont have to hit em all at once.

Bob Wolf.
 
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davekc

Senior Moderator
Staff member
Fleet Owner
Maybe like some, but I don't look at anything from a daily or weekly perspective. Too much of a distraction with the type of business expedite presents. Some things are looked at monthly, some things are by the quarter. One has to pay attention to detail but for me, the focus gets too narrowed when you look and fret or celebrate on daily events.
No right or wrong way, just my personal preference.
Probably a little different on a fleet owner as well just because you have trucks all over the country. Not all trucks can be in a bad area or all break down at the same time.
Or....you hope not.;)
Much more balanced when looking over a period of time.
There is my penny in the pond.
 

chefdennis

Veteran Expediter
I am with Dave..i have no desire to look at things on a weekly basis...to me, its no that big a deal...there is always more then enough in the bank to pay the bills no matter if i have a good week or a bad month....

Now that being said..each of us have different whats and needs and expectations from our businesses and what we ask of them....
 

moose

Veteran Expediter
But feeling the glow (or feeling the pain) is where trouble can set in if you let your feelings influence your perception of reality. When we were feeling the glow, it became very easy to forget the pain we felt a few weeks ago when we sat in Milwaukee one day and then Chicago for the rest of the week and could not buy a load out.

Granted, we then had a directional need to get east or south to make a pick up that was scheduled for the next week (and loads were offered that would have taken us north and west), but it did not seem like too much to ask to get east or south out of Chicago (Chicago!).
normally,i do not take a load to a place, BEFORE knowing very well what are the loads count & rates from the Delivery point out, and what will happens once the load is delivered.
in my case, as a solo TT drivers, that also include a parking solution.
my carrier is doing an excellent job providing me with such needed info.
since LEA is a non centralized dispatch, they have little gain in networking to provide such info. to contractors.
the good news is that there are places in the web that will provide truck counts, loads counts, and average rates at a VERY timely manner.(...for a well worth it FEE).
 

BobWolf

Veteran Expediter
Owner/Operator
My best advice is service, flexability, and staying trainable. This will make the diference betwene your business living and dying.

Bob Wolf.
 

zorry

Veteran Expediter
If the week lost in Chicago was in order to pick-up one of those better loads doesn't that week count into the success or failure of that better load ?What good is a $13,000 run if you have 20 days invested ?
Thats why it's important to look at things monthly, or better yet,a 30 day rolling average.
 

BobWolf

Veteran Expediter
Owner/Operator
If the week lost in Chicago was in order to pick-up one of those better loads doesn't that week count into the success or failure of that better load ?What good is a $13,000 run if you have 20 days invested ?
Thats why it's important to look at things monthly, or better yet,a 30 day rolling average.

I agree, Also that is why God gave us a gut feeling and the ability to watch the direction. Again everybody has a diferent tolerence for money. If it works foryou its all good.
 

moose

Veteran Expediter
for many years i used to have a calender in the truck.(i need to start do this again).
first i would determined, how much money i would like to make, then how many days i would be willing to stay away from home.
I WOULD SET A REALISTIC GOALS, AND WORK MAY WAY TO ACHIEVE THEM.
next i will mark on the calender all the days that i MUST be home. (anniversary, birthdays, doctors, Ext.)
the next step, marking the few holidays i would LIKE to be home, or away from the truck.
next step is to mark Expedited freight cycles, like around holidays, July shutdown, first 10 days of the quarter, 1st week of a month, first 2 weeks of the year, Ext.)
the last step is to breakdown the year into quarters, and WRIGHT down my financial goals for that quarter.(advanced pay of a rig, personal saving, personal buys, ...the big things, Ext.)
now...now i had a base for a business plan, i would follow that plan to the letter. run the business quarterly & monitor my progress.
this plan saved by butt back in late 2008 & early 2009, at that time i was running a VERY expensive expedite rig at a lower rates then most. still saved money & achieved my 'very realistic goals'.
 

BobWolf

Veteran Expediter
Owner/Operator
Just remember the seven P's
Proper Prior Planning Prevents Pisz Poor Performance....

Bob Wolf
 

21cExp

Veteran Expediter
This a helpful and informative thread.

I started a spreadsheet the first week I started expediting, on which I can enter as much info and details as possible regarding each run, each week, month, quarter, etc.

One thing I found helpful to include, in addition to income, expenses, miles, etc was a line for every single day, whether loaded, on the road, or home. Now, at a glance, I can see trends of when I was busy, when I sat, when I ran empty, etc.

On this same spreadsheet is a place for notes about locations, shippers, overnight and eating spots, etc. Over time, with a good spreadsheet and tracking of pertinent info, you not only have a good record of cashflow and potential ebbs and flows in work, but an historical inventory of other data and details too, from which can be gleaned all sorts of important information to aid in future decisions.

As has been said about other things in life, how can you tell where you're going if you don't know where you've been?
 

ATeam

Senior Member
Retired Expediter
If the week lost in Chicago was in order to pick-up one of those better loads doesn't that week count into the success or failure of that better load ?What good is a $13,000 run if you have 20 days invested ?
Thats why it's important to look at things monthly, or better yet,a 30 day rolling average.


No. The week in Chicago (and the directional need that kept us there) was in mid May. It was unrelated to any load we ran in June.
 
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Moot

Veteran Expediter
Owner/Operator
How Do You Perceive Your Business Reality?
That then brings us to the decisions we make about how we choose to perceive reality.

I don't buy into the business person first, truck driver second philosophy. It doesn't bother me at all to admit to being a truck driver, actually an ex-truck driver, current van driver. I'm a one man, one van business and it doesn't need to get any more complicated than that. Business reality should be just that, reality; the way things actually exist, not how you might perceive them. If you can't stay grounded in reality, business-wise, then your chances of failure are much greater.

Being a driver first, I approach my business from a driver's perspective and incorporate some basic tenets of the Smith System into my business philosophy.

-Aim High In Steering. Instead of looking at a day, week or month, similar to looking just beyond the hood, which causes erratic lane position and a wavering course, I take a longer view and try and look farther down the "road."

-Get Big Picture. Be aware of changes in your business, but don't overreact to the small up and down days common to the cyclical nature of expediting.

If you have manic-depressive tendencies, you are probably not suited for expediting. If you have a firm grasp of reality, at least business-wise, aim high in steering and get the big picture, you should do fine.
 
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