Looking to become an O/O in about 15 months, advic

Bugsy Siegel · Oct 22, 2006

Hey all,

I'm currently working in a factory, and hate working to make someone else money, someone who doesn't appreciate my effort at all.

So, I figured I'd put my CDL back to work. The only reason I left driving in the first place, many moons ago, was a personal/sick family member reason; a situation which has since resolved itself.

Now that I'm looking to return to trucking, the expedited lifestyle has really picqued my interest!

I have some questions though, and if anyone can offer some advice I'd greatly appreciate it!

1) how do you determine the break even point for your truck?
2) do you use a service for paying Uncle Sam all through the year, or squirrel away some every payday and let an accountant figure your bill at the end of the year?
3) do you have health insurance, and how is it handled? (ie, through a broker/small business organization, like c.o.s.e)
4) stretched class 8, or regular straight?
5) software for mapping and logs (can a log be kept in software form, or are the books still required?)

I'm looking to do this long term, will be selling my house, and everything in it, only keeping my PC, and bare necessities I need to survive.

Oh, and the reason I'm waiting 15 or so months, is that'll give me some time to pay off my car, and get a couple more tax returns in the bank.

Thanks for any help!

cheri1122 · Oct 22, 2006

RE: Looking to become an O/O in about 15 months, a

>Hey all,
>
>I'm currently working in a factory, and hate working to make
>someone else money, someone who doesn't appreciate my effort
>at all.
>
>So, I figured I'd put my CDL back to work. The only reason
>I left driving in the first place, many moons ago, was a
>personal/sick family member reason; a situation which has
>since resolved itself.
>
>Now that I'm looking to return to trucking, the expedited
>lifestyle has really picqued my interest!
>
>I have some questions though, and if anyone can offer some
>advice I'd greatly appreciate it!
>
>1) how do you determine the break even point for your truck?
>2) do you use a service for paying Uncle Sam all through the
>year, or squirrel away some every payday and let an
>accountant figure your bill at the end of the year?
>3) do you have health insurance, and how is it handled? (ie,
>through a broker/small business organization, like c.o.s.e)
>4) stretched class 8, or regular straight?
>5) software for mapping and logs (can a log be kept in
>software form, or are the books still required?)
>
>I'm looking to do this long term, will be selling my house,
>and everything in it, only keeping my PC, and bare
>necessities I need to survive.
>
>Oh, and the reason I'm waiting 15 or so months, is that'll
>give me some time to pay off my car, and get a couple more
>tax returns in the bank.
>
>Thanks for any help!
Bugsy: First, welcome! And BTW, love the username, lol. What anyone & everyone would reply, if they weren't doing whatever else they're doing, is to research the past year of this site. Every question you asked has been discussed at one time or another. A final answer may not have been agreed upon, in some cases, but hey, some decisions you just have to make yourself, right? The information you need is all here, or if not, you can, and should ask, but what you do with it is your call. And if you're planning to sell everything, PLEASE be sure you feel prepared for the setbacks that occur, and good luck - keep us posted on how it goes, ok?

davekc · Oct 22, 2006

RE: Looking to become an O/O in about 15 months, a

Cherri gave you some good advice. I would make sure you have everything place ahead of whether you meet a 15 month deadline or not. Jumping too fast and being unprepared could be ugly.

Davekc
owner
22 years
PantherII
EO moderator

Bugsy Siegel · Oct 23, 2006

RE: Looking to become an O/O in about 15 months, a

>Bugsy: First, welcome! And BTW, love the username, lol. What
>anyone & everyone would reply, if they weren't doing
>whatever else they're doing, is to research the past year of
>this site.

Been reading this site for a while, lots of great info here, thanks to everyone who takes the time to share thier information!

And thanks again for the replies.

I'm leaning towards FedEx, mostly due to their proximity to my current home and their overall positive reputation. I'm very curious how their new [a href="http://www.expeditersonline.com/cgi-bin/dcforum/dcboard.cgi?az=show_thread&om=4584&forum=DCForumID1&omm=0"] FSC[/a] thing is going to work out.

Broompilot · Oct 24, 2006

RE: Looking to become an O/O in about 15 months, a

Now this guy is doing it right. See he has a plan, with a goal 15 months. If he is still pursuing this in 15 months he will be absolutly successfull. Keep asking partner and saving, and most of all put picture up of your dream truck in the bathroom mirrior as dreams can come true and worth working and sacrificing for.

I wish you luck and look forward to helping you out anyway I can.

Jacob · Oct 24, 2006

RE: Looking to become an O/O in about 15 months, a

Hello there. I wanted to convey with you with any help i can be. I started 23 months ago running this freight. We started under our own authority with a cargo van. We couldn't to that so well in the 1st & 2nd quarter so we signed our van onto Panther Expedite. I come from 6yrs of dispatching at Bolt Express, TriState Expedite & a truckload company. I am now a fleet owner with 4 cargo vans and two straight trucks.

1) how do you determine the break even point for your truck? **We base it on 1000 loaded miles a week. after that it is all profit. Take the 1000mi at your contracted rate (i.e. $1.15 a loaded mile) and less it the costs (fuel, toll allowance, cell phone, insurance, initial escrows, QC, truck payment). I wouldn't include FSC or accessorial charges just because they fluctuate. We break even and profit at 1000mi and everything afterwards is gravy.
2) do you use a service for paying Uncle Sam all through the year, or squirrel away some every payday and let an accountant figure your bill at the end of the year? **We use an accountant firm. You got to have a professional CPA doing this. A good one knows the niches on how to save you money (write off miles vs. expenses) But you, on the road, must keep track of everything and every receipt. With Excel on your laptop you should be fine, but you'll need somewhere to keep records (lots of fuel receipts & pro bills).
3) do you have health insurance, and how is it handled? insurance can be from OOIDA or PITA or on ehealthinsurance.com. A person with no dependents runs $60-150 a month for adequate insurance depending on what you want.
4) stretched class 8, or regular straight? Never had a streched class 8. I think they're move expensive and wear badly. But I can not say. I'm sure another poster will correct me. They may get a better rate because of weight capacity, but not sure on that. We just got a "06 Hino (Toyota medium duty truck) 338 for less than $100K. It's a six speed with 22' dry van with roll door and 96" sleeper with running sink, fridge, micro, tv/dvd, rooftop heat/ac & generator plus extras (i.e load bars, reflectives, etc). Hino comes with a 5yr unlimited warranty plus more. It's a nice truck. Gets about 8-9mpg.
5) software for mapping and logs (can a log be kept in software form, or are the books still required?)**A Megellan or like-system i heard are incredibly useful and a huge convience. Panther's new QC system is suppose to have a mapping system, but i have yet to see it. But I'd want both. Mapping system will run $500-1200, i think.

One key thing I gotta express is availability. Since you sound like you'll be out indefinitely, you'd be fine. Driving around & deadheading come & such eat fuel and hence profit. Additionally seriously seriously considering finding a co-driver. At my carrier, solo's get 700-1600 loaded miles a week. The average being on the lesser end. Customers want direct delivery of freight and want teams' performance. Solo's spend too many log hours d/h-ing to companies, repositioning, customs delays & so on.

That's my few cents.