I must first give praise to Brickman, Nightwind, Broncrider and numerous others for ALL of thier wonderful assistance and wealth of knowledge.. Thank You
Here is the financial portion of my business plan. This plan is for a single used truck and 2 used trailers used for timber hauling in NE Florida. Driver (me) wages are set at $675/wk or $35,100/yr. I offer this for use and opinions of all types. Be brutal pls. I'd rather be slapped down now than bankrupt later. Thank You.
EDITED FOR SPACE( LINE SPACING REMOVED)
[FONT=Times New Roman, serif]7.0 [/FONT][FONT=Times New Roman, serif]Finance[/FONT]
7.1 Significant Assumptions
[FONT=Times New Roman, serif]The following table highlights the important general assumptions of 5Mouths2Feed Trucking LLC Interest rates and tax rates are based on conservative assumptions.[/FONT]
[FONT=Times New Roman, serif]Long term loan 4.3%[/FONT]
[FONT=Times New Roman, serif]Tax rate 25%[/FONT]
[FONT=Times New Roman, serif]7.2 Break even analysis[/FONT]
Factoring in Payments, Fuel, Wages, Ins, IFTA, Maint.fund, Future fund, Plates,
[FONT=Times New Roman, serif]The break-even point per month is projected to be approximately $8,500, or 5151 miles at an averaged pay rate of $1.65 per mile.[/FONT]
Includes flat driver pay of $675/wk
[FONT=Times New Roman, serif]Break-even Analysis:[/FONT]
[FONT=Times New Roman, serif]Monthly Units Break-even 5151 miles[/FONT]
[FONT=Times New Roman, serif]Monthly Revenue Break-even $8,500[/FONT]
[FONT=Times New Roman, serif]Assumptions:[/FONT]
[FONT=Times New Roman, serif]Average Per-Mile Revenue $1.65 [/FONT]
[FONT=Times New Roman, serif]Average Per-Mile Variable Cost $1.20 [/FONT]
[FONT=Times New Roman, serif]Average Per-Mile Profit (EST.) $.45[/FONT]
[FONT=Times New Roman, serif]Estimated Monthly Cost $8500.00[/FONT]
7.3 Projected Cash Flow
[FONT=Times New Roman, serif]The long-term loan in the amount of $40,000 is expected to be received in February 2008. The company is planning to purchase one truck and two trailers (with chains and binders, load straps, winches and all assorted required items) at the start of operations. Monthly repayments of the $40,000 loan will be made in the amount of approximately $1000 monthly[/FONT][FONT=Times New Roman, serif].[/FONT][FONT=Times New Roman, serif] As the company is expected to be operational at the end of February 2008, the first month of operation would be March 2008, whereas the monthly gross income is projected to be approximately $12,375.00 and should continue on at that pace for the remainder of the year. Utilizing low estimates in milage and rate of pay the monthly gross is arrived at by this means [/FONT][FONT=Times New Roman, serif]1800mi 1.65/mi 50 wks/yr[/FONT]
[FONT=Times New Roman, serif]With this as baseline 5Mouths2Feed Trucking LLC has estimated cost and profit per mile as follows. Cost for all company expenses including fuel, taxes, wages, insurance and other fees $1.20/mi with a company profit of $.45/mi. [/FONT]
[FONT=Times New Roman, serif]These estimates are based on conservative figure. Actual miles and rate of pay are expected to be higher.[/FONT]
[FONT=Times New Roman, serif]7.3.1 Current Trends[/FONT]
[FONT=Times New Roman, serif]Currently at Conner and Conner Transport (unofficially) as of 22 December 2007, from 01 July 2007 to present:[/FONT]
[FONT=Times New Roman, serif]Current loads for local timber range between 12 and 17 loads per week. With an average distance of 175mi. RT[/FONT]
[FONT=Times New Roman, serif]Pay per mile ranges from $1.55 to $185 ($3.10-$3.70 Loaded)[/FONT]
[FONT=Times New Roman, serif]Top owner/operator has: 120,000 miles / $210,000 gross income at an average pay of $1.75 per mile.[/FONT]
[FONT=Times New Roman, serif]Low owner/operater has: 75,000 miles /$116,250 gross income at an average pay of $1.55 per mile.[/FONT]
[FONT=Times New Roman, serif]Average owner/operator has: 97,500 miles / $161,850 gross income at an average of $1.66 per mile.[/FONT]
[FONT=Times New Roman, serif]Average miles for owner/operators is currently 8,000 to10,000 miles per month.[/FONT]
[FONT=Times New Roman, serif]Rate of pay varies between $1.55 to $1.85 per mile,All Miles ($3.10--$3.70 Loaded).[/FONT]
[FONT=Times New Roman, serif]7.3.2 Past Trends[/FONT]
[FONT=Times New Roman, serif]Last year the top paid owner/operater grossed over $175,000.[/FONT]
[FONT=Times New Roman, serif]Last year the average owner/operater grossed over $140,000.[/FONT]
[FONT=Times New Roman, serif]7.3.3 Current Fuel Trends[/FONT]
[FONT=Times New Roman, serif]Current monthly fuel estimates on a truck that gets approximately 5.5 miles per gallon, are ranging between $6,000 and $8,000 per month or an average fuel cost of $.60 per driven mile. These costs can be lowered with good maintenance procedures, fuel saving driving techniques and reduced idling time.[/FONT]
[FONT=Times New Roman, serif]By my estimates, with the truck I have selected for purchase that is averaging 6.0 MPG, fuel usage per 10,000 miles is estimated at 1,666 gallons. At an average fuel price of $3.40 a gallon that comes to an approximate per mile fuel cost total of $.56/mi. [/FONT]
[FONT=Times New Roman, serif]The use of fuel, oil and gear case additives may and probably will increase milage. Milage may also be increased by the purchase of specific power plants. Proper fuel preservation driving skills will increase MPG. All of these will serve to increase company profits.[/FONT]
[FONT=Times New Roman, serif]7.3.4 Financial Investment [/FONT][FONT=Times New Roman, serif]Requirements and Uses [/FONT]
[FONT=Times New Roman, serif]The company is raising $40,000 for the purpose of financing equipment purchases to meet a growing demand for its services. The acquisition of a tractor and at least one trailer is require to provide the service required for the start-up operation of this business.[/FONT]
[FONT=Times New Roman, serif]The company is seeking financing in the amount of $40,000 for the purpose of the acquisition of truck, trailers, equipment, and funding start-up operating expenses.[/FONT]
[FONT=Times New Roman, serif]7.3.5 Company Profit Share Incentive to investor's[/FONT]
[FONT=Times New Roman, serif]Unlike most start-up companies 5Mouths2Feed Trucking LLC has projected to actually show profit in its first year of operations.[/FONT]
[FONT=Times New Roman, serif]5Mouths2Feed Trucking LLC is requesting either assistance in securing a loan for this amount through [/FONT][FONT=Times New Roman, serif]co-signature of a loan or through direct cash investment.[/FONT]
[FONT=Times New Roman, serif]Cash investors loan repayment will be calculated as follows.[/FONT][FONT=Times New Roman, serif] ESTIMATED[/FONT]
[FONT=Times New Roman, serif]The apr % is equal to the rate of a $5000 48 mo. CD --- [/FONT]
[FONT=Times New Roman, serif]$40000 # 4.3% apr for a period of 48 months. Monthly payments of $908.54[/FONT]
[FONT=Times New Roman, serif]Effectively an investor will be receiving 50% share of profit for 48months with no actual out of pocket expense.[/FONT]
[FONT=Times New Roman, serif]Profit share for start-up assistance will be a 50/40/10 split.[/FONT]
[FONT=Times New Roman, serif]This would remain in effect for a period of 48 months at which all contractual agreements will be fufilled. All liens will be released and full profit share will become 100% company.[/FONT]
[FONT=Times New Roman, serif]Proffit Share may be extended by one year for each quarter of loan not required too be re-paid.[/FONT]
[FONT=Times New Roman, serif]IE= $40,000 Loan Investor re-payment [/FONT]
[FONT=Times New Roman, serif]$40,000 = 4yrs Profit share[/FONT]
[FONT=Times New Roman, serif]$30,000 = 5yrs Profit Share[/FONT]
[FONT=Times New Roman, serif]$20,000 = 6ors Profit Share Etc.[/FONT]
[FONT=Times New Roman, serif]3.6 Projected Profit Share[/FONT]
[FONT=Times New Roman, serif]Based upon 90k mi/yr and low of $1.65 ppm. *All Miles. ($3.30 Loaded)[/FONT]
[FONT=Times New Roman, serif]Projected low income for this business is $12,375/mo or $148500/yr[/FONT]
[FONT=Times New Roman, serif]Projected cost for this business is $ 8500/mo or $102,000/yr[/FONT]
[FONT=Times New Roman, serif]Utilizing these figures company profit would be $3875/mo or $46500/yr[/FONT]
[FONT=Times New Roman, serif]The 50/40/10 profit share would equate to estimates as follows--[/FONT]
[FONT=Times New Roman, serif]50% Investor----$23250/yr [/FONT]
[FONT=Times New Roman, serif]40% Company- $18600/yr.[/FONT]
[FONT=Times New Roman, serif]10% Driver------$4650/yr[/FONT]
[FONT=Times New Roman, serif]120k. mi/yr and $1.90ppm *All Miles($3.80 ppm Loaded) are possible. Allowing for a potential gross income of $228,000.[/FONT]
I understand that not only will my investor be recieving repayment for his loan but also the lions share of profits while I will be doing the lions share of work. My thoughts are as long as my family is cared for and I am building for the future I can accept the 4 years of restricted income. No different from driving for a company except in 4 years this company will be all mine.
MY Business Plan Financial Est. Opinions PLS
Discussion in 'Ask An Owner Operator' started by 7mouths2feed, Feb 20, 2008.
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I would lower the wages good bit. If you draw it you will have to pay income tax on it. You won't need that much. You don't realize how much of what you buy now can be rolled as a business expense.
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You won't make 6mpg. Not with the trucks you are looking t and the type of running you are talking about
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Ya I know. My personal opinion is that business plans are about as valuable when it comes to real world numbers and log books are to realistic driving times. But it does show you took the time to actually think things through, right or wrong.
You should see the cpa before you consider a business plan really but I know how it goes. You will need to bury lots of money. Just remember, according to IRS rules you do not need to show a reciept for anything under $100, hmm or mabey it was $90. either way. You can buy LOTS of $89 parts!! -
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are they really paying that much per loaded mile? guess it's all one way though right?
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I hope your joking about the name of your llc.Although there are several other wierder ones (names) traveling the roads.If your serious.Im saying ,NO DEAL HOWIE !
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Thats funny someone changes my user status to "Family Man" I resemble that Not sure who did that but thanks I pride myself on the well-being of my family. Have 3 little ones that are not biologically mine but challenge me over who is thier father and you've got a fight on your hands... Anyways thanks
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