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advice on budget

Discussion in 'Ask An Owner Operator' started by Menchaca0807, Jun 4, 2017.

  1. Jun 4, 2017 #1
    Menchaca0807

    Menchaca0807 Bobtail Member

    40
    4
    Mar 6, 2017
    0
    hello I'm intreastsd in becoming a owner operator for the hotshot sector here in Texas these are the expenses I came up with after doing homework and I wanted to find out if they seem right to those in the industry

    Expenses
    Insurance (liability & cargo): $1,200
    Truck payment: $750
    Gas (8K miles): $1,500
    Food($7 per meal): $450
    Maintenance(oil change): $150
    Tire fund: $200
    Hotels: $2,250
    Total = $6,500

    I also wanted to find out do you actually make money or is it all just to break even because with the numbers above I'd need to make $1.23 to break even so do those in the sector actually make a profit or is it a break even deal I'd like to support a family and buy a house on this income in the future is that possible
     
    Menchaca0807, Jun 4, 2017
    Menchaca0807, Jun 4, 2017
    #1
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  3. Jun 4, 2017 #2
    Hick

    Hick Heavy Load Member

    928
    1,624
    Dec 4, 2014
    West Virginia
    0
    That's cheap bologna and plastic cheese stuff is going to get old pretty quick.
     
    Hick, Jun 4, 2017
    Hick, Jun 4, 2017
    #2
    kemosabi49 Thanks this.
  4. Jun 4, 2017 #3
    kw550cat

    kw550cat Medium Load Member

    663
    596
    May 22, 2012
    brooklyn, new york
    0
    I'd estimate 7,00
     
    kw550cat, Jun 4, 2017
    kw550cat, Jun 4, 2017
    #3
  5. Jun 6, 2017 #4
    LTSJeff

    LTSJeff Bobtail Member

    9
    3
    Jun 5, 2017
    0
    I have also been looking into the OO route and just from a risk management perspective how familiar are you with the "hot shot sector". Do you know the trends, seasonality and what a full cycle looks like from peak to trough? If your services or only needed 10 months out of the year your P&L is going to look much different.

    A good place to look on expenses http://www.atri-online.org/wp-conte...-Operational-Costs-of-Trucking-2014-FINAL.pdf

    Also, you need to look into your start up expenses and then your monthly operating expenses. Permits to operate on your own authority can be $2500 or more. Truck payment, does that factor in a down payment?

    check out the SBA website. go through a feasibility checklist and start a business plan.

    How to Write a Business Plan | The U.S. Small Business Administration | SBA.gov
     
    LTSJeff, Jun 6, 2017
    LTSJeff, Jun 6, 2017
    #4
  7. Jun 19, 2017 #5
    barroll

    barroll Road Train Member

    1,096
    544
    Nov 23, 2010
    Southwest Michigan
    0
    Get a DOT sleeper (they run about $1500 used for a 36") to skip on the hotels and kick $0.10/mi into a maintenance fund (includes tires and oil changes) and your break even comes down to $1.01/mi, assuming your driver wage was $0.4175/mi, which is what I fished out of your numbers.
     
    barroll, Jun 19, 2017
    barroll, Jun 19, 2017
    #5
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