26 questions for Business Owner with workers

Dude, there are a lot of red flags here, you don't seem to get you won't make 2100 miles a week all the time - that's a fact.

Another red flag is the idea that $8k for a breakdown fund is good, try $20k. And you need to have money for bills and drivers compensation when there is downtime like when the truck is in the shop or when there is a downturn in the economy.

A third red flag is the way you are approaching employing a driver, you can't make them an independent contractor without the knowledge on how it works. I had to be careful on how I approach the right way to do this and maintain it through proper management of the drivers. I could not do one thing and have the drivers taken care of. You're only choice is to make them full employees and pay the taxes and so on based on something better than 40 cents a mile. I start my drivers at 40% of the trucks gross, and with the fleet average at $1.90 per mile exclusive of FSC, that's about 75 cents per mile and it is that high to retain good drivers.

A fourth is how you are using the word lease with the confusion caused by the questions. A lease means you own the truck, have a driver and are with an independent carrier. Is this what you mean?

 

Not to be negative here, but you are not ready to take this step. This is a business. That said you need to work out a full business plan. That is more than just whipping out a spreadsheet with some numbers that may not be based in the real world.

As an example.
You stated you would put a driver in a your truck, and have them run it. Ok, so at the end of the week do you have the cash available to pay the fuel bills and the driver?

 

Sorry bub. Your completely screwed.

Ridgeline and I normally don’t align which is cool but I think we both can say your business model is F’d before you even start.

 

By lease and references to independent contractors from me have been in reference to small businesses that ive interviewed with who i cant recall terms, but id work for them under 1099 and pay a weekly flat rate for the truck, 15% of load pay goes to them, 22% goes to them for various fees. Anyway.. a flat rate fee to use the truck meaning if you took a week off work, you still pay them. Ill try to upload an image i took of their thing

 

Here

 

Only 26? I have a 6 answer per day limit. All would be contested, I guarantee. Best to trust your own judgement anyway.

 

This makes no sense.

 

Not sure what that print out is or should represent, just some of the numbers are unrealistic expectations.

 

To answer both of your posts

All job offers are unrealistic expectations. That printout is to show the flat rate charges they charge you. Based off of those charges and the charges cr england lease charges you, its a good deal for newbies if your gonna team drive or train.

And the person getting paid that flat rate is making money whether the truck rolls or not, just as long as he has someone seated. And as long as his average driver stays for longer than 5 weeks with the company, he will make a profit.

With cr england was the same deal. If you didnt work you still had to pay them money regardless. Its a better deal with the company whose outlandish projections they use to show maximum profits, because they dont require you to sign 1yr long leases.

@Ridgeline if i havent answered your question yet, my vocabulary may be terrible. But let me restart by saying that im interested in running a business that way. Bemefiting both parties, but where i make profit regardless of miles. Its less profit, but safer. And i know a broker personally and companies that have o/o fleets, so i can work with a carrier, a broker, and im the guy with the truck. Amd if i try to run as a broker, id hire an IC newbie (bc generally, only a newbie benefits from this arrangement) pay him 1099 and i wish to know the ins and outs and legalities and insurances alall associated in order for me to get into that. I need to reorganize my questions as i still have several remaining.

This post does not include any specific questions and i dont state my entire business plans or every thought in my head. Im just researching specific questions. Eventually ill utilize other resources, talk to drivers, call back ooida and ask why their answers differed, get help from business starter assistance and possibly a lawyer