325,000 per year owner operator

Your scenario is Solo.. but the whole point of me replying to this post is to point out the fact of hiring a team driver to add to your bottom line as a business owner. The truck runs an additional 2500 miles per week basically without extra effort and get home the same #### time as you would running solo.

Additional fuel cost and possibly repairs for that week, is it worth it to keep the truck moving or no? GIVEN, you can obtain the consistent mileage with consistent cpm to the truck.

 

Considering repairs..

If the truck is going to break down, it’s going to break down, whether it be this week, next week or the week after, 2500 miles solo or 5000 miles as a team, make the most of your current week. Keep enough money in your business account to cover it.

 

Point- When making 300k+ in gross, cut yourself a nice little 1400$ per week paycheck from your own business! Pay your personal taxes on the money you receive individually. Keep the rest of the money invested in retirement accounts and the business, utilize all of your tax write offs.. Guaranteed your bottom line at the end of the year is lucrative.

 

No matter what you haul, whether its chemical products or pull empty trailers all day just remember don't haul cheap freight!!!

 

All businesses have a profit and loss statement. Gross profit is expressed as revenue minus cost of revenue. In retail it is sales minus cost of goods sold (retail sales minus wholesale cost). In trucking it is RTT (revenue to the truck) minus fuel.

On a profit and loss spreadsheet next comes Expenses. This includes wages, payroll taxes, insurance, maintenance, etc.

You deduct expenses from gross profit to get your net profit. Net profit is the last line on a profit and loss statement, hence the term "bottom line".

@Rkull85 here's the question:

Would you rather generate $350,000 gross revenue by team driving and putting 240,000 miles on your truck, or would you rather generate $350,000 gross revenue running solo and put 100,000 miles on your truck?

Your team driving scenario would increase fuel cost 140% over the solo scenario. That reduces your gross profit. Paying the codriver adds to the expenses, along with 19% payroll taxes and health insurance for that driver. Then there's increased costs for maintenance and you will be wearing out major items like clutch, engine, transmission, etc. much faster than running solo.

The reason so many owner operators on this forum talk about getting out of the, "But I gotta run me some miles!" mentality is because lots of them are generating much higher RTT per mile than O/O's that are locked into ridiculously low rates leased on with major carriers. THAT'S what they mean by "work smarter, not harder".

Would you rather be locked into a low rate and run your truck 5000 miles to generate $7291 RTT for a week, or would you rather run your truck 2000 miles and make that same amount?

I know which way I would rather go.

Back away from the companies that offer fixed rates and "lots of miles"! Start researching companies that offer a percentage of revenue (RTT). Or start researching getting your own authority and how to NEGOTIATE your rate with brokers and customers. Two truckers can be picking up from the same shipper, going to the same receiver, and one trucker is getting $1.45/mile while the other trucker is getting $3.50/mile.

Which trucker do you want to be? The smart one with the negotiating skills, or the hard charging one that didn't think it through?

 

If he’s making that he’s paying no less than 50k a year on taxes. Which would put him in debt.
Truck stop talk is hilarious. Some of these guys I listen to while I’m ewtif my breakfast and think to myself... it’s too #### early for this b.s

 

I'm not sure I follow your logic. Are you saying the business owner would pay taxes on $350K?

 

He would be getting taxed on his NET not the GROSS.

I try it break it down by the month. If I am grossing $15-$16k per month well now we are talking. Day by day and week by week are to small of windows.

 

Exactly ...I'm a company driver and make 95k after tax.

 

That might be true for some, but at the end of the day being an O/O I've got no camera in my truck, truck isnt governed, I can go anywhere I wanna go and do anything I wanna do and dont have to call and get permission. So it works for me.