Another owner operator question

I will chime in, my answer won’t be perfect or what you really want, but none of them will be. More less insight.

There is never a great time to be a O/O but there can be a bad time. If you have freight and it pays decent you will be fine. Yes when it’s time to make hay, you best have your boots on...when it’s time to get tight or run lean, you best have your dollars in order.

I run a lean business model. It’s not perfect and everyone does there own. I won’t operate with a truck and trailer payment. One or the other or none.

I also don’t use a fuel card. I pay cash or debit. Though my thoughts on this are slowly shifting as some cards might provide a benefit for me.

If you plan on load factoring, your doing something wrong. That’s my opinion. Quick pay is good but to use a factor company is just not a good approach or business practice.

Also as a new operator, you will experience being invoice rich and cash broke. Meaning you have done a month or so of hauling but have not gotten paid. 30days to pay is common and it’s a 3-4 month cycle to just get to a big snowball. it’s a rotation. So if you take a week off it’s almost as a double down depending on how you look at it also.

when you first start you can run way to hard and actually run out of money. So if you just started and you planned 5k for fuel for the first month. Make it last. Stretch it out. You don’t want to sit for a week or two. This keeps cash on hand and when the checks start coming you won’t be soo desperate for the check.

Equipment. Go buy a 2015 or newer cascadia with a dd15 and run the pants off it. Chasing older trucks or glider issues or trying to skirt around ELDs is not the right direction. You can work around ELDs. That’s the game. Plus good fuel mileage is MONEY. 1mpg saving can almost be a truck payment. Depending on fuel costs.

Equipment should be simple. These new trailer are pretty light so chances of being over weight would be slim to none. Don’t get caught up in chicken lights or lift axles for running empty. That’s just more stuff to go wrong. Keep it simple. Same with the truck.

There is much more to this and just how much does truck, trailer, registration, insurance and other things. You will have to setup your business. Your bank accounts will change. You will need a 1099 and determine if your going to be a sole prop, LLC, s-Corp and a few others. Also what about accounting software. You can do pen and paper. You can also use quick books. It’s up to you but these need to be taken care of and commit to a system. Read an accounting how to book. Basic. Nothing too crazy.

Now for some numbers. Again I’m just tossing numbers. Some may have different numbers for good or worse. These are mine ish.

I budget 12,000 for registration. That’s everything. It’s usually under that but I don’t like surprises at the dmv.

insurance. 10,000. 1million cargo.

my trailer payment is 1000 a month.

monthly fuel expenses vary but 5000k is common when it’s hot. When you first start you will want about 3 months or so if fuel money. Do not get a fuel card when you first start. If anything get a credit card for when you run out and go home.

Now you will have quarterly road taxes. Are you buying fuel in the right states to maximize your dollars and fuel? You will need to make sure your doing this right. I’m not giving a number on this so just have a saving for it if about 10-15 of your gross. Cause some people don’t even play the game. And some states cost more in general. Oregon for example is 22-24 cents a mile. But you do your road taxes differently there.

I can toss more numbers such as what to keep what to put where for savings, maintenance or how to pay the truck etc but everyone does it differently. There is no wrong way either as long as your compliant and it works. But consider this.

January 1st of every year cost me 28,000(roughly give or take) bucks before I make a dollar. Some years it takes 6 months to get that dwindled down some less. That’s how I spread it.

My biggest recommendation is read a book on basic book keeping and talk to those willing to mentor. Also read the FMCSA green book. That’s the god book for compliance paperwork wise and even on the road. It will help just boring read. Remember being an O/O isn’t what everyone tells you. Some days I want to be a company guy, but not most. Good luck do your homework and come to the table prepared for business. This is expensive to get started with a half ### approach, because then you probably won’t make it and will lose more than the equipment. Respectfully an O/O.

 

Where is insurance cheap? Does one have to live there or just register the truck there?

 

Dave will buy him truck, set him up to make a $100K year, but that's all I can do.

And my other guy's will tell you, this is a man's game #####.

Significant others are their problems, but are allowed on the truck.

 

To get insurance in a state, you need to have an address there. And it should be the address of the business.

Insurance rates vary wildly from state to state.

Indiana is a good place for insurance.

Theft is a huge determining factor.

 

As stated above. You'll have to prove you live in that state. I just moved to Tennessee and when I was switching everything over I just spoke with my agent. I came from cali. Which surprisingly isn't a hot spot anymore so rates are decent there now. The agent told me there's been a ton of claims in the south as of late. So highest rates right now are GA,LA,MS,TX,FL,AL. Which really surprised me tbh

 

That is the price for being elog exempt

 

for 80k you could sink a lot of money into a mid-late 90s trucks, know what you have, and build it the way you want. especially if the epa decides you need to retro gliders or some stupid #### like that in the future like they are known for doing, you still have an old title truck.

however I do believe the only way you can get a pre emissions/eld glider now is only if you already have a title for one, the rest must meet atleast 2010 standards iirc

 

I You can build one up until 2023.

 

Freightliner and Western Star are the only ones offering gliders now. Paccar is no longer building them.

 

Ok, my friend ordered a new peterbuilt, less engine and transmission, but it has been a few years

 

When they changed all the regulations for gliders they stopped building them. There are still a few out there, that’s why a new 389 glider built and road ready is in the $240k range on Truckpaper. Can still get built Coronados in the $160k range.