Estimated First Year Running Costs - Sanity Check please??

Hello Trucker's Report. This is my first time posting after reading through as much of this board and other research as I can. I'm very interested in changing careers and starting my own authority and business as a Hotshot Owner/Operator. I haven't taken the step yet to reach out and try to talk to someone, but that is on my list. However, based on what I think I've learned, I put together a spreadsheet with estimates and projections of what I think I can make in the Hotshot business. I tried to include all the variable and fixed costs (I call them Overhead in this example) I can think of at amounts that appear to right. Can you all take a look at what I have and let me know if this is reasonable for the industry? I plan on starting out of the Northwest and from what I've read it looks like I should run OTR about 3 weeks out of each month at least and then a good break around the end of each year. These are the Monthly and Annual numbers here and I'm just looking for a sanity check. Hopefully its pretty clear but you may see it differently - I've been pouring over this for weeks now! These estimates also include accrued funds for maintenance, repairs, tires and a replacement truck. I'm also trying to save enough for startup costs to cover a new truck and trailer and six month fund for living expenses while the business gets started.

Please keep in mind that these are all estimates based on what I think a year as a hotshot may look and are completely made up. Thanks for your feedback, I'll look forward to hearing what folks have to say!

Loaded Monthly / Annually
Miles 9,675 / 106,650

Loaded Monthly Annually
RPM $ 1.85 $ / 1.85 (Revenue Per Mile)

Profit Margin Per Mile 27% 22%
Operating CPM $ 0.73 / $ 0.76
Overhead CPM $ 0.63 / $ 0.68
Total CPM $ 1.35 / $ 1.44

Revenue $ 17,898.75 / $ 197,302.50
Operating Expenses $ 7,018.90 / $ 81,212.70
Overhead Expenses $ 6,071.25 / $ 72,855.00
Total Expenses $ 13,090.15 / $ 154,067.70
Profit $ 4,808.60 / $ 43,234.80

Operating Costs (On the Road)
Monthly / Annually
Fuel $ 3,937.50 / $47,250
Est. Deadhead Fuel $ 187.50 / $ 2,063
Brokerage/Dispatch Fees $ 1,431.90 / $ 15,784
Lodging $ 860.00 / $ 9,480
Tolls $ 172.00 / $ 1,896
Misc. Expenses $ 430.00 / $ 4,740

Total Operating Costs $ 7,018.90 / $ 81,212.70
Operating CPM $ 0.73 / $ 0.76

Overhead Costs
Monthly / Annually
Truck Replacement Fund $ 833.33 / $ 10,000
Trailer Payment $ - $ -
Repair Fund $ 416.67 / $ 5,000
Maint. Fund $ 416.67 / $ 5,000
Tire Fund $ 200.00 / $ 2,400
Supplies/Equip. Fund $ 83.33 / $ 1,000
Commerical Insurance $ 1,000.00 / $ 12,000
Permits / Fees $ 166.67 / $ 2,000
ELD $ 37.92 / $ 455
End of Year Fund $ 833.33 / $ 10,000
Estimated Taxes (25%) $ 2,083.33 / $ 25,000
Total Overhead $ 6,071 / $ 72,855
Overhead CPM $ 0.63 / $ 0.68
Total CPM $ 1.35 / $ 1.44
Total Costs $ 13,090 / $ 154,068
Total CPM $ 1.35 / $ 1.44

 

Correct but I know I'll need one

 

I know it's a lot of numbers, I also am looking at it without all of the saving fund accounts. I think you right about "buy a truck and go for the miles"! Too much thinking and I'll never dive in!

The unknown is the revenue number, the expenses should work themselves out.