Setting up my business expenses, what am I missing?

I've got 26 years of commercial driving experience and obtained my Class A's in 2006. I am currently driving for a small farm supply business, getting paid by the hour. The business's truck is only licensed to run in state. In recent discussion with the owner, I mentioned wanting to get my own truck and working for myself. He advised me that if I did have a truck that was licensed for out of state, he could keep me busy. The loads would be local, home every night and pays $1.75-2.00 per mile. My problem is I've only ever been a company driver. I am researching what it takes to become an O/O and get my own authority but I basically know nothing about the O/O side. I am intrigued and excited about the thought of owing my own business but also scared to death. Here are some preliminary, inexperienced numbers:

2k miles per week, ~$14,000 per month

• $4,000 fuel (I'm figuring .50 per mile)
• $2,000 truck (payment, maintenance, repairs) I hope to find a used day cab I can pay $1200-1500 per month
• $1,000 Insurance
• $1,000 Misc (fees, stickers, etc)

That leaves me 6k a month which seems to be a pretty good but I know I'm missing things and possibly low balled some expenses. I have little concern that the work would dry up because it's agriculture and he's been in business for years. He just doesn't want the headache of employing a driver running out of state. I should mention that this is in the south.

Thoughts? Thank you in advance for you time and information.

 

There are multitudes more costs associated with being an owner op. Use the search bar and you'll see tons of references. Also, find a cost-per-mile calculator. I hate the bat rastards, but OOIDA has a free one on their website.

2021-2006=15 years. How does that equal 26 years? Are you counting straight truck time?

 

Yes, started class B driving various straight trucks.

 

I am assuming, you would run under his authority I am I correct? In any event, you are leaving out the MOST important part, maintenance. You want to put as much away weekly as you can afford. You need to build up your maintenance account as quickly as you can, as you need to be able to cover anything that may fail, including your engine. The single biggest thing that puts new owner operators out of business, is not being able to afford repairs. You also need to be able to cover your personal expenses when your truck is down.

 

Will he allow for downtime for service? Does he need you every single day? Will you be running other loads as well?

My only warning would be about being the one and only person responsible for all of it...I mean everything! Diagnostics, scheduling of service, TIRES!, all of the back office work, it is a LOT and once you go down this path if you are awake you are working! Either answering phones, running loads, thinking about what the truck needs now and will need.....it is a lifestyle. Will you park it with him? Do you know a great local mechanic?

Tough call man! The cash flow/revenue generation is good but it better be!!

What kind of truck would you get? Where? Specs?

Mostly just asking that ^^ because I am curious!

 

Since he has his own truck, I will be able to drive his if/when mine is down. It would be M-F with some Sat. It would be just for his business, wouldn't have time for anything else.

With some limited searches, seems like I can get a decent Mack day cab without a ton of miles for ~$30k

My plan is to get my own authority.

Oh and I should probably mention, he supplies all the trailers. 90% of it is drop and hook.

 

Ok, that takes some guess work out of the situation. Have you spoken to him about what percentage he would take? You need to have all your ducks in a row to prevent failure...

 

Jeesh dude go for it and you will set up to run anything you want under a known good authority someday.....just....preventative maintenance preventative maintenance preventative maintenance maintenance maintenance! LOL.

So if and when his thing ends you can get a trailer and quote and run loads.

 

He would pay me by the mile, $1.75-2.00. Right now I'm doing 300+ miles a day just running this state and also helping around the yard. It should be no issue getting 400+ a week running 2-3 states in my own equipment. I hope that answered your question. If not, then I'm not understanding what you mean by "his percentage".

 

If it is such a good deal he would be doing it.