See, see this is my point, If you don't understand how to manage a business, you have no business in business ... Know the difference between cash flow and payroll. The truck pays the business, the business pays payroll ... Fajo explained it.
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Why do lease operators fail on a lease I want to learn why
Discussion in 'Lease Purchase Trucking Forum' started by Jamicanexpress, Apr 19, 2015.
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Rule number one. have a cost analysis done! know what your fixed costs are what your rolling cost are. and know what your break even amount is, and don't haul for less then that. Also have zero debt going in the less bills and stuff at home the more you can net. Now I am not even a guy that is doing this but running a business is still running a business. Some advice given to me has been 1 if you want to make a million dollars as a O/O start with two million. Just joking there. The real advice is learn to run as company drive as if you were a O/O by maximizing your profits. learn how to save on fuel how to save on everything. put a way 600 a week to your truck payment, and do that for two years. because there is going to one heck of a balloon payment at the end of the lease. either you front load the lease or pay the balloon payment at the end of the lease. second never ever never haul fright from the same company you lease from. 100% conflict of interest there. Again wisdom passed to me from people who have done it.
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ramblingman Thanks this.
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Oh and I was watching a you tube vid and a guy was breaking down his gross and his costs and he was just making a average of 3k per month yet he was grossing 120,000 a year his net was 36,000. now there are tons of reasons why his net could be only 37K per year. not running enough, hauling cheap frieght, to much time off etc... a lot of things that can effect your bottom line and one has to know how to control that.
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Last edited: Apr 20, 2015
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I am doing a lease now. Its a straight up lease. Not a lease purchase. 2 year contract, have 7 months left. should have enough money saved by the time its done to put a decent down payment on a used truck. I don't argue with dispatch, I don't argue with my DM. I get decent miles every week. Enough to save some money. Have seen many fail at this company. Some are just not meant to be otr. Some can't handle being away from home for weeks on end. I stay out 6-8 weeks. Its long and it sucks, but, I am willing to suck it up to get what I want in the end. Did my research for 3 years before deciding to go over the road. Everything is going as planned. Matter of fact I should have about $3k more saved than I originally planned on.LDR Thanks this. -
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I agree with Quality Mike .In my opinion trucking is a job.I make my decisions based on money and quality of life.If truck ownership would provide me more of both then I would leave the company driver ranks.Im just saying if in the end you are making the same or less and you are gone 4 to 6 weeks,when Im home every weekend where is the value in that.To me if you can not net 95,000 a year and be home at least every 2 weeks it's not worth it.I still think for all the extra risk,stress and maintenance you got to net $100,000.In the end we are not going to be able to do this job forever.You do want to retire with some money in your pocket.Not just a worn out truck in the yard with weeds growing around it.
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I have been working on my buisness plan and model. And running the numbers. The break even number i come up with is a 1.19 per mile. Can not haul frieght for anything less then that. And that is the break even. That is truck and insurance maintenance. Your house payment your utilities oh? Truckers for get about that right along with debt they all ready have are all costs that must be accounted for. Plus fuel etc..... One has to know the break even mark and break even means all the bills have been paid! And the money is gone, you just kept yourself from going to collections.
So either run at 2 dollars per mile or do a percentage of the haul. And these 90 cpm lease plans. Well plan on staying on the road for ever! Your below the break even mark.
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