Small company owner
- Thread starter Bizertown
- Start date
Ontario Outlaw
Hozer Witta Hood
Welcome
Ontario Outlaw
Hozer Witta Hood
I change a lot of hats, sometimes daily.
I’ll never make fun of a company driver because I understand it’s great to walk away at 5:00 pm and go home on a Friday.
But, being an O/O gives you latitudes of freedom to set the truck up how you want it
It’s a trade off. For sure
Mike
Well-Known Member
It was definitely all rainbow trout farts last year when my truck had me stuck at the house for almost three months.
gearjammer
jammer
welcome
mndriver
curmudgeon extraordinare
Walleye and bass....
My method of making money is so radically different, I stopped trying to share or explain it.
Mike
Well-Known Member
I think your way has merit.
I think the important thing to understand is there is not "one way" to do anything.
We need to understand there is a cost per mile to operating a truck and trailer. We need to understand that cost varies based on age and type of operation. We also need to understand that the variable of a loan for this equipment creates an additional variable.
If you focus on cost per mile, it is important to maintain the miles needed in your calculations to make the math work.
If you focus on cost per day, make sure that the miles per day doesn't create a problem in the maintenance and fuel areas over time.
For me, I focus on 90k miles per year. It's something I can monitor as the year goes on, and a number that is easily adjustable. If rates are low, and it looks to be an extended low, I can up the miles. At the same time, I have to keep in mind the increased "per mile" costs that the operation takes on.
To totally remove the complication of things, for me, I fight for the best rates possible, as all should as far as I am concerned.
biggest mistake people who have no equipment payments make is not factoring in cost of the equipment. Your equipment may be payed off, but at some point you will have to replace it, or plan on greatly increased maintenance costs. When you are estimating your maintenance costs on old equipment, do your best to factor in odd repairs, and expensive repairs to the driveline, transmission, and gear boxes.
The one thing that often turns on owner operator back into a company driver is equipment that is paid for. That equipment breaks, costs are high, owner operator didn't plan for it, and either parks or sells the trucks and takes a company job.
Breakdowns should not be stressful. There should be funds set aside for this (not saving account). This fund should cover equipment repairs and salary during downtime. Salary should always cover you just as a paycheck would.
mndriver
curmudgeon extraordinare
There should be equity set aside from r repairs yes.
Just variation of saying the same.
Friday I signed a $36,000 not to pay my insurance for the year. Not sure many have $46,000 free cash for that type of payment. I had $11,000 saved for the normal 20-25% down payment for regular insurance.
This is the first time I'd been given an option for a lump sum though in 7 years.
Yeah, it's costing me $1100 in interest, but saving me $8100 in insurance for a net saving of $7000 for the 10 months I'll be making payments.
My insurance payment is still there. Just I make it to a different person now than insurance.
Having the equity in the equipment allowed me the opportunity to do this. Am I scared of a catastrophic breakdown? Nope. Both my trucks have new power trains from the cac to the tires. So their likely to bite me is extremely low.
Had I 1.2 on either motor, if have held the equity in reserve.
Just variation of saying the same.
Friday I signed a $36,000 not to pay my insurance for the year. Not sure many have $46,000 free cash for that type of payment. I had $11,000 saved for the normal 20-25% down payment for regular insurance.
This is the first time I'd been given an option for a lump sum though in 7 years.
Yeah, it's costing me $1100 in interest, but saving me $8100 in insurance for a net saving of $7000 for the 10 months I'll be making payments.
My insurance payment is still there. Just I make it to a different person now than insurance.
Having the equity in the equipment allowed me the opportunity to do this. Am I scared of a catastrophic breakdown? Nope. Both my trucks have new power trains from the cac to the tires. So their likely to bite me is extremely low.
Had I 1.2 on either motor, if have held the equity in reserve.
Mike
Well-Known Member
Being able to pay things up front is always a bonus.
Kind of like equipment. Always good if you can pay up front for a tractor or trailer, but few do it. To expand on that, this should be part of anybody's business plan. Buying with debt to get started is understandable, but should never be a long term plan for a small business owner.
Electric Chicken
Well-Known Member
Since when are you an O/O?
Electric Chicken
Well-Known Member
You were making big bucks Ubering wtf you complaining about.
Electric Chicken
Well-Known Member
This is why I don't understand why I get so much hate for refusing to do it until I can pay cash for my cheap truck AND have 30k in the bank.
I talked to two different owner ops the other week. Both went the cheap truck route. One paid $15,000 for his and had a rebuild paper on it and everything. He needed to have an inframe within a month of putting it on the road.
Second guy paid $10,000 for his and hasn't had a lick of trouble.
Both are Freightliners with similar mileage. Both running the rail for the same broker.
Maybe I'll get lucky and be the second guy but maybe I won't and I'll be the first guy. Cash sure hell is gonna come in handy if I'm the first one.
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