So here's the deal

[mndriver]

Pretty sure, there's plenty of independent owner operator that have a background in business management of some sort. Even an engineer is required to take a certain level of accounting to ensure they are capable of planning the financial parts of what they are designing.

I know the slide rule types for worked with had it. Often able to determine costs to a level that made most finance guys go WTF.

Every o/o I talk with the first thing I ask them is what's their business background.

If there's none and they start babbling about per mile rates and refusing to haul for cheap freight ad nauseum, I just get out and leave.

Especially when they can't define what's cheap freight.

 

[mndriver]

to put anybody down, but this is elementary school arithmetic... addition, subtraction, maybe a simple ratio or two. If you can use a simple calculator, you're there. If you're unsure about how elementary business accounting works, there's a couple of different routes you can go.

As easy as adding 1+1 or 500-200. Yeeop. You are correct.

The part you are minimizing and just sluffing off of others.....


Where do all those numbers come from?.

Why is a 20% profit Margin at the end of the month barely sustainable when it comes to 4/15?

Why is getting you s-corp unrealistic for a 1-truck gig?....

Those questions will start their own wars amongst entrepreneurs as it is.

But they are relealistic facts that need to be addressed.

I can't say I agree with @Copperhead decision to incorporate. I can understand why he did it. But I'll stick to a DBA myself.

But I've also spoken with both a corporate lawyer and a business CPA to make that decision too.

Getting a business diploma is a 9-month affair at a tech college.

Find a mentor.

Consult with S.C.O.R.E.

Go talk to the SBA.

All reasonable places to determine what all this means.


And a hell of a lot more than most company steering wheel holders even begin to consider.

Being the boss as an O/O is, is a totally different mind set.

Driving is 10-25% of our job depending on how established you are.

 

[Injun]

Pretty sure the guys asking questions didn't come here to be humiliated by comments about education levels or everybody should know this. Obviously, everybody does not know or they wouldn't be asking.

We can either give them information and help or we can humiliate them and run them off. My vote is to give them tools they might not already have, without arrogant commentary filled with derisive insinuations.

 

[mndriver]

I'm trying to give them the tools.

Not sure where it's coming that I'm trying to say you must have this education.

If you are going to be an o/o, then get the tools to do your job correctly. There are examples of where to get that I gave. Some of them education. Some of them industry.

But get the tools to do the job.

It's as simple as getting a spread sheet like the one I gave an example of. It does my math for me. I can change one or two numbers and it gives me the ability to have an instant result and impact.

There's 1000 different things that people need to look at being an o/o. Some of them more important than others.

You (@Injun) and I have discussed the difference in impact of a new truck like you drive vs an old truck like I drive. I still question which way I want to go some days.

But it's a reality. Do I want a payment that FORCES me to work. Or one that allows me flexibility to work less or more.

 

[ironpony]

I had a system at Prime where I knew also. If there were any discrepancies, I would find it and either correct my accounting or get ahold of Prime and tell them where they got it wrong. I do the same here at Swift.

I believe that's the point of MND's spreadsheets. Even so, you and I both took the ACE II class offered by Prime, where we got all sorts of good information. Not everybody has that opportunity. Therefore, it's a really good idea to go to a pro to make sure nothing is being missed, esecially for an independent.

FOR TAXES... YES.

For day-to-day operations, are you kidding me? Can you add and subtract?

Take the basic numbers from your settlement, subtract any cash receipts, figure your operational ratio, your net per mile. This is easy.

You really need an expert who may charge you $100/hr for that?

Please! Spare me.

 

[ironpony]

You guys are missing the question...

LET'S REVIEW...

Pulled refers for a year,hauled water to a oil rig for awhile. I have a background experience in mining,my question is I still have no idea how to make money driving trucks? BTW nothing but respect to all that makes this country great.

This has nothing to do with taxes, S-Corp election, or any of that.

Its basic. Does he have anything left over after the bills are paid.

Get a copy of Accounting for Dummies (which is not a pejorative or put-down) - its a concise, well explained manual, and follow the instructions for constructing a monthly profit/loss sheet.

All you need are your settlements, receipts, a calculator, a pad of paper and a pencil.