LearnToTruck.com
How to be Profitable Owning a Truck
David sent me a message that is all to common for new truck owners. His concern is how to be profitable owning a truck.
“How did you manage to make a profit? It seems as though I find loads but they are so underpaid that it feels I’m only making money to cover the fuel. I would appreciate any input you have!” Read more...
Customers – Vital for Truck Owners
What is trucking? Getting your customers (trucking customers that is) product to market so they can succeed and in turn make you successful. Welcome the responsibility your customer has entrusted you with… their success! That responsibility should never be taken lightly. If you do it could jeopardize your own business. Read more...
Find Customers Who Need Your Truck
Your ability to find customers who need trucks will put you on the right path to success. Establishing your own direct customers is the best way to guarantee a dependable cash flow. When you provide a direct customer with dedicated reliable trucking services they will be more apt to pay you on time and keep you loaded with their product. Both of which help make an excellent business relationship for years to come. Read more...
Meeting Potential New Customers
“I have had my authority now for about 6 months and have been solely using brokers. As you have already stated, the profit margins are very low and I feel the need to acquire my own direct customers in order to be more profitable and build up my company. I am currently re-working my business model and after that I will make out my business plan as per your articles. The way you have described the processes greatly reduce my apprehensions. Couple questions I do have are....
Create a Simple Business Model part I
Decide what you want to do. There are several factors into choosing what industry you want to support and what equipment you wish to use or will be required to have. Before choosing the industry you wish to support you first have to ask several questions. Read more...
Create a Simple Business Model part II
After reading Create a Simple Business Model (part 1) you're probably ready to start creating your own business model. Before you start, there is more to learn about a trucking business model. Read more...
Make a Business Plan
Always make a business plan and write the plan yourself, from the first word to the last. In the early 2000’s I received one of my most valuable business lessons. During a business meeting I had dressed in nice slacks, shirt and tie and was armed with several copies of my formal business plan anticipating to share it with all the individuals attending the meeting. There were a half dozen company representatives attending the meeting. All entered the conference room wearing jeans and casual shirts. They politely took the formal business plan I had prepared. Without even opening the front cover the CEO held up my formal business plan and said to me – “Joel I have learned that these mean nothing. I want to know... Read more...
Financing Your Truck
Financing your truck is not as hard as you think. The hard part is getting an interest rate you are comfortable with. Most used truck dealerships have financing companies that are easy to work with and will get you into a truck. However if it’s easy there will be a price to pay for a long time to come. Read more...
Buying vs Leasing
There are pros and cons to each. Buying vs Leasing has been debated for as long as I can remember. There are many factors when deciding between buying vs leasing including taxes, maintenance, length the equipment is expected to be in the fleet, leasing companies driver requirements and many more. Read more...
Carrier Rate Agreement or Carrier Contract
Once I overcame my setbacks and began enjoying success as an Independent Owner/Operator, I was convinced I was ready to be a successful small carrier with a fleet of 5, 10 or more trucks. I did not remain on that path for long. I quickly discovered that the nominal ROI (return on investment) compared to the added stress and headaches of having that small fleet simply wasn’t something I was going to be financially able or willing to continue. Read more...
When in Crisis Mode
What do I do now to stay in business?
This is not a topic I enjoy or take any pleasure in writing about. However, by doing so I hope to help any aspiring or new truck owner to avoid making decisions that later result in financial hardship and loosing their business.
Recently I’ve received an increase in calls from truck owners who are struggling to keep their businesses afloat. Read more...
Planning for a Negative Economy
Planing for negative economic swings is a must for all truck owners. There are plenty of warning signs that have been detailed recently by several economists and business publications such as lombardiletter.com, Fortune.com, Bloomberg and Fox Business that indicate our economy is beginning to slow. That means less freight transportation opportunities for non-essential items. Read more...
Avoid the FMCSA ELD Mandate
Like most everyone else who owns a truck, I have no desire to use an FMCSA mandated ELD. I was surprised to discover that not everyone will be required to use an ELD. There are a few exceptions to the ELD mandate. For over the road truck owners, there is only 1 possible exemption to avoid the FMCSA ELD mandate. Read more...
Lease Purchase – What You Need to Know
Most carriers that provide “Lease Purchase” programs sweeten the offer even more by making guarantees that seem to mirror those of a true “Independent Owner Operator” (those who own their truck and operate with the own FMCSA issued operating authority). Guarantees like no forced dispatch, all the time off you want, all the miles you need, drive only the lanes that you want and more. Sounds good right? The reality is that entering into a “Lease Purchase” contract is the worst option to purchase a truck. Read more...
From Independent Owner/Operator to Small Carrier
Once I overcame my early business setbacks, detailed in my previous post, I was convinced I was ready to be a successful small carrier with a fleet of 5, 10 or more trucks. But I did not remain on that path for long. I quickly discovered that the nominal ROI (return on investment) compared to the added stress and headaches of having that small fleet simply wasn’t something I was going to be financially able or willing to continue. I’ll share the conclusion of my experience shortly. Before that, let’s look at some of the challenges we face when growing from and Independent Owner/Operator to a small carrier and/or fleet. Read more...
You Don’t Get Any Do-Overs
A word of caution about expanding operations by leasing on owner-operators
Once it goes wrong, just like it did for me, it’s too late. I’ve recently had a few conversions with other truck owners who, like myself, have their own operating authority. Each conversation took me back 25 years to my earliest experiences and challenges with my authority. As I always seem to do when I have these conversations, I’ll gladly say that, “if I can help you avoid stepping into the same pile of dung I stepped into by sharing my story with you, then I’m happy to do it.” Sadly, seldom does sharing my story ever have the positive influence I’d hoped it would. Read more...