Do you notice that there is nothing
left over? (And we have not even
mentioned the basic road expenses
such as food, snacks, etc)
What do you think happens when fuel
prices rise above and beyond
what has been budgeted?
In this scenario, the average price
for fuel for the year was $1.35. If you've
noticed, that wouldn't have probably
been high enough for the year 2000 and
2001 so far.
If the average price per gallon were
instead:
$1.38
over the course of a year, the
increase would be:
$741.00
$1.42
over the course of a year, the
increase would be:
$1731.00
$1.45
over the course of a year, the
increase would be:
$2473.00
$1.48
over the course of a year, the
increase would be:
$3215.00
$1.52
over the course of a year, the
increase would be:
$4205.00
Does this make it
clearer why...
The "leftover" money is not yours to
spend on vacation
and
why many Owner Operators have gone
broke in the past few years...?
What You Had Better Ask
Yourself... And Be Able To Answer:
Do you have or know of a
lawyer and accountant who can help you decide and set up your business?
(Sole proprietorship, corporation, etc) Furthermore, do you
understand the legal and tax ramifications of the different choices?
Do you know where you can
get the best rate on insurance? Considering that insurance will
cost you around $500.00 per month, (not including health, dental,
vision, life, occupational/workman's comp, etc) it pays to shop and to
find the best rate. What shape is your driving record in?
This will directly impact your insurance costs.
Will you buy new or used?
If buying used, do you have at least several thousand dollars put back
for a maintenance/emergency fund? Is there any warranty left?
If buying new, do you have any down payment money? If you do not
buy your truck, you won't be able to use the tax deductions that are
inherent with owning it.
Do you understand how to
figure your CPM (Cost Per Mile) ?
Do you have any kind of
record keeping method in place?
Do you know an honest,
reputable mechanic?
Do you have any
mechanical knowledge at all? Are you at least able to do simple
diagnosis of equipment problems so you don't get completely ripped off
if you go into a shop? For instance, do you know what a growling
throwout bearing sounds like? What a clutch going south acts like?
The difference between an air leak and a suspension adjusting?
Will you run recaps? Do you know a good recapper?
Have you spoken with any
Owner Operators? Do you know of any that might be a sort of
"mentor"?
In which states is it
best to buy fuel? Cheapest, lowest taxes?
What does the carrier pay
and how does it impact your bottom line?
