ExpressTruckTax
704.234.6005

ExpressTruckTax Blog

Showing posts with label ”small trucking company”. Show all posts
Showing posts with label ”small trucking company”. Show all posts

Wednesday, December 28, 2016

Costs to seriously Consider When Buying A Rig

0


Whether you’re becoming an owner operator, a fleet manager looking to expand your operation, or tired of leasing, it might be time to buy your own rig. However, there are a few hidden or not so obvious costs to consider. Be sure to consider the following costs that go into buying new or used tractor-trailers before busting out your checkbook.

Costs to Consider With New and Used Rigs

First things first, you’ll need a down payment. Spending between $10k to 40K on a new or used rig will help you get a lower monthly rate. That’s another thing, every month you’ll have a big new bill in the mail!

When buying a new truck the monthly bill will be there for years hanging over your head. Buying used will give you more of a short-term investment that you can pay off in a quicker amount of time, with a possible lower monthly rate.

Did you know that new trucks come with fancy warranties? There are even extended warranties! They can really save your butt if you need a repair early on, but they also can add a lot onto your monthly tab.

Warranties on older rigs cost a bit more, because obviously and older rig will need more maintenance than a newer one. Say you’re interested in a rig with over 500k miles on it, it will hard to get a detailed report about it’s driving history. At least with a new rig, you know every detail about it. However, with an older rig the warranty payment may balance out with the cheaper monthly payment.

Although, keep in mind that even though older rigs are sturdier they usually have more issues and bigger problems. For example, most older truckers need a total engine rebuild around 700,000 miles! Plus, are the axles, tires, transmission, suspension, and more in good shape?

Have you considered insurance? Legally you need it to keep your truck on the road. Insuring a brand new rig will add more to your monthly bills. Driving without it could leave you with huge penalty fees, especially if you’re involved in an accident. Generally, trucks with cheaper values have cheaper insurance rates, but if you have a bad driving record your rate could skyrocket. Watch out for those speeding tickets!

This may seem obvious, but trucks with all the bells and whistles cost more. Do you want an automatic truck? Do you make overnight trips? If so, do you want a medium-sized sleeper or one with an extended roof?

As mentioned above, older truckers are often built a bit sturdier. This comes in handy with the resell value. If you’re looking for a truck to start out in then make sure you get something you can resell later when you’re ready to upgrade. Avoid a cheaply made new truck that you will have trouble flipping later.

At the end of the day, you’ll still have to consider all of the maintenance costs. Gas, which is cheaper in newer, more fuel-efficient rigs can really add up. Maintenance like oil changes and tune-ups, taxes, filing fees, repairs, and more may cost more on an older rig too.

Don’t just head down to the lot and pick a pretty color, research your options and go with a list of what you’re looking for in a new or used rig to make sure that you get the best option for your current financial state.

Get That Rig and Get to Trucking!

If it’s the right time to get your first new truck, a new to you truck that’s used, or upgrade to a better truck then go for it! It’s a great feeling to go down the road in something that’s totally yours. Just make sure that your finances are in order and you take the time and consideration to find your perfect match.

For more trucking tips visit ExpressTruckTax.com, be sure to share your truck buying experiences in the comment section below.
Read More »

Wednesday, December 21, 2016

Common Start-Up Trucking Company Mistakes

0


Trucking is a competitive industry that millions of people try to break into every year. Also, many truckers seek to make the transition from truck driver to owner operator, and unfortunately a lot of them fail. If you want your trucking company to make it avoid these common mistakes.

New Guys Don’t Plan

Sometimes new trucking company owners don’t take the time to consider what will make their business work or fail. Instead, they say goodbye to their managers and take off down the road without being sure of their next move.

They don’t sit down with a CPA or business professional who can help them draw up the plans for getting equipment, hiring a few people, getting loans, and more. They go in blind and get hit with too many unknowns, and often times crawl back to their manager to ask for their job back as a result.

They don’t plan for more than one load at a time. They haul something to a city far away and drive home with an empty trailer wasting days at a time. Try to get a few loads near each other to make getting out there and back home worth it.

Their Finances are a Mess

With a bad credit score and bad financial planning bring on a lot of problems fast. If you spend all your money on one top of the line rig what will your other drivers use? Something that should have been left in the junkyard years ago?

Don’t just jump in and buy something. If your credit is a mess you’ll have trouble getting a proper loan, or your monthly rate and interest charges may go through the roof. Consider leasing as a cheaper option. There are even lease to own options available.

Another rookie mistake is not having any money set aside for maintenance and accidents. Trucks need regular servicing and run into problems just as much as we do, so be prepared in the event of dents, dings, and accidents. Will you be able to stay afloat if one of your trucks can’t be used for a month?

Then they also forget or don’t realize that shippers pay out on 40 to 60-day bases, so for a load they deliver today, they might not get paid for it for up to two months. What in the world? No money for two months? Then how will you pay your bills and employees? By planning ahead by having savings in advance ready to go in order to avoid payday loan services.

They Cut Corners

Instead of taking the time to call people in their area and develop quality relationships with shippers they just hit the load board over and over for quick, one-day loads that are competitive and don’t offer much return.

They get shoddy equipment that quickly malfunctions and hire less than reputable truckers that will deliver a load for cheaper, but don’t exactly build the best relationships with truckers.

They skip out on quality people to work in the back office at home. Without someone to do the paperwork and filing then it will all come back on you. Do you have time to handle everything yourself? Will you remember to keep up with tax filings and DOT regulations?

They Don’t Market Themselves

How can shippers choose you if they don’t know who you are? Put your brand on the side of your trucks. Put your drivers in uniforms with hats and shirts that display the name of your company.

Also, you can have a small team at home that works on making outbound calls to shippers in order to set up meetings to introduce yourself and talk about your business. As a result, long lasting relationships with repeat customers can be built.

You need to invest a little into having a professional website that displays your contact information. Plus, take advantage of social media to display your trucking company to millions of people online. Eventually, as your budget grows you can invest in google and social media ads.

They Start off too big

A lot of new guys cut off more than they can chew in the beginning and may choke as a result. Instead of slowly growing with two rigs they jump into business with five new trucks. If you don’t have loads for them to carry they’ll sit and collect dust as the bills pile up.

They hire truckers from all over. Someone in Charlotte will start paying guys in New York and Chicago instead of getting in with their local guys who usually are more reliable with cheaper rates. Creating a few personal relationships with truckers you can give raises to as your company grows will take you a lot further than have too many truckers all over the place.

There are too many people in the back office. New owner-operators get nervous about all the stuff that needs to happen so they’ll bring on secretaries and a big sales team, without considering the fact that they can’t pay that many people yet. Wait for the business to roll in before promising paychecks to too many people.

Slow Down and Plan it

Your trucking company can be successful. All you need to do is sit down with a financial planner and build a plan for your growing company. It may take off a little slower than expected, and there may be a few more things to consider than you thought, especially financially.

However, by taking it slow and adjusting to your new role as an owner operator and by building quality, long lasting relationships, before you know it you could have 10 trucks in your fleet or more!

For more tips on how to make it as an owner operator visit ExpressTruckTax.com and be sure to share your secrets to success in the comment section below.
Read More »

Thursday, November 18, 2010

Freight Logistics for Beginners

0
Featured Blogger
Benjamin Bellville
When you go to start a trucking company it is important to understand freight logistics for beginners as this is the core of a trucking operation, whether a one truck operation or a multiple truck fleet. Logistics is defined as the management of the flow of goods, information or services from the point of creation to the point of consumption. Freight logistics simply put is the process by which you will get the goods from point A to point B, but entails much more than just driving the truck. Let’s take a look at all of the operations that will make up your freight logistics daily process.

1. Management - managing yourself, other drivers or employees to make sure that all the cogs in the wheel are rolling together properly.
2. Booking Freight - making contracts for direct freight or finding loads from brokers on load boards.
3. Dispatching - properly assigning the load to a truck that can get the freight there in a timely and compliant manner.
4. Safety and Compliance - ensuring that all company operations follow federal and state guidelines for safety and compliance, as well as keeping the company files stored properly up to code.
5. Accounting - keeping proper records of accounts receivable and accounts payable.
6. Transporting Goods - driving in a safe and compliant manner while making sure to be on time with agreed to scheduling for pickups and delivery.
7. Customer Relations - building strong relationships with brokers, shippers and receivers as well as any businesses you work with to maintain other aspects as mentioned above.
8. Mechanical Upkeep - making sure your equipment meets guidelines set forth by federal and state regulations, keeping it looking presentable and professional.

Perhaps the number one reason that many one truck operations fail quickly is that they are started by a former owner operator who is used to someone else performing all of these tasks for them and they neglect one or more of these steps when they operate their own company. You have to be able to wear many hats as an independent trucker and have the time to dedicate towards the cultivation of all areas.

It can seem overwhelming at times to find the time to put towards each task as much of your time is spent doing the transporting of goods and you also have to have proper rest so you can be safe behind the wheel. In order to accomplish this you need to be able to kill many birds at a time rather than doing each separate. Multitasking properly is something you should be good at before you even consider starting your own small trucking company.

In my next blog post here on Express2290 I will be getting into ways in which you can make freight logistics for beginners more manageable to optimize your time and your business image so be sure to come back and check it out.
Read More »

ExpressTruckTax Blog

E-file your HVUT Form 2290 with ExpressTruckTax.