Haulin Assets

#47. How To Renew Your Truck Insurance

Renewing the insurance on a commercial motor vehicle, especially a semi-truck, is more involved than it is on a personal vehicle. For most small trucking companies, insurance is usually your highest fixed cost and in the top five of all your expenses. It's important to make sure you are getting the best bang for your buck when it comes from insurance. I just went through the renewal process for Haulin Assets and want to share some of what I learned.

What To Expect From Episode 47

During this episode we are going to explain how truck insurance works and answer some important questions. How truck insurance works is complicated, and understanding who is involved and their roles will make you a much smarter shopper.

• Insurance Agents/Brokers - These are the people you talk to when you are looking for insurance. In most situations, they represent several different insurance companies.
• Insurance Companies - These are the people who actually provide the insurance and pay the bill if there is a claim.
• Underwriter - These are the people who take a deep look at your company, determine the risk, and price your policy. They sometimes work directly for the insurance company, but sometimes they are independent and represent several different insurance companies. In this case, they are typically what is called a General Agency.

Here is a list of most of the questions we answer during this episode.

1. Can I expect my insurance cost to change?
   1. What are the main factors that affect cost?
      1. Years in business
      2. FMCSA SAFER Scores (Hours-of-service violations, vehicle maintenance) Here is the link to the public system. Here is the link to the FMCSA portal where you can log in to your company-specific information.
      3. Safe driving habits (Driver Motor Vehicle Records)
      4. Accident and cargo claims
2. Should I shop around? The answer is a little more complicated than you think. Yes, you should, but you need to be smart about it. Make sure you get a copy of your loss runs. This is a critical item; you can't skip it, and it usually takes about a week. We give you some tips on how to get them.
3. When should I start shopping?
4. What information should I give to each agent?

#46. Is Now a Good Time to Start a Trucking Company?

The answer to the question the title of this episode bears is not as simple as you might think. Would I want to be finding loads for a brand new trucking company today? No, but timing is important and things change quickly and everyone’s situation is different.

This episode is being released as the United States is in the thick of the coronavirus pandemic. The topics we touch on during this episode will apply to this situation and many others. In this episode I want to give listeners some things to think about and consider if they are thinking about starting a trucking company anytime soon.

What To Expect From Episode 46

The freight situation right now is tough and not ideal for starting a trucking company. Even though you don’t want to actually be hitting the road under these circumstances, it might be a good time to set the process in motion so the ground work is done and you’re ready to hit the ground running when the market turns and the timing is right.

How Long Does It Take To Start a Trucking Company?

It takes time to start a business and trucking is no exception. On top of the time it takes to actually set up an LLC (Limited Liability Company) or a corporation, trucking companies also have to get federal licensing to haul property for hire. That process takes at least 21 days.

In my experience, most people take around 2 months from the time they decide to pull the trigger until they are ready to haul their first load. Those two things can be completed without too much risk or a huge expense. As long as you are able to hit the road within a year, you won’t waste your money on those items.

One important thing Craig and I dive deep into is what steps you want to take immediately versus what ones you want to put off until you’re actually ready to hit the road. In this kind of a situation, it is more important than ever to limit your costs to only what is necessary and hold off on making expenses that can wait until you are closer to being ready to run.

The majority of your big expenses don’t need to be made until you are very close to hitting the road. Here is a list of additional things you will need to do, but don’t need to actually spend money on until you are closer to being ready to run. You can do your research and homework on them now so when you are ready you can complete the tasks quickly and start running when the timing is right.

• Shop for a truck and/or trailer
• Shop for insurance
• Find the right ELD
• Decide if you want to use Prepass
• Decide between Worker’s Compensation Insurance and Occupational Accident Insurance
• Plates for truck and trailer
• Graphics and lettering for your truck

One of the major keys to being successful in this is to have a good plan with a timeline you understand. If developing the plan and timeline seems overwhelming, feel free to give one of the coaches at Motor Carrier HQ a call. They can help you customize a game plan for free over the phone. Learn how to get started with your motor carrier authority.

#45. March Financials

This is a bitter sweet episode. Bitter, because the US Economy and Trucking Industry are going through an incredibly difficult time. Sweet because March was the best month Haulin Assets has ever had. Before we get into the episode, Craig and I talk about the state of the economy and the challenges we are facing because of the Coronavirus pandemic we are all going through.

First, I don't want to downplay how difficult a time this is. But.... I am an eternal optimist, which I think is very helpful if you are an entrepreneur/business owner. I think there are several reasons to be optimistic about the future. I list some of them below and we talk about them during this episode, specifically some of the resources I have found to help me.

1. We are all in this together.
2. This economic situation occurred and the difficult business circumstance is no fault of your own and most of the businesses that provide you services understand that and are very willing to work with you.
3. There are lots of ways you can get help from the government to the companies that provide you services.
   1. Government loans and grants
   2. Payment deferments from lenders
   3. Help with insurance

What To Expect From Episode 45

March was really good, in fact, it was the most profitable month we have had. Freight was moving well and I stayed busy the entire month. Here is a quick overview. Craig and I talk about all the details during the episode.

To see copies of the Profit and Loss statement and Balance Sheet referenced in the episode, and to see the highlights in the full show notes, CLICK HERE.

#44. Be A Water Bear, Adapt

I know, it's a weird title, but Tardigrades aka water bears are considered by most, to be the most adaptable living organism on the earth. When the economy hits a speed bump, like it is now because of the coronavirus, those who can adapt are the ones who survive and ultimately thrive.

What To Expect From Episode 44

This episode covers some important topics to help Owner Operators and smaller fleets survive a bumpy economy. Here is how the episode is laid out:

1. Background
2. What makes Owner Operators and small fleets adaptable
3. Keys to being successful in a down economy
4. Resources available for small businesses to help with the economic downturn related to the coronavirus

CARES Act (Coronavirus Aid, Relief, and Economic Security)

There are two main programs to help small businesses:

1. Paycheck Protection Program Loans - Loans mainly focused on providing companies with loans to help continue to pay employees and cover some of the basic business expenses
2. Economic Injury Disaster Loans and Emergency Economic Injury Grants - Loans and grants to cover other business expenses, like loan payments and other fixed costs

The SBA (Small Business Administration) is the best resource for information about these programs. You can find your local office by clicking here. Your local bank is also a good resource.

A lot of good information can be found right on the SBA website by clicking here. You can apply for the Economic Injury Disaster Loan right from the SBA's website. I applied for that loan for Haulin Assets, it took me about 20 minutes.

Make sure you know your total revenue and cost of good sold for the 12 months prior to January 31, 2020. Your cost of goods sold, in trucking, is basically your variable expenses.

As always, for this and all past episodes, click through for the full show notes.

#43. How To Pass a DOT New Entrant Safety Audit

This is the final episode of a 3 part series where I go over some of the most important aspects of compliance with the DOT and FMCSA regulations for motor carriers. This specific episode covers the DOT New Entrant Safety Audit.

What to Expect From Episode 43

I just went through my DOT New Entrant Safety Audit and I want to share my experience with all of you so you know what to expect and have the best experience possible. During this episode Craig and I start with some background for context and then we go into what my experience was like.

What is a New Entrant Safety Audit?

When you first apply for a DOT Number or Motor Carrier Operating Authority, you are considered by the FMCSA as a New Entrant for 18 months. During that time, the DOT does two things:

1. The actively monitors you
2. They conduct a New Entrant Safety Audit within the first 12 months.

A New Entrant Safety Audit is typically a simple version of a full blown DOT Safety Audit which is a review of a carrier's records designed to verify that you have basic safety management controls in place to ensure compliance with the regs.

If you want more details, including my own experience with the New Entrant Safety Audit, click here for the full show notes.

#42. How To Prepare For A DOT Safety Audit

This is the second episode of a 3 part series where I go over some of the most important aspects of compliance with the DOT and FMCSA regulations for motor carriers. This specific episode covers preparing for a DOT Safety Audit.

What to Expect From Episode 42

Even if you don't have a DOT Safety Audit on the horizon, you should always be prepared for one. Going through the process of preparing for an audit is a good way to make sure you are following all the regulations and won't get caught with your pants down if you are audited. If you have all your records organized and are maintaining them as required, you are doing 90% of what is required by the DOT, the other 10% is really just following the rules like obeying traffic laws and following the hours of service regulations.

A DOT Safety Audit is a review of a carrier's records designed to verify that you have basic safety management controls in place to ensure compliance with the regs. Motor Carrier HQ has an audit assurance package that we spent years developing that is designed to help you make sure you are maintaining your records in compliance with the FMCSA Regulations. You can learn more about the Audit Assistance Package by clicking this link.

Audit Overview

Because I feel like the package that we developed, with the help of some DOT auditors, does such a great job, Craig and I spend a lot of the episode going over each part of the package and break down what records motor carriers are required to keep. To see the complete overview, including 16 items that will cause an automatic failure of a DOT Safety Audit, click through to the full show notes.

#41. What Is the FMCSA CSA Program?

Over the next three episodes, I am going to take a deep dive into the FMCSA's safety program. For most people, compliance with all the FMCSA's rules and regulations is a daunting task that many are too intimidated to handle.

I think there would be a lot of really good people who would make the jump to being an independent owner operator if this one thing did not seem so overwhelming. I hope these next few episodes can show people that it's not too hard, and they can do it if they are willing to learn and pay a little bit of attention to detail.

What To Expect From Episode 41

CSA (Compliance, Safety, Accountability) is the program the FMCSA uses to monitor the safety of trucking companies. During this episode I am going to explain how it works, the most important details and things to avoid that will get you in trouble.

The CSA Program is designed to do four things:

1. Identify motor carriers that pose a safety hazard.
2. Intervene with identified motor carriers so they can correct safety problems.
3. Assign motor carriers safety ratings.
4. Prohibit motor carriers that receive an “Unsatisfactory” safety rating from operating CMVs.

Craig and I will cover them all in detail during this episode, but if you want more of the nitty-gritty, click through for the full show notes.

#40. February Financials

I'm getting February's financials out a week earlier than I normally would, because I'm going to do a three-part series on safety and compliance, and I want to be able to do them all in a row, without interruption. Here is a sneak peek for what the episodes will be about.

• Episode 41 - What Is the FMCSA CSA Program?
• Episode 42 - How To Prepare for a DOT Audit
• Episode 43 - How To Pass a DOT New Entrant Audit

What To Expect From Episode 40

February could have been worse. I had to take more than half the month off because of my military service, so I didn't start my first load until the 18th. With that being said, I still made a profit. Here is a quick overview. Craig and I talk about all the details during the episode. Scroll to the bottom and you’ll see copies of the Profit and Loss Statement and the Balance Sheet.

• Total miles ran - 4,668
• Deadhead miles - 247 (5%, Much better than last month)
• Total revenue - $10,087.00
• All-in rate-per-mile - $2.16
• Full days on the road - 5
• Partial days on the road - 4

In the end Haulin Assets realized a profit of $2,427.52, which is pretty good for having to have the truck sit for over half the month.

To see full show notes and hear past episodes, check out the Haulin Assets website.

#39. How To Prepare For Your Taxes

No one likes to pay taxes and submitting your tax returns is not the funnest thing in the world. In this episode, I’ll share some tips to make the process as painless as possible.

What to Expect From Episode 39

Don’t wait until the last minute to get started. Unless you file your taxes as a sole proprietor, your return is due March 15th of every year. You should typically have all your info to your accountant by the end of February to give them time to get it all done and filed on time. If you can’t do that, you can file an extension, but that is an extension to file, not an extension to pay. 

Use an accountant who does business taxes, ideally, someone who knows the trucking industry.

 

Here are some of the main things you will need to provide your accountant.

• Your EIN Number, ideally the document from the IRS that has your EIN on it
• A copy of your P&L for the entire year 
• A copy of your Balance Sheet as of the end of the year, include a comparison for the end of the previous year too, if you have been in business for more than one year
• Copies of the bill of sale for any major purchases you made during the year, like your truck and trailer
• Copies of any 1099’s you have received
• Interest amounts paid on your loans
• Number of nights you were on the road away from home
• If you are using a new accountant, a copy of your tax return from the previous year

 

Here are some good questions to ask your accountant.

• What method of depreciation do they recommend using?
• Should part of your driver pay be paid using per diem?
• When will they have the taxes prepared by? Make sure you hold them to it.

 

Listen to the episode and where we go over all of this in more detail.

#38. January Financials, Not What I Expected

Another month has passed by and financials are out.

What to Expect From Episode 38

January was a much better month than I was expecting. In fact, it was the best month I have ever had. Listen to the episode to learn what contributed to the success. Here is a quick overview, and Craig and I talk about all the details during the episode. Scroll to the bottom and you’ll see copies of the Profit and Loss Statement and the Balance Sheet.

• Total miles ran - 9,629
• Deadhead miles - 1,188 (Out of Control)
• Total revenue - $21,470.03
• All-in rate-per-mile - $2.23 (Best Ever)
• Full days on the road - 11
• Partial days on the road - 11

In the end Haulin Assets realized a profit of $4,516.85, which is the best month I've had yet.

To see full show notes and hear past episodes, check out the Haulin Assets website.