Chris is going from behind the desk to behind the wheel and starting his own trucking company.
Episodes
Wednesday Jul 10, 2024
Wednesday Jul 10, 2024
Haulin Assets Academy: https://www.haulinassetsacademy.com/
I start off this episode ranting a bit about a couple of challenges I faced recently. One involved being dropped from a load that I think was completely unwarranted. The second situation was because of a strong oder in a trailer that wouldn't go away, even after a washout.
What To Expect From Episode 158
We are not where we want to be, but if you look at June of last year verse June of this year, we are in a much better spot. All the trucks are running. Here are the numbers:
- Total miles ran– 118,237 (The sitting truck was back working for about half the month)
- Deadhead miles– 8,806 (7.5%, Creeping up. I have expected this and explain why)
- Total revenue- $244, 523.12
- All-in rate-per-mile- $2.07 (Drop from last month)
Haulin Assets realized a profit of $23,521.93, that is the second best of the year. What has me even happier is that it is $46,983.01 better than last year when we had a loss of $23,461.08. We continue to extend our streak of being in the black, that makes me happy. If we continue to see profit through the summer I will continue to get more and more optimistic that the market is finally turning the corner.
The P&L was pretty bland this month. Additionally, I explain why we were able to have a lower all-in rate-per-mile, but had a higher profit than last month.
Wednesday Jun 26, 2024
Wednesday Jun 26, 2024
Haulin Assets Academy: https://www.haulinassetsacademy.com/
Throughout my military, business ownership and corporate careers I have held many different types of leadership positions. I have lead groups with just a few people to groups with hundreds of people. I am a much better leader today than I was 20 years ago. I hope this episode will give you some things to think about so you have a leg up to becoming a better leader. Keep in mind that a great leader positively impacts an organization in ways that are immeasurable. Great leadership is a multiplier for your organization.
What To Expect From Episode 157
Whether you are a single owner operator or the owner of a fleet of trucks, you are the leader of your trucking company. I want to share some of the things I have learned over the years about being a good leader. Some of the greatest leadership lessons I have learned came during difficult circumstances. Here are a few of the leadership experiences I have had that have helped me gain experience: Army Engineer Company Commander in Afghanistan, starting and running multiple businesses, running businesses in difficult times and learning how to lead at the Army's Sapper Leader Course under extreme hunger and fatigue.
During this episode, Craig and I break down and expound on the following keys I feel like are imperative to being a good leader for your trucking company. Here they are:
- Provide good direction and guidance
- Good company policies
- The type of drivers you hire
- How big of a company you will be
- Build a good culture
- Safety
- How hard your drivers run
- How your drivers are treated
- Hiring process
- Be a servant leader
- Find ways you can serve your drivers
- Find ways to give your drivers a win
- Be self-aware
- Be honest with yourself, change the things you do that cause problems
Leadership is a life-long endeavor. You should always work on your leadership skills. Here are some ways I like hone my leadership skills.
- Read great books on leadership, here is a list of some of my favorites:
- Good to Great, Jim Collins
- Speed of Trust, Steven
- Start With Why, Simon Sinek
- Biographies
- Ulysses S Grant
- Alexander Hamilton
- Buffet: Making of an American Capitalist, by Roger Lowenstein
- Steve Jobs, Walter Isaacson
- Elon Musk, Walter Isaacson
- Be reflective
- Get feedback
Wednesday Jun 12, 2024
Wednesday Jun 12, 2024
This month is a really good indicator of what happens when you have a truck sitting for too long. We had a truck sit the entire month and the impact on the bottom line is pretty easy to calculate. Craig and I spend a few minutes of this episode showing the impact that a sitting truck has on your net income. It's a pretty interesting case study. Be sure to listen in.
What To Expect From Episode 156
We took a step back this month. Largely because of the truck without a driver. Here are the numbers:
- Total miles ran– 109,840 (Lowest since September of last year)
- Deadhead miles– 7,578 (6.9%)
- Total revenue- $239,743.84
- All-in rate-per-mile- $2.18 (Moving in the right direction, three months in a row of improvement)
Haulin Assets realized another little profit of $4,688.82. This is a decrease from last month and we ended our streak of doubling every month. But, at least we extend our streak of being in the black. June of last year was the beginning of a really bad streak of losses, I am super interested to see what happens this June. I am crossing my fingers that we can keep the numbers in the black through the summer. That will be a win compared to last year.
There were a few expenses to take note of on the P&L, here are the areas we dive a little deeper into:
- 5 Payrolls
- Tolls keep going up and up
- Fuel is 27% of revenue
Wednesday May 29, 2024
Wednesday May 29, 2024
We just completed our 2024 insurance renewal last month, so I thought this world be a good time to revisit the subject of insurance. It's been several years since we have taken a serious swing at the topic and high time we do it again. Especially since insurance is in the top 5 expenses for most trucking companies and a little savings on your insurance bill can go a long way towards improving your bottom line.
What To Expect From Episode 155
Buying truck insurance is a pretty complicated and sophisticated purchase. The better you understand it, the better product and service you will receive and the better price you will pay. Understanding the players in the truck insurance world is step one in building your insurance knowledge. Craig and I start off the episode talking about the difference between insurance agents/agencies and insurance companies. We also discuss how many agents should you have giving you quotes. I typically recommend that you work with 2-3 agents, because that is usually enough to get you quotes from most, if not all of the major truck insurance companies.
It's good to get an early start whether you are getting a quote for the first time or working on a renewal. I recommend you start gathering all the information needed for the agents giving you quotes around 60 days before your renewal. Here is what you will usually need to provide:
- A completed application, your agent can often take the information over the phone, fill it out and provide you a document to sign.
- Your equipment list with all your trucks and trailers listed along with their current values. The value you list is critical. Listen to the episode and I explain why.
- Driver list
- Loss runs
Timing is critical. I recommend you have all the info your agent needs to get a quote to them at least 30 days before your policy expires so you get the quotes back in a timely manner. I also recommend you bind the new policy, that means making the down payment, at least 1 week before your policy ends. That ensures you don't miss out on any loads. About a week before your policy expires some shippers and brokers won't book loads with you because they see your policy is expiring and they want to see you have a new one in place first.
How much your policy is going to cost depends on a lot of different factors. It really boils down to risk. We talk about some of the main risk factors that affect your pricing, to include:
- How long you have been in business
- How many claims you have had and how much has been paid out in the past
- Experience of your drivers
- Equipment values
- Where your home base is and where your truck(s) travel to
Not all insurance policies are equal. Price is an important factor, but you also want to make sure you are getting adequate coverage for the type of operation you run. For example, if you have reefers, make sure you get reefer breakdown coverage. If you are hauling something super expensive, make sure your cargo insurance is high enough. If you haul HAZMAT make sure you have the right coverage at the right limits. A good agent who primarily does truck insurance will be able to help you through all of this. Don't work with an agent just because they are someone you know. If they don't regularly write truck insurance they can get you in a lot of trouble by not providing you the coverage you need.
Wednesday May 15, 2024
Wednesday May 15, 2024
We keep moving in the right direction, April 2024 Financials were better than March. If you remember I mentioned I would be happy if we can keep doubling our net income for 4-5 months. April is the third month in a row we have been able to do that. We start off the episode talking about the importance of being agile. If you aren't agile in this kind of a market, you are going to be hurting.
What To Expect From Episode 154
Even though we keep moving in the right direction, there is still a decent way to go. Here are the numbers:
- Total miles ran– 113,066 (Lowest in a while, had a truck sitting for a while. Larry had to step a way from over the road for a while. He is a great driver, we’ll miss him)
- Deadhead miles– 7,551 (6.7%, slight increase)
- Total revenue- $241,614.25 (Decrease, for the number of miles, it’s an improvement)
- All-in rate-per-mile- $2.14 (Moving in the right direction)
Haulin Assets realized another baby profit of $10,565.31. That is also 7 months in a row in the black.
Here are some of the P&L items we discuss during this episode:
- Revenue was down
- Rate per mile was up.
- Most expenses were pretty normal, but here are the exceptions:
- Bad debt
- Maintenance and repairs
- I did another CPM analysis and we went from $1.97 in October 2023 to $1.87 now
Wednesday May 01, 2024
Wednesday May 01, 2024
Independent Owner Operator verses Leased Owner Operator is a bit of a controversial topic because you get strong opinions on both sides of the argument. I think that is because being an independent Owner Operator is the right thing for some people, while leasing on to another company can be the right thing for someone else. In this Episode of Haulin Assets the Podcast, I want to talk about the pros and cons of both, along with the things you need to keep in mind and watch out for to help you make the decision for yourself.
What To Expect From Episode 153
Let’s define each.
Independent Owner Operator, just like the name implies, you are truly independent. You have your own DOT number, you own or lease the truck you drive, in most cases, you have your own Operating Authority (MC Number) with the FMCSA (Federal Motor Carrier Safety Administration).
Leased Owner Operators, own or lease a truck and operate under the authority of another motor carrier.
Where things get confusing is the term leased is also used when leasing vehicles, think of that kind of lease as a long-term rental of the vehicle. That type of vehicle lease/rental is different the leasing on as an owner operator, they are two very different types of leases, but often happen at the same time between the same companies and can cause some very serious problems. We talk about that and why you have to be super careful in that type of situation. I'll put it this way, we don't recommend leasing or buying a truck directly from the motor carrier you are going to lease on to. Craig and I talk about why that is.
There are pros and cons of both and we talk about each.
Independent Owner Operator
Pros
- Truly Independent
- Higher financial upside
- You get to decide the type of loads you haul
- Lots of tax benefits
- Investment control
- Strong sense of ownership
Cons
- You have to find your own loads
- All responsibility falls on you
- Bookkeeping
- Sales
- Maintenance
- Admin tasks
- MCHQ and Trackin Assets can help you navigate a lot of these
- Higher stress
- Takes more money to start
- Your insurance will likely be higher for the first year or two
- Isolation
- Unknown, unknowns
Leased Owner Operator
Pros
- Many administrative tasks are handled for you
- You don’t have to find loads
- You will get some cost savings operating as part of a larger fleet
- Less financial risk
- Should have access to steady work
- Training and safety programs
- Great way to gain experience and use it as a stepping stone to becoming an independent OO
Cons
- You sharing the profit with another carrier
- You’re working for someone else and have to follow their rules and do what they say, you lose control
- Some companies will take advantage of you
- You may be the low man on the totem pole
- Some contracts can be very restrictive
- Ownership transfer issues
Other considerations
Independent Owner Operator
- Fraud
- You'll need a bigger reserve of money
Leased Owner Operator
- Talk to several owner operators who do work for the any company you are thinking about leasing on to
- Make sure you read through the entire lease agreement. Consider having an attorney review it. I know it costs money to do so, but it could save you money in the long run and prevent a lot of heartache.
- At Haulin Assets we don’t come down hard on either side of Independent O/O vs Leased O/O. We generally advise against lease to own. It’s not the subject of this episode so we won’t go into depth but things just seem to be more likely to go wrong with lease to own. The agreement is riskier, the lessees are generally not starting on a firm footing, and the lessors can have incentives for you to fail.Buy or lease your own truck, from somewhere other than the company you are leasing on too
- Do your own truck registration/IRP plan (Another way they trap you)
- This will take a bit more money, but is a much safer way to do it, less likely to be taken advantage of
Wednesday Apr 17, 2024
Wednesday Apr 17, 2024
Although we saw a slight improvement, the March 2024 financials turned out to be more like February than I would have liked. Considering the extra payroll, it really could have been worse. Hopefully we continue to see improvement as the year goes on.
What To Expect From Episode 152
Our trucks ran harder in March than they ever have, setting a new record for the most miles ran in a month. The high miles, however, weren't enough to give us a meaningful profit. Here is how things looked:
- Total miles ran– 130,151 (New Record)
- Deadhead miles– 7,615 (5.9%, about the same as last month)
- Total revenue- $261,567.02 (Better than last month, but not as good as January)
- All-in rate-per-mile- $2.01 (I would have liked to have seen a little better number, hopefully we do in April)
Haulin Assets realized another baby profit of $4,199.19. That is double what we did in February, if we can double our net income every month for the rest of the year, I’ll be happy, okay, that's not realistic, even we can do it for the next 4 months would be fantastic.
There wasn't much in the P&L that really sticks out. The only thing outside of normal is an increase in fees for legal and professional services. That was mostly a payment to do the Haulin Assets taxes for 2023.
Wednesday Apr 03, 2024
Wednesday Apr 03, 2024
Who didn't like marshmallows when they were a kid and how do they relate to trucking? We'll try to answer that. Before we do, I want to rant a bit. I can't wait until I'm like Walmart and companies just have to do what I say, whether they like it or not. We talk about a new decision Walmart has made that affects us. To be honest, I can't argue with their logic, but I don't have to be happy about it.
What To Expect From Episode 151
In 1972 psychologist Walter Michel of Stanford conducted a study on delayed gratification with some kids. It was called the Stanford Marshmallow Experiment. We talk about the experiment and how it relates to trucking, especially business ownership. The study largely focuses on self-control and willpower and how those two skills or traits have an impact on a person's ability to be successful. Listen to the episode as Craig and I talk about the study and how important those two skills or traits are. We also attempt to answer the questions whether those traits are something you are born with or can learn or develop as you age.
Here are some interesting additional readings about the Stanford Marshmallow Experiment.
Wednesday Mar 20, 2024
Wednesday Mar 20, 2024
Sign up for information about Haulin Assets Academy here: https://haulinassetsllc.com/2024/01/23/finding-loads-the-process-episode-146/
Check out Fuelstream here: https://www.fuelstreamservices.com/
Traditionally, February is the low point of the year for the trucking industry. If that is the case this year, we have reason to celebrate. Although we didn't rake in huge profits, we did a lot better than we did during the really tough period we had during the middle of last year.
Before we jumped into the heart of this episode, Craig and I talked about two different situations we ran into recently. The first is about a frustrating receiver we regularly deliver to in the Miami area of Florida. The second is about a ruptured reefer fuel tank, that's a new one for me.
What To Expect From Episode 150
The numbers this month are pretty bland, nothing to write home about, but what more do you expect in February? I am actually fairly pleased with how things turned out and I expect things to get better and better as the year goes on. Here are the numbers:
- Total miles ran– 114,044 (Lowest miles we have had in 5 months)
- Deadhead miles– 6,474 (5.7%, about the same as last month)
- Total revenue- $234,532.17 ($56,426 less than last month)
- All-in rate-per-mile- $2.06 (If this is the low point of the year, which I think it should be, I’ll be happy)
Haulin Assets realized a baby profit of $2,046.87.
Here are the P&L items we talk about:
- Revenue
- A new expense category
- Fuel
Wednesday Mar 06, 2024
Wednesday Mar 06, 2024
Sign up for information about Haulin Assets Academy here: https://haulinassetsllc.com/2024/01/23/finding-loads-the-process-episode-146/
We start this episode off with a funny story about Cruella de Vil the truck, it makes for a good listen. Finding the right loads is one of the most important things to do well with your trucking company. It is also one of the most challenging. That is why I decided to do a series on the subject. This episode is going to wrap the series up and tie it all together with a neat little bow. If you have not listened to the previous three episodes, go back and listen to them first. As a reminder, they were: Episode 144, Finding Loads, They Systems I Use, Episode 146, Finding Loads, The Process, and Episode 148, Finding Loads, Relationships.
What To Expect From Episode 149
The spot market, that mostly lives on load boards, has its purpose in the trucking industry. However.... if that is all you are using, you probably won't last long as a company and you definitely won't be as profitable as you could be. There is both a science and an art to find the best loads available. The the science is the systems, processes, and number crunching and art is the relationships and negotiation. We break down the science and art and talk about the following keys to success:
The Science
- Having good systems
- Load board
- TMS
- File Storage
- Tracking weather
- Having a good process
- Early to bed, early to rise, makes a dispatcher successful and wise
- Don't wait
- Be efficient
- Know your numbers
- Variable and total cost per mile
- Target rate per mile
- Revenue per day is as important as rate per mile
The Art
- 80-20 Rule
- It's about relationships
- Where to find the best loads
- How to negotiate