Haulin Assets

#121. Worker’s Compensation and Occupational Accident Insurance

Whether you are an owner operator or a fleet owner, Worker's Compensation or Occupational Accident Insurance is something you will have to deal with. They are two different types of insurance, that are for a similar purpose. The basic concept is the same from state to state, but each state has some differences. Make sure you figure out what your state's differences are so you follow the law. A good place to start is your state's office that oversees this type of coverage, you can find their contact info here. Having one of these types of insurance usually is the law and most states audit it.

What To Expect From Episode 121

According to NIOSH (The National Institute for Occupational Safety and Health), Worker's Compensation Insurance is used to provide partial medical care and income protection to employees who are injured or become ill from their job. The concept is simple, the rules behind it are not. If you or one of your drivers is injured while working for your business, this type of insurance will help cover some or all of their medical expenses and typically give them a small wage while they are not able to work.

We'll cover a lot of details during the podcast, but here is the bottom line. Most states require you have either Worker's Compensation or Occupational Accident Insurance if you are an owner operator. If you have employee drivers, you typically have to purchase Worker's Compensation Insurance. As an example, the way Utah works, if you are an owner operator, you can opt out of worker's compensation by paying a $50 annual fee, submitting a waiver form to the Utah Labor Commission and showing proof that you have Occupational Accident Insurance, which is cheaper, but will still cost you money and provide some coverage.

One of the big topics we cover is how much the insurance costs and that answer varies, A LOT. Worker's Compensation for a truck driver is way more expensive than it is for an office worker. The type of work you do is the biggest determining factor, the other two main factors are how much you pay in wages and the number of claims you have had. If you are a brand new company, they use a generic factor to calculate the claims part. We cover this in more detail, so be sure to listen.

Some other good options for learning more about Workman's Compensation and Occupational Accident Insurance include:

• Your truck insurance agent, they can usually get you the coverage and tell you all about it.
• Search Engines. Google is pretty smart, google worker’s compensation in (put your state here) or Occupational Accident Insurance in ..... and you will learn a lot.
• Your state's Division of Insurance

Don't try to skirt the system. If you don't follow the rules you can get fined or sued. Worker's Compensation coverage is one of the biggest reason companies that try to use 1099 contractors instead of employee drivers get sued by their drivers.

Impact Tip

Get your hook in the water. This impact type is brought to you by Chet, my much smarter than me brother. People have been asking a lot if now is a good time to start a business. The answer to that question depends on you. I would say your success in starting a company is 80% you and your preparation and 20% the economy and other factors out of your control. I have seen people start trucking companies when the economy is down and freight rates are terrible and succeed. I have also seen people start a trucking company when the economy is booming and freight rates are awesome and fail. The owner’s ability and their preparation are the difference maker. If you are prepared and ready, do it. If not, wait. There is one thought I would like to add to that for you to consider.

Do you like fishing? When you are fishing you want your hook in the water when the fish start biting. If you wait unitl the fish start biting to find your rod, get all your gear and bait your hook, by the time you are ready and cast your hook in the water, you will have already missed some or all of the action. To catch a fish, you hook must be in the water.

#120. December 2022 Financials

When I first pulled the profit and loss statement for this month, I was disappointed because the profit was lower than I was hoping. Then I dove into the numbers and felt much better. All-in-all, this is actually one of the best months we have had in a while. Craig and I will go over all the details so make sure you listen to learn what made the difference.

What To Expect From Episode 120

We start off the episode by talking about a driver we let go at the beginning of the month. We learned some lesson that we'll discuss that will hopefully help you avoid some of the same mistakes. Here are the highlights for the month.

• Total miles ran – 80,998 (A new record, celebrate the wins)
• Deadhead miles – 4,937 (6.1%, Decent)
• Total revenue - $194,233.65 (Much better than the last two months, also a record, but we need to keep working on pushing that number higher)
• All-in rate-per-mile - $2.39 (Getting closer to being respectable)

Haulin Assets realized a profit of $7,746.33. Not where we want things to be, but when we break down the P&L you will see why, the number is really better than that.

Overall, I would say this was our best month in quite a while, especially considering Christmas week and that rates really were not that good for a December, really for any month, let alone December. We also had quite of few anomalies this month that we talk about during this episode.

#119. New Semi-Truck vs Used Rig: Which is More Profitable?

This is an episode, comparing the profitability of a new semi-truck verses a used rig has been a long time coming and is one people have been asking for. I have been super excited about doing this since the early days of Haulin Assets. This was an eye-opening deep dive into profitability for me and to say the least, I am pretty shocked with the results, the difference was bigger than I thought it would be. I have some really good data and hopefully you feel like it has been well worth the wait.

What To Expect From Episode 119

Everyone's situation is different so we are not going to answer this question for you. We are going to give you some really good data and analysis to help you make the right decision for yourself. You are going to have to listen to the episode to get all the details. I highly recommend you listen to it while following along with the P&L below, it will help things easier to understand.

Here are some of the most interesting topics we will be covering.

• The difference in fuel expense. This one really surprised me.
• Insurance
• Interest on loans
• Maintenance
• Repairs
• Operating Income vs Net Income
• Depreciation. We take a bit of a deep dive into this one.

We also cover some pros of new trucks and some reasons it might make sense to buy used.

#118. November 2022 Financials

Every month that goes by I tell myself we are closer to getting through this rough patch. I am really optimistic that we are either at the bottom of the valley or very close to it and by March of next year we will be climbing out to better times. I'm not sure how steep that climb will be, it may be gradual, but at least we will be moving in the right direction. 

What To Expect From Episode 118

We start off the episode by talking about some recent meetings we had with shippers and some of the lessons we learned. Make sure to listen because it will have some really good information for any owner operator or fleet owner. November was better than October and I think December will be better than November. Craig and I talk through the numbers for the month, but here is a snapshot.

• Total miles ran – 77,557 (Close to our best month, but still not where it should be)
• Deadhead miles – 3,162 (4.1%, really good)
• Total revenue - $169,215.25 (Much better than last month, but still almost $20k down from our high)
• All-in rate-per-mile - $2.18 (Still tough, but slightly better than it was last month)

Haulin Assets realized a profit of $5,015.91. Not where we want things to be, but better than a loss. With 9 trucks running, I would like to see that number consistently over $30k.

A couple of the things we talk about regarding the P&L are:

• A $2,000 hiring expense
• Fuel, 45% of our revenue, yikes!

Impact Tip

Go talk to 5 new shippers within the next two weeks. When you meet with shippers you are doing sales. I have a lot of experience in sales and sales is a numbers game. For example, for every 10 phone calls you make, you may get 3 face-to-face appointments and out of those you may get 1 sale. A big chunk of sales is having the discipline to make the "cold calls", set the appointments and meet with people. If you do that consistently, the sales will come.

#117. October 2022 Financials

To start off the episode I tell a story about a problem I have never faced with one of our loads and answer a question I get asked all the time by people who are in the process of starting a trucking company. After that, Craig and I talk about the crazy month of October.

What To Expect From Episode 117

October was another tough month. We had two trucks sitting and a third truck that only ran about half as many miles as it should have. That put us nearly 25,000 miles short of where we would like to be and was the biggest impact on our P&L. Here are the numbers:

• Total miles ran – 63,455 (Significant drop)
• Deadhead miles – 4,495 (7.0%, highest we have had in a while)
• Total revenue - $134,281.24 (Lowest in 8 months)
• All-in rate-per-mile - $2.12 (Significant drop, lowest it has been in a really long time. Freight rates were just not good in October. I don’t have November numbers yet, but I am pretty confident November was better, especially the latter half of the month.)

Haulin Assets realized a loss of $20,825.09. Two months in a row with a loss. Is the sky falling? I don’t think so. I think all in all we can get by as long as we don't average more than one truck off the road. Hiring drivers in a timely manner is crucial. Craig and I dive into the two main reasons I feel like we had such a big lost, a low number of miles and a freight market that is struggling.

We also talk about a few expenses on the P&L that were outside of normal.

• Fuel
• Adding Truck 09
• Maintenance and repairs
• IFTA

#116. Book Review: Can’t Hurt Me

My favorite episodes are ones where I feel like listeners get some good nuggets of wisdom out of them. I think this is one of those episodes. You are probably expecting a financial review for this episode, but we're not ready and you'll get something else. Instead, we tell an interesting story from the road and we review a book that can be life changing, if you embrace it's principles.

What To Expect From Episode 116

I have been talking about the incident that I haven't been ready to talk about for two months, well, I am ready to talk about it. Craig and I discuss a significant issue that occurred with one of our trucks and drivers in September. You'll want to listen to this episode just for this story. On top of that, there is an abundance of good content about a book I just finished that I really loved.

I recently finished listening to an audio book that I feel like I really relate to, and it is full of lots of great lessons anyone can learn from to make their life better. The book is "Can't Hurt Me: Master Your Mind and Defy the Odds" by David Goggins. David is a retired Navy Seal and one of the best endurance sports athletes in the world. His life experience and how he views our existence is inspiring and there are lots of lessons we all can learn from the book to make us better at all aspects of our lives. He also issues 10 challenges that we can follow to help us along a path of perpetual improvement. Below I list 6 of my favorite lessons and challenges from the book. I encourage you to read or listen to it. You can learn more about it be clicking here. Comment on your favorite lessons once you have had a chance to pick it up.

1. Life is not fair, don't use that as an excuse and let it hold you back.
2. Create an "Accountability Mirror". It will help you be self-aware and hold you accountable to achieve self-improvement.
3. Get out of your comfort zone.
4. Be willing to work harder than the next person.
5. Remove the governor in your brain.
6. Be uncommon.

Craig and I talk about these 6 lessons and challenges and why they stuck out to me. I hope you read the book and enjoy it as much as I did.

#115. Give Me My Money

Managing your Accounts Receivables well so you are paid promptly by your customers can be the difference between operating smoothly and being tight on cash. We recently had a glitch in our accounting system that prevented a bunch of invoices from being sent out. We didn't notice the problem for several weeks, which delayed payments and almost caused us to have to dip into our savings account so we had money to operate. It was a good reminder that in business invoicing clients and staying on top of your receivables is extremely important. So here you go, I hope you like it.

What To Expect From Episode 115

If you have listened to this podcast for very long, you probably know that I also own a factoring company, iThrive Funding. Factoring companies are usually pretty good at managing receivables and I think iThrive Funding does an exceptional job at it. In this episode, Craig and I bring in a guest, Farrah, from iThrive Funding to help share some of the best practices iThrive uses to keep its average days to pay low. Here is a snapshot of what we cover.

The Process

1. Gather the paperwork and create the invoice
2. Make sure the invoice and accompanying paperwork are sent to the right place (This is the number one mistake people make)
3. 7 Days after the invoice is sent, send an email that confirms they received all the paperwork and that they have all the info the need to send a payment
4. 25 Days after the invoice is sent, send an email asking for a payment status
5. 35 Days after the invoice was sent you should have received the payment, if you haven't make a PHONE CALL to see what is going on
6. Call every other business day until you have a resolution

Tips and Tricks

• Identify issues early, step 3 is the key
• Make sure you are sending the invoice to the right place (We explain this one in detail so make sure you listen)
• Make sure all the paperwork is in order, common issues include:
  • Missing pages of the bill of lading or rate confirmation
  • Scans or pictures of paperwork that are difficult to read
  • Missing signatures
  • Missing BOLs (Bills of Lading) when there are multiple drops
  • Unresolved claims, shortages, etc

Free Credit Checks

iThrive Funding is offering a free version of credit checks. The website to get the credit checks can be accessed by clicking here. Before you can use the system you have to get in contact with Farrah by calling her at (385) 430-2315 or you can send her an email at farrah@ithrivefunding.com. She will get you the login information you will need and give you some tips and tricks for using the system.

Impact Tip

Do something today that will strengthen your personal finances. Why do you put your oxygen mask on before your child’s, even though it is kind of counter intuitive. If you don’t take care of yourself first (If you’re not strong) you can’t help anyone. Same goes for finances. Your personal finances are the adult and your business is your kid. If you can’t manage your personal finances, you aren’t going to be able to manage your much more complicated business finances. If you have bad personal spending habits, your personal finances are going to bleed your business dry. Make sure your house is in order.

#114. September 2022 Financials

Another month has come and gone and it's time for a financial episode. It's a pretty interesting market right now and we start off the episode talking about that. I also mentioned a Soldier I work with who had an accident that is likely to leave him paralyzed from the waist down. If you are able to donate to help him and his family, it would be greatly appreciated. He has a Go Fund Me page you can access here.

What To Expect From Episode 114

BLUF (Bottom line up front), we lost money in September, it wasn't much, however we also had a lot of one off expenses that skewed our numbers a bit. We also had two trucks sitting for some of the month so revenue wasn't quite as high as it should have been. This month's P&L was pretty chaotic, Craig and I dive into the details and explain it all.

• Total miles ran – 78,386 (New record, but still not where it should be for 8 trucks, should be closer to 90k)
• Deadhead miles – 4,094 (5.2%)
• Total revenue - $187,637.46 (Record, but should be over $200k)
• All-in rate-per-mile - $2.39 (Drop from last month, but it is still better than average over the last 6 months)

Haulin Assets realized a loss of $5,326.76. This month was really just one of those months that was a sacrifice to the gods of the up and down trucking industry. A lot of things kind of came together, in not such a great way, this month and we lost money.

Here is a few of the things that impacted the P&L that we talk about.

• Bank charges, $2.5k in loan origination fee
• Damages, $12.5k
• About $10k in repairs and maintenance, a bit on the high side, but not crazy high
• $4.5k in HVUT (2290)
• $500 in travel, refer to the incident that has not yet been named.

Impact Tip

Try to manage time off. October through December typically have the best freight rates of the year. Avoid taking time off during these months. I would much rather as an owner operator work hard through the holidays, and then take time off in January and February when rates are often at their worst. Same thing for drivers, try to work with them to limit time off in the 4th quarter and take it in the 1st. With that being said, don't sacrifice relationships for a few extra bucks.

#113. Are We Staying True To Our Purpose?

Every once in a while it is good to be called on the carpet. A couple of months ago a listener did that and I really appreciate the time and thought he put into his comments. He put a bit of a novel into a Facebook comment about episode 105. You can find his original comment here. He had some nice things to say, suggested some things he thought we should do better and made some general comments about the podcast. Craig and I spent most of this episode addressing most of the points of his comments. I think that makes this episode another listener questions episode. Eric, this one's for you!

#112. August 2022 Financials

I feel like my head won't stop spinning. There has been a lot going on and to be honest, I think that is going to be the new normal for us until we can bring on another admin employee. At our size, we are on the cusp of being big enough to justify someone to help us out in the office, but we just aren't quite there yet.  We'll probably be redlined until we get there.

What To Expect From Episode 112

Profitability has improved, but we are still struggling with cashflow. The loss we had last month and catchup from adding trucks 6, 7 and 8 in such a short period of time have really stressed our bank account.

• Total miles ran – 67,773 (About 10k less than our record last month, kind of low for 8 trucks)
• Deadhead miles – 3,095 (4.6%, really good)
• Total revenue - $170,655.41
• All-in rate-per-mile - $2.52 (Best month since March)

Haulin Assets realized a profit of $29,840.34. Our best bottom line number since March. I am hoping this trend continues. I think we are probably going to have some up and down months over the next couple of months, but I am hoping we have our cashflow smoothed out by the beginning of the year because I think the first quarter of 2023 is going to be tough.

Impact Tip

Always monitor your cashflow. Cashflow is different than profitability. A profitable company can still have cashflow issues. Any time you add a new unit to your fleet, it is going to have an impact on your cashflow, and you need to take that into consideration. Have a backup plan incase things don’t go as you planned.