Category: ”small trucking company”

Costs to seriously Consider When Buying A Rig

Posted on December 28, 2016 by - ”small trucking company”, ”start a trucking company”, #TruckingNation, agricultural vehicle, big rigs, Buying Trucks, new truck, Owner Operators, Semi, truck driver, Trucker

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.

Common Start-Up Trucking Company Mistakes

Posted on December 21, 2016 by - ”small trucking company”, ”start a trucking company”, ”trucking company”, #TruckingNation, E-File Truck Taxes, independent trucker, Owner Operators, trucking

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.

Riding The Freight Rates Roller Coaster

Posted on January 14, 2011 by - ”small trucking company”, expresstrucktax, freight rate volatility, freight rates, supply and demand, Tax 2290, Truck Tax

Featured Blogger
Benjamin Bellville
If you are planning to start a small trucking company you will need to understand the way freight rates work. Without knowing the cycle of things you might just be in for a surprise that will come up behind you and mug you out of the blue. In other businesses the scheme of things work on supply and demand more so then they do in trucking. Here’s what you can look forward to.

Don’t get me wrong I’m not trying to create a sense that going into the trucking business is a mistake, I’m simply not going to sugar coat it like so many people do. By knowing how things really work you will be better prepared for the volatility that goes hand in hand with trucking. While the rewards can at times be fruitful, at other times it’s similar to ramming your head off a brick wall continuously. You have to be stubborn and have a firm backbone to survive these times or you might go mad.

When you read reports that freight tonnage is on the rise in America you might get a little excited thinking that immediately you will start seeing higher freight rates, but that is false hope. Like seasons of the year trucking runs on a cycle. It’s not set in stone when these cycles will kick in, but once you get the feel for it you can adjust your operations accordingly to make it through the rough patches easier.

Usually it takes 2-3 months for freight rates to rise when consumption is on an incline. Your main cost involved with moving freight is of course fuel. Fuel prices have no rhyme or reason and more often than not when freight rates are down the oil companies are looking to maintain profit by raising their prices. I know it makes no sense, but this is normally how it happens. As freight rates start to rise and trucking companies begin buying more fuel then the price of fuel will drop again, but much slower than the time it took to rise.

Because of this effect what happens is there are several sweet spots throughout the year that are short lived pockets of higher profits. The freight rates rise slowly and the fuel prices fall slowly and eventually meet at a point where they float for a moment in perfect harmony.

When you learn to get the feel for this happening then you can be ready to jump on the market like an old school fake wrestler off the top rope. Don’t get discouraged, trucking is a big boy/girl ride full of extreme twists and turns, but when you learn to take advantage of the good times you will be better prepared to crawl through the bad.

Speaking of being prepared to take advantage of a market in your favor you should check out how ExpressTruckTax makes it a trucking company owners market all year when it comes to your trucking taxes.

Involving Drivers In The Freight Logistics Process

Posted on November 23, 2010 by - ”small trucking company”, 2290, business minded, Express2290, freight, freight logistics process, involving drivers, logistics, small trucking companies, truck driver, truck taxes

Featured Blogger
Benjamin Bellville

Involving drivers in the freight logistics process can be a great way to boost your overall effectiveness when it comes to moving freight and customer relations. Many small trucking company owners don’t understand that this is a process that begins with the hiring of their drivers. First I’m going to show you some things to look for in employees that you will want for your company, then I will outline the ways you can involve them in the freight logistics process and the benefits it will afford your company by doing so.

Driver Hiring Criteria
When you are going to involve your drivers more in the day to day operations decisions you will need to look for a certain type of driver. Just because a driver has a clean driving record and good recommendations does not necessarily mean they are the driver for you and your approach. Here is what you should look for in the interview process.

  • Are they business minded?
  • Do they have strong organizational skills?
  • Do they have great communications skills?
  • Do they look professionally presentable?
  • Are they experienced in trucking company operations?
  • Do they know how to use a load board and book freight?
  • Basic computer skills?
  • Are they safety and compliance minded?
  • Do they believe in driving fuel efficiently?
  • Can they perform basic mechanical tasks?


This is just the tip of the iceberg here, and will be dependant on just how much responsibility you want to give your drivers over time. Important to remember is that many truck drivers choose to drive for small companies because they are made to feel like they are more a part of the process and that what they think matters. This type of approach fosters confidence in your company and has a higher retention rating than just treating them like another number in a truck.

If you feel they may just be inexperienced in the industry but are business minded enough to train then by all means give them a shot. Sell your company as a building ground for drivers to build their own business within your business while providing them all of the tools and help they will need to some day branch out on their own. Include them daily in the freight logistics process as by involving drivers you will be shocked at what they are truly capable of. After all they are the ones with the real road experience who have a better idea of what it takes to get freight from point A to B that someone in an office has to guess at.

Teach them how to be your eyes and ears and as a group your company will virtually run itself. Why more companies don’t understand this I will never know. They treat drivers exactly the way they are stereotyped in the news and by society, how does this make a driver feel good about working for you or make them truly care about your business success?

I hope this week’s freight logistics posts have given you much food for thought and an idea of how to approach this topic when you start your company or how to make things better in your current company. Of course this has just been some highlights meant for a basic understanding, it’s up to you to unlock the approach that makes you most comfortable and that you feel provides you the best chance of success.

Did you know that when you start a trucking company you need to file for your HVUT taxes before you can obtain your IRP? Why not let Express2290 show you how they can save you money with fast electronic filing.

Managing Freight Logistics In A Small Trucking Company

Posted on November 20, 2010 by - ”small trucking company”, Express2290, freight logistics, independent trucker, managing freight logistics, outsourcing freight logistics, safety and compliance, small fleet owner

Featured Blogger
Benjamin Bellville
Today I am going to show you some simple ways for managing freight logistics for your small trucking company that will make your day to day operations easier. Meshing all of the different tasks together when you’ve never done so before can get a little tricky for the newcomer yet an ability to do so is important to your success as a small trucking company owner. Let’s look at the ways managing freight logistics can be made easier for the independent trucker or small fleet owner.

Outsourcing Freight Logistics
One of the biggest recurring themes for successful businesses is surrounding yourself with people providing services for you that lessen your work load and allow you to concentrate on the tasks that directly affect your revenue stream. These days there isn’t much that can’t be outsourced in any business, but to do so with all jobs would not be financially feasible with a small trucking operation. So which parts of managing freight logistics should be outsourced for a small trucking company and why?

Safety and compliance for your small trucking company can be outsourced to a service that will keep all of your safety records electronically which can be accessed on their website by you or an officer doing an audit of your files. The best advantage to this is it just looks more professional and you can guarantee that the files are being kept in a legal manner. It may seem a little expensive for just one to a few trucks, but when you consider that almost every little error could cost you a possible $10,000 fine then it doesn’t seem so steep. Think of it as D.O.T insurance and money well spent. One of the top companies that offer this service is Foley Services.

For mechanical upkeep it is something that in most small trucking companies will absolutely be outsourced. The best approach to doing this though is to build a relationship with a shop that is local to your company and get every bit of work needed done there. While many repair shops are out to gouge for every dime they can, you are more likely to get better deals by giving them steady business. Not to mention when one shop does the majority of your repairs they will have all of the records on hand to better evaluate current problems rather than just shooting in the dark and costing you more money. I had a great relationship with a shop local to me where they would often throw me small repairs for free since I always used them for my big repairs.

The last thing that should be outsourced is accounting. You need to make sure that in some way you and your drivers are keeping the best records possible so that when it is time to file your taxes it will cost less by taking less man hours for the accountant to calculate the data. In the future you can be sure to look for a new free program called “TruckLogix” that will help with not only financial record keeping but also mileage and fuel data. By using a program such as this all you need to do is input all of the data and hand over a copy to your accountant for filing.

By outsourcing these tasks you are going to be left with more time to concentrate on the bread and butter of trucking, freight! Finding loads, dispatching them and transporting them as well as working on customer relations. In my next post join me as I will be talking about the importance of including the driver in the freight logistics process to give your company a better chance of succeeding.

It’s never too soon to get set up for quick filing of your heavy tax needs here at Express2290, don’t procrastinate in order to have your filing needs ready for the click of a mouse with the best pricing in the trucking industry.

Freight Logistics for Beginners

Posted on November 18, 2010 by - “freight logistics for beginners”, ”beginners logistics”, ”small trucking company”, ”start a trucking company”, ”trucking company”, freight, freight logistics, logistics

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.