How to Budget Your First Year in the Trucking Industry as an Owner Operator
Updated: Mar 16, 2020
Budgeting is extremely important in the trucking industry. You have to calculate how often you drive, how many loads you will run, and how long you will have to wait to get paid for those loads. There are numerous bills you also have to include in your budgeting so you pay them on time. As an owner operator, you are responsible for your success on the road - which means it is down to you to budget your time and money efficiently to stay in business. Here are a few tips on what to consider while budgeting for the year.
Your truck payments: Whether you bought your truck or leased it, you more than likely have reoccurring payments on it. This is going to be a huge part of your budget as it is the most expensive thing in most cases. You also need to make sure you have money set aside for repairs and maintenance on your truck. The last thing you want is for something to happen to your truck that you can't pay for, and then you can make money hauling loads.
Insurance costs: This is another large sum that you need to budget for. Without having your insurance bound, you can't run your trucking company. Porter Billing can set you up with our insurance partners to get you the lowest quote for your business.
Fuel costs: You can't drive your truck without fuel, and I think we all know how expensive fuel can get. It is extremely important to include these costs in your budget. We offer our clients a FREE fuel card with discounts at major chains and fuel advances of up to 45% of the load. You are also able to manage your fuel expenses through the online portal to make things easier on you.
Take home pay & salaries: If you have other drivers working for you, you have to calculate their pay into your budget to make sure you can afford to keep them. You also need to budget what your take home pay will be as well. If you don't budget this, you won't know how much you'll be making and if you're doing things the right way.
Other expenses: Make sure you add other expenses like taxes, licenses and permits, and fees into your yearly budget as well. There are a lot of extra costs that go into trucking that many do not know about, so it is important that you work with a company to help you not miss any payments. We set you up with our compliance partners so that you can avoid making any costly mistakes while setting up your business.
Porter Billing has been helping trucking companies grow their businesses for almost 30 years. Learn more about how we can help you or give us a call today at (205) 397-0934.