Haulin Assets Motor Carrier HQ

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 downRate 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

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 youBookkeeping
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 tooDo 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

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.

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.
UCLA Anderson Review
University of Colorado Boulder

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

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 systemsLoad board
TMS
File Storage
Tracking weather

Having a good processEarly to bed, early to rise, makes a dispatcher successful and wise
Don't wait
Be efficient

Know your numbersVariable 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