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5 Ways to Manage an Over-the-Road Trucking Company

When you manage your own trucking company, you’re expected to handle all hauls with complete efficiency; and that’s on top of taking care of a long list of other crucial responsibilities necessary for your company’s survival. Throughout the COVID-19 pandemic, owners/operators have had their hands full as many companies rely on them to fulfill orders and accomplish essential hauls. But even as the workload increases, everything must continue to run smoothly. Experienced truckers know that requires superior management skills.

In this article, we’ll go over the top five responsibilities an owner/operator must handle on a day-to-day basis and how to manage them properly.

1. Clients

A recent survey found 78% of clients have canceled business transactions due to poor customer service quality; no clients equals no revenue. When managing your own trucking company, it’s essential to prioritize your clients in order to develop and maintain consistent, positive relationships. Once you arrange and schedule your hauls, you should communicate the details with clients and keep them in the know in the event of any changes. This demonstrates excellent communication skills and work ethic—two things absolutely necessary in order to create a steady workflow and a stable, profitable company.

2. Health

Nearly 1 in 15 people work in what is considered one of the nation’s unhealthiest industries: the trucking industry. In 2019, a study from Business Insider found 7 out of 10 truck drivers were categorized as obese and about 17% were considered morbidly obese. When you’re sick and not on the road, your company loses revenue and crucial business opportunities. Try incorporating these lifestyle changes to combat any health problems and keep on trucking:

  • When you’re done for the day, take some time to exercise.
  • Develop and maintain a healthy sleep schedule.
  • Cook our pickup healthy meals for yourself; skip the drive-thru.
  • Drink plenty of water.
  • Give up smoking for good.

3. Expenses

On average, the trucking industry rakes in $255.5 billion in revenue each year—but everything comes at a cost, and running your carrier authority is no exception. As a manager, it’s your job to track and manage your company’s expenses using organized and detailed records. In doing so, your company will have a greater chance of surviving, as you’ll be able to track whether your company is gaining or losing money. If you find you’re entering a potential deficit, you need to readjust how you operate and fund the major expenses (e.g. fuel, food/drink, insurance, and rigs) by developing a budget. Of course, there will be unforeseen expenses, so plan ahead by creating an emergency fund. Over time, you’ll learn how much you spend per month and how to lower costs and operate more efficiently.

4. Fuel

It’s crucial to properly manage fuel usage and its expense. On average, truck drivers will log between 2,000 and 3,000 miles per week and more than 100,000 miles per year; this translates to around 53.9 billion gallons of fuel annually. Pair those numbers with the fluctuating diesel prices, and you’ve got a serious expense on your hands. However, there are ways to manage your fuel usage and minimize the cost, such as monitoring your rig’s tire pressure, minimizing idling, moderating your braking, and managing cruise RPM. Not sure if these things are helping you reduce fuel consumption? Try tracking your fleet’s fuel expenses before and after applying these changes, and see how much you save.

5. Taxes

When you own and manage a trucking company, you are responsible for calculating and paying your taxes correctly each quarter, plus filing several tax forms and schedules, such as W-9, 11099-NEC, and Form 1040. If your taxes are not tracked or paid correctly, your business could be in jeopardy. To avoid any missteps, keep a profit and loss statement each quarter, set aside 25 to 30% of your weekly net income, and pay your quarterly taxes on time to avoid penalty charges.

Ready to start your career as an American truck driver? Want to learn more about what it takes to succeed as an owner/operator? Check out our latest post, 5 Things Owner/Operators Should Do to Achieve Success.

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5 Things Owner/Operators Should Do to Achieve Success

Trucking is an expansive and flourishing occupation—and it’s one of the industries that hasn’t slowed down during the current COVID-19 crisis. Companies and essential businesses turned to trucking, heavily relying on owners/operators to deliver their much-needed products across the nation. With this level of productivity and increased activity comes the question of success. What is now deemed “successful” in the trucking industry?

For some people, success is defined by what they have. For truck drivers, success is determined by their quality of work and the professional milestones they meet. But if you’re new to owning and operating your own business, figuring out how to measure success outside of just numbers can seem overwhelming. There’s so much more to success than sheer quantity or numerical values. In this article, we’ll break down the top five things you should do if you’re aiming for success in the trucking industry.

1. Be Positive

Trucking can be a strenuous job, but if you approach your career with set goals and a positive attitude, you’re more likely to beat out the competition and thrive as a business owner. It’s essential to consider your needs and desires to establish your short-term and long-term goals. Write out your goals and treat them as stepping stones to your future. Another tip for success: Try starting your day with “I get to” instead of “I have to.” When you work as an optimist, you can be 20 to 40% more successful than pessimists.

2. Health Matters

Successful business owners know a healthy body leads to a healthy mind, which leads to a healthy business. Researchers at the University of Georgia asked a group of people who make upward of $100,000 per year what helps them find success in their work. At least 75% credited their focus and drive to physical fitness. If your health is compromised by an unhealthy diet or lack of exercise, you’re almost guaranteed to spend more time in a doctor’s office and less time running and growing your business. An unhealthy lifestyle also leads to poor leadership skills and personal qualities, like tiredness and irritability. By staying on top of your health, you’ll be more energized, focused, and capable of taking your trucking business to the next level.

3. Focus Is Key

Business owners become successful by staying focused, committed, and driven. It’s easy to lose focus in the hustle of day-to-day operations; to grow your business, however, try incorporating healthy and productive habits. Each morning, write out your goals for the day then focus on them one at a time. When you focus on too many things at once, you lose up to 40% of your productivity. Working one goal at a time will help you hone in on the day ahead. While on the clock, eliminate distractions and stay committed to your goals. Combine your focus and commitment, and those around you will see you as a driven leader and someone they want to work with.

4. Work Harder and Smarter

Having a business means setting goals, achieving them, then working hard to outdo yourself on your next set of plans. A study from Harvard showed 3% of graduate students had written goals and plans. Ten years later, the 3% were making 10 times more than the 97% who didn’t have written goals. Make your goals achievable, then strive to achieve them. To work smarter, try placing your simple tasks and goals at the start of your day. It’ll give you a sense of accomplishment and help you conquer the more challenging tasks later.

5. Don’t Be Afraid to Fail

Finally, don’t be afraid to fail. It works exactly how it sounds. Things don’t always go according to plan. Some things are past our control, and that’s OK. Successful owners aren’t afraid to leap, even in the face of potential failure. It’s important to lose any fear of judgment and view your losses as learning opportunities. To get to your future, weigh the pros and cons of new options, accept any outcome, then strive for the next best thing.

Now that you have the tools for success, it’s time to get to work.

Interested in learning what it takes to become a successful owner/operator? Check out our post, How to Succeed as an Owner/Operator. For more industry news and content, stay up to date with our blog. Ready to begin your career as a trucker, but need some financial guidance? Visit our website to view our list of services, and contact us with any questions.

How to Succeed as an Owner-Operator

5 Tips for New Semi-Truck Drivers

While being the owner-operator for a semi-truck can be hard work, it can be equally as fulfilling. If you’re new to the industry, you may be asking yourself a lot of questions about what success looks like as an owner-operator. First thing’s first, now is an amazing time to be getting into the booming transportation industry. New retail surges and the growth of online commerce has led to a higher demand than ever, resulting in a national driver shortage. This demand creates better opportunities for drivers, so you’ve made a smart decision by joining now.

Once you get into the business, there are many things that you can be doing to ensure that you flourish in this new role. Here are our best tips to help you achieve the most out of being an owner-operator.

#1: Choose the Right Truck 

When it comes to purchasing your first semi-truck, the wide variety of options can definitely be overwhelming. You can go with a new or used semi, and both have their advantages and disadvantages. While a used truck may appear appealing originally due to its comparatively lower price, older trucks are also a liability for repairs. They have older parts and more miles on the engine, so you might spend more on maintenance than a newer truck. Additionally, with the newly enforced ELD Mandate, you may have to do some work to get the logging device that’s installed in the truck up to par.

While newer trucks have a slightly lower liability associated with them, it is easier said than done when it comes to purchasing. You will have to invest more money upfront due to the overall higher cost. If you don’t have a sizeable amount saved up in the bank, a new truck might not be as realistic of an option for you.

#2: Plan for Repairs 

Planning for repairs is crucial, and it is a big part of every trucker’s life. If you own your truck, you are often responsible for these costs, so it is important to put money aside consistently to manage these costs effectively. Do thorough research and try to best determine your annual maintenance cost, and then put additional funds aside in case of a breakdown or other unexpected damage.

While each semi-truck is unique in terms of exactly how much care it’ll need, consider the mileage, age, collision and damage history of yours to formulate your savings. Additionally, if you sprung for a new truck that came with a warranty, don’t expect that it won’t necessarily need repairs. Even the newest trucks can have issues that won’t be covered by a warranty. Be sure to take good care of your truck; it’s a major money-making tool. Good care can minimize the overall money that you’d dump into repairs that were warranted by poor maintenance.

#3: Put in the Effort

We all want to have a profitable career. The average successful owner-operator makes anywhere from $1.00-$3.00 per mile, but what exactly does it take to make money as an owner-operator? Well, it mostly just takes pure effort. You have to put in the work to reap the benefits, as most carriers or clients won’t offer a salary payment system. Most drivers are paid by the mile or sometimes by the hour. This makes it so that your pay directly correlates to the type of work that you put in. Don’t expect a big salary in this position if you’re not willing to take on ambitious hauls. If you’re looking to make the big bucks, open yourself up to longer and bigger hauls.

Additionally, taking fewer days off in between hauls will not only boost your profits, but it can make you a more attractive option to potential carriers who are trying to get their cargo moved as quickly as possible.

#4: Seek out Successful Carriers

If you’re in this for the long haul, pun intended, job security is key. Look for an employer that is doing well themselves, as that gives more potential to your future with them. With the national driver shortage, many carriers are struggling, but as a driver, finding ones that still manage to be profitable will open up many more possibilities. Finding employment with a booming carrier translates into more hours and increased job security. Massive corporations such as Amazon, Walmart, and Uber have all been flourishing in this new modern age of trucking and have continuously been hiring while the driver pool of others has been dwindling.

#5: Define Your Goals and Habits

This is a big one. Before you get lost in this complex industry, it is important to figure out which route you’d like to pursue. Decide if you’d like to be signed onto a carrier, or possibly drive independently for a company such as Uber Freight. While there are pros and cons to each, the best choice will depend on what lifestyle you crave. While working independently provides freedom and flexibility, it’s not as consistent or dependable. Consider your unique needs and adjust accordingly.

Getting involved in the trucking industry can be confusing and complicated, but luckily, Mission Financial is always here to help you out. Check out our comprehensive blog for industry news and more tips like these!

 

Myths About the Trucking Industry: Debunked

There is a wide variety of stereotypes surrounding truckers and their community. These generalizations are largely negative, without any proper basis. Not only are these myths insulting to truckers, but they can encourage misinformation about the entire industry. This type of negative association impacts the reputation of transport companies as well as insults the integrity of drivers themselves. We’re here to set the record straight. Here are some of the most prevalent myths about the trucking industry and the truth behind them.

Myth #1: Average Salaries are Low

People often assume that truck drivers make a fairly low salary, or that trucking is not a dependable career choice. In fact, there is a hefty plethora of people who spend the entirety of their working years as a big rig driver. The U.S. national average annual salary for truck drivers was $52,420 as of October 2019. This hovers right around the overall national salary average. Also, salaries are usually dependent on how experienced and efficient someone is as a driver. Things like years of experience and a clean driving record will bump up salary offers over time.

Myth #2: No Time for Family

Many people assume that the nature of long haul trucking doesn’t foster a proper work/life balance because it takes too much time away from home. While driving a big rig does require a decent amount of time on the road, it’s not as much as you might think. While certain commercial drivers are away for a few weeks at a time, regional drivers are usually home every weekend. Most established carrier companies have policies about time on versus time off. For example, many companies follow a general schedule of 7 days on, 7 days off. Schedules such as these allow for ample time to unwind and connect with your loved ones.

Myth #3: Drivers are Over-Worked

There is a public assumption that truck drivers are constantly tired and overworked. This is rarely the case. There are strict laws in place to protect drivers, which include frequent rest and meal breaks. Recently, drivers even pushed back to decrease the severity of these types of laws, as they preferred to not take as many breaks. However you feel about these laws, one thing is for certain, drivers are guaranteed meal and rest breaks every single day.

Myth #4: Truckers are Unsanitary

Truckers are sometimes assumed to be unhygienic because of their on-the-road lifestyle, but this isn’t the case. Even though driving isn’t a traditional desk job, their cab is still their office. Drivers often take immense pride in presenting as professional and polished. Showers are readily available at virtually all truck stops for drivers to wash up at the end of the day, and cabs are usually kept in tidy condition since it will be their home for a few days.

Myth #5: Only Men can be Truck Drivers

This is one of the most toxic myths out there, and it’s important to note its falsehood. While this field has been male-dominated since its creation, that’s all changing now in this modern era. Trucking is no longer a man’s game, and it’s increasing in diversity by the day. As more and more women are hired in the transportation industry, the workforce grows and these stigmas dwindle. Women are helping aid in the current driver shortage and easing the stress of a shrinking workforce by doubling the potential pool of drivers.

Myth #6: Truck Drivers Create Unsafe Conditions on the Road

You might not think that truck drivers care much about safety. It’s often rumored that they tend to speed to increase efficiency, which might sound correct in theory, but this concept falls apart in practice. Speeding drastically increases the risk of a collision, and collisions are far more expensive and time-consuming than slowing down a bit. Drivers are heavily trained and informed of proper safety measures before they are even issued a commercial driver’s license (CDL), and are usually put through additional safety training after they are hired by a shipping company.

Myth #7: Autonomous Semi-Trucks Will Replace Drivers

With the recent innovations in the autonomous vehicle field, many are wondering if truck drivers will soon be replaced with self-driving semi-trucks. While the name “autonomous” indicates an independent self-driving vehicle, this is far from the reality of the situation. Even trucks that claim to be autonomous need a human in the cab to account for error of other drivers and unexpected factors. While it won’t be exactly the same job, truckers won’t be going anywhere anytime soon.

Become a Commercial Truck Driver Today

While the nature of the transportation industry is always changing and evolving, it certainly isn’t dwindling anytime soon. In fact, it’s growing at an astonishing rate. The recent rise of shipping demands and the increasing shortage of drivers makes now a better time than ever to get involved in the field. Many companies are offering incentives to start a career with them in order to meet their growing demands. If you think you might be interested in getting into this industry now that we’ve debunked those pesky negative myths, check out Mission Financial and get help with your financing today.

Why Military Veterans Should Consider a Career in Trucking

According to the United States Bureau of Transportation Statistics, as of March 2019, trucks traveling between the United States and Canadian borders and between the United States and Mexican borders carried 62.8% of all transborder freight, representing a value of $67.4 billion.

According to the American Trucking Association, domestically, trucks carry nearly 71% of all the freight tonnage moved within the United States and that percentage will most likely increase. Trucks deliver the California produce that you buy at your local grocery store, the Mexican avocados you use to make guacamole, the huge machinery and equipment used in commercial construction, the material used to build houses, and the cars you buy at your local dealership. There are many facets of our economy that rely on the trucking industry.

Military Veteran Skills Valued by the Trucking Industry

Continued economic growth leads to continued growth in transportation, especially in respect to long-haul trucking. As luck would have it, there are many skills often found in military service veterans that closely parallel those required and valued by the commercial trucking industry, according to Roadmaster Driving School. Here are the top reasons why military veterans are well-prepared for a career in the trucking industry.

Aware of Surroundings

Driving a big rig requires you to be aware of your surroundings at all times; in the military, this is referred to as situational awareness. You need to know where you are and exactly where others are relative to you. You also need to be aware of impending weather changes, changing road conditions, and detours.

Logistical Efficiency  

The trucking industry values veterans’ abilities to be effective and efficient when accomplishing tasks. Performing logistics tasks such as route planning efficiently and effectively help keep costs in check.

Ability to Adapt

Closely related to situational awareness is adaptability. As in the military, conditions can change and evolve faster than you realize. You must be able to adapt to all sorts changes – weather, other drivers’ actions, and road conditions are just a few examples.

Mental Endurance

All military branches focus on building and maintaining both physical and mental endurance because your life, as well as the lives of your squad, depend on being able to keep your eyes on the prize for extended periods of time. When driving a long-haul route, which can often last several weeks, you must be able to stay focused and fresh. As a veteran, you’ll definitely have an advantage in this domain.

Sense of Responsibility

The military teaches the importance of taking responsibility and being accountable for your actions and outcomes. The outcome that all professional long-haul truck drivers strive to meet is that of delivering their shipments to their destinations safely and on schedule.

Understanding of Teamwork

There’s an old saying: “There is no ‘I’ in team.” It’s a lesson the military quickly and effectively teaches. When your squad has to accomplish a mission, everyone must work for the betterment of the crew – even when you work independently and alone. The same holds true in the trucking industry. Teamwork from everyone involved in a successful delivery – you, the dispatcher, the operations manager – is a must.

Respect for Others

Respect is highly valued not only within the military, but within the trucking industry and every aspect of life. Respecting everyone you encounter on the job will go a long way, and respect will come back to you in return– in spades – and will help you advance further in the industry.

Military Experience Offers Advantages to Truck Drivers

If you drove a heavy vehicle while in the military, you already have an advantage over most civilians. If you have a military CDL, you can waive the civilian CDL skills test, which is typically required to obtain a license. If you worked with hazardous materials, you could qualify for higher-paying loads. G.I. Bill benefits may cover weeks-or months-long training programs offered by the best truck driving companies for veterans. You can also get paid via a stipend to learn your new driving skills in these military apprenticeship programs.

The personal qualities and life skills obtained from military training make veterans the among the safest and most sought-after drivers on the road. Regardless of the reason you joined the military, you supported and defended your country. As a professional truck driver, you can continue to support your country because without professional drivers, the country’s economy, its lifeblood, will cease to flow. Your work will help keep your country’s economy vibrant and alive. Get pre-approved for your semi-truck loan and get out on the road today.

Top 6 Ways for Fleet Owners to Conserve Fuel

 

While you may find the picture above amusing, there’s nothing amusing about spending more money for fuel than you need. Your fuel prices are high enough without them receiving any extra help. While many ways exist for you to lower your fleet’s fuel costs, let’s look at six of them right now. Here are the top ways for fleet owners to start conserving fuel.

1. Regular Preventive Maintenance

The number one and most impactful method for reducing fuel costs is implementing an effective regular preventive maintenance (PM) program. Regularly scheduled PM, which can improve a truck’s fuel economy by up to 40 percent, includes maintaining engines and related components as well tires.

 

  • Regular engine oil changes are a must for your trucks because they’re one of the biggest components to PM. The United States Department of Energy states you can increase per-truck fuel economy by as much as two percent by using manufacturers’ recommended engine oil grades. Additionally, look for engine oil labeled as “energy conserving”; it contains friction-reducing additives that help increase fuel economy. Less friction means oil will circulate more easily through the powertrain, which helps improve fuel economy.

 

  • During each of your trucks’ PMs, remove and clean the battery, its connectors, and cables, then load test each one. Something may fail under load, but better in your shop than on the road. Buy your mechanics a battery tester and ensure they know how to use it.

 

  • Trucks’ coolant systems and pressure test caps must be checked during each PM. You don’t want coolant to boil, possibly leading to more costly repairs because of a faulty cap. By caring for your trucks’ cooling systems, you can prevent about 50 percent of potentially major engine failures.

 

  • Don’t forget antifreeze. By “don’t forget,” we mean pay attention to the antifreeze you use prior to adding it to a truck’s cooling system. Newer engines contain metals such as aluminum that don’t play well with some of the chemicals added to engine coolants. Ensure your technicians understand which trucks require which coolants, and ensure they monitor the coolant condition of each truck.

 

  • Lubricate, lubricate, lubricate – and not just engines. Kingpins and universal joints are two major weak points, so take care of them. Although some universal joints have been designed to run hundreds of thousands of miles without trouble, many eventually will require a normal lubricant regimen.

 

  • Let’s talk a little bit about your truck’s tires. The United States Department of Energy maintains that for every one PSI drop in tire pressure, gas mileage will decrease by 0.4 percent. Also, ensure trucks maintain proper wheel alignment, as improper alignment can negatively affect fuel efficiency by up to 10 percent. Needless to say, keep your truck’s tires inflated to the proper pressure and check your wheel alignment.

2. Reshape Your Driving Behavior

The second way to conserve fuel is by addressing driving behavior. The United States Department of Energy has found aggressive drivers can reduce highway fuel efficiency by up to 33 percent and city fuel efficiency by up to five percent.

How can fleet owners shape driver behavior? One way may be to deploy in-cab tools such as coaching apps. Here are three in-cab driver coaching apps that can help increase your fleet’s fuel efficiency. Although they all differ from one another in particular respects, they share several commonalities:

  • They draw their truck data directly from the engine control module through a truck’s data port.
  • They all provide drivers with indicators regarding their driving performances.
  • They all provide driver feedback and score them based upon driving technique, without relying upon fuel consumption data.

Deploying apps like these and having your drivers accept them will work best when you and your company trust your drivers. If you trust them, they’ll trust you and be more likely to accept new technology. Your drivers may even use apps like this to create friendly rivalries to determine who is the most fuel-efficient driver. You could even create company-sanctioned competitions complete with rewards for drivers and driver teams.

3. Fuel-Saving Technologies

Third, evaluate fuel-saving technologies you could implement in your fleet. If you haven’t yet, evaluate telemetry, automated manual transmissions, low-rolling-resistance tires, anti-idling devices, synthetic lubricants, automatic tire inflation systems, adaptive loading axles, full-tractor aerodynamic packages, and aerodynamic skirting for trailers. These are some of the low-hanging fruits you could grab.

4. Consider Truck Replacement

You might consider replacing older trucks with new trucks, even if you might be retrofitting older trucks with fuel-saving specs. Fleets can save $6,048 per truck in the first year of fuel expenditures when replacing a 2015 MY sleeper. That’s a 12 percent increase in fuel economy!

5. Analyze Your Truck Data

Perform some old-fashioned data analysis. How do patterns of fuel usage compare among your drivers on the same or similar routes? Who uses the most fuel, all things being equal? Which trucks present the lowest MPG? Could design or mechanical issues cause any discovered fuel efficiency issues? Maybe the route itself creates a fuel efficiency issue, which leads to the sixth and final top way for fleet owners to conserve fuel.

6. Optimize Your Route Plans

Don’t just rely solely on routing software; perform a route analysis the old-fashioned way. Road quality, traffic conditions, and speed limits influence a truck’s MPG. The shortest distance from one point to another may not always be the most cost-effective. Analyze idling time vs. driving time and design routes to minimize idling as much as possible. Also, look at the terrain your trucks travel on. The EPA’s fuel estimates assume operation on flat surfaces, so if your routes traverse hilly or bumpy roads, your vehicle’s MPG will be lower than the EPA’s ratings for your vehicles.

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