While your books may reflect a profitable business operation, you may fall short of your personal needs and desires if household expenses are not included.
THIS ARTICLE IS FROM the 2007 edition of the Partners in Business manual, a joint effort of Overdrive, American Truck Business Services, Freightliner Trucks and Castrol. The next Partners in Business seminar will be 2 to 4 p.m., March 23, during the Mid-America Trucking Show in Louisville, Ky. To order a manual, call (800) 633-5953, Ext. 1135. Visit this site for more excerpts and program information.
A business plan is one of the most effective business tools you’ll ever use as an owner-operator. Think of it as a roadmap that allows you to track income and expenses over time, with the goal of reaching your desired financial rewards. Just as every load you pick up requires a bill of lading with a consignee or destination that tells you where it goes, your business requires a business plan to successfully move forward.
pick up requires a bill of lading with a consignee or destination that tells you where it goes, your business requires a plan to successfully move forward.
A business plan helps you make ends meet. It shows you exactly how much money is needed for expenses, where it will be spent, and how much you can afford to pay yourself. Your business plan should show all sources of income and costs, while taking into account industry averages, personal expenses and cash flow. And it should provide this complete financial picture in weekly, monthly and annual detail.
Creating a business plan can be a source of great personal satisfaction as well as an important contributor to the success of your business. It also allows you to know when you have reached your break-even point – the point at which all trucking and personal fixed expenses are met and every extra mile driven puts extra money in your pocket.
Experienced drivers will tell you that operating without a business plan is like sitting in the bed of a moving pickup truck looking backward. You can see where you’ve been but not where you’re headed.
