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Isn’t profit the goal?

Profit, it's easy to assume, harder to always figure out how much you'll earn.

But if we don't talk about profit we won't have to deal with all that messy office stuff, I.e.bookkeeping or the other administrative duties.

These are like dirty words it seems to so many small truck business owner's. If we look at how many small truck owner are keeping income and expense records, what do we see? Not enough keep their records current, and what should be condidered current when you think about a businesses record keeping? It's not what most enjoy and it can be hard for many truck owners to see the value in spending time beyond sending these numbers to a tax preparer, 2-3 months after the year has ended.


If there's no records then there's no argument whether you are profitable or not and we don't have to deal with it. I contend one reason is because owners haven't been shown what their financial information means or how to use it. And then there's taxes, yes the reality of taxes. Owners are so afraid of taxes that many unknowingly may sabotage their business based on lack of information. And this takes us right back to that elephant in the room the record keeping.


Industry wide the assumptions are that when a load pays a certain gross amount or rate per mile, it will be automatically profitable. Don't want to believe this? Just read the ads posted by companies trying to entice drivers to buy or lease their trucks.

So many claim they will get you loads paying $10,000 a week "gross" do I need say more?


Just yesterday I received a call from an owner who excitingly discribed a load they agreed to take. I heard the gross rate per mile, fuel surcharge, number of stops with extra pay, etc. No mention of what it will cost to haul the load or the potential profit. I asked myself why?


How you operate your business is up to you. Yet, isn't profit the goal?


It's a good day to change

Gary



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