You are currently browsing the archives for the Business Development category.
Hello, Fellow Drivers, My commitment to my readers is to find good information that will assist you in being successful in the trucking business. I found this article recently on a blog page about entrepreneurial thinking. There is one critical difference between the business owner and the entrepreneur. That difference is replication. I will write about this concept in a future blog (get on my RSS feed to make sure you receive the article). One of the things that make a successful trucking business is a well written contract agreement. Most of us know them as “hauling contracts”. Whatever the name, this basic ingredient makes or breaks your relationship with your customers. Enjoy the read and remember to be safe out there!
2010 | Jul 14
One of the critical instruments in any transaction, whether between a vendor and a customer, an employer and employee or even two private parties, is the basic contract agreement. For some business owners however, the basic contract agreement isn’t so basic.

Some feel that using a contract is an unnecessary inconvenience. Some feel it could actually cause them to lose an account or agreement. Others fear committing themselves to a poorly written contract or one that is not legally accurate.
When you get down to the heart of it, a contract is simply “an agreement or understanding between two or more entities to perform services.” It provides, above all else, communication and clarity of accountabilities for the parties involved. It establishes a basis for trusting that each will carry out the terms of the agreement.
Until fairly recently it has been the domain of attorneys and legal departments to draft and write up contracts. However, with the advent of authoring software and legal forms websites, this task has been made simpler, less expensive and more readily available to the small business owner. Here are some pointers to help you write a clear, carefully-worded contract if you choose to create your own.
Hello, Fellow Drivers, Yesterday I started a blog on smart spending. Today is Part Two of that blog and it will cover topics about curbing splurges and setting up automatic payments. Enjoy the read and remember to be safe out there!
Curb The Splurge
Positive, definitive goals make it easier to prioritize every time you’re in a checkout line. Smart spending is often just a matter of conscious spending. if you’re making an impulse purchase, stop and question your motives. Is that trip to the mall a misguided attempt to fend off the midweek blahs? If so, envisioning your long-term goals at the moment may stop you from shopping. Taking a moment to examine your motives not only saves you money, but also prevents buyer’s remorse that often kicks in once you realize you’ve spent unwisely. To paraphrase a shrewd old saying, giving up something of lesser importance for something of greater importance is not a sacrifice, it’s a bargain.
Even more gratifying than curbing your luzuries is cutting your family’s existing expenses by 10 percent. You can often reduce your cell phone or cable bill with just a few quick phone calls or mouse clicks. Switch to more energy-efficient appliances or a programmable thermostat to lower your utility bill. A little creative thinking can help you reach your goals even faster.
Put It On Autopilot
Make it as easy as possible to follow through on your good intentions by setting up automatic payments. Boost your retirement savings by signing up for a higher contribution rate on your 401(k). This year you can invest a maximum of $16,500 if you’re under 50 years old and $22,000 if you’re at least 50.
You can also set up automatic montlhy deposits into your Individual Retirement Arrangement (IRA). The 2010 annual limit is $5,000 if you’re under 50 ($6,000 if you’re older). If your goal is to plump your emergency savings, arrange a monthly transfer from your checking account into your savings. Want to pare down a high credit card balance? Set up an automatic monthly payment so you can keep chipping away at it without work or worry. Automatic bill payments will also save you money wasted on late fees and interest rates. It’s just one more way that a little time spent planning now can pay off quickly in savings without much effort or stress at all.
While saving money, your state of mind should be as balanced as the state of your bank account. Embracing the fact that you’re in charge of your financial destiny can make saving feel more like an adventure than a burden.
Hello, Fellow Drivers, It’s been a couple of weeks since I blogged because of some technical issues. Got the bugs worked out and we’re back on track, or in this case, online! I found a great article about budgeting, in the Geico Direct magazine, Spring/Summer 2010 issue. It will give you some ideas on how to stay in the black whether you’re starting a trucking business or keeping a trucking business solvent. Enjoy the read and remember to be safe out there.
Smart Spending – by Carla Fried
On the road to your financial goals, you can always adjust the route. Here are some budget tweaks that may just get you to your destination faster. If you think budgeting means denying yourself and living without, think again. Smart spending is about making the money you have work harder to get more out of life, not less. It’s much easier to push your financial plan that few extra yards if you view it as an opportunity rather than a chore. Every dollar you save is another dollar you can put toward your child’s college education, your retirement or that dream anniversary vacation.
Revisit Your Goals
Maybe you already have a plan and can see your financial goals on the horizon. That doesn’t mean there aren’t ways to reach them faster. Start by reviewing your plan and tweaking where you can. Once additional payment a year can knock five years off a 30-year mortgage, saving you a ton in interest. Putting just $100 per month into a savings account with 2-percent interest becomes $6,300 in just five years (savings accounts are a reliable choice in any economy).
Perhaps you can pushc yourself and resolve to add 10 percent more cash to each of the goals on your list over the next year, putting 10 percent more into your 401(k) or credit card payemtns. Make sure it’s a figure you can stick with. The goal is to pare your spending, not put your current life on hold.
Search For Savings
Cant’ imagine how it’s possible to spend and still save? Here are some ways to wring even more out of what you already have. Collect at least six months’ worth of bank and credit card statements (12 months is ideal) and identify every essential transaction, such as gas for the drive to work and the utility bill. Then, evaluate what’s left; those are purchases you chose to make. That doesn’t make them bad purchases, but here’s where you can learn to spend–and yes, indulge–but more strategically.
Pick one nonessential expense that you really love–your season tickets, for example–and keep it. That’s your luxury to enjoy. Now look at the other nonessentials and challenge yourself to either cut them entirely or scale them back. Is your family going out to the movies and dinner every Saturday? Resolve to stay in two Saturdays a month and have a family movie night at home. you can still have fun, just less expensively. If your kids balk at scaling back, maybe it’s a good time to suggest they get a part-time job. You can save more by setting limits on how much of your children’s fun you will bankroll.
Some Tips: 1. Giving up something of lesser importance for something of greater importance is not a sacrifice, it’s a bargain.
2. Unexpected expenses: Life is full of surprises and not all of them are welcome. Maybe it’s a major car repair or an urgent trip to help a friend or relative in need. You can’t avoid every financial setback but you can prepare for them. Aim to set aside at least three to six months of living costs in savings, just in case.
Tomorrow’s blog will conclude with Part Two of today’s article.
Hello, Fellow Drivers, This is the sequel to 7/13/10 on passing your first DOT audit. I will start with a list of items the DOT will be wanting to see in your office records and expound on the ones that need further explanation. The key to passing your DOT safety audit is organization and preparation. Let’s start with what records the DOT will be looking through when they pay you a visit. If you would like help with putting your records together for a DOT Safety Audit, please email me at truckersandtravelers@gmail.com. I can also assist you with any trucking authority issues. Below is a list of those records. Enjoy the read and remember to be safe out there!
1. Driver Qualification Files ( includes 18 items that must be in each employee’s file, some of which are listed below)
2. DOT physical and medical card
3. Pre-employment drug testing results
4. Drug consortium membership
5. Logs for the months you have been in operation to the date of the DOT Safety Audit
6. Pro-rate book contents
7. DOT and MC authority granted
8. BOC-3 paperwork
9. Evidence of Insurance on all equipment
10. Leases or hauling contracts
11. HAZ-MAT certification
12. All permits, such as bridge and overweight
13. Registrations on all equipment
14. UCR
15. Additional permits from Kentucky, New Mexico, New York and Oregon if you run through those states with interstate trucking authority
16. IFTA registration
17. Maintenance records on all equipment both trucks and trailers
18. Yearly inspection sheet on all equipment both trucks and trailers
Hello, Fellow Drivers, I have been looking at your searches recently and many of you have been needing information about DOT Compliance and the first DOT safety audit. I wanted to pass along some helpful information that will give you success in preparing for and passing the DOT Safety Audit. The “new name” for a trucking company that has just received their letter granting them operating authority is called a “New Entrant”. After doing some research, I found these FAQ’s on the FMCSA website. In researching this article, I could not find any “down-to-earth” information that would actually help a “New Entrant” understand what they had to have in place to confidently face this important aspect of your trucking business. In Part Two, I will go into more detail as to what your records should contain to pass the safety audit successfully. Enjoy the read and remember to be safe out there!
Hello, Fellow Drivers, In many of my blogs I have written about running a trucking business sensibly. This means, paying cash or paying off credit cards every month, living within a budget (actually living below your means if possible) and saving for a “rainy day” (an emergency fund). I found an article in Land Line Magazine that tells a trucking business success story with these very principles practiced. Enjoy the read and remember to be safe out there!
Striking Gold Hauling Gas
Wayne Nagel ordinarily delivers five loads of fuel a day, normally within an hour’s radius of Minneapolis. For this OOIDA member, finding the right niche, choosing the right equipment, and trucking smart have paid off.
As Wayne Nagel pilots his buddy’s Cessna 172SP with his wife, Keri, by his side, he soaks in the Minneapolis countryside and all its beauty. Dotted with water, the area lives up to its “Land of 10,000 Lakes” billing, yet Wayne is able to spot many of the roads and interstates where he logs some 95,000 miles per year transporting fuel to various gas stations and convenience stores.
“You get a different perspective up here than you do from behind the wheel,” Wayne said. “It’s peaceful and relaxing. I love being an owner-operator – having my future in my own hands.”
Back on the ground, the 31-year-old OOIDA member pilots a Kenworth T660 with a 38-inch AeroCab sleeper. Leased to the petroleum division of Wayne Transports for the past four years, Wayne distributes gas, diesel and jet fuel in the greater Minneapolis area and throughout the upper Midwest.
Wayne got his first taste of trucking as a college student. One of his best friends bought a truck and offered Wayne the opportunity to drive it at night.
“I went out and got my CDL as I worked toward my college degree in criminal justice during the day and hauled gravel at night.”
After graduation, he took a job with the city of Elk Point in South Dakota, but after six months, he knew the life of a cop wasn’t for him.
“I knew I wanted to be my own boss,” Wayne said. “I liked to interact with people, have a flexible schedule, and be responsible for my own success. I thought trucking would offer that.”
With a game plan in place, he hired on at Wayne Transports as a company driver.
“I felt this was my stepping-stone to learn more about the industry and to help me become a successful owner-operator.”
When he felt the time was right and he had money saved, he bought a truck and leased on to Wayne Transports, which has a mix of company drivers and owner-operators. After paying off that used truck in just 22 months, he upgraded to a Kenworth T660, purchased through Rihm Kenworth in St. Paul.
“I wanted a new truck that was great looking, but also aerodynamic for better fuel economy,” says Wayne. “When I went into the dealership, I was there just to look, but when I walked out I was sold. I knew the T660 was what I wanted.”
Wayne says he got a good price on his trade-in, so in April 2009 he ordered a new KW. He spec’d the T660 with a 500-hp Cummins engine, with an Eaton UltraShift 13-speed transmission.
“Those specs give me enough power, plus they will help come trade-in time with higher resale value,” he said.
Wayne had Rihm’s body shop install a 10-inch drop chrome visor, stainless steel kick panels, custom toolboxes and WTI fenders. Inside, Wayne added aftermarket chrome instrument displays and a 30-inch flat screen TV in his bunk.
He entered the Paul K. Young Truck Beauty Contest at this year’s Mid-America Trucking Show and enjoyed the competition, especially the compliments on his truck. Wayne placed second in the division for first time exhibitors, combo class.
“Everyone loved the look of the truck, and Wayne Transports asked me to represent the company by exhibiting at the Minnesota Petroleum Marketing Convention, which was held in April,” he said.
While short hauls get him home at night, Wayne will make the occasional long run to regional airports in the Midwest, hauling aviation fuel.
“Running full, I’ll average about 7 mpg at 65 miles-per-hour, running between 1450 and 1550 rpm. Running empty to Louisville when I went to MATS, I averaged 7.7 mpg.”
One key to better paychecks, he said, is a can-do attitude.
“As an owner-operator, I can pick and choose when and where I haul, but to be truly successful you need to be reliable and a can-do operator for your company. You want them to depend on you,” Wayne said.
“In some cases, that means taking a load you don’t want or working a day when you don’t want to. Over the long run, it’s paid off for me.”
Wayne also sticks to a strict plan on his cash flow and reserves.
“I pay my credit cards off every month, I don’t get overextended, and I keep a rainy day fund for the unexpected,” he says.
This strategy has allowed his wife to be a stay-at-home mom to their three children. It has also provided extra cash to put a down payment on a rental house, which generates additional income.
“We’re doing well,” says Wayne, as he lands the Cessna. “If you work hard and have the right business sense, good things can happen.” LL
Hello, Fellow Drivers, I wanted to take a few moments to talk about getting started in the trucking business. Some of you have commented that now is the best time to get a loan to start a trucking business. While there is nothing wrong with borrowing money, it puts you at the mercy of the lender. For instance, a typical truck and trailer loan will run an average of $2000 to $3000 per month, for about six years, depending on the type of rig and trailer you purchase. That’s a lot of moolah to earn on the road, not to mention the fuel, maintenance and road expenses you also will incur. After owning my own trucking business for over 7 years, my suggestion is to start your business with some cash in the bank. In other words, if you borrow the money for the rig, have three to six months of cash in the bank to run on until you are earning a steady income.
Some of the comments from my readers entail borrowing money against your house, since interest rates are at an all time low (in some cases 3.5%). I have been an entrepreneur for over 20 years and for almost 4 of those I managed a branch office for a major mortgage company. Armed with “insider” knowledge of mortgage loans, my suggestion is to save up cash until you have a 3 to 6 month cushion in the bank (the more months saved the better). Avoid borrowing against your most valued asset, your home. For most hard-working Americans, this is their most valuable asset. Keep it that way by leaving the equity in it. I am also a real estate investor. Before the real estate crash, I was able to purchase over $2 million in properties with no money down. While that made me feel like a big shot, it put me in a leveraged position, leaving me vulnerable to my lenders. I have been fortunate to be able to manage my properties well, but that is not the case with many investors. My suggestion again, is to not leverage yourself to the point of vulnerability. There is an old saying the finance world: CASH IS KING! That saying will always ring true, no matter what the interest rates do. The more liquid you are, the more power and freedom you will have in your business.
Some of you will go ahead and borrow to the hills to get started in a trucking business. You will also be wishing about 12 to 18 months into that leveraged position, when the loads are slim, that you had been more liquid. You will have to stay out on the road until you meet your obligations, whereas if you were more liquid, you could enjoy more down time. It is my wish that this blog has caused my readers to at least pause and think about the cost of debt.
If you would, take some time to read my three-part blog dated 6/5/09, 6/8/09 and 6/9/09 on starting a trucking business. It will give you valuable information about preparing before you venture out as an entrepreneur. Enjoy the read and remember to be safe out there!
Hello, Fellow Drivers, Many of you carry a TWIC (Transportaion Worker Identification Credential) card to load and unload at the ports around the country. I thought this was an interesting piece of trucking industry news which I found in a recent issue of Land Lind Magazine. BTW (by the way), here is the website to find out all about TWIC cards and how to apply for one. Enjoy the read and remember to be safe out there.
By Charlie Morasch
staff writer
Gary Carr visits ports nearly every day. Carr, an OOIDA member from Wayne, ME, hauls fish from the northeast to the West Coast, stopping at ports in Massachusetts, Maryland and Washington. A year ago, Carr obtained a Transportation Worker Identification Credential card – a computer-chipped biometric ID card, which stores his fingerprints and U.S. documentation. Carr said he’s rarely asked to show his TWIC. Instead, he’s allowed to drive within 10 feet of water, sometimes close to cargo and cruise ships after merely flashing his CDL. “I don’t understand where it’s totally required and where it’s not,” Carr said. “I like the idea of TWIC. It just amazes me that the government required me to pay $132 for something I’m not using.” Carr isn’t alone. Thirty-eight percent of respondents in a landlinemag.com poll said their TWIC IDs were checked always or most of the time at ports; 29 percent said rarely; and 32 percent of respondents said they were never checked for TWIC at ports. About 285,000 truckers have TWIC IDs, which last five years. The program has spent $171 million since 2003. Increasingly, OOIDA members are using their TWIC cards when entering facilities that want to photocopy ID. Carr prefers showing his TWIC, which doesn’t list personal information. “Unless you know how to read that TWIC card, you’re not going to get anything off of it,” Carr said. “With a driver’s license, they’ve got a copy that can go anywhere after I show it.” Truckers may be asked to show TWIC cards depending on whether they are in areas defined as “secure,” said TSA Spokesman Greg Soule.Coast Guard Spokeswoman Lisa Novak said she didn’t know of safety concerns regarding truckers not being asked to show TWIC cards. Currently, 70 different card readers are being tested in pilot programs, including systems that require truckers to place fingers onto a scanner. The results of the pilot programs will be delivered to the Coast Guard this year before a final card reader rule is published. LL
Hello, Fellow Drivers, I found an interesting bit of trucking industry news that affects all drivers running through the states discussed in the article below. This information appeared in the May 2010 issue of Land Line Magazine. If you are being limited to the amount of idling you are allowed, I suggest you take your “off duty” hours elsewhere whenever possible. Send a message to the senators via email to these states. Let them know how this affects the economy of their state when they create bills and laws like the ones below. This country is dependent upon our industry to keep it running smoothly. Enjoy the read and remember to be safe out there!
Proposed rules to crack down on the unnecessary idling of trucks are getting attention at statehouses around the country. OOIDA says there are concerns that need to be addressed.
Michigan bill would limit idling
A Michigan Senate bill would prohibit commercial vehicles from idling for more than 5 minutes per hour. While loading or unloading, idling would be allowed for up to 30 minutes in a 60-minute period.
Exemptions would include situations when vehicles are stuck in traffic, required by law enforcement to stop or when idling is necessary to operate defrosters, heaters, air conditioners, or “during installation of equipment, solely to prevent a safety or health emergency.”
Idling would also be permitted to power work-related mechanical or electrical operations, such as mixing or processing cargo or straight truck refrigeration.
Sen. Ray Basham, D-Taylor, the bill’s sponsor, didn’t include an exemption for extreme temperatures. The bill does, however, specify that auxiliary power units, gen sets, or other idle-reduction technology is allowed.
Violators would get off with a warning the first time. Subsequent offenses for owners or operators of locations that a truck is loading or unloading for longer than 30 minutes would result in $500 fines. Truck owners or operators found in violation of the 5-minute rule would face $150 fines.
OOIDA Executive Vice President Todd Spencer said there needs to be an industry-wide solution to appropriately address idling concerns.
“This is a challenge that requires some involvement and cooperation from all responsible parties,” Spencer told Land Line.
The bill – SB1069 – is in the Senate Transportation Committee.
Michigan isn’t the only state this year to pursue idling restrictions for large trucks. One state has adopted a new idling rule while still others sought restrictions.
West Virginia idling restriction
A new law in West Virginia applies to diesel-powered vehicles weighing more than 10,000 pounds. Starting June 11, affected vehicles will be limited to idling for no more than 15 minutes per hour.
Trucks will be exempted from the time limit rule when temperatures are lower than 40 degrees or higher than 75 degrees. The exception applies only at locations where trucks are legally permitted to park, including truck terminals, truck stops and rest areas – as long as idle-reduction technology is unavailable.
While loading or unloading, idling would be allowed for up to 15 minutes in a 60-minute period, when necessary.
Violators would face fines between $150 and $500. Responsibility for idling violations could be placed on vehicle owners, as well as operators. In addition, owners or operators of locations where vehicles load and unload also face fines for violations.
Exceptions to the rule also would include situations when vehicles are stuck in traffic, required by law enforcement to stop, or when idling is necessary “to operate defrosters, heaters, air conditioners or cargo refrigeration equipment.”
Mike Joyce, OOIDA director of legislative affairs, said that with the new idling limits in West Virginia it’s important for the state to plan for the availability of incentive programs for small-business truckers to easily purchase idle-reduction technologies.
Vermont idling restriction stalls
Time is quickly running out on an effort to end the state’s distinction as being the lone holdout in the New England region not to have idling restrictions for trucks.
With only a handful of days left in the legislative session, a bill remains in committee that would limit trucks weighing more than 10,000 pounds to idling for no more than five minutes per hour. The lone temperature exception wouldn’t kick in until the thermometer dips to 0 degrees.
Citing the lack of reason lawmakers have shown with a ridiculously low temperature exception, OOIDA’s Spencer said it is “totally unworkable.” The Association issued a Call to Action early this year encouraging Vermont truckers to communicate this concern with their state lawmakers.
Wisconsin lawmakers drop pursuit of idling limits
Despite a plug from Gov. Jim Doyle, legislation to put limits on truck idling likely will have to wait until next year. Lawmakers in both chambers were unwilling to advance bills that called for restricting idling to no more than five minutes per hour.
Unlimited idling would have been allowed when temperatures are colder than 10 degrees, or hotter than 90 degrees. There was no exception included for situations when idling is necessary to operate defrosters, heaters or air conditioners to ensure the health or safety of occupants.
OOIDA Regulatory Affairs Director Joe Rajkovacz welcomed the news. He said the state was overlooking a provision that is too important.
– By Keith Goble, state legislative editor
Hello, Fellow Drivers, For those of you running a trucking business home office, here is the second part of an interesting article on improving efficiency in a home office. Enjoy the read and remember to be safe out there.
4. Block Your Time
Designate time for priority activities by blocking it out on your calendar. I commit myself to classes at the gym by putting three on my calendar every week. I don’t schedule phone calls or meetings at those times, so I have no excuses not to go. I schedule calls with people on email and Facebook, instead of playing phone tag so I know when I’ll have time to concentrate on larger projects without the phone being a constant interruption.
I also want one afternoon a week to spend with my family when I do not have to work. I work only a half-day on Fridays to take my family our for a fun time. Friday afternoons are light work days and usually unproductive due to exhaustion. I’m in need of a break, and so is my family. I don’t schedule anything on Friday nights because that’s family time to have a quiet evening at home. Nothing goes on my calendar on Friday after lunch.
5. The Rule Of One
Stick to this rule with yourself and with family members who need your time in one of their activities. I only sit on one non-profit board at a time. I belong to only one book club at a time. I say “No” to things that do not really interest me. No one seems to mind or label me a neglectful parent, and everyone seems very happy to accept my financial contributions and presence when I am able to arrange it.
I keep errands located downtown on the same day (lunch meeting, nail appointment, store return, tailor) so I am only running errands one time per week rather than taking an hour out of my day, every day. If I have a board meeting or lunch with a friend, I schedule no other out-of-the-office time that day. My workout has to be the next day, and my dentist appointment has to be the day after that. That way, I can still be productive for 5-6 hours a day, rather than have any particular day end up a complete waste.
6. Invest In Others
Make an effort to get to know one new person each week. Pick the person who always smiles at your or whom you always say “Hi” to but aren’t quite sure what her name is. Really ask her about herself and take ten minutes to learn her story. She might be the person who ends up inspiring you the most. you might learn that she also takes care of aging parents, or that her husband is overseas, or that she is the marketing director for some huge company. Take inspiration from the stories you hear and remember that we are all busy–it’s about how you handle the buey-ness, and business, of life that matters.
Hopefully you took some tips from this busy entrepreneur that will help you in your trucking business. Remember, be proactive about all aspects of your business and have the courage to look at areas of improvement and make the necessary steps in insuring the changes are made. You will see your trucking business go to new heights because you spent some time and effort toward your success!