$3 Million Trucking Business Profit Margin & Expenses

my people was popping so i'm with my brother d gates we're down here at the houston drop yard in houston texas black owned you know it's a lot going on down here a lot of money moving around down here big money right here but um man so my boy brought in a hundred and seventy one thousand last month yup in the month of december man 171 000 man man so what's up how did it go break it down to us so so the breakdown on that 171 it's about a 20 profit margin so i was able to bring home about uh 40 000 when it was all said and done out the pan uh you know all the expenses and you know i break down some of the expenses to you so we've got you got to pay a driver of course yeah and then fuel is a major uh expense you've got truck and trailer notes whether you're renting or leasing or buying you still got those expensive so you've got uh if you got owner operators i give them uh 88 of what they move and uh i just keep 12 percent so i got to pay out big big money to them three to four thousand dollars to them uh every week so then you're talking about insurance and you know how the insurance goes you know that's a major expense oh yeah and then uh you paying out factoring companies uh getting those cash advances to keep a positive cash flow about three percent of the revenue you're doing as well as the dispatcher you might pay your dispatcher three percent to five percent depending on how they work and what's their price really really more than that yeah i mean yeah just smaller situations you got a lot more trucks but you know on the big scheme of things i could have a little lower percentage because i've got more trucks more trucks so i can i can will and deal so with more trucks the more leverage you got to kind of will and deal and you just got to be entrepreneur you got to be a hustler you know the name of any game name of any business is just keep the expenses low yeah so and then it's a lot of unforeseen things so we were talking earlier in my office about some of the unforeseen events that could happen in the trucking industry so you've got breakdowns you got drivers who are unreliable or they might quit or they they you got to let them go right you know so you've got to pay for drug consortiums to be compliant with the fmcsa uh you've got offices assistants that you know i've got an assistant to help me out with some of the league where i have an office so i can store my my files and stuff make it easy you got to be organized and then uh software you got to basically reinvesting some of the money back to continue to grow i got to set money aside to continue to buy better and uh equipment and you got to put money aside out of that 40 how much you put up just for the new truckers out there so they understand you don't just go spend that 40 000 yeah you want to put stuff aside for not because in the truck industry and about if something's gonna happen it's about when it's gonna happen right so so if our profit margin is at twenty percent and i i talk about this in my course as well you wanna save ten percent of your revenue uh for maintenance and unforeseen events so out of that 40 000 that i took home you know that's 20 so 10 would be 20 000 that i save and tuck away so i know that i've got 20 000 stored for uh you know future investments and stuff to work with unforeseen events because sometimes that 10 percent of maintenance that you're going to stuff away that's not always going to be enough either you know to cover some type of stuff that may happen on the road so you got to be responsible you've got to be a leader you've got to be you know you got to conduct yourself and be ready for the very worst case scenario and like one thing i wanted to touch on in business we always discuss the growth we don't never discuss the net because everybody's neck gonna be different the best business man gonna have the best net you know the bad business man ain't gonna have good nets so we always talk about the growth i just want to touch on that because a lot of people you know when we talk about like i dropped the video about my brokerage 116 000 in a month yeah and some weirdo got on there trying to talk in my confidence like brokers don't make that much money come on man we talking business he was talking about broker agents first of all i'm not a broker agent right on my own freight broker's company much better he talked about y'all get five percent nobody might take home percentage is 30 percent exactly yeah i mean it's much different yeah so out of 116 70 of that is going to pay your trucks and you know the rest you put in your pocket yeah but um i just wanted to touch on that so people understand what you say you do 171 in a month so that they understand you do have expenses you got stuff you got to pay to keep business going yeah and then out of that 171 i had three trucks out of service two of them was getting maintenance in that whole month of december and another one the driver quit so i was spending the whole december trying to replace that truck so really all in all i'm supposed to be projected to be at two hundred and fifty five thousand so we fell a little short for our monthly projections but it's like those unforeseen events that i just discussed that you never know when a truck is going to go down how long is going to go down when is the driver going to quit so really i'm on the road for a 3 million dollar 2021. you on the phone about like discussing like should we stay in this like should i continue should i move forward and we have many talks that where you gave me new ideas and i was like i mean and and that's you know i'm not too proud to talk about uh uh things and you're not too proud to talk about things because when things happen and you're struggling something's happening you're supposed to call on your friends calling your buddies especially people who are in the same industry as you so i got on the phone with diane he gave me some ideas of stuff he was doing and i'm like man let me tweak some of my stuff and it actually worked like i i stopped leasing my truck on and i had ended up getting my own authority in d.o.t and all of that stuff and that you know and if it wasn't dan siri is like no i'm not joking i'm not lying i'm not capping i'm not if it wasn't from this for this guy sparking me with some ideas i i wouldn't be standing right here with 12 trucks it was a lot of brainstorming a lot of brainstorming uh phone calls were where we was just like man is it for is is this the move wow so but but since i made that move and i start seeing it it unlocked unlimitless amounts of possibilities

Channel: Darrius Gates

Views: 9,195

Keywords: #inshot

Id: a6Q6-cDBWa8

Length: 6min 28sec (388 seconds)

Published: Wed Feb 17 2021