How I GREW My Business to 3 Trucks FAST (Numbers Revealed)

now before we get into the video i just want to apologize because i had a lot going on in this video i'm still getting used to talking with braces in my mouth and something was up with the focus on the camera so at times it might be a little hard to read what's on the board so if you have any issues or questions about anything i might have said or wrote on the board just let me know in the comments section and i'll do my best to reply and try to explain it alright now let's get into the video hey what's up everybody i'm david mcgill and in this video i'm going to break down how i grew my trucking company from one to three trucks in just a few months now before i break down the numbers i need to give y'all a little bit of back story initially when i started my trucking company i had goals to move freight for this particular customer that required you to have your operating authority active for at least six months so my initial plan was to just get my authority set up and i wouldn't run my truck for six months i would just continue to pay the insurance until my authority aged then i would work with that particular broker now that was my initial plan but i ended up meeting a driver through a mutual friend who was out of work and was interested in driving for me so i figured we'd go ahead and give it a go and i try to find lows on the low board until my authority was six months old now keep in mind i had a day cab so it wasn't a whole lot of freight that i could really move and have my driver home every day but i was able to find you know a few loads and i would say on about the third or fourth low um i came across this broker who uh the low was like it was like 400 miles for the whole trip and the broker had to slow every day so we actually ended up running it you know monday through friday i pretty much got it uh dedicated it was some consistent freight so let's go over the numbers on how this all came about so the low paid 750 dollars and i was using a factoring company so my factoring fee was 3 so that was like 22 dollars the fuel on this was like 225 a day the driver pay was 240 and that included uh the payroll taxes now i didn't have a trailer so i was renting the trailer and the trailer was 250 dollars a week so it was fifty dollars a day so my gross profit was two hundred and twelve dollars a day now remember this is monday through friday now a week so if this is my gross profit per day and my gross profit per week was about a thousand sixty just call it a thousand sixty now the gross profit for per month was this thousand sixty times four point three which was about forty five hundred dollars or so now the insurance on the truck was fifteen hundred dollars a month so if i subtracted out my insurance there's about a three thousand dollar per month gross profit running five loads a week now at one point uh my driver needed a day off so i've reached out to some other friends of mine who had drivers and i was able to get a driver to cover a low for me and after that driver covered that load he uh he told me about a friend that he had who was looking for work so they got he got us in contact with one another and this driver he agreed to work on weekends since he was you know he was out of work so working on weekends was was going to be that was going to be good for him because he just needed to make some some extra money so i ended up running this low on saturday and sunday as well now the beauty of running this low on saturday and sunday the numbers for the most part stayed the same with the exception of the trailer rent because i was paying 250 a week um and i was factoring that into my five day a week um runs saturday and sunday was essentially free so the gross profit per day on the weekends was actually 262 dollars because i didn't have to you know pay the trailer so monday through friday i was making a thousand dollars gross per week and when you added the 262 that i was making on saturday and sunday that put my gross weekly profit number it's like 15 88 or so now to figure out what that was monthly i took you know we could take the 1588 gross profit per week and multiplied by 4.3 and we got 6 826 so roughly sixty eight hundred dollars now because this was the exact same truck and the insurance didn't change even though i was working the truck an extra two days a week the insurance was still a flat rate of fifteen hundred so my net profit running seven days a week was fifty three hundred dollars for the month now after doing this for a couple of months i called gerard over at rush truck center that's the place where i bought my first truck from i called him back and i bought a second day cab from me i was able to get the day cab for it was like 13 000 so you can see after just running a few months making 5300 a month i was able to just roll that money into a second truck now on the second truck i took the driver from the weekend and i made him a full-time driver so he was now working monday through friday as well so now i'm working two trucks monday through friday so if you're following the numbers i went from doing five loads a week and that gave me a profit of three thousand dollars a month and then i went to seven days a week and that gave me a profit of fifty three hundred dollars based on ten loads i'm sorry based on seven loads now once we went from seven to ten loads a week which it was two loads a day monday through friday we were now profiting six thousand dollars a week right there i meant six thousand in profit per month not per week well both trucks were still sitting they were now sitting saturday and sunday so i hired two drivers for the weekends who wanted to make you know weak in cash again so now the trucks are doing 14 loads a week and the profit on those 14 lows was just a little over ten thousand dollars now if you remember i only paid thirteen thousand dollars for the second truck now you can see at making five thousand dollars a month and buying a truck for thirteen thousand dollars it didn't take very long before i was able to get the second truck now when i bought the second truck i dare run into a setback because if you guys have seen my previous video on my six thousand dollar mistake truck number two is the one that ended up costing me six thousand dollars for um a high pressure fuel pump but once that was taken care of we were back running you know two trucks 14 loads a week now by the time we were nearing the six month mark of my operating authority other loads that became available so we were mixing and matching freight a little bit throughout the week but as i was getting closer and closer to that six months um things were actually starting to get a little shaky with this uh with this dedicated route now eventually when this started to slow up and i'm assuming it happened because the uh the broker and the shipper there's probably some competition from another broker that either uh the broker might have lost the contract or the rate got undercut or whatever the case was but at this point i was at the point where i was ready to move on to my initial plan my original plan now things had kind of changed with that plan between the broker the the new broker and the customer that i was planning on working with but it worked out in my favor because the customer rolled out a program where you could work directly with them and instead of going through a broker and one stipulation was you had to have at least three trucks so um i just took the money from uh the profit of the first two trucks and i called gerard again and this time he was able to sell me my third truck for uh thirteen 13-5 and it was either 13 or 13-5 it was one of the two um and so once i wrote the money into that you know we then had three trucks and that's when i was you know running the freight uh the power only phrase so i was able to get rid of uh the trailers that i was renting and it was a lot easier uh to you know have work for my drivers being home every day now in the future video i'll talk about how i went from three trucks to five trucks but for now you at least you have the the details behind how i was able to go from one to three trucks in a short period of time now one thing to take away from this video is this whole thing was never planned remember initially my plan was just parked the truck and i was just gonna wait six months but then these different opportunities started to present themselves that i didn't see ahead of time and i'm sure uh other trucking business owners out there can attest to the fact that you know sometimes you don't know exactly how things are gonna shake out but you know once you're running your business occasionally you'll get an email or a phone call that you know might change the trajectory of your intended business because my initial plan for my trucking business was to just start with one truck and you know put some money to work and let that money make more money for me i had no plans on you know running the trucking fleet buying the fleet any of that stuff um but the opportunities presented themselves and within the first uh 13 months i had i had bought five trucks now hopefully this video was helpful and if it was please give it a thumbs up and let me know in the comments section also if you know anybody else who could benefit from this make sure you share this video with them and as always thanks again for watching

Channel: Trucking From Scratch

Views: 316,790

Keywords: trucking, trucking business, how to start a trucking business, semi trucking, hotshot trucking, dump trucking, owner operator, company driver, independent contractor, employee, operating authority, self employment, entrepreneurship, david mcgill, maxxforce, international prostar, freightliner, volvo, kenworth, peterbilt, prime inc, swift transportation, jb hunt, us xpress, roehl transportation, fmcsa, dot, success, keeptruckin, eld, business, ch robinson, amazon, trucking from scratch

Id: llOoOyW3d_U

Length: 13min 24sec (804 seconds)

Published: Wed Nov 18 2020