Becoming O/O
 

I've been thinking about becoming an O/O for the past couple of years and have just now worked up the guts to do it. I've got the financing in place and have put some numbers togather on the income end. I wa swondering if some of the more experianced O/O could check over my budgetting and let me know what you think. All the figures are in Canadian funds (Monopoly money). Any advice would be greatly appreciated.


Revenues Scenario 1 Scenario 2 Scenario 3
(Best case)(Average case)(Worst case)

Total Monthly Milage 10,000 8,800 8,000
Milage Rate $1.12 $1.12 $1.12
Fuel Surcharge Rate $0.28 $0.28 $0.28
Monthly Revenue $14,000.00 $12,320.00 $11,200.00
Deductions $150 $150 $150
Total Monthly Revenue 13,850.00 12,170.00 11,050.00

Operating Expenses Scenario 1 Scenario 2 Scenario 3
Fuel Milage (MPG) 7.5 7.0 6.5
Fuel Consumption (Liters) 5186.7 4890.0 4787.7
Fuel price /Liter $0.89 $0.89 $0.89
Fuel Cost $4,616.1 $4,352.35 $4,261.05
Drivers Rate/Mile $0.50 $0.50 $0.50
Drivers Wages $5,000.00 $4,400.00 $4,000.00
Truck Payment $1,500.00 $1,500.00 $1,500.00
Truck Maintenece $600.00 $900.00 $1,200.00
Total Monthly Expenses $11,716.13 $11,152.35 $10,961.05

Budget Scenarios Scenario 1 Scenario 2 Scenario 3
Total Monthly Reven $13,850.00 $12,170.00 $11,050.00
Total Monthly Expenses$11,716.13 $11,152.35 $10,961.05
Total Monthly Profit $2,133.87 $1,017.65 88.95


Budgeted Annual Revenue $25,606 $12,212 $1,067

Becoming O/O
 

Didn't really post the way I wanted it too!

My math isn't great but - (converting US/Canadian) but what would a Canadian driver make in funny money as a company driver? Compare that to your best case scenario....

3 year old truck = $60,000 depreciated to $20,000 and ammortized over 3 years = $13,333/yr.

For 100,000 miles

Fuel = $60,000
Maitenance = $10,000
Plates = $2,000
Tolls = $2,000
Insurance = $12,000

60,000+10,000+2,000+2,000+12,000+13,333=$98,000/year.

Call it and even $100 grand + food, phone, laundry and other "incidentals".