Rev.Vassago |
09-06-2008 02:20 AM |
Re: What is the break even point for an owner operator?
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Originally Posted by marylandkw
Quote:
Some people have multiple incomes. Could be they own a separate business or they are married to someone who can pay the personal expenses.
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Then what is the reason for owning a business?
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EXACTLY. If someone is in business only to break even, it is a lesson in futility, and running all the numbers in the world is irrelevant. The idea is to figure out what it takes to earn a profit after all expenses. It costs me between $7000 - $8000 a month to operate, not counting fuel. That includes everything that I receive a bill for.
Someone who goes in with the mindset of "they could own a separate business or they are married to someone who can pay the personal expenses" is setting themselves up for hauling cheap. If they can manipulate the figures to make it seem that they only need $1.04 per mile to operate, then that is where they are setting the bar. Personally, my bar is set at about $1.65 per mile, and I hope I never get that low, because I'm not in business to just pay my home bills and truck bills. I'm in business to earn a profit.
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