Hi guys, starting up new, in process of O license and looking for advice on contracts and costs. So, i have worked out that on a 3 month basis (12 weeks), i can hire/lease a truck at 580 a week so £6960 total, insurance costs around £1000, fuel around £8400 (about 700 a week), TM costs £1050, yard parking avg £600, and with work that will be giving me about £3k a week, i should be in profit of around £18k profit. Ok add blue costs also need to be deducted from that. Ao lets say around 17k profit remaining.
Isn’t that all well? I mean people have so many opinions about earning. If i can secure a contract paying atleast 3k a week and i use around 700 to 900 £ of fuel per week. I’d be doing well correct? Any advice on securing such contracts paying £3k+ a week much appreciated and any reasonable and fair advice for an amateur like myself. Thanks (around Greater Manchester region)
I think what you’re suggesting is costs over 12 weeks is about £18k. Now add your PMIs, the odd tyre / fault, days off driving due to these. Assuming you work 6 days, that’s about £250 a day, before you make a penny.
Are you comfortable with your estimates? Can you do the full driving time and the accompanying paperwork & looking fir the next job?
Even if you’ve got someone lined up to be your ETM, it’d be worth spending the £128 for a copy of EOS TMCPC notes; Chapters 5 (Financial Management) and 14 (Vehicle Costings) would be reason enough to own a copy
These guys are very geared up towards owner-drivers, and are largely about finding the all-important back-loads you need to turn a profit. returnloads.net/becoming-an-owner-driver/
Zac_A:
Even if you’ve got someone lined up to be your ETM, it’d be worth spending the £128 for a copy of EOS TMCPC notes; Chapters 5 (Financial Management) and 14 (Vehicle Costings) would be reason enough to own a copy
These guys are very geared up towards owner-drivers, and are largely about finding the all-important back-loads you need to turn a profit. returnloads.net/becoming-an-owner-driver/
Or, before spending money, download and read the Traffic Commissioners Statutory Documents No1 (good repute), 2 (finance(, 3( transport managers) and 6 (vocational licences). Yes there is a lot to read, but many training packs just cut’n’paste these docs. If you still find it confusing, consider spending a few quid for a meeting with a consultant.
Sonic321:
Hi guys, starting up new, in process of O license and looking for advice on contracts and costs. So, i have worked out that on a 3 month basis (12 weeks), i can hire/lease a truck at 580 a week so £6960 total, insurance costs around £1000, fuel around £8400 (about 700 a week), TM costs £1050, yard parking avg £600, and with work that will be giving me about £3k a week, i should be in profit of around £18k profit. Ok add blue costs also need to be deducted from that. Ao lets say around 17k profit remaining.
Isn’t that all well? I mean people have so many opinions about earning. If i can secure a contract paying atleast 3k a week and i use around 700 to 900 £ of fuel per week. I’d be doing well correct? Any advice on securing such contracts paying £3k+ a week much appreciated and any reasonable and fair advice for an amateur like myself. Thanks (around Greater Manchester region)
If your insurance for a new start is only a £1000 is that a Philipines O licence you are applying for? Or did you mean £1000 per quarter?
Interesting most insurers I know wont insure the truck unless you own it, as hiring was an option before the non availability of trucks precluded this.
When doing your calculations, please factor in these too:
payment terms are not great if you use people like Barronwood/Return loads website - 60-90 days before you get your money is quite often the norm. You’ll need a supply of readies to see you through.
Try to find your own work direct from someone, if you rely on 3rd parties, they may drop you very quickly for a variety of reasons.
Before you start spending money out, make sure your financials will work for you, bearing in mind no money will come in for a couple of months, but you will be spending while your waiting.
Why not consider buying a cheap unit rather than renting, get yourself off the ground and money coming in before you look for something better.
When your able, do your own CPC so your not reliant on someone else, if they ■■■■ up, the buck still stops with you.
There has been some good advice nearer the top of this page, read the links others have added, the more info you have the better chance of getting it right you’ll have.
Sonic321:
Hi guys, starting up new, in process of O license and looking for advice on contracts and costs. So, i have worked out that on a 3 month basis (12 weeks), i can hire/lease a truck at 580 a week so £6960 total, insurance costs around £1000, fuel around £8400 (about 700 a week), TM costs £1050, yard parking avg £600, and with work that will be giving me about £3k a week, i should be in profit of around £18k profit. Ok add blue costs also need to be deducted from that. Ao lets say around 17k profit remaining.
Isn’t that all well? I mean people have so many opinions about earning. If i can secure a contract paying atleast 3k a week and i use around 700 to 900 £ of fuel per week. I’d be doing well correct? Any advice on securing such contracts paying £3k+ a week much appreciated and any reasonable and fair advice for an amateur like myself. Thanks (around Greater Manchester region)
Like any business, there’s a myriad of small costs that soon mount up!
Oil
Coolant
Screen Wash
Truck Wash
Wiper blades
Bulbs
PMI’s (included in rental?)
Rolling brake tests (included in rental?)
MOT prep (included in rental?)
Business Accountant fees
Payroll fees
Mobile phone
Accounts software
website?
Microsoft Word, Excel software package
Adobe software package
McAfee (or similar) security software
GDPR fees (customer data protection)
Ltd company (filing fees)
Ratchet Straps
Chocks
Nets
Tacho calibration (included in rental?)
Uniform / work clothes
Business bank account fees
Factoring?
Tyre wear (included in rental?)
Accreditation and professional bodies (RHA, Logistics UK, etc etc)
Daily check sheets / software
VOR sheets / software
Tacho rolls
Truck maintenance planners / software
Stationery (don’t under estimate how much paper, pens, stamps, envelopes, ink cartridges, staples, paper clips, elastic bands you’ll go through!)
That’s not an exhaustive list.
Just finished my accounts for a side business I have and you’d be surprised how all those little things mount up. It’s death by a thousand cuts if you don’t factor it in.
Hi. Firstly, good luck with your venture, I hope you get up and going successfully.
I wonder though, if you’re not being very optimistic in your forecast of gross weekly earnings of £3k, on a fuel bill of IRO £800.?
That kind of work is very hard to find, and as I assume you will be working as a sub contractor, I doubt those figures are achievable. If you can do 3k on 1k of fuel, you’ll be doing very well indeed, but I’d be inclined to think that your fuel bill won’t be under £1200pw at best.
Let us know how you get on, but if you do find a pot of gold, don’t tell a soul.
All the best.
You will need a holiday, either park it up or pay a driver when you are away but getting someone to trust with the kit and organising their own day without you to consider.
Old John:
Hi. Firstly, good luck with your venture, I hope you get up and going successfully.
I wonder though, if you’re not being very optimistic in your forecast of gross weekly earnings of £3k, on a fuel bill of IRO £800.?
That kind of work is very hard to find, and as I assume you will be working as a sub contractor, I doubt those figures are achievable. If you can do 3k on 1k of fuel, you’ll be doing very well indeed, but I’d be inclined to think that your fuel bill won’t be under £1200pw at best.
Let us know how you get on, but if you do find a pot of gold, don’t tell a soul.
All the best.
I just saw an offer on indeed for 3k a week, pulling their trailers and can use their yard as parking if you don’t have your own. Sutton Coldfield that is.
Call Kristof, George or Robert from KNBC Accounting Ltd at 02034755561, they run an accounting office specializing in haulage sector in UK and will be able to answer all your questios.