Haulin Assets

This is the final episode of a 3 part series where I go over some of the most important aspects of compliance with the DOT and FMCSA regulations for motor carriers. This specific episode covers the DOT New Entrant Safety Audit.

I just went through my DOT New Entrant Safety Audit and I want to share my experience with all of you so you know what to expect and have the best experience possible. During this episode Craig and I start with some background for context and then we go into what my experience was like.

When you first apply for a DOT Number or Motor Carrier Operating Authority, you are considered by the FMCSA as a New Entrant for 18 months. During that time, the DOT does two things:

1. The actively monitors you

A New Entrant Safety Audit is typically a simple version of a full blown DOT Safety Audit which is a review of a carrier's records designed to verify that you have basic safety management controls in place to ensure compliance with the regs.

If you want more details, including my own experience with the New Entrant Safety Audit, click here for the full show notes.

This is the second episode of a 3 part series where I go over some of the most important aspects of compliance with the DOT and FMCSA regulations for motor carriers. This specific episode covers preparing for a DOT Safety Audit.

Even if you don't have a DOT Safety Audit on the horizon, you should always be prepared for one. Going through the process of preparing for an audit is a good way to make sure you are following all the regulations and won't get caught with your pants down if you are audited. If you have all your records organized and are maintaining them as required, you are doing 90% of what is required by the DOT, the other 10% is really just following the rules like obeying traffic laws and following the hours of service regulations.

A DOT Safety Audit is a review of a carrier's records designed to verify that you have basic safety management controls in place to ensure compliance with the regs. Motor Carrier HQ has an audit assurance package that we spent years developing that is designed to help you make sure you are maintaining your records in compliance with the FMCSA Regulations. You can learn more about the Audit Assistance Package by clicking this link.

Because I feel like the package that we developed, with the help of some DOT auditors, does such a great job, Craig and I spend a lot of the episode going over each part of the package and break down what records motor carriers are required to keep. To see the complete overview, including 16 items that will cause an automatic failure of a DOT Safety Audit, click through to the full show notes.

Over the next three episodes, I am going to take a deep dive into the FMCSA's safety program. For most people, compliance with all the FMCSA's rules and regulations is a daunting task that many are too intimidated to handle.

I think there would be a lot of really good people who would make the jump to being an independent owner operator if this one thing did not seem so overwhelming. I hope these next few episodes can show people that it's not too hard, and they can do it if they are willing to learn and pay a little bit of attention to detail.

CSA (Compliance, Safety, Accountability) is the program the FMCSA uses to monitor the safety of trucking companies. During this episode I am going to explain how it works, the most important details and things to avoid that will get you in trouble.

The CSA Program is designed to do four things:

1. Identify motor carriers that pose a safety hazard.

Craig and I will cover them all in detail during this episode, but if you want more of the nitty-gritty, click through for the full show notes.

I'm getting February's financials out a week earlier than I normally would, because I'm going to do a three-part series on safety and compliance, and I want to be able to do them all in a row, without interruption. Here is a sneak peek for what the episodes will be about.

• Episode 41 - What Is the FMCSA CSA Program?

February could have been worse. I had to take more than half the month off because of my military service, so I didn't start my first load until the 18th. With that being said, I still made a profit. Here is a quick overview. Craig and I talk about all the details during the episode. Scroll to the bottom and you’ll see copies of the Profit and Loss Statement and the Balance Sheet.

• Total miles ran - 4,668

In the end Haulin Assets realized a profit of $2,427.52, which is pretty good for having to have the truck sit for over half the month.

To see full show notes and hear past episodes, check out the Haulin Assets website.

Don’t wait until the last minute to get started. Unless you file your taxes as a sole proprietor, your return is due March 15th of every year. You should typically have all your info to your accountant by the end of February to give them time to get it all done and filed on time. If you can’t do that, you can file an extension, but that is an extension to file, not an extension to pay. 

• Your EIN Number, ideally the document from the IRS that has your EIN on it

• What method of depreciation do they recommend using?

Another month has passed by and financials are out.

January was a much better month than I was expecting. In fact, it was the best month I have ever had. Listen to the episode to learn what contributed to the success. Here is a quick overview, and Craig and I talk about all the details during the episode. Scroll to the bottom and you’ll see copies of the Profit and Loss Statement and the Balance Sheet.

• Total miles ran - 9,629

In the end Haulin Assets realized a profit of $4,516.85, which is the best month I've had yet.

To see full show notes and hear past episodes, check out the Haulin Assets website.

Since I started this podcast, I've talked a lot about having the mindset of an owner operator. I going to dive deeper into that topic during this episode.

I created a list of 10 questions you can ask yourself to help you know if you have the mindset of a successful owner operator. Craig and I will talk about each one of them in depth. They are listed them from what I feel like is the least to the most important characteristic. You might not feel like you've developed all these characteristics, but as long as you are strong in most of them and willing and able to strengthen the others, you have a great chance of becoming a successful trucking company owner.

1. Do you constantly seek to improve?

1. Do you accept change?

1. Do you have a failure is not an option attitude?

1. Do you recover quickly from your failures?

1. Do you love a challenge?

1. Do you take charge?

1. Are you resourceful?

1. Do you understand your numbers?

1. Do you manage your cash well?

1. Do you take action?

One of the most common questions Owner Operators ask themselves is whether they should take a lower paying load now, or sit and wait for a better paying load. We try to answer that question during this episode.

Math class is in session. Here is a story problem we are going to use to answer the question whether we should take a load or sit.

You know you can get a load today at $1.80 per-mile that will keep you running 650 miles a day for three days. What rate per mile do you need to earn the same gross income if you sit today and wait for a better paying load tomorrow that runs two days at 650 miles per day? Your variable costs are $1.33 per mile.

Download this worksheet to help with the problem.

If you have not listened to episode 33, Bad News, Good News, listen to that first. There is a backstory to this episode, and understanding it will give you better context to this episode as we go over the December financials.

December was a tough month. I had to do an engine rebuild, so I was out of commission and did not pick up my first load until the 17th. I ran until the 23rd and then was back at it on the 26th. I was hoping to take a little more time off around the holidays, but fate wanted me taking my time off earlier in the month.

Obviously, December was not going to be a great month, but it could have been a lot worse. Because the repairs were all covered under warranty I didn't have any repair costs. The bad news is revenue and my pay as a driver was way down. The good news is that I actually turned a profit for the month, just a small one.

Some of the highlights are below. Listen to the episode where Craig and I talk about these numbers and the profit and loss statement and balance sheet in more detail. You can look at the financials yourself by clicking on the links at the bottom of the page.

• Total miles ran - 4,657

In the end Haulin Assets realized a profit of $1,839.68.

Do you want to know what one thing will have one of the biggest impact on your business? It's giving your business a sold direction with specific goals to meet. Annual planning is one of the things Chris does that has a significant benefit to his businesses. It doesn't have to be complicated or long and drawn out. In fact, simple is better.