Bruce Outridge

Do You Understand Your Company Income Statement?

Posted on November 24, 2011 by Bruce

It totally amazes me how many Owner Operators get their income statements from the company and either believe it is true without challenging it or even worse don’t review it to make sure it is correct. This happens too often and the reason is because many Owner Operators don’t understand the deductions that are taken off or didn’t realize they were paying for such items. I have talked in past articles about creating your own invoicing system, every company has one and the Owner operator should be no different. The important thing is that you understand the statement you receive from the company and you match it to loads you have already pulled and track any expenses that need to be deducted as expenses.

If you accept the statement as gospel then that is the same as accepting a payment from a client and never reviewing it against the invoice. It could be short paid, not paid the tax, etc. As a business owner it is up to you to make sure you receive the money that you have earned to keep your company solvent. If not, the road to bankruptcy is just around the corner. Remember that income is king! Make sure you have all that is coming to you in your business or you will be out of business.

About the Author

Bruce Outridge is a business and leadership consultant in the transportation industry. He helps Owner Operators run successful businesses. More information can be found on his website at www.outridge.ca

Have you Let Your Business Become Complacent?

Posted on November 17, 2011 by Bruce

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I love being in business for myself. Everyone that knows me knows that I like being in some control of my destiny, not saying it is easy but at least is built on effort. I like enjoy the process of dreaming of new possible heights that could be reached with future success. There is also the element of failure that comes with any venture and if not taken seriously will bring a business to a grounding halt. I am a firm believer in the “What if” theory that if you put in the effort the success will follow. For the most part that theory remains true as long as the idea was sound to begin with and the advice received along the way was accurate. So my advice to new entrepreneurs is to usually go for it!

So what makes a business move forward and become successful? Hard work is one but when you start a business you will be in growth mode for a long time. If you are like me or some of my colleagues then you may be in growth mode your whole career and that is a good thing. Complacency can kill any job, business, or corporation. It can affect levels from top to bottom and turn a corporate culture on its head, so how do you change the focus from complacency to growth.

First try to think of the excitement level that got you into business to begin with. Remember when you started and couldn’t sleep because you were too excited. You need to get back to that by taking a good hard look at your business. That includes your goals for the next year as well as your operation. What can be improved in your operation to make it operate more efficiently? What has become the operational standard that should not happen at all? I recently spoke with a client of mine about his business as an Owner Operator, he was having trouble getting the income he required due to downtime and scheduling by the company. He has two choices to solve that problem, he can accept the time management issue as a way of life and not do anything about it, or he can make an appointment with management of the company to try and rectify the situation. With equipment, money, and time invested the latter option would be preferred in my book. Many business owners just accept it as the way of life however and don’t do anything as it eats away at their bottom line.

The point is that the success of your business is your responsibility as a business owner. If something isn’t working it is up to you to find a solution. Always keep in growth mode and look to improve your business situation. Your success depends on it!

About the Author

Bruce Outridge is a business and leadership consultant from Southern Ontario Canada. He helps Owner Operators and entrepreneurs run successful businesses. To learn more information please visit his website at www.outridge.ca

At What Time Do You Ask for Help?

Posted on November 2, 2011 by Bruce

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We are men, raw raw!!!! Sometimes we are too proud to ask for help, for those of you that are married you probably hear this all too often. “Why didn’t you stop and ask for directions, why didn’t you ask the sales clerk?”You know what I’m talking about! Unfortunately there is an air of truth to the fact that we do have a high pride level and don’t ask for help as much as we should. Women are much better at knowing when they have to start asking for help on certain things and when they have it covered. The truth is that in business if you take too long to ask for help you may be out of business. Business has an unforgiving way of making you swallow your pride in a hurry if you plan on being successful. Too long in a bad area and your business will be unable to catch up and have to default to bankruptcy. So how do you know when things are too tough to carry on by yourself and when you should start looking for help with your operation?

First the best way to start is to start correctly. We all could use a helping hand when starting out, especially in the accounting department. It is very important to make sure the accounting part of your business is set up properly and for growth. There are certain tax codes used in the accounting world that are universal and important for you to have located in the right place. This will help your accountant down the road to make sure you’re getting the best tax advice for your business. Realize what you can do yourself and what you should have other people do. Now this area is very gray and I have seen much money spent on stuff that wasn’t required. Let’s take a look at your bookkeeping for example, you could do it yourself but that would take time away from your family, you would require a bookkeeping background, training, and so on. If you don’t have that then you are best to hire a bookkeeper and focus on other ways of running your business. That being said I am a firm believer that you have KNOWLEDGE of the different aspects of your business. So in the bookkeeping example understanding what is required for receipts, how to organize them, is essential for you to know and will immensely help your bookkeeper therefore saving you cash flow. If you are having trouble with your bills, can’t seem to make a profit, or are having trouble getting your business organized then you may be at a point where you should bring in some outside help.

Don’t wait for your business to go down the tubes to realize you should have asked for help.

About the Author

Bruce Outridge is a business and leadership consultant. His OS Program helps owner operators and entrepreneurs run successful businesses. To learn more about the program please visit his website at www.outridge.ca

Securing a Job by Being the Boss

Posted on October 27, 2011 by Bruce

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In my talks with many owner operators and potential candidates I come across many that want to be in the trucking industry, but don’t believe they can take the larger step to the path of Owner Operator. The reason for this is that many candidates for the industry focus solely on the negatives of the industry and not the positives. Being an Owner Operator in the transportation industry is one of the businesses that as long as you show up and of course the company that you are leased on with has the freight available, you have an income stream. Think about this as many traditional businesses you have a marketing program and possibly a sales force, the owner has to go out and get clients and continually be in marketing mode. As an Owner Operator you don’t have to do any of that, you just have to be available for work. No marketing, juts turn the miles. The biggest part of being an Owner Operator is controlling costs, but every business owner has that problem regardless of industry sector. So lets look at the positives of becoming an owner operator.

Income is available, this will depend on your market, but most companies are busy. You can create profits by building equity in your business through proper cost management. You know what equipment you will be driving day in and day out. You are your own boss and can create a legacy depending on the operation of your business. The business can be fairly inexpensive to enter compared to other businesses. You can see the country with no boss looking over your shoulder. The business can be passed down to other members of the family creating a family bond. So as you can see there are many advantages to becoming an Owner Operator or a driver. When evaluating the industry do it fairly and objectively and you will find it to be something that you can count on for years to come.

About the Author

Bruce Outridge is a business and leadership consultant for the transportation industry. More information can be found on his website at www.outridge.ca

What Can Action Plan Do For Your Business?

Posted on October 13, 2011 by Bruce

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How many business owners specifically Owner Operators have an action plan for success. Some feel they have that because they have done that in the past but then never revise it or even look at it again. The new people coming out of truck driving school have a habit of looking at this industry to death, but all in the wrong places because they don’t develop their plan on paper. If you are going to do all kinds of homework, go to seminars, talk with recruiters and different companies, don’t you think taking a note pad around and a pen would be a good idea. It amazes me to see the people that pick a career this way or decide to get into business without writing it all down on paper. Just listening you will not remember the important details of a presentation. Without seeing data listed side by side on a piece of paper it is very hard to evaluate an opportunity properly. That is if generally you are looking at the industry, but what if you are starting a business, buying your own truck, then a whole new set of comparisons are required. You need a business plan if you are in start up mode, evaluating your operation, or planning on expansion. Most people don’t so this and they miss the boat every time. These are the ones that complain they are not making any money. They don’t have an action plan, they don’t have reference as to where they started, are they ready to expand or buy new equipment? As they say the numbers don’t lie and can be the best determining factor of what you need to be doing to reach your goals. A proper business plan will encompass a budget, a snap shot of how you will run your business, your goals for the future, and the particulars of how your business is set up. Some information may be straight forward, but having it all in one place will help keep you focused on what needs to be done. Once you have completed your business plan or action plan it is time to start doing the work, follow your plan keeping money aside to fund your business, repairs and so on. Review your plan on a regular basis, I prefer quarterly or semi annually, but I know people who do it monthly or annually, it will depend on the scope of your business but as a business owner it is important to have a handle on your business at all times. Once you have reviewed the business plan you will need to make adjustments as needed. The best way to do that is to sit down with your business consultant or accountant, your profit and loss statement and your action plan and revise what needs to be changed and adjust to coincide with your goals that you set out for your business.

About the Author

Bruce Outridge is a business consultant for entrepreneurs and owner operators in the transportation market. More information can be found on his website at www.outridge.ca