Bruce Outridge

Should You Incorporate Your Business or Not?

Posted on August 19, 2011 by Bruce

As I speak with many new drivers and owner operators I get asked the question quite often as to whether they should incorporate their business or not. There are some very important things to think about when deciding on moving forward with incorporation, however most owner operators don’t look at the total picture. Much focus on the cost and the cost can vary because it is based upon the assets you have for your business and the type of business you are in, but these costs are small when you look at the big picture over time. The costs are also a lot less in the beginning as opposed to later in your business when you have more assets to worry about. Your costs also will go up for bookkeeping and accounting fees, but again that will help in the long run to keep your company viable. Even as a sole proprietor you will have those expenses just on a smaller scale. So let’s look at the benefits of incorporation and why it is a smarter choice for the long term.

In my mind anyone who is planning on making $80,000 or more per year in their business should look at incorporation, maybe not the first year but eventually because it will help tax wise and show that you are in the business for the long term. Many people view sole proprietors as people not very serious about their business. If your business has opportunities for you to be sued or have other liabilities then incorporation is important because it helps to protect your personal assets. Some larger corporations will not work with businesses that are not incorporated so incorporation helps you with contracts and other business options. If you are looking for funding options many banks and financial institutions require that you be incorporated. Tax breaks are one of the most important advantages to being incorporated as corporations are taxed at a lower rate than other types of business models. That advantage alone is enough to offset the cost of incorporating. If you ever wanted to sell your business or parts of your business you need to be incorporated to sell a business. The other major advantage is that as a corporation you become an employee and are able to regulate your salary to be the best tax situation for you personally. This helps you pay a much smaller tax rate helping you save much needed cash flow. So how do you set yourself up to be incorporated?

There are a number of ways to do this. If you are just starting out in your business then you can complete the filing application online. You can also visit your local small business development centre and complete this at their office. If you have many assets to include in your business or if you feel that the process may be too involved then I would suggest working with a lawyer that works with business law. In all cases I would suggest getting advice from people that understand the incorporation process. Incorporating online can range anywhere from $250 to $1000 and lawyers would of course have additional fees. Remember that you are going into business for the long term and part of your success comes from starting your business out on the right footing. Structure builds houses, roads, and businesses. If you don’t have a plan then you will have a hard time knowing if you have reached success in your business.

About the Author

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

Setting Goals as an Owner Operator

Posted on August 4, 2011 by Bruce

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If you ask most owner operators what the goals for their business are most would tell you to make it down the road safely and come out with some money in their pockets. While that may make a lofty operational goal it doesn’t help you in the long run to be successful. Some mention just making their truck payments, others want family time and so on. These are all fine goals, but are they structured enough to get you to where you want to be? The answer is no, goals to most people mean dreaming and that is why they don’t usually work. Goals need specific items in order to work and to do it right require planning and soul searching in a quiet place when you are rested and alert. So what kind of goals should be important to you as an owner operator?

I am assuming you got into business to be successful, I am also assuming you plan on being in business for many years to come. That being said I am strongly in favour of having short, medium, and long term goals. I also like to set monetary and personal time goals. Let’s talk about the time goals first, take out a piece of paper on a day when you are rested and relaxed, if married this is a good exercise to do with your spouse as well and figure out where you want your business to be in 6 months, 1 year, and 5 years. A goal for that area may be to pay off your truck, trade up to a newer truck, may be even have additional trucks. May be your goal in 5 years will be to retire or slow down a bit, if so how do you do that, what needs to be in place for that to happen, how will you get there? A six month goal may be to increase revenue by 5% over the last quarter and so forth. Maybe your goal is to increase your personal time at home, how will you accomplish that, can you get a second driver; manage a small fleet of trucks you own as opposed to driving one full time. What will get you to that mark? Monetary goals are the same but are even better because they do two things; they force you to look at your numbers, and they work in conjunction with time goals which helps you succeed. To set monetary goals look at your most important paper that you have, your profit and loss statement. Start there and figure out where you want to be in a certain time frame such as the ones above. Do you want to cut certain areas of expenses, maybe you need to make more miles, etc?

To make the goal setting experience work you need to put hard numbers on everything. So if your goal is to increase your profit margin by 10 % also include a figure such as $1000. Then you have a hard goal to work with. The second thing you must do is put a date on your goals. This helps give you a specific time in which to work on your goal. With these specifics you can now create an action plan to achieve the goals making you successful. Just going through this process will put you in the 10% category of successful business owners. You know what they say, if you fail to plan, then you plan to fail!

About the Author

Bruce Outridge is a business and leadership consultant for the transportation industry helping truck drivers and owner operators be successful in their careers and businesses. More information can be found on his services at www.outridge.ca

Creating a Process for Winning

Posted on July 14, 2011 by Bruce

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Twenty one days makes a habit. Have you ever heard that before, I am sure we all have as it has been around forever? Habits come in all forms good and bad and sometimes you don’t even know that you are creating a habit. It is kind of like the coffee thing in the morning you start by going through the drive through as a change and before you know it, boom; you’re there every morning for two years. That’s because you went long enough to create a habit. The nice thing about the twenty one day rule is that it works for good things as well and the longer you apply the rule the better engrained it gets. Now I ask you, what part of your work environment, your process, or your position can be improved by improving its process? You may think that you are already running quite efficient and maybe you are, but there is always room for improvement.

Here is what you do. Think about a task that has been causing stress when working, it could be as easy as your pens are stored in the wrong drawer or more complex such as you don’t have enough work surfaces for doing mailings and so on. Consciously take some time to think about how to correct the problem and take the necessary actions if possible. Work with the solution for a week and if it works great then move on to the next area of concern. Aim for little improvements instead of changing around many items. Don’t be surprised if it takes longer to get things right. I have had setups that I thought were very good and worked well only to have something major happen forcing me to revise the setup. The changes made the set up better so you may not always see the improvement until later. Remember once you make the change work with it for a month to keep it engrained and part of your normal habits. It always amazes me when I see people working with a bad office set up or area and they are too lazy to make changes that would greatly improve their efficiency. But hey, they are the ones who have to work there. What they don’t realize is that the more organized you are means the more money you are making because you are finishing tasks sooner. Time management is the key always be looking for ways to improve it.

About the Author

Bruce Outridge is a business and leadership consultant for entrepreneurs and small businesses. More information can be found on his website www.outridge.ca

Strategy is the Secret to Success

Posted on June 23, 2011 by Bruce

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It amazes me how many people bounce around the country without any kind of plan or thought to how their time is used and how to enhance their career by being more efficient. This is so true for the professional driver. Many go around the country when they’re told and feel as though they hold the key in their hands. They arrive when they want, and the famous line heard over many C.B. radios is “I’ll get there when I get there!”My question is what time is that? The same driver who exudes his power by saying the phrase mentioned before is also the same one when sitting in the truck stop will belly ache about how many miles they have put in, how they run multiple logbooks, and how when driving they calculate their income and they average $2 per hour driving. The same driver however keeps on going, week after week after week. If you believe you are averaging $2 an hour for your work I want you to take your truck back to your yard, park it, hand in the keys, and quit! There is a job at McDonalds down the road that will pay you at least ten dollars an hour and your family will thank you for the eight dollar an hour raise that you just got, not to mention your kids will love to hang out with you at work. Let’s hope that you did not start in a career that averages $2 an hour as the norm?

Strategy is planning and is one of the 12 steps to becoming a professional driver. The driver that does not plan does not have a successful career. You should be planning everything you do, you should be planning on delays, and you should be planning for running profitable. I have seen drivers do everything from try to stay out longer so they don’t have to do a certain run to running certain areas for prestige like California. It may feel good to tell someone you run California and you are a big time trucker, but if you’re not making any money what is the point. The successful drivers I know running California have it down to a science, they plan their trips.

Here are some tips to help you strategize your week. Always deliver your first load of the week on Mondays if possible. Arrive at your destination the night before so you are fresh and have hours to run the next day. Aim to put in five hundred miles a day for five consecutive days; your goal is 2500 miles per week. Calculate your border crossings and delivery income to maximize efficiency. Don’t go home during the week unless absolutely necessary. Better to stay in work mode and get the job done, it can be hard to go back to work after being home most of the day. Plan out your time, miles per month, miles per week, and miles per day and be consistent, If you can do that you will go a long way to giving yourself a raise as a professional truck driver. Good luck with the planning and I hope if I see you at McDonalds you are in line to buy a hamburger.

About the Author

Bruce Outridge is a business and leadership consultant for the transportation industry. His 30 years of experience from driver and owner operator to supervisor gave him a successful career in transportation. He now helps professional driver become successful in their careers and their businesses. For more information on Bruce and hid services visit his website at www.outridge.ca

Organization – It all starts with you!

Posted on June 16, 2011 by Bruce

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“You don’t need that stuff! It’s just holding us up!” yelled the dock worker. The driver kept to his work as if not to hear the man yelling in the background. To him it was important, it meant pride in his load, excellent customer service, ownership of his position, the difference between mediocre and outstanding, it meant he was organized, he placed the plywood in between the skids as the forklift set in the final piece. He strapped the rear of the load and proceeded to count and sign off the paper work. The shipper becoming more impatient by the moment and was already starting to get the next driver lined up to back into the dock. To the shipper it was all about finishing at 4:00pm. To the owner operator who had just loaded the freight it meant the difference between a damage claim and a profitable run. The freight was now in his control and as far as he was concerned this was now his own customer.

How many of you have run across this situation out on the road? In my 25 years of driving I have seen this many times. To most shippers it is all about getting the freight out the door so they can go on break, or go home at the end of their shift. Some places you are not even allowed to watch the shipper load your truck. But when you think of if who is responsible for that load once it leaves the dock. I can tell you it is not the shipper. Even worse if it is loaded improperly it can cause everything from damage to overweight fines, to possibly death in the event of a crash or rollover. Even if you make it safely to the customer’s door if the freight is all over the floor what does that do for your company’s customer service or insurance record.

The truth is organization and being orderly starts with you. How you set up your truck from the beginning, the type of equipment you carry and so forth all shows the shipper and receivers the type of driver you are and how much you care. Now some operations it may be harder to do, but for many especially those that are running dedicated equipment this shouldn’t be a problem. Carrying things like plywood on your truck, extra straps and load bars all go a long way to being a successful driver. It is your right to know what is inside your trailer and how it is loaded; in fact it is your responsibility.

So what can you do when arriving at shippers to make sure you are loaded properly? The first thing is to have a well organized trailer from the time you back into the dock. Ask to watch the load loaded and count the pieces going on the truck. Educate the shipper on the type of equipment that you have and the best way to load it for maximum weight. A 10 foot one inch axle spread is loaded completely different to a tandem dry van trailer. Secure your cargo even if the shipper doesn’t feel it will move on you, it will! Finally confirm your piece count and if you can’t sign the bill of lading stating count unconfirmed by driver and have the trailer sealed. If you just sign what is there you are now responsible if the freight count is short at the other end. Being an organized driver is up to you and may seem like more work right now, but in the end your career and pocket book will be better off for it.

About the Author

Bruce Outridge is a business and leadership consultant for the transportation industry. He has over 30 years experience in the industry and helps drivers and owner operators be more successful in their careers. For more information visit www.outridge.ca