![]() How Profitable is a Hot Shot Trucking CompanyĪ hot shot trucking business can make $97,000 in profit per year.īased on our research above your profitability should be as follows: If you keep your truck at home and just operate off of load boards and through brokers then you won’t have advertising costs. You can expect about $1,000 per month in insurance on the high end according to Commercial Truck Insurance HQ. Other than these variable costs you really won’t have much in terms of fixed costs if you are driving the truck yourself. Broker fees if you use a broker or load board.So if you charge $2 per mile you could assume 80 cents per mile in costs to operate the truck including costs like: So a good assumption is for your cost of goods sold to be approximately 40% of your revenue which means your gross profit margin will be 60%. The specific cost per mile is going to depend on current fuel prices, but as a general rule of thumb if gas prices go up the rate per mile that you can charge an end customer will go up as well. Gross profit margin for a hot shot trucking business is roughly 60%.Īgain according to the previously mentioned Step by Step Business article the average cost to operate a hotshot truck is. Gross Profit Margin for a Hot Shot Business If you are considering getting into the brokerage business, make sure to check out our article on How to Start a Freight Brokerage Company. You might also be able to add revenue streams to your business like freight brokerage. In the video below I will show you how to enter in your revenue projections in our template - Hot Shot Trucking Revenue Projections But based on $2 per mile, and running at 50% capacity Step by Step Business estimates you can drive approximately 250 miles per day for an annual revenue of $181,000. You won’t always have a load, sometimes you will have to drive back home without a load, sometimes you will just need a break etc. Next, it really depends on how busy you can be. I would encourage you to sign up for a load board or two and see exactly what rate customers are paying in your area. With a hot shot trucking business your revenue potential is going to vary depending on how much you drive and the rate per mile you can generate.Īccording to DAT, $2 per mile is a good goal to shoot for. Of course, this can vary, but let me outline the assumptions we used to project hot shot revenue potential. We estimate that you can make $181,000 in annual revenue with a hot shot business. How Much Revenue Can You Make with a Hot Shot Business? If you need any help filling it out, just let me know! This template will be exactly what you need when your lender asks you for your financial projections. In the video below I show you exactly how to enter your startup costs, revenue assumptions, and expenses into our trucking expenses spreadsheet template. Learn everything you need to know about an SBA microloan in our Ultimate Guide to SBA Microloans. SBA microlenders are non profits that offer business coaching for free as well.One of the great things about the lower startup costs associated with a hot shot trucking business is that you can probably get started with an SBA Microloan rather than needing one of the larger, more complicated and time consuming SBA 7a loans. If you are going to buy your truck and trailer, you might need a business loan to cover the startup costs. Getting a Business Loan for a Hot Shot Trucking Startup If you decide to lease a truck and trailer you would be able to reduce your startup costs significantly, but your ongoing monthly expenses would be greater. Total Startup Costs for a Hot Shot Trucking Business = $76,000 to $106,000 Working Capital = $15,000 to cover fuel, insurance, repairs for the first few months.Truck = $40,000 to $70,000 for a Ram 3500 which is commonly used for hotshot trucking.Fees, licenses, permits and insurance deposit = $6,000.We did a bit of research and based on 3 reliable sources ( LTL Rig, Autotrader, Step By Step Business) we estimate the following breakdown of startup costs for a hot shot business. Working capital (fuel, insurance, salaries, repairs, etc).Fees for licenses, permits, and insurance.Your startup costs for a hot shot trucking business will consist of: One of the reasons that starting a hot shot trucking business is gaining in popularity is because the startup costs can be substantially lower with a class 3 truck when compared to a class 8 long haul semi-truck. ![]() The estimated startup costs for a hot shot trucking business is $76,000 to $106,000. Hotshot trucking is typically short turnaround deliveries made with smaller trucks and trailers as described in great detail in this article from. ![]()
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