Aug 27, 2019 - Back to News
Click here for the original article via TeamRunSmart.com
By David Morreau II
An important thing to keep in mind as a lease-purchase driver is knowing your numbers. When I say this I mean know your operating costs, living costs, and recreational costs. When I run my numbers I try to recap how my week went and compare them to where I need to be in order to get better where I can. I also use these numbers to see how I can improve by checking out what can be done to lower these costs.
One thing that’s been a huge help with my numbers is fuel economy. I always strive for good fuel economy and the ability to keep most of my revenue. Since I’ve slowed down to the point where I can make appointments on time and also maximize my fuel economy I’ve found my nexus point. Yes, I may not get as many miles as another driver who hammers down but I’ve run the numbers and have found that by going 60 [mph] instead of 70 [mph] I’ve increased my revenue by as much as 20% in some instances which in turn lowers my operating costs even under the bar I’ve set for myself.
I’ve also evaluated what my needs vs. wants are when looking at the week. If there’s something that’s wanted and not needed and my numbers are ok but could be better, I slash that on my budget. Another thing is if I have extra revenue, I put it back into my truck. Not with chrome (granted it looks nice), but with something that has been proven to make my business more efficient. For example, I just ran some numbers and found that with my excess revenue I could afford to order a tire pressure monitoring system. Granted it can seem nice to get some extras but in lease purchase, you really have to watch those numbers to be profitable in your business.
Another thing to help watch your numbers closely is hiring a CPA or Certified Public Accountant. These CPAs can actually generate a profit and loss statement depending on your preferences so you can have a pretty good idea where you are and where you need to be.
Performing your regularly scheduled maintenance can help as well because it minimizes your downtime by catching anything that may become an issue in the future. So in conclusion, there are quite a few ways to meet the financial goals you’ve set and the ones I’ve mentioned here are just a few of the things you can do. I challenge everyone to just put pen to paper and run the numbers so you can meet or exceed your business goals.