> Now Available

The transition from being a company driver to a leased on owner-operator or an owner-operator under your own authority will require research, planning and strategic action if you are to be successful.  Nearly 90 % of all business failures occur within the first year of operations.  This module is an overview of all the necessary steps needed to get you started and to inform you of the multitude of new responsibilities you are about to take on.  It provides an overview of many of the Modules in the Business Webinar Education series of Modules.  You will be able to get a quick look at all the necessary steps and determine which areas you need to be the most concerned with.  

> Now Available

Common, Contract and Exempt authority for motor carriers will be examined with a discussion of which type of authority is best for your operation. Even though the Motor Carrier Safety Reauthorization Act 2005 eliminated the requirements to designate whether you were a common or contract carrier you still must declare a preference.  There are advantages and disadvantages to each depending on your business model.

There are various government forms that must be filled out correctly (FMCSA states that well over half of all filings are inaccurate and never get processed). How you fill out these forms will dictate the legal operation of your business and determines the cost of your insurance.

There are cost savings through changes you can make in your authority filings, or maybe you are looking to lease on to a carrier for awhile and need to know how to revoke your authority so that you can reinstate it at a later date.

Initially you may have indicated you wanted to list all 48 states to operate in but now find that you only run in 10-12 states by revising your authority filings you may save yourself money.

You also may wish to revisit your insurance coverage, to see about saving on insurance, permits and other licensing.

You may be thinking of incorporating and need to be aware that some states demand a fee from all incorporations doing business in their state.

You may be looking at getting your broker authority and need to know the right way to do it and the up side and the downside of brokering.

Other topics covered include:

• Intrastate authority (Required in some states but not all states)
• What permits are needed in specific states in order to operate
• How to file a BOC-3 (Required in every state selected to operate in)
• Insurance requirements for selected cargo and operation classification
• UCR, IRP and IFTA requirements
• Dispute period
• Broker, Private carrier, Freight Forwarder  and Exempt authority (Split operations)
• Revocation of authority and reinstatement procedures
• International freight exemption on DOT numbers
• Cost of authority

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You know what you must have to operate legally as defined in CFR 49; 387.7--387.419, but what do you need to protect yourself and your business?

You will learn the difference between what is required and what optional coverage's you should consider.   

Did you know that if you are leased to a carrier and you are not under a load you probably are not covered under the carrier's liability if involved in an accident? Do you know the consequences of hauling a load and not having enough cargo insurance for the full value of that load?

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It is vital to your business that you keep accurate and updated records.  Learn not just how to register your truck but some potential pitfalls. 

Did you know that if you let the carrier register your truck and you leave that carrier he owns the plate and you cannot drive that truck legally?  

Learn about:

• HVUT
• International registration plan (IRP) Estimation of miles for each state you plan on running in and why this is so important for your insurance
• Unified Carrier Registration—what to do if your state does not participate
• International Fuel Tax Agreement (IFTA)
• Permits required just to drive through a state

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According to the FMCSA one of the highest violations on the Safety Audit/Compliance review is not belonging to a Consortium for drug testing.  If you are the owner and the driver you must comply with the regulations that apply to employers and employees.  There is a fine of up to $10,000 for not being part of a Consortium; you also will not be allowed to operate until you belong to a certified consortium.

You need to know:

• Drug and alcohol prohibitions
• The 7 test required under CFR 49; Part 382—Subpart C
• When a pre-employment test must be done and which ones may be done
• What requirements are there for Post-Accident testing
• When and what constitutes Random testing and how can you be selected
• What constitutes Reasonable Suspicion Testing
• What is Return to Duty Testing/Follow up testing
• When must Directly Observed Test be taken
• What constitutes a refusal to test
• Consequences of failing  or refusing a test

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The Leasing Regulations that all motor carriers must abide by are listed in 49 CFR 396.12 of the Federal Motor Carrier Safety Regulations.  The responsibilities of both the lessee and the lessor are spelled out; however, we also know that this is one of the most violated sections of the Regulations. 

The FMCSA does not normally enforce these regulations so it is imperative that you understand your rights and obligations under a lease. This is a legally binding agreement that you operate under when leasing on to a carrier.  There are many nuances that can trip you up and get you in trouble you need to know your rights under the leasing regulations.  This module will walk you through a compliant lease and inform you of what to look for and what to negotiate. 

“Know when to walk away and when to run!”  This is generally true when the carrier wants to put you into a lease purchase program.  Learn why if it sounds too good to be true then it probably is.  Learn why it is advantageous for the carrier but detrimental to you.

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More than likely your biggest initial cost outlay will be the tractor you are going to run.  While you may have been running a certain model tractor, engine and drive train provided to you by your carrier it may not be the best fit for your business model.   

What are the returns on investment for fairings, boat tails and other mileage enhancers?  Know the demographics of where you are planning on running and which engines and drive trains are best. 

Know how to find the “sweet spot” of an engine to get maximum mileage and the least wear on an engine. 

If looking for a used truck what should you consider?  How do you tell the engine use and where should you look on the tractor for unusual wear and abuse?

How do you tell if the dealer is representing the truck honestly and what must they provide.  Is it better to lease or buy?

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Find the right financing for your truck and equipment.  Keep in mind there are no “lemon laws” for large trucks.  You buy it it’s yours, so let the buyer beware.  Know what lenders are out there and what they look for it loaning money for trucks.  There are no limits on the amount of interest that can be charged on a loan for large trucks, we have seem interest rates as high as 40% and up learn how to read the loan agreement carefully and what to look for in the loan contract. 

Avoid lease-purchase especially through a carrier or an affiliate of the carrier.

Learn how lenders look at:

• Positive tradelines
• Negative tradelines
• How to keep your credit scores above 700 (The magic number)
• Value of your work history
• Loans vs. Finance lease vs. Residual lease

> Now Available

According to the small business administration over 90% of all small businesses fail within the first year.  The primary reason is the inability to control cost.  In many instances the cost of operating a business is not well known. 

If you have been driving for a company you have not had to adjust your cost to stay in business.  It is imperative that you understand the various cost of operations, both fixed and variable as well as the cost to maintain your home and family.

The average cost of operations for the fixed and variable expenses are based on the surveys done on owner-operators that are members of OOIDA. 

There will be exercises to show how to manage some of the variable cost and even some of the fixed cost.  This is an essential module that anyone thinking of getting their own authority or being leased to a carrier needs. 

You need to know how successful carriers have been able to adjust their routes, build their business with shorter routes, and utilized more LTL freight.What programs are out there to help you cut your cost along with negotiation of freight rates.

Know how to look up the rates for produce coming out of the ports in California and how to post your truck on the load boards.

Which states and freight lanes pay higher rates and which do not and why.

What does it take to get Department of Defense loads?  Negotiating a fuel surcharge into your rates is important and sometimes preferable to charging higher freight rates.   

> Available on: 05.24.12

Every new carrier will have a safety audit within the first 18 months of operation.  A Safety Audit is not the same as a compliance review but doing poorly on a safety audit can trigger a compliance review.  There are 16 basics (“16 deadly sins”) that if you have any of those violations you automatically fail the review and could have your authority revoked.  Find out what you can do if that happens. 

• Learn the difference between “acute” and “critical” provisions of a safety audit
• Learn what to say and show and what not to say and show an auditor
• Learn the “politically correct” way to handle the audit
• Know your rights  during the audit and your options
• Learn the 6 factors covered/ and the scoring

> Available on: 06.13.12

This is your starting point for your business.  This is where you evaluate all the options before making a commitment to going into business for yourself.  The business plan is where your dreams must coincide with reality.   

Is your business plan a blueprint to success or a road to failure?  You need to determine if getting your own authority is right for you and to do that you need to know what are the cost and expectations for the future.

• Do you know how to read the economic indicators affecting the trucking industry, such as the value of the dollar and consumer confidence index?
• Can you define your short term goals, in relation to your cost of operation (Looking at fixed and variable cost as well as home and family cost)?
• Learn to estimate your gross and net income (which you must do for tax purposes).
• Is it better to get paid a percentage of the load pay or by the mile?
• Determine your assets in contrast to your liabilities.
• Develop a marketing strategy, knowing the freight lanes and how to post your truck on the load boards.
• If your Business Plan is to be presented to bankers and investors the formatting needs to be a little different but always showing that you have planned and examined your options thereby reducing your risk of failure.   

> Available on: 06.14.12

It is time to expand your Business Plan to include all the things you didn't know when you were beginning your business. Keeping in mind your business plan is your blueprint but one that must remain flexible. 

Where can you cut cost without sacrificing efficiency and productivity? How can you increase your profits while minimizing your cost?

Understand how the economic indicators can help you make informed decisions about what to buy and where the most profitable routes will be. Understand the need to keep informed about:

• Gross Domestic Product
• Inflation
• Global market concerns 
• Trade deficit
• Unemployment
• Recession
• Value of the dollar
• Fuel surcharge vs. higher rates

Is it time to incorporate and what type of incorporation is best?

> Available on: 07.26.12

It is imperative that you understand both the value of Load Boards and the potential problems.  There was a time when load boards were for back hauls to help get you home with little or no real revenue or a load that took you from a location where few loads are moving to a place where rates were better and you are willing to possibly lose some revenue just to get moving. Today is much different as posting your truck and using the services of a load board can keep the wheels turning and revenue earning.  Knowing about the NAIS codes and utilizing them can create a solid base for your trucking company.  Sometimes even leased on owner-operators can get their own load, as long as they respect the lease contract and the percentage of load pay or pay per mile rate agreed to in the lease contract. 

> Available on: 08.02.12

If you are planning on operating under your own authority you will probably be dealing with independent brokers and carriers who broker loads.   

At the present time there is little oversight of brokers by the Federal Motor Carrier Safety Administration.  You do have rights under broker agreements but there are no standard broker contracts that are universally recognized. 

Broker transparency is largely absent so it is vital that you learn what your rights and responsibilities are in broker-carrier agreements.  You need to know what you must negotiate into the agreement in order to protect yourself from fraudulent practices and to receive all the compensation you are entitled to.  You will walk through a good broker-carrier agreement.

You need to know:

• Can you file on their bond
• Is their insurance/bond in good standing
• Are they in good standing
• How to file on the bond if the broker fails to pay you.  

Broker rates are not set in stone whether it is an independent broker or a carrier broker they are often open to negotiation.  Always keep in mind if you are relying on brokers to get your loads you are on the road to failure unless you learn some negotiating skills.

Factoring is not something you want to actively pursue but it can be useful and necessary when a cash flow is needed.  There are good and bad Factoring companies and the module provides help in discerning the difference.

> Available on: 08.16.12

CSA is supposed to cut down on comprehensive compliance reviews but roadside inspections can and will trigger a more targeted compliance review.   The reviews will remain the same but be focused on the CSA Basic area where deficiencies are noted. It is still necessary to have a compliance review in order to get a safety fitness determination (Satisfactory, Conditional, or Unsatisfactory).  Your safety fitness rating can affect your ability to get loads.

However, while on site the examiner can/will note any problems that exist within your business.  It is predicted that a lot more compliance reviews will be done under CSA as they are to be more targeted.

Most compliance reviews will be a lot of paperwork and how well organized you are in maintaining that paperwork.

Know that they will still check for the "16 deadly sins" that the examiner will be looking for in the review.

Know what things are required and what things are not required.  Learn to professionally provide all required paperwork.

In case of a disagreement with the examiner know what your rights are and how to file an appeal.

> Available on: 08.30.12

CSA offers the most sweeping change within the industry in decades.

CSA has many components with 7 Basics, weighted scoring system, time components, and safety event groupings that can adversely or positively impact your business.

CSA will replace the old SafeStat System employed by FMCSA and it will be called the SMS (Safety Management System).

Carriers will check your violations and scores before leasing you on, shippers, receivers and brokers will check your scores before offering loads for you to carry.  This can and should make you and your truck much more valuable.  CSA is here to stay and it can be used as a negotiating tool in negotiating rates.

Learn how the Driver Safety Measurement System (DSMS) is being used at present.

A comprehensive review of CSA will be provided with plenty of time for questions.

> Available on: 09.13.12

As you are well aware the trucking industry is one of the most regulated industries in the U.S.  In spite of all the hype about deregulation of the trucking industry we know that deregulation of trucking referred to the setting and posting of rates in an allowable scheme.  Article 1 of the Constitution allows Congress the power “to regulate Commerce with foreign Nations, and among the several states…”  The Tenth amendment to the Constitution states that those powers not delegated nor prohibited to the states are reserved to the states or people respectively. 

Many states adopt Federal Regulations by reference which means when the Federal agencies make a regulation it applies to that state as well but some states have to have that regulation o through state legislature. 

States, counties and cities may pass even stricter regulations but they cannot make Federal regulations less strict.  Knowing the difference helps the driver to understand some of the problems encountered while trying to understand the regulations. 

It is also important to understand how a bill actually becomes a law and what you the individual can do to give voice to your concerns.

>Available on: 09.27.12

It is important to understand the industry that you are working in, who makes the regulations and what web sites are available to gather information and to stay up to date.

While the trucking industry is supposed to be de-regulated the number of agencies within the government that pass regulations directly affecting your business are legion.  It is important to know who they are and how to communicate with them in making your opinion and concerns known.  Most of these agencies are required to post any changes in the Federal Register and provide an opportunity for public comment to which they must respond.  Find out how to make your voice heard.

> Available on: 10.11.12

The FMCSA and other federal and state agencies are using more and more technology to assist them in regulating the trucking industry.  Many more technological mandates are sure to come from these agencies in trying to meet their goals.  Virtual inspections are already being done through roadside sensors that detect the weight of loads and detect any brake problems that need to be checked. On-Board safety systems will be mandated shortly and you need to know what they are and how they operate.  It is important to know what is required and what is proposed.

Some technological advances can be used to save you money and time.  New phone applications and devices are making maps obsolete.  Real time information on fuel prices, congestion, accidents travel times, restaurants, lodging etc. sites are available.  Most cell phones can take pictures in case of accidents and the list goes on and on.  Communicate with home and family for little or no cost saving on your variable and fixed expenses.  Technology while being used to regulate you and your industry can be a time and money saver.

>Available on: 10.25.12

While it is true that when you applied for a CDL you also granted certain concessions to regulatory agencies and their representatives that may seem unconstitutional.  It is best to get the facts from the experts rather than rely on the “driver lawyers” at the truck stops. 

Common misconceptions will be bought out and discussed.  When is it best to plead guilty and pay the fine and when is it better to have your day in court. 

There will be time at the end for questions and answers.

> Available on: 11.08.12

Your truck is your livelihood and your biggest single investment, if it goes down you may find yourself out of business.  There are some basic maintenance requirements that all trucks need to operate in an efficient manner.  As the truck ages and gets over 500,000 miles the cost of maintenance increases rapidly.  The cost of both new and used trucks has risen dramatically in the last few years and it is important to keep your truck running at its maximum efficiency. 

There is a lot of new equipment on the newer trucks that require additional maintenance that older trucks may not require, learn the basics of maintaining the new mandated equipment along with the cost so you can make good business decisions on keeping your truck or replacing your truck. 

> Available on: 11.15.12

There are a number of ways to use the benefits that are out there to save you money on your fixed and variable costs.  There is no such thing as free money but there are various programs that can save you money.  Fuel cards, discounts on lodging, meals, tires, trucks, wheels, APUs, DOT physicals, medicine, bookkeeping, phones, load boards, and more.

> Available on: 12.06.12

Most owner-operators run their business from their truck or from home.  You must have a place of business in order to get your authority and that is where the FMCSA will expect to be able to contact you or one of your representatives. For most owner-operators the home is their terminal and business location.  There are things you need to keep at your business if and when DOT comes “a-callin”. There are things that will make everything easier when running an office.  Learn the things required and what things you don’t want at your business location.

Taxes are part of the business and for the owner-operator it can be confusing.  Learn the basics of what you must file and when.  How to estimate your taxes as you pay them quarterly and if you have employees what the criteria is for being an employee versus an independent contractor.

> Available on: 12.13.12

Tune in to this roundtable of experts as they look down the road of 2013.  What changes are ahead and how do you stay in touch with those changes.