Owning Your Success Newsletter T3 -Sept 2011 by Outridge Enterprises Inc.

Issue T3 September 2011

The Successful Owner Operator ... ................Page 2 Do I Need to Incorporate or Not? The New Professional Driver ..........................Page 4 Honesty is the Best Policy Leading the Pack ................................................Page 5 Recruiting with the Future in Mind

elcome to the September edition of the “Owning Your Success” newsletter for the transportation market. In the Successful Owner Operator column you will learnthe important points for incorporating your business. The New Professional Driver column shows the importance of being honest on the job. Finally learn about the importance of recruiting for the future and connecting with new drivers. Enjoy and look out for our other publications on the website. Bruce

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Issue T2 July 2011

The Successful Owner Operator

s 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?

Issue T2 July 2011

The Successful Owner Operator

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.

Issue T2 July 2011

The New Professional Driver

hings to day are quite different from they were years ago in the transportation industry. For instance more items are going electronic, you now have to be a smart cookie to handle a big rig and keep up on all the regulations for being in compliance, but some people for whatever reason just don’t seem to get it when they start on with a new company. Nowadays they have a way to test for much of the practical knowledge required for the position of commercial driver, but some companies are still taking your word that you know what you are doing.

You know what I am talking about, the guy who comes in to the job claiming he has done it all under the sun from flatbed to reefer, and steel, but is only 22 years old. Of the guy who feels he is too cool to listen to the trainer and doesn’t listen to the instructions in case something new is required when loading. There are many of these types out there and I have seen many come and go in my time at the wheel. If you watch them closely you will find that they don’t really know what they are doing and usually will screw up with a load in a very short time because they didn’t listen when being told how to do the job. That is why so many companies have started training programs so people won’t get into trouble in there first few weeks of employment. Those are the people that give the industry a bad name and I am not saying that things can’t happen but as a professional driver it is your job to make sure that you have done everything to the best of your abilities in securing your load or operating in a safe manner.

Issue T2 July 2011

Leading the Pack

So what is the best course of action to making sure you are working at your best. The first part is to know what you should be doing, know the regulations, and have the proper equipment to get the job done. Be organized, this is a big one with me, you have to keep an eye on your equipment and know what is becoming too worn to do the job and what is ready for replacing. Being organized not only helps you track your equipment but also makes you look much more professional in front of the shippers and receivers. Have you ever seen a driver that looked like he had to unload his truck before beginning to load because he kept it such a mess, I have? If you are required to use a certain amount of straps for your load, but feel it would be safer with an extra one go ahead and use it. I have never seen anyone given a ticket for going beyond the regulations to be safe. The same thing goes for checking your load, if getting that load down the road safely requires that you stop a little bit more to make sure it is safe then do that. It doesn’t matter if you are only required to stop once. Leadership means stepping up to the plate and being a professional can mean the difference between saving lives and staying employed.

here has been a lot of talk over the last few years on social media and how it has affected the way people do business. The difference has been drastic in just a short time due to advances in technology and things will change even faster as we move into the future. But the question I would like to ask are you changing? The transportation industry has always been a little behind the eight ball when it comes to marketing and technology, but the world is pushing the change whether we like it or not. Are you up on technology and what is the latest new gadget, how does it work, are your drivers on it and so on? If you are using old technology, yet your drivers are using something more advanced they may resist using your system or even worse keep you in the dark to the latest developments. So how can you move ahead with your team and recruiting efforts?

Issue T2 July 2011

Leading the Pack

At your next tailgate meeting ask your drivers what they are using, how are they using it, and what would create a more efficient workplace. Keep an eye on what is being developed for the future and ask any new applicants how computer friendly they are and how they communicate. Many companies may feel that it isn’t important to have the latest technology, but they are missing some very important pieces of the puzzle. Think of all the systems you have in place now, a phone for the driver, satellite tracking for the truck, email for the dispatch, etc. How much is all of that technology costing you and how efficient is it? Do you realize you could probably give each of your guys a computer tablet that has all of that technology already loaded in to it for cheaper,

and also have the added benefit of having company manuals on it, direct communication from anyone in the office, plus all of the other information required for drivers such as weather and road information I bet if you did the math the tablets would come out cheaper for the company and increase efficiency by a large percentage. How will you handle technology for the future? Installing hard wired systems in the trucks that will be out of date in three years may not be such a wise option. Maybe you are better to assign items to the driver that can be changed easier with time. I am not suggesting one system over the other that will depend on the size and needs of your company, but I think the main thing to think about is keeping your flexibility as technology changes so will you. Remember if you are trying to get drivers for the future you are hiring people that think the laptop has been around forever and “apps” can do everything for you. They will be attracted to the companies that are keeping up with the latest technology. Will they be attracted to your company?

ruce Outridge is a business and leadership consultant for entrepreneurs and the transportation industry. He has over 30 years of experience from driver to owner operator to fleet supervisor and works to create professional drivers for the industry. He is a regular speaker within the industry on a variety of topics from complacency to marketing, and business. To view more information about Bruce or any of his many publications and topics please visit his website for Outridge Consulting Services at www.outridge.ca