Welcome to CFF-U Business Series!

Welcome to the next chapter. This is a personal one for me. I’m going to start if you allow me with a little story. Um, nobody talked to me about college when I was a kid. I didn’t really even have aspirations to go to college.

From Culinary Student To Business Owner

I wasn’t a very good student in high school. And, um, you know, I applied to one college and I got into it and it was a cooking school place called Johnson and Wales university in Providence, Rhode Island. And I went there to be a chef and, uh, that’s the only place I got in. So that’s where I went. Right. I thought I needed some college. Um, what I realized was that I wasn’t a very good chef, right? Um, the, the, the professors, the, the chefs up there used to say, uh, uh, Manero, you cook too fast. You don’t cook with love.

You don’t even taste your food. And they were right. I just, I sorta like cooked real hot and got the dish out. And in the end, I wasn’t a great chef and I never became a chef. I ended up becoming a finance guy in transportation. It’s just sort of had a knack for this business. It made sense to me, maybe that’s the same story for you, right? Maybe college wasn’t part of your equation. Maybe it was part of your equation, but at some point in time, you ended up doing what you’re doing, running a business. And as we’re doing in CFF university, we’re teaching us all how to run a great business, structurally and tactically. How do we do it step by step by step. One of the ways we have to do it is how do we break down our revenue needs per day.

Cooking School Math

That’s this chapter. And so the big takeaway that I got from cooking school and why we call this chapter cooking school, math is because I understood about the restaurant business, that it is a business of efficiency. There’s a massive failure rate in the restaurant business, because most people don’t know their numbers. The one thing that I learned at Johnson and Wales was how to back into my numbers and how important the numbers were. And I’ve taken that through my entire career of how do we make our money? How much money do we want to make? And then how do we get there, right? And we’re going to do it for you right now. And I want you to do this exercise with me.

I’m going to say that you want to build a $1 million transportation company. So your revenue goal is 1 million. Now some of you, some of our clients might be saying, oh my gosh, that’s peanuts. Okay. Just stay with me. Cause at the end, we’ll just multiply it times 10. If you want to be a $10 million business. And I’m going to say that in order to generate a million dollars in revenue, you’re going to have an average rate per mile that you haul. I’m just going to say of $2. And your average haul is a thousand miles.

Revenue In Transportation

That equals $2,000 per haul. On average, you determined whether $2 is high or $2 is low. You, you figure that out on your own. All you would have to do is say, oh, Manero two bucks is cheap. I get five bucks a mile. Great. Put it in. Or a thousand miles is nothing. My average is 2000 great. Put it in. It’ll solve the million dollar revenue problem faster. But if we had a $2 average mile and an average haul of a thousand miles, that means that in order to get 1 million in revenue, we have to do 500 halls, a year, 500 truck loads at two bucks, for a thousand miles to get to a million dollars in revenue. Great. Now we’ve got to figure out what does that look like? Like good.

That’s how many I have to do per year, but how many do I have to do per month? So Z in the studio with me, help me with it. We simply took 500 halls a year. We divided it by 12 months and that came out to 41 halls per month. We got a whole 41 of these let’s figure out what we got to do per week. We took 41. We divided it by four weeks and I made math simple. And that said, we need to do 10 halls. We got a whole 41 of these let’s figure out what we got to do per week. We took 41. We divided it by four weeks and I made math simple. And that said, we need to do 10 halls Well, let’s go a step further and say, we’re going to do five days a week. We’re going to work maybe six, but let’s call it five. So I’m going to take 10. I’m going to divide it by five days. And that gets me two halls Per day, simple cooking School, math.

Building A Million Dollar Business

How do I build a million dollar business on a $2, a mile average rate on a thousand mile average haul, I have to do two halls a day. Now you’ve got to figure out how many trucks and employees and staff. You need to have to be able to do two holes per day. Have you done this math before? When we teach the concept of cooking school, math at our burn, the ships bootcamps, most people have never done this. They say they want a million, but they’ve never done it. They’ve never broken it down. Simplistically cooking school, math way to say, how much business do I have to do? How much staff do I have to have? How much equipment do I have to have? What kind of contracts do I have to have? Where am I going to get these two holes per day? From time for you to do your cooking school, math, How much revenue do you want?

Build To Any Revenue – Recap

What is your average per hall? Right? By the way, this solving is just for transportation. I mean, if you don’t have to do a thousand miles, you can just say, I won’t haul something for less than 2000 or 3000 or 50, whatever. And then you work backwards on how many you have to do per day to get back to the million. So for those of you who said, Hey, Manero, a million bucks is nothing. I want a $10 million truck company. Perfect. All you gotta do is multiply this times 10. Now you’ve got to do 20 or adjust these numbers to get to there faster or potentially slower cooking school math. So simple, so easy. So rarely done have to teach it to our clients in CFF university. I’ll see in the next chapter.

About Commercial Fleet Financing, Inc.:

At Commercial Fleet Financing (CFF), our pros have given smart advice to fleet owners and owner-operators in the transportation, moving, towing or construction industries for more than two decades. With CFF, finding the right financing solutions is a phone call away and most borrowers secure commercial vehicle financing with ease. To talk directly with one of our finance pros and get started with credit approval in as little as two hours, CFF’s phone number is (469) 281-2962.