The American Film Institute

Current Cost of Tuition

$188,930
Plus Three Years of inflation
$188,930 x 1.04^3 = $212,520
Rounded to The Nearest Thousand
$213,000

$-My Plan to get the Tuition Money-$

My Plan
I will start a small business in the transportation
industry
Step 1 - Purchase a pre-owned truck
Step 2 Hire reliable Drivers that will run the
appropriate amount of miles to be profitable
Step 3 Keep my job at Con-way Freight
Step 4 Be Persistent - continuing firmly or obstinately in
a course of action in spite of difficulty or opposition
Step 5 - Graduate from the U and apply to AFI

Revenue/How to be Profitable
The Carrier I plan to lease on with pays 65% revenue that
the load pays to the truck. To be profitable I will need
5000 miles a week, plus loads that pay no less than
$1.80 a mile plus the fuel surcharge.
For Example
A load from Salt Lake City to Las Vegas Pays $1.81 per
Revenue based on 5000 miles/ week, plus the restrictions
mile + $.45 per milestated
Fuelabove.
Surcharge. Generating a
per mile.
Weekly: revenue
5000 x $2.25of
per$2.26
mile = $11,250
weekly revenue
Annual Revenue : $585,000

Driver Pay and Incentives

I will pay my driver teams $.40 per mile. They will split
the check evenly.
If the drivers achieve 5000 miles a week or more, the
team will earn a $100.00 a week bonus that will be paid
annually.
If the drivers fail to achieve at least 4500 miles per
week they will take an $.08 cent pay cut to $.32 per
mile for that week.
The Lead driver, who is responsible for choosing loads
and truck maintenance, will also earn an annual bonus

Upfront Costs/ Expenses

Start up cost - $35,000
Expenses

Fuel

$1,250

Insurance

$810

Driver Pay (based on 5000

miles/week)

$2,000

Misc. Fees (Scales, Lumper ETC.)

$500

Maintenance ACCT. (.10 per mile)

$500

Total Weekly Expenses

$5,060

Annual Expense Total

$263,120

Profit = revenue expenses - taxes

I will set my business up as a S-corp. Corporate taxes are
35% for business earning more than $335,000. For
earnings less than $335,000 taxes are 34%.
Annual Revenue based on 5000 miles a week @ $2.25 per mile
$585,000
Annual Expenses
-$263,000
Taxable income.
$322,000

Tax Rate.
34%

Break Even Point

March 31st , 2017

Largest Variables
Reliable Drivers
Maintenance

Yearly Goals for the next five years

Year

# of Trucks

Revenue

Profit

$585,000

$212,520

$1,755,000

$627,900

$2,925,000

$1,046,500

$4,095,000

$1,465,100

$5,265,000

$1,883,700