Added: Dasia Tollison - Date: 04.08.2021 06:46 - Views: 23807 - Clicks: 3065
If you are thinking about becoming an owner operator in the trucking business, there are several things you ought to consider. Almost every truck driver, whether a newbie to the trucking scene or a seasoned vet, has at one time or another, dreamed of owning their own big rig, and hitting the road to make the big bucks.
But, there are are many factors to consider and things you should know, before becoming an owner operator and jumping into the money pit, with both feet. After all, the main goal is to be a successful owner operator and turn a profit in your trucking business. Your biggest investment is your truck. A substantial down payment will help keep the equipment payments lower and more affordable. It can also help you secure the loan. On the other hand, some experts say, go into an equipment purchase with little or no money down. Payments will be higher. Have a back up money stash for down time incurred… whether an older model truck or new.
New rigs DO break. Down time can be a killer. If you plan to charge your expenses to a credit card, be sure to make budget allowances to pay these charges, and not carry them long term on your credit card. A mistake by many want-to-be-owner operators, is getting into the trucking business with bad credit or excessive personal debts. However, the future is often very dismal for these truckers. Many carriers have a credit card system or use Commdata cards for their owner operators, which are very handy for fuelling.
Your spending habits and money management will largely determine your success as an owner operator. Being away from a spouse, partner and family can cause an endless multitude of issues and problems.
Long periods of separation can be destructive for even the most stable relationships. Long absences can be devastating for families, too. Also consider any child custody issues. You have people in your life that you love and respect. You need their support too. This is one of the most important difficult decisions of becoming an owner operator.
Get some sound advice when making a decision to go into business. What works for one person, may not work for another. Legal and ing issues are best left for the experts. If you have made the final decision on becoming an owner operator, be sure you have a firm grasp on your personal finances. It may also be worthwhile to have a reliable business banking contact, ant and legal adviser, to help you with critical decisions concerning business structure, record keeping, income tax returns and various legal issues….
If you have serious health issues now, being a successful owner operator may not be within your reach.
Be sure you have enough cash set aside to get you through any unexpected downtime due to illness. Decent health coverage is necessary too, particularly for American truckers. Travel coverage is also an owner operator expense which can be quite pricey.
Also, the authorities can yank your away at the blink of an eye, due to health issues such as diabetes, sleep apnea etc. They do not care about your bills and payments, so beware. You are committing the next of years to paying for your new investment.
Make sure that the higher price tags of these slick machines fit into your budget. Find a sales rep that is mechanically inclined, or an ex-trucker who knows something about the product they are selling. Their knowledge will pay big dividends for you. They can often give you good le for competitive truck financing, too.
Buying used equipment is certainly a viable option, but buyer beware. Check out the warranty carefully. Depreciation and resale on big trucks can be brutal. You could loose your cash down payment and not recover it on the resale. If this is your plan, consider being a company driver instead, where you can just quit and walk away from the job. Ditch the idea of becoming an owner operator. Jumping from carrier to carrier is costly, too. A new owner operator is best to start out being leased to a carrier. The carrier has the responsibility of providing operating authorities and permits, securing insurance although the owner operator often gets stuck with the insurance premiums!
Carriers often provide credit card systems such as Commdata for cash advances and fuel purchasing. Purchasing on a company fuel card often has the benefit of decent fuel savings, too. Depending on your owner operator lease agreement, you many be reimbursed for some expenses such as road and bridge crossing tolls.
Invoice factoring is a method used by some truckers and trucking companies to expedite payment. However, I do not personally recommend it for a one truck operation. Working for a good carrier is essential. Look for a carrier with owner operators who have been with the company for a long time. Do not EVER get involved in a lease purchase agreement with a trucking company. They just do not work. An owner operator job requires patience, determination, time and hard work.
But, it can be done, with proper planning and smart decision making. An owner operator career can be both profitable and satisfying, even in this volatile economy. But be smart. Your success depends on it. Be sure you are equipped with the skills to do so, or have the support system to ensure your How to be an owner operator truck driver. Think seriously first, before taking on the increased stress and financial commitment of owning your own truck. If you click on one of the product or service links on this site, we may receive commissions if you purchase something.
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