Steps to Becoming an Owner Operator

By Tim Ridley

While truck drivers owning their own trucks have been an integral part of the trucking industry since the early days of trucking, the knowledge and understanding the business aspect has become more apparent in the twentieth century. What this means is that more and more truckers are trading their company trucks in favor of truck ownership. For most truck drivers, it’s the American dream to have your own rig. Being an owner-operator offers the freedom of owning your business as well as m

• Language: English
• Publisher: Newman Springs Publishing, Inc.
• Release date: Jan 31, 2020
• ISBN: 9781640964655

Book preview

Chapter One

Business Plan

It might seem surprising to suggest that you need to sit down and write a business plan. The use of a formal plan, stating in detail your goals, funding, and how you are going to obtain those goals are very important. An owner-operator has the responsibility of hauling freight, leasing on to a company, and the totality of running a business that involves other entities. This is clearly a complex business. The various facets of the industry demand detailed planning and careful consideration.

The alternative to creating a business plan is to focus on owning and operating a truck and jotting things down as you go. This is, indeed, what many owner-operators do. Some are successful in this approach, while others fold up, and end up in bankruptcy court. In contrast, making a business plan and sticking to it is the most effective way to a more successful business.

A Business Plan

The structured nature of making a business plan can be difficult if you are not familiar with one. However, there are several examples and templates on the Internet that can make everything easier. Those resources should never be used in a legalistic way or deter you in creating a working plan for your business. The idea is to facilitate a plan that will be easy to follow and ultimately reach a timely and successful goal. If a business plan is used wisely and correctly, it can be the conduit for a successful transaction between companies and your business. This is the most essential focus of a business plan.

Don’t Give Up.

The beginning is always the hardest.

Life rewards those who work hard at it.

—www.InspiringQuotes.in

Chapter Two

Finances

You’ve made your business plan and in looking over it, there’s that little issue of financing. Before launching out into the field of owner-operator, the perspective owner will have to interpret the relationship between truck payments and a weekly paycheck. The question should arise: How will I finance a truck? This is one of the crucial things we must look at before becoming an owner-operator. There are many other subjects that this book will focus on that a potential owner-operator will deal with and the many challenges he or she will face in owning and operating a truck.

Can I obtain financing if my credit is not good?

Lease versus Loan

Business Loan

Are there appropriate limits to financing? Does the truck driver have control over the amount of financing he receives? Or should he (she) have money saved to invest before taking such a risk?

What stands in the way of financing?

Those who choose to become owner-operators may buy for themselves a way of life that is both challenging and satisfying. It is human nature to want everything to be smooth sailing but becoming an owner-operator is not easy. There is preparation and hard work. A lot of things must be considered, of which financing is one. This is an integral part. We can’t dive in—head first and expect favorable results. I cannot stress enough: Planning is most important. In looking over your Business Plan, did you include methods of financing your truck or new business? Look over your draft and include not only financing but finances. What do I mean by finances?

Are you prepared to risk financial security to become an owner-operator: a paycheck, no worries about truck payments, insurance,