Starting and running a trucking business as an owner-operator is much more than making timely deliveries. Being an owner-operator requires knowledge, driving experience, and understanding of state and federal regulations. If you are considering beginning your own trucking business, you are probably asking yourself, “Is being an owner-operator worth it?” continue reading to learn more about the pros and cons of being an owner-operator in the trucking industry.
Benefits of Being an Owner-Operator
Independence
When thinking of becoming an owner-operator, one of the biggest benefits is being your own boss. Being able to run your business how you want to run it – you are your own boss. But being your own boss comes with responsibilities, such as
· Making your own business decisions.
· Picking loads for your business to haul.
· Choose who you work with.
· Choose whether you want to lease on with a carrier or operate as your own authority.
· Decide if you will be the sole driver for your trucking business or if you will hire employees.
Make Your Own Schedule
As a new business owner, you determine how you spend your time. As an owner-operator, you will:
· Create your own schedule.
· Choose your own loads.
· Choose your home time.
Having this independence and freedom is beneficial when needing to be home with your family and friends for important events.
Potential to Earn More Revenue
As an owner-operator, there is no limit on how much you can make. How much revenue you make depends on several things, such as:
· How you set up your business model.
· What type of freight services you will provide.
· What kind of freight your business will haul.
· How many trucks your business will run.
· How you manage your operating costs.
· And several other things.
You will need to find ways you can save money on operating costs. Some owner-operators choose to lease with a carrier to take advantage of discounts. Some discounts carriers offer include:
· Fuel
· Maintenance
· Insurance
· Tires
· Safety footwear
· Base plates and permits.
Operate the Type of Equipment You Want
Owner-operators can pick the equipment that works best for their business. You must think about your needs and consider if you would like:
· A truck with a manual or automatic transmission.
· Make and model of truck.
· New or used truck.
· Additional features for comfort and safety.
Another benefit is that you get to choose how you get your equipment. You can:
· Lease a new or used truck.
· Buy used trucks and trailers.
· Buy a new truck from a dealership or vendor.
Challenges of Becoming an Owner-Operator
Extra Responsibility
When considering the pros and cons of becoming an owner-operator, you must consider the extra responsibility of running your own business and driving and owning your own truck. Owner-operators manage many different tasks, including but not limited to:
· Office tasks – such as paperwork and scheduling.
· Be able to calculate cost per mile.
· Maintain your equipment.
· Manage your fleet and any employees.
· Track your business profit margins and expenses.
Oversee Expenses Related to Your Business
Becoming an owner-operator requires a big investment. Owner-operators will have a startup and ongoing expenses that they will need to budget for. Some of these expenses include:
· Business registration fees
· Fuel
· Insurance
· Taxes
· Truck payments
Find Profitable Freight
Owner-operators are responsible for finding and booking their own loads. An owner-operator's profit relies on many factors, including the quality of the loads; determining how to get loads is important in setting up your business for success. You must remember what worked for someone else may not work for you. It could take some time to find the best option for your business.
Keep Your Business Compliant
Whether you lease on with a carrier or run under your own authority, owner-operators are responsible for ensuring their business stays compliant with state and federal regulations. Staying compliant means several things:
· Understanding federal alcohol and drug policies.
· Meeting driver requirements.
· Equipment maintenance.
· Following registration and business filings.