Owner Operators often work independently, which gives them more freedom and flexibility than company drivers. Owner Operators run and manage their business themselves.
Most truck drivers are commercial drivers, if we check the ratio one out of nine is independent. The first and foremost thing you need to know before deciding to hit the roads independently or buying anything is that your life will change.
Here are things you need to know before becoming an Owner Operator and jumping into your independent career.
When you are transitioning from the company- Driver to Owner-Operator;
The moment the thought to become an owner-operator comes to your mind, your responsibility grows exponentially. You can’t simply go home, park your truck, and forget about it. You have maintenance to do, and taking care of your truck becomes a part of your life. Looking at different things to keep your business running would be best.
Ask yourself?
You need to find yourself a carrier that you are going to work for.
If you are new to the business, start with small carriers.
If you will be doing this a little longer and know a little more, you can probably choose a more prominent carrier that suits you and your business.
How Should I Spec Out My Truck, For The Work I Do?
Are you going to run Midwest, East Coast, Running down, or travel a lot of hills or icy roads? What will you do with your truck? Where will it be going?
So you should start looking at all aspects of the truck, the equipment, and the horsepower. To know that you got the right truck to do what you want to do, because if you don’t, you may not get certain things out of it like fuel mileage. It would be best if you inspected that the truck you choose must be designed for what you want to do and what you will do.
Your finance plan must be solid. If you don’t have a good credit rating you may have to pay more interest rates. The interest rate is significantly higher for trucks because there is a risk factor. The turnover of trucks that come back in from the guys who don’t make it will owe 100k dollars is much higher.
How long are you planning to have the truck? We suggest you make a 5 years plan and figure out how you will do that. Set it in one place; you can put it on paper and stick to that if you can.
Get your finances lined up and know in advance are you going to purchase a truck and trail or lease it from a trucking company.
Investigate both ways and figure out what works best for you. Talk to the people you know.
Don’t try to do your own taxes. Many people in the trucking industry do their own taxes, and they lose so much money every year. Find an accounting firm that specializes in taxes in trucking, Owner Operator, and lease operators. When anything changes or new regulations come, they know they are up to speed.
The next thing you probably know is when you are the Owner-Operator; you are the first word ‘Owner.’ Ownership comes with responsibility. If the truck breaks down, it’s on you; you have to pay big bills. No company will pay for it; it must come from your pocket.
Never push your truck beyond the limit. If your truck is built to do this and this, never add another this and this to it. Always investigate the cost of repairs from the people you know from the trucking industry. They can give you firsthand information about what you can experience as an owner-operator from their own experiences.
TruckBook allows you to navigate through the most precise and accurate truck route map navigation with live traffic updates, and specify your truck and equipment details to avoid low bridge routes. Download the TruckBook App and get lifetime free access. Make the best use of the TruckBook Map to find truck parking, truck stops, weigh stations, and many more.
Depending on your experience in the trucking industry, you may already have a CDL. Regardless of whether you already have one, be sure you have the correct class of CDL A B or C for your intended cargo. For example, if you plan to transport hazardous material, you need a hazmat endorsement on your license.
Trucking jobs preference for owner-operators and truck drivers and which CDL license you need.
A USDOT number identifies carriers operating in interstate commerce, while an MC number identifies a carrier who transports regulated commodities for hire in interstate commerce. Generally, items changed from their natural state are regulated commodities requiring an MC number. Determining whether an MC number versus a USDOT number is required is made by the Federal Motor Carrier Safety Administration.
You can apply for an MC number through the FMCSA website or drive under another company’s MC authority. Obtaining your own MC can be expensive. Filing fees start at $300.
TruckBook allows Owner-Operators to drive under our MC and DOT authority, and we handle all the hassle of freight negotiations for you. To get started with TruckBook, head to our owner-operator page and learn more about it.
Before hitting the road as a business owner, make sure you are insured.
Typically, owner-operators needs:
Once you assemble your business, it’s time to start earning money from your business by getting loads. As an owner-operator, there are three ways to find loads:
1. Load boards – These are classified ads for the trucking industry. Shippers and brokers post loads, and owner-operators can take their pick.
2. Shipper relationships – This method may cause additional delays in getting your first load if you haven’t been networking with shippers ahead of time.
3. Freight brokers – A sure way to find a load but expect to hand over 25% – 50% of your load revenue to the broker.
TruckBook App is one step solution for Owner – Operators to find suitable loads. Our platform empowers you to find the top 10% freight and manage its dispatch lightning fast. Once your application is approved, browse the loads and choose the one that suits your driving preference.
When you decide to become an Owner Operator, from the time you buy your truck and get everything lined up, you have to make it from there to the three years mark. You will likely succeed if you are doing well and surviving for five years.
Generally, business plans include:
Dispatching your loads from point A to B is half part of your business. You must know how to manage your operations. Always stay in touch with truckers, enhance your business knowledge and develop managing habits that will help you succeed in your long-running business.
Are you ready to earn 10x more and increase your productivity 2x?
Transmission from truck driver to owner-operator can be challenging, but with TruckBook AI-powered technology, we are here to support your business. With Smart Load Book and AI-Powered Dispatcher, we allow you to search and book loads as per your equipment preference, and you can also keep track of your loads in real-time. We allow you to drive with TruckBook authority or under your own authority.
Download TruckBook App and start your journey with us!
Address- 5701,
Lonetree Blvd,
Suite #313 Rocklin,
CA, 95765
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