What You Need to Know to be a Successful Owner-Operator

Trucking is a competitive industry that millions of people try to break into every year. Also, many truckers seek to make the transition from truck driver to owner-operator, and unfortunately a lot of them fail. This is a major decision that should not be taken lightly. Whether you are a rookie or seasoned vet, you have dreamed of owning your own big rig. So before you jump headfirst, here is what you need to know to be a successful owner-operator.

What You Need to Know to be a Successful Owner-Operator

So you are transitioning from a company driver to a free and independent owner-operator. Before you splurge on a shiny new rig, there are several things you need to consider and should know.

1. You Need a Boat Load of Money 🛥️

That’s right. To start off you will need a lot of cold hard cash.

The biggest investment you will need to prepare for will, of course, be your truck. It is a good idea to put down a decent down payment toward financing or to lease your truck. A large down payment will keep your monthly payments more affordable. Also, this will help you when you apply for a loan and give you more options with a lower interest rate.

In addition to your truck, you will need money for starting out. You will need money for expenses such as food, lodging, fuel, oil changes, and any unexpected repairs.

If you are planning to charge these expenses on a credit card I highly encourage you to reconsider. Remember that they do come with interest and if they remain unpaid for an extended amount of time your credit will be affected. And on that note let's move on to my next point.

2. You Need to Have Good Credit

Not having solid credit is a mistake most owner-operators make when starting their trucking business. If you have a poor credit rating, there are still several financing companies that will give you a loan for a new truck. However, many lose their truck because of personal financial situations and/or continued poor spending habits.

As a business owner, your success will largely be determined by your time and money management. 

3. You Need a Reliable Business and Tax Advise

Before you start your trucking business, it is always a good idea to seek out professional advice. They will help with planning, organization, and education. It is always useful to talk to a fellow driver in preparation; however, there is a lot at stake when you start your own trucking business. 

4. You Need to be Single or Have a Solid Relationship

This is a point that many don’t take into full consideration when becoming an owner-operator. The time spent away from your family, and significant other can lead to any number of problems. If you don’t have a solid relationship the time spent apart can spell trouble and the time spent away from small children can be devastating.

Being an owner-operator is hard on families so before you start down this road consider what is important to you. This could lead to financial stability but this is a decision that should not be taken lightly.

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