3 Things To Consider Before Becoming An Owner-Operator

If you're a truck driver and are tired of working for someone else, you may want to consider becoming self-employed. Truck drivers that work for themselves are called owner-operators, and this can be a very lucrative business. Here are three things you should look into before taking the plunge into starting your own trucking business.

Your Expenses

The nice part about working for someone else is that you do not have to pay for the expenses related to the job. You will not have to purchase a truck, pay for gas, or carry insurance, but you will be limited to the amount of money you can make.

Before you rush out and start a trucking business, it's important for you to realize all of the expenses you will have with this type of business. Some of these will include:

  • A truck
  • Insurance
  • Gas
  • Maintenance and repairs
  • Permits

Once you have a grasp on how much it will cost to operate the business, you should then look at the income you could make through the services.

The Income Potential

Owner-operators are hired by companies that need trucking services for shipments. If you are planning on doing all the work yourself and not having any employees, you will need to find enough work to keep yourself busy.

As you look into this career change, you may want to begin looking for business. There are a lot of trucking companies around, and you will need to have a plan to find businesses that will hire you to perform services.

Before you make the switch, you should find companies that will agree to hire you. By doing this, you will be certain that you will have work to do. If you fail to locate customers, you may end up investing in the things you need for the business, but you may end up without any work.

Another good step to take is to compare the projected income and expenses. As you do this, you will be able to get an idea of how much work you need to do to make a living at this. You may also be able to calculate how much work you must do to surpass the income you are currently making working for someone else.

To successfully operate this type of business, you must also be good at budgeting. Trucking is a business that has busy times and slow times. To accommodate for the slow times, you must be able to save some of your profits from the busy times. You may need to live off this money if business gets slow.

Invest In a Truck

One of the big decisions you will have to make is whether to buy a new or used truck. Brand new semis can cost between $100,000 to $150,000, which is a huge investment. Buying a used commercial truck will be less than this, but used trucks can cost up to $100,000, depending on what you buy.

If you want to start this type of business without such a huge investment, buying a used commercial truck is probably the better route to take. It's important though to look for one that is in good condition. The repairs on a used truck can be extremely costly, and you will hopefully be able to avoid this by choosing a truck that is in great condition.

As you look for a truck, keep the following factors in mind:

  • Age
  • Miles
  • Brand
  • Fuel economy
  • Warranty

If you are currently a truck driver, you probably know exactly what features to look for when examining the condition of a truck. The truck you purchase will have a lot of effect on the expenses your business incurs. For more info about buying your own truck, contact a company like Arrow Truck Sales.

Becoming your own boss is a great idea if you are a self-starter and are motivated. If you are interested in this and would like to buy a used commercial truck, find a reputable dealer in your area and begin there.