What You Should Know Before Becoming an Owner-Operator

Becoming an owner-operator has become an attractive alternative for many truck drivers since it provides the unique opportunity to own your own business. Owner operators are in charge of what loads they carry, where they go and how much money they make. However, becoming an owner operator is a massive step so to ensure your success, you’ll want to make sure you know exactly what to expect.
Purchasing a Truck
The most important thing you’ll need to start your new trucking endeavor is of course a truck. Most commercial drivers don’t have the money outright to pay for a new tractor-trailer (which can cost thousands of dollars) so you may need to apply for a truck loan through a local bank and make monthly payments on the truck. Be aware that when you apply, you may be required to show your business plan illustrating exactly what you’re going to do with your truck and how you’re going to run your business.
Lease to Purchase
Another option many people choose is a lease-purchase which allows you to lease a truck before you outright purchase it. Generally, this alternative is cheaper initially to purchasing a truck and many of the up-front costs are minimal. Since you don’t own the truck, you may be required to run loads you’d rather not under the contract with the leaser. You may have to give up a few freedoms you’d have if you owned the truck so make sure you read all the fine print before you sign a lease to purchase agreement.
Operational Expenses
As opposed to conventional truck driver jobs with a large carrier, owner operators are responsible for all expenses associated with their truck including fuel, routine maintenance, and truck repairs. In addition you’ll have to cover the monthly payments of your truck loan or lease and insurance covering your equipment.
Finding Jobs
In order to make money, you’ll need to find jobs on a regular basis. Utilize existing contacts within the trucking industry and let them know you’ve transitioned to an owner operator and are looking for work. Regularly search online job boards to find available loads and consider taking loads that may not be your first choice but can help you get started when you’re first starting out.