Are you ready to become your own boss? Are you ready to grow your business in the New Year? Becoming an owner-operator is the first step to making your own rules and unlimited income. You get to determine your routes, when you want to work, and how far you want to go in this business.
Jumping into the owner-operator trucking world can be a scary thing at first, but once you get going there is nothing but you and the open road. Just like doing anything in life for the first time, it’s important to determine your game plan and then just jump right in. It’s sink or swim time. With these six strategies you’ll be swimming in success in no time.
1. Think like a business owner
As a small business owner you have to deal with more uncertainty and managing your own books. With an employer you get health benefits, paid vacation, and a steady paycheck, but as a business owner you’re on your own. You need to determine the best way to maintain a steady income and cash flow that allows you to afford your own health insurance plan and a few days off here and there for rest and relaxation.
As an owner-operator you can make thousands of dollars one week and only a couple hundred dollars the following week. Start by putting together a business plan to help you determine how to effectively manage your cash flow so you can survive during the slow weeks. If you don’t have the knowledge, hire an accountant or business consultant to help you.
2. Buy the right truck for your needs
Your truck is your business. Without it you can’t make any money. It’s important to choose the right truck to meet your business and personal needs. Work with a truck dealer to help you make one of the most important decisions in your life..
Working with a dealer in your niche or market will help you pick the right truck because they know the marketplace and your truck needs. For example, a truck dealer without expedite knowledge may suggest the smaller Class 7 engine because it’s cheaper. But, most expedite specialists will recommend the bigger Class 8 engine because it’s built to last longer and take care of your needs. While the bigger engine may cost you more up front, it will last you longer and should save you money in the long run.
If the high prices of new trucks are scaring you, consider a used truck. However, finding a used truck with low mileage can be hard. Do your research and have a dealer look at it before you make any final decisions.
3. Select the right carrier for your goals
Choosing the right carrier to lease from is very important as it directly affects your income potential. One of the reasons you probably decided to become an owner-operator is to make more money. Choosing the wrong carrier could hurt you financially.
Consider the type of compensation. Is it a flat rate per mile or percentage of freight? Do the math and determine what’s best for your business’s bottom line. Other important costs to consider are fuel surcharges, pay schedule, and expenses.
4. Read and understand your lease before you sign it
How many times do you just skim through paperwork and just sign your name? It happens more than you think. While you might be able to get away with this at your doctor’s office, reading and understanding your truck lease is essential to the success of your business. No one likes any surprises. Hire a lawyer or consult someone at the Owner-Operator Independent Drivers Association (OOIDA) to review the legal document with you.
5. Go to bed
Yes. Go to bed and get some sleep! Sleep is essential to staying focused on the road, maintaining good health, and avoiding burnout. Check out our article on tips to getting a better night’s sleep.
6. Establish a financial cushion
Becoming your own boss is scary, especially when you’re not sure where your next paycheck is coming from. Your success as an owner-operator depends on your cash flow. You’ll want to create some sort of emergency fund or cushion to get you started.
Examine your personal and business expenses and assets. Are there ways to cut costs? Can you get a cheaper phone plan? Do you really use that fishing boat? Cutting living expenses and lifestyle pleasures can help you get started. As your business grows overtime you can definitely start adding those luxuries back into your life. Sometimes you need to make scarifies to reach the ultimate goal.
Becoming a successful owner-operator isn’t going to happen overnight. It’s going to require a lot of hard work and headaches. However, if you put these six tips to good use, you’ll be on your way to success soon.