If you get the chance to have your own business as an owner-operator, you may need to know more about this job.
Possibly you have been driven for one of the biggest companies, you might have a lot of experience with it.
But you still in need of more information to start your own business, here is all that you need to know about how to become an owner-operator.
It doesn’t matter what kind of motivation inspires you to start your own business as an owner-operator.
There are some certain factors you have to understand carefully before you be a part of this industry.
Table of Contents
- 1 Is Being an Owner-Operator worth it?
- 2 How Much Will I Make After Becoming an Owner-Operator?
- 3 How do Owner-Operators Get Loads?
- 4 What Type of Client Do You Want?
- 5 How to Find Shippers Who Pay Well?
- 6 Find Local Associations of Retailers
- 7 Build a Relationship With Different Associations
- 8 How to Become an Owner-Operator
Is Being an Owner-Operator worth it?
Is Being an Owner-Operator worth it? To start your own business and become an owner-operator, it may bring a lot of rewards.
But you have to do it in the right way, if you get a little good luck, you’ll surely get more money, it can be much more than what you had got during your previous job.
But you should take care of being an owner-operator isn’t for fun or suitable for everyone.
It needs a high level of responsibility, while you get you paid money, there may be a lot of considerations and financial risk involved.
You have to keep an eye on the following:
- Truck repairs.
- Other responsibilities.
It’s wise to talk to other owner-operators before you make a decision and invest in this industry.
They can tell you more about their own trucks, profits, and privileges. as an owner-operator, there is another point you should take care of that the better your truck is efficient, the much more money you will get.
How Much Will I Make After Becoming an Owner-Operator?
As an owner-operator, I may not be able to decide how much I get after becoming an owner-operator, a lot of variables are involved in the case.
It depends on contractual agreements I do with different companies.
So if you ask me this question, my answer can be as the following:
I can be paid on the base of mileage, I can also be paid on a percentage basis, specialized niche work may get more than general freight work.
So the difference in niches can affect the way and amount of payment.
It can be difficult to tell a certain percentage of the payment you get weekly or monthly, stating a certain percentage of payment depends on the nature of contracts you get, the fees of insurance, license, maintenance…
But as much as you get deals as much money you can get.
How do Owner-Operators Get Loads?
Looking forward to finding the ultimate-paying freight loads is one of the most important points to become an owner-operator, this job is so hard to get for many trucking operators.
If you can’t find the proper jobs to do, you may go out of business.
New truck operators may make mistakes as they get loads depending solely on load boards, they may move from one broker to another, load boards may assist you only at the beginning, because they often provide low price, their work can be seasonable, so when seasons end, you will not find enough to work.
What Type of Client Do You Want?
I will tell you the answer, you have to think about two points:
- You should find the type of client you need to deal with,
- Define the target destinations you want to travel through.
When you skip the first point, you may lose a lot because if you plan to find high paying loads, it’s necessary to define your type of customer.
It doesn’t come by accident, you should have a clear plan to get clients.
If you know your client, it gives you a very clear perspective on what you hope and wants to do.
Most importantly, it can help you to develop your plan to get more, it’s a critical step you should take seriously.
Here is a piece of advice on how you can define your client, you should think about the following:
- Clients who have big established shippers.
- who pay well, and pay on time.
- Clients with a good reputation.
- who assign loads for you regularly.
- Clients who provide shipments to destinations that match you.
How to Find Shippers Who Pay Well?
One of the demands as an operator I will tell you about is that you should know who your ideal shippers are, you should look forward to finding them, if you don’t know where to find them, you have to look for them in industry associations, big organizations who have their local dealers in the area near you.
If you want to become an owner-operator, you can hand them your best offers which your competitors can’t do, they will surely contact you, if you get an opportunity to work for a big organization, it will offer you heavy loads of work that will get you more money.
Find Local Associations of Retailers
For example, if you find a retail store client, try to find one of the local associations of retailers, try to join, there you will get a lot of work to do, another example can be done for you, there are a lot of trucking companies that haul cars.
So if you agree to move cars, you should join one of the organizations that deal with auto dealerships.
If you get the idea, I can tell you that every industry has its own association, don’t focus on the common industries near you, take extra time to check whether local or far industries need your services or not, tell them you are ready for their help, they can get companies that work in the same industry to join, and many others allow for different corporates to share.
Build a Relationship With Different Associations
The last point you have to know is that try to find names, email addresses and contact numbers of organizations, send them emails, try to contact them, find ways to build a relationship between you and these ones, you will get much more to do, the time you get a list, real work will begin soon.
Now it’s your turn to do the following:
- Send your competitive offers.
- Call their representatives to have a meeting.
- If meetings fails, send letters.
It’s not an easy task to get a chance, but when you get it, don’t miss your goals.
Try to push the wheel to start working, planning is very important for success, if you face obstacles, don’t hesitate to go ahead.
How to Become an Owner-Operator
Here are the most important steps to become an owner operator.
1. Get a lot of experience
Becoming an owner-operator needs much knowledge and experience.
Try to get your experience at first, this will shorten the period until you become professional.
2. Do Self-evaluation
You are likely to do some self-evaluation before starting as an owner-operator.
Especially if you are a company driver, make sure about the nature of your new work, it will be totally different.
3. Learn something new
When you were a company driver, you had a supervisor that led you step by step.
Now you are a master of yourself, so you should learn about every single part regarding your new job.
4. Make a plan of the way to finance a truck
Decide your ideal way to finance your truck, as an owner-operator, you need to define which way is best for your new business.
You can choose one of the following three ways:
- Buy a used fleet truck.
- Buy or lease a truck from a dealer.
- Lease a new truck.
5. Get all the necessary documentation
As an owner-operator, there are some necessary documents that you need to get before you become able to run your truck on the road,
Try to know more about these documents, make sure you get.
If you decide to become an owner-operator, follow these useful tips above.
They will lead you to success, make sure you will get success, but you should be aware of its responsibilities.
Clients may delay their payment bills up to 60 days, this delay may create a problem for you because you need to get your money, as you have to pay for expenses,
You should improve your cash flow to avoid such situations through financing your freight bills.