Future plans.

Hello Owner ops, I hope everyone's having a great day. I have a few questions for you guys. I'm a company driver with 8 years experience I'm seriously considering pursuing becoming a owner operator. At my current job I'm making roughly 70,000 a year gross I'm saving 300 to 600 a week to buy a truck. I have two options I'm considering to get me to truck ownership. First is saving the cash and buying a used truck for around 15,000 to 20,000 and putting it to work hauling rock and base locally I know a trucking company who would put me to work and run under there authority. Pros- Home daily, Easy work, 15,000 to 20,000 for a truck I'd have no payments, I have a bunch of contacts in the construction industry. Cons- Seasonal, if I buy a $15,000 to $20,000 dollar truck it will need some wrench turning (I'm mechanically inclined), I don't know any rich rock haulers. 2nd option is hiring on to the company where my buddy bought his truck from. It would be pulling mobile homes. Pros- No money down, Cheap monthly payments, They really helped him on the path to becoming a owner op, Its not a never never plan he paid his truck off in a year. Cons- Rates are either excellent or garbage, Pulling mobile homes (changing tires), You pay a few grand more than what the truck is worth, Runs local half the time and the other half across country, Half the time your dead heading. I would prefer the first option but I also feel like the 2nd option would be a better path because I would be starting with 20,000 in cash reserves. What do you guys think? How much capital should I have before trying to make the leap?

 

My friend that moves mobile homes chose to only work 8 months out of the last year grossed 125k for the year so I'm going to guess out of that he probably netted 55k to 70k. I have a cousin that hauls aggregate as a owner operator and he usually nets 300 to 1000 a day after all expenses. As far as repairs if I went the route of buying my truck outright I would be stuck with all mechanical expenses incurred. If I went the route of signing on with that mobile home company and buying from them I would have automatic escrow deducted. My friend who pulls mobile homes definently had a rough mechanical year with his truck. There were a few times he didn't have the cash and the company has always been there to help spot him

 

How much would you consider to be a large cash reserve?

 

Honestly If I make the move the main motivator wouldn't be money. I have just decided that after 8 years of working for companies I would rather work for myself. I mean it's the little things like last week having to argue and explain to my boss (who's never driven a truck) on why it's not safe to run on ice. As a company driver you always have to answer to another man. As a company driver i don't have near as much risk because i can just go to another company if it goes bad. But as a C/D I'll always have to answer to another man on my decisions and I honestly just don't want to do that for the rest of my life. If I could have a buisness and pay myself on a liveable salary of 45,000 then I would be a happy camper!! I bet that ole 359 you had was sweet! I see 359's every now and again on the highway those things just scream classic and style!