Owner Operator or Carrier Driver First?

How confident are you in your business and financial models?

What customers and freight will you win, how much and at what rates? Are you sure they'll use you?

What are your capital costs for truck and trailer and how are you financing it?

What will you be paying for insurance?

What kind of reserve do you have for maintenance and downtime?

And many other considerations.

You need satisfactory answers to this kind of question before even thinking of moving forward.

 

is this business partner a family member? If they are, do not even proceed. New CDLs, new authority, new insurance policy, no experience, what could possibly go wrong? Get ready to drop approximately $45,000 for insurance the first year. What is your budget for a truck? Do you have enough cash laid aside to cover some significant breakdowns? Have you looked at freight rates and fuel prices?

 

If they don’t have direct customers just wait till they start dealing with brokers, it could be eye opening….

 

This is a documentary I'd pay to watch.

 

Should you start off as an owner operator? I have a test for you.

I recently had to work on a Mack Granite GU713. Granted, this is a dump truck, but still a Class 8, and the modules will be the same as other Mack and Volvo trucks. Warning message on the dash about a pending derate, and the DEF gauge shows empty even though it’s full. Without anyone else jumping in - I want you to answer this honestly and on your own - tell me how you respond to this. You’ll see why this question is relevant, especially in terms of your financial bottom line.

 

Buy a truck with zero trucking experience? You're kidding right?

 

As a professional driver and former owner operator, I say mortgage the house, get several credit cards, and jump in. With fuel this high it’s got to be paying good right?

 

That's why I made the above post....