Becoming an owner operator questions

Wait a couple of more years before you make a decision becoming an 0/0. Join OOIDA to learn more on the 0/0's business. Google : OOIDA ; This organization will teach you how to spec' a truck for the type of trucking you want & how to run the business. For example, if you want flatbed trucking, you should get with a good flatbed company as a company driver and learn the ropes; or reefer, etc. Keep studying and planning.

 

As Chinatown said, do a LOT of research and learning BEFORE you jump into a lease or purchase!! Breakdowns can and WILL happen... That is a LARGE financial risk you are taking on. Sure there are warentees, but the $$ you lose by not rolling compounds the cost of the truck as it is still costing you while not rolling. Just that fact alone has sunk many, many people!! Then there are the ones that have no idea how to put money aside and not touch it... For TAXES... Looks nice on paper, all this money I'll make... Then remove 25+% for taxes... Oh and put some money aside for theses repairs... And to decrease the amount on repairs, replace that cost with maintainance... Do you have any business background?? Budgeting? Being able to produce a P&L to know what $$ is coming in and going out... And if going out too fast, where its bleeding from?? Oh and do you want to have health insurance?? That's another big chunk of change... Lord help you if you don't have it and have an accident!!! As to home time and making good money?? LOL... Thanks, I needed that laugh this morning!!

 

You're about to lose the house.

You say you want to start your own company, but you're asking about being an o/o or lease. A lease driver is a company driver that got stuck with all the bills. You've been working at the bottom end of the bottom end companies for a year, but now you know the whole industry. What do they pay...$.90 per mile plus fuel? For that kind of money, why don't you stay a company driver? It's the same money.

Kenworths and Pete's suck fuel, eh? That's like saying that all chevrolets have 505 HP. You're looking at buying a fleet truck. Real smart. Fleet trucks get serviced every 25-30000 miles and o/o's usually PM their trucks every10000-15000 miles. What difference does it make? Better maintained truck, 700-800k miles, 1 owner, average 475-500 HP and a 13 speed versus a bottom feeder company truck, driven by rookies, then leases out and barely maintained by idiots that thought they were ready to start their own business, 430 HP, 9 speed tranny beaten to hell, 550-600 k miles.

Yea, you're ready. Stick with Werner. Buy a bottom end truck for top dollar and hit the road making all kinds of money.

 

It is easy to make money as a lease operator. That is if you have a good printing press!!

 

Take it one step at a time. You need to master one thing at a time. If you go start your own company now, you will most likely be doomed! Maybe you have the driving part down pat. Do you know what the costs are to operate the truck you are driving now? Perhaps the next thing to learn would be what you could expect to spend and expect to earn while on the road. This will be different depending on what and where you run. Also it will change again if you want to be under someone else's authority or your own. If you go your own, you will have to find all your own freight AND you will be the new kid on the block. Also - you will have to have PLENTY of cash on hand once you get this going. The bank wants their truck (and trailer?) payment every month. The insurance company is the same. Now you have to put out money to run that truck down the road while waiting to be paid (often turns into 30, 60 days, longer). Employing a driver? He wants paid too. None of these outsources of money give a rats behind if you have collected or not. If you are going to buy equipment like an old company driven freightliner or volvo, what condition do you think it has been treated? The cost in fuel has more to do with the engine and emissions system and how well the truck has been taken care of then whatever name brand it is. Also - if you are going to try to buy the cheapest and most fuel efficient in an effort to have the lowest cost per mile to go down the road in order for you to underbid freight and still make money - YOU WON'T WIN. The big companies will crush you. They have huge discounts on everything, which you will not get until you have a few thousand trucks.

I think you need to just drive for a while and figure out what you REALLY want out of this industry. If you want to be an independent, one truck show, own authority the whole bit, or perhaps you want to own your own truck but not have to do the paperwork, and just take care of the actual trucking side of it, that is fine too. Perhaps you want to have your own trucks and work a desk and dispatch them. It looks to me like you need to decide which street you really want to turn down.