Is being an Owner Operator worth it?

Yes. I refer to an owner operator in the true sense, full authority. A lot of lease operators, leasing their truck from the same company that provides 100% of their loads call them selves owner operators, they are not. A dispatcher and fleet manager are deciding how much they make. It is very difficult to make good money in these situations but it is possible.
Never think of going O/O unless you have the financial security to do it. Most fail because a costly breakdown puts them out of service. $30K cash, in the bank would be my advise and that is after you have purchased a truck and trailer.

 

Well I'd do this. Watch the expenses and revenue of the truck your driving and decide if that's what you're able to deal with. then read this post. http://www.thetruckersreport.com/tr...ant-to-own-your-own-company.13608/#post-94088

 

Well, it isn't quite that narrow of a deal. There are indeed some very good carriers, especially the smaller ones, that do not have a mega carrier, cookie cutter way of thinking and fit in the narrow paradigm you are describing. Leasing a truck from a carrier might have its own issues, but using the carrier as a load source can be very good in the right situation. Especially if they have a very good, established customer base where loads are consistent and recession resistant, high volume of drop and hook to minimize delays, very good compensation for those rare times that there are delays, and a host of other variables. One has to look at the overall operation and customer base, the compensation and reimbursement package, and what the carrier has for fees and associated charges as well as negotiated discounts on fuel and other stuff. And usually, this type of carrier that has its act together also does not put a noose around a truck owner's neck.

While one may "feel" more independent by going it alone and it strokes their ego, that rarely equates to better net at the end of it all unless it involves being in a niche/specialty market. While Donald Trump may be a master at real estate and such, he doesn't do his own construction. He has it all done for him. Done right, having someone else do the majority of back office stuff in trucking for you can be very beneficial. It is pure business for me. It is all about ROI and CBA. In the right situation, such as mine, the desire to go totally independent just wouldn't be worth the effort.

 

Ok but who has 30K available just like that?

 

IMO the smallest business is better than the best job. That's how I'm wired. Others are wired differently. So decide how you are wired and don't look back.

 

This is the route I took for the obvious reasons, one is the amount of time spent chasing loads or chasing money wasn't worth the time I could be doing something else.

I've got five companies that I have leases with, and now an authority that was part of a package in a distress sale, with advice from professionals, it is simple, I am not using the authority to pull the trucks all under but rather just for dedicated work that I know i will get paid regularly.

there is a lot to look at, but it is like anything else, it takes time and effort to pull it all together.

True again, I have six people taking care of the back office for my trucks, five are with those companies I am leased with and the sixth works for the guy who manages my trucks for me. I learned a long time ago you hire the right people to do the job and don't bother them, Trump as with a lot of others does the same thing.

Actually loans and financing are hard to get for many repairs unless you have good cash flow and a good reserve. Credit ratings are a small part of the picture.

What would $30k bring me?

maybe a couple of rebuilds or a years worth of maintenance but I also amortize my consumables unlike many others so I have to build up a cash reserve to deal with everything from engine repairs to new tires to down payments on new trucks, it matters a lot to say I've got X liquid right now to tap for someone who you are going to for financing.

 

It really infuriates me to hear a so called owner operator talk down on a leased driver operator.The difference between the two is authority.Most truck drivers who owns as in truck and trailer is paid with title on their person is are similar in many ways.1 they aren't considered as part of the company "sub contractors"
2 they don't depend on a dispatcher or the new term coordinator smh to make money.3 they go anywhere they want and home whenever they want.4 they still have to have some relationship with brokers.5 if the wheels aren't turning no revenue is being made.
The only thing that makes a true owner operator is making more money because the truck and trailer is paid for.no payments extra money in the bank.Even those who go get a truck financed through the bank still have a payment to make.Yes it's cheaper to finance way more cheaper than to lease.
But that truck isn't yours yet until it's paid off.I wouldn't knock down anyone that's trying to become a oo.You have to start somewhere.

 

No one is receiving 100 percent line haul as a truck driver on the road period.You take your truck to a carrier to be leased on meaning a percentage is taken 10% is the lowest I've seen so far.

 

Who me Pontiac?

I am a lease owner, not a owner operator but been called owner operator so many times it seems to just be a catch all phrase to me.