Why Become an Owner Operator?

Well I tried to enlist but was told I was too short the recruiter told me I had to be 5'4 I'm 5'2.5. I'm not a fan of the women's liberation movement. I simply wanted the same pay for the same work, responsibilities obligations etc. I didn't desire to be treated as a "man" but I did not want to be treated as some mindless bimbo who was around only to cater to her husbands every little whim. I'm just not that type of person. I understand your feelings and agree.

 

Of course. Some companies charge for trip pak to lease ops so do the math . 7bucks a month x number of drivers per week . Does it really cost that much for trip pak

 

Why become an Owner Operator. Well some think that it gives them freedom of choice vs here is your today job. The myth your working for yourself is a total farce, unless you haul your own product raised on your own farm. But even at that you really are still working for someone else. You are at the beck and call of the costumer. You jack them around you got no business. So no matter if you wish to own a business or work for a business owner. The truth is, your working for someone else always. Being the business owner the money you make is dependent on the energy you put into your business. Being a employee of a business owner, your wages will depend on the owners ability to drive his business to higher levels of production. Some workers want that and others want to just coast day to day. It can be a struggle to manage a balance to these things. 4 out of 5 owner operator start ups will be failures due to their expectations the business is a cash cow. They have false ideas that owner operators make more money. Some will and others will not make more money. It really comes down to how well a owner operator can manage the business. To many start ups don't understand the cost or requirements to make a company succeed.
If you wish make a successful business it can be a very rewarding feeling. But like being a sports star it does not come easy for some and requires lots of trial and errors. Hopefully you can get through the errors without becoming a failure in doing so.

 

Your better off with a small business loan espesially if you have a healthy relationship with a local bank. You may have to put some collateral down but it can be done. I just took out a 45K loan from my local bank, 4 year at 5.2%. Like you said truck dedicated financial instatutions have to tendency to bend you over.

 

Small business loans can be a hill to climb at times. You have far more scrutiny compaired to doing individual loans. Depending on how you have your business structured and how long it has been operating, will be huge factors on the bank approving the loan. I am no way saying it can not be done but a new company will have to have show a good business plan to the bank, as well having outstanding credit. It can be done because I have done it. Started a new business with a 80K loan from my credit union using our car for collateral. 1 1/2 years later I traded that truck in and borrowed 120K putting 30K down on a new truck, also currently buying a trailer too for 35K. All my loans have been at 5% interest. Keeping good books and structuring the money so the company makes profit is key, when a bank is looking at the numbers. Personal loans only require that you can show more money in then what is going out to cover it. The interest rate will have a lot to do with your credit score. That is just a risk factor number to the bank.

 

Attempting to get a loan does subject you to significant scrutiny by experts in financial risk management. That can actually be a good thing, regardless of whether you actually get the loan, since this scrutiny can expose risk areas that you may not have been aware of.

And if the loan actually matters, there are things that you can do to assuage the concerns of the lender, if your credit or business plans aren't quite up to snuff. A larger personal investment gives the bank additional confidence that you will do what it takes to succeed, or putting up collateral - a home, for example - can mitigate their risk of loss, if you do fail. Ultimately, though, the analysis by business finance experts is perhaps more valuable than the actual loan...

 

The easiest way I have found to finance a old truck is to buy it with cash, then take the title to your personal institution, and ask for loan against it. I have done this twice. One time i even went back and asked for more. They didnt want to, but I informed them if they did not loan me the money I couldnt continue to make payments. Or they would own a truck with a bad engine. And since I would be out of work they might as well forclose on one house thats financed through them. Had the check by end of the day. Never missed or late on payment since or before. Helps to have a personal relationship and know them in person

 

I became O/O because I did not want to be exploited by mega trucking companies.
I had O/O friends that told me their stories when they were company drivers. and I really felt their pain. They showed me how to drive trucks and taught me some aspects of being an O/O, however my friends encouraged me to start as a company driver first, but I didn't I took the risk and after 3 months of getting my CDL I bought cash my own used truck.
I work for a company moving containers. Monday to Friday 10 - 14 hrs. daily. I was at home every night, but I worked so much that I only went home to sleep and weekends I played mechanics to maintain my truck in good conditions, basically I worked 24/7 for about 1500 per week , which is not bad if you are a company driver, but as an O/O you have more responsibility with your company.
I knew that I had to pay my dues some how, so this was the time and the place to pay, as I learned the ropes of this business.
within a year I bought another used truck and put a driver in it. within 2 years bought another used truck and I hired my second driver.
Unfortunately I did not do what I was supposed to do. separate friendship from business. Mistakes drivers make, it cost me and my company rate was plummeting. Before my company safety rate collapsed, I sold my trucks and bought a newer used truck and brand new reefer(credit 10 % IPR) and I decided to go over the road. I'm the only driver. my company has a very decent safety rate. My insurance is much lower now than it used to be. I'm much more relax than I was when I had to baby seat my drivers.
Here in this forum are O/O with so much experience and I read and I learned almost everything from you guys and I really appreciated for that. Here are some people who are willing to share their experiences and knowledge without expecting anything in return and to me that is priceless!!! by the same token you guys know exactly when some one is BSNg, which is also good.
In conclusion, all of us have the opportunities to be or do whatever we want to, however not everyone is going to succeed or fail. What is "success" "failure" ? is just an opinion, is a feeling therefore everyone will have their own opinion according to their own perception and needs. So, what why I became an O/O ??????
To me is BALANCE the things that are important to me. family time. Now, some weeks I may have to work longer days or hrs. to suit my needs and goals and being an O/O is giving me that freedom. the freedom to pick and choose a broker, route, state, load, price, time, stops, days off etc. etc.
Probably a company driver makes more money then me, it is ok. I'm not here to compete with anyone. The only one thing here that I try to do my best is not to screw up the market for the rest of us. I do not haul CHEAP load. I rather go empty than haul a cheap load.

 

Now that's playing hardball, and negotiating like a business man. Awesome.

Always remember, banks are more of partners than lenders. You just have to learn to talk their language.

 

Your correct with assessment being a good thing. Ultimately as a business you would want to reduce your personal exposure to the business loss. As a business its always the goal to get it to stand on its own, so if there was a day when it was to fail due to unforeseen circumstances that it does not destroy everything in your name as well. That is more of a sole proprietor business style. There is nothing wrong with that but it does expose the families to tremendous risk. I have known lots of drivers that have tried to become O/O to be terrible money managers. I know O/O now that in no way should be one. We all have the choice to make our way in this world. Like driving in general its a job for some but not a job for all. Only a few that take on this job will be great drivers. The rest will be just part of the revolving door or drivers looking for a new career.