Settle an argument...Owner/operator a good thing!?!

Trucking is no different than opening up a Subway or Mcdonalds etc...

They all need cash in hand to operate, not a loan, cash!!! They all need a business plan, not an idea, a real plan. They all need funds for a possible slow beginning and rainy day, again in hand, under your bed, buried out back, any place but on a bank loan

You see restaurants and many other businesses closed up, why? you can say the economy and maybe that's true for some but for those who planned ahead, well they are or will reap the rewards for proper planning and a safety net

Same here, a friend of mine who drove for another company was stuck for 3 weeks in a motel while his so called boss got enough funds together to get a $3000 repair bill paid, the friend is now driving my truck, his old boss closed up

 

If you are a good driver with a clean record you can make good coin as a driver too. Some of the best jobs pay very well. But you are under the thumb of a dispatcher. As an O/O you can make money and have more freedom to do as you choose. I always owned my own for the lifestyle choices as much as making money. After I got established, I rarely worked from Dec 15th until sometime in Feb or March. But you should have some mechanical skills to do a lot of your own work. Repair costs are killers today. They've always been bad but today they can break you. I'm an independent SOB and I admit it, don't like being told what to do, never have. So it always suited me to run my own. Not an excuse to be lazy, you have to work but a good operator works smarter not harder. Find a niche, provide very high level service, do what you say you will do and there is some money to be made as an O/O.

 

It is easy to have a million dollars in the bank after five years as an owner operator just start with two million!

 

You gotta have business sense to be an OO. It's not for everyone. You have to have experience and be good with money. The one's that do play their cards right can make some serious money to live better than average. Too many think they can be an overnight success without the hard work that comes with it. For the one that failed a fleece operator is not an owner operator. He's a glorified company driver that loses his glory! Very few beat them odds.

 

If you go O/O, go cash all the way. No loans. Loans make owners do desparate crap. Learn how to think like a businessman and learn how to forecast expenses that you don't realize everyday, like equipment replacement costs and taxes. Understand cash flow and try not to let emotions control your decisions too much.

First, get plenty of experience as a company driver and use that time to save cash, make plans, and above all get your personal finances in order. I reccommend Dave Ramsey's info for learning personal finance and how to get and stay debt free. That is true freedom.

 

I like how everyone in here says cash all the way.. so then we wouldn't have any O/Os out there. If you can get $50k-70k in savings why would you turn that into a truck? Thats just such a stupid move if you dont know the industry.

Start slow, put 2 years in first and do so with 2 different companies 1 each year so you can learn more,(paperwork, operations, areas for freight, dispatchers, brokers, too much to list) the good and the bad. Dont fall into the leasing robbery. Ive done 2 But my voice may not count much as we all have different circumstances. The biggest reward on this will be 2 years of driving record which will get you on the door through any insurance company up ahead.

Save up. If you finance try to put down a figure of about 30% so this way your payment will be low, or put less down and save more for repairs. Spec'ing out the truck and just like any vehicle purchase, mechanically sound the best you can afford. Dont believe in the "dont buy more truck than you need" if payments are good you are the one working and living in it.

Learn. While you do the slow start (2 years) compromise to learn from everything and everyone, from taxes to chaining your tires to companies good and bad to areas in the country for good or bad freight. All drivers like to chime in, listen to all and make your own decisions.

Plan ahead. Like some one stated before, an idea wont get you far but a plan would. Money is the game plan, budget sheets and goals are what you need in your portfolio.
This industry is a mile/penny industry, learning your figures from early in time will save you the most in the long run. Besides you wont look back in regret.

Everybody starts one way or another but we all do it differently and think differently. This is a very diverse industry where you can do whatever you want (as in work) and go wherever you want (time and place) or build your own enterprise, some have.

Good luck.

 

It has worked out extremely well for my brother,he's been an O/O for 20 years but he also hooked up with a great small company

 

All great advice but here is the skinny on reality - you need to first get on the road to understand what this world is all about and what's really going on. You need to get out to talk to those who are actually doing this. Being on a forum is great, it gives you a chance to ask questions behind the keyboard but a lot of people won't explain to you or better put can't explain to you what's going on unless they converse with you.

Being an O/O is not all that great on a few levels, and it takes some skill. MANY people are lucky, they are intuitive about how to handle money and what decisions to make but a lot of others can't save a penny or lack the disciple not to spend money like an idiot when they get $2k a week. I work as a driver right now for a small temp company but I also have trucks on the road which the money they make I do not touch, even if my house needed a new roof and I needed a new car, that money is off limits. Not many people will do that, they will want the money and not work.

I knew a guy who ran mail for a postal contractor - made great money at $21 an hour. He was convinced he could make $30/hour by sub-contracting overflow work from that company. Bought a truck, cheap truck, got his route and went to work. It took him a year before the truck was repossessed and went back to driving for the company. Sure he made money but he didn't know how to manage it nor understood what it was to be a business owner. He, like many others only saw the dollar amount and ignored the important stuff.

 

If you O/O for a company they may provide insurance at a decent rate. Most wont let you O/o until a year. Ofcourse you shouldn't o/o until you are financially ready sot hat takes at least a year anyway.

 

For 2000/week I'd stay a company driver. I'm making a little more owning but have only seen 1 paycheck so far, I've done the math and the next paycheck should be significantly more but my reason for owning the truck is slightly different(scratch from bucket list) do what you want just remember company and personal money are 2 different things