Why do most owner operators fail?

As you will see you will get many different answers based on peoples experience. But from what I see the high level is what some are saying. Not looking at it from a business first and the driving is a task. I like to say drivers "bought a job".

But you need to turn the question around. Ask what has made so many O/O's successful. Look for inspiration. In that you will learn about the challenges but also what it takes to over come them. Because in only looking at the failure you are not getting what you really need. The tools to overcome that very thing that made one person fail while another was able to succeed.

Energy flows where attention goes. So take your attention off of the failures and place it on the success.

 

i wasn't redirecting his attention flow.

he asked a question.

but that question has so many answers.

it really a business sense. and part of that business is having a reliable truck that's preferably fuel efficient.

there have been a lot of stories over the years on this websight. there have been success. and the failures that happened. have all had a different story.

there only one word that dictates wether one fails or not.

"SMARTS"

 

Bill is spot on with his advice. The only thing I would like to add is that most wanna be O/O's jump the gun. They are so interested in making a big paycheck that they dont understand the how's and why's. If I was planning on being an O/O (I already am) I would drive for a company first and learn everything I could (this is what I did) about the business as anyone can drive a truck but not everyone can drive successfully, they think they can but not necessarily true. There are many things to learn before buying that first truck and then you realize how much learning you have to do after that.

Being lazy in any aspect of this business will cost you money somewhere and I see that laziness in many failures. I am also guiltyof this at times and learn it always costs me money. Heres an example of the laziness that I have seen that costs money. An O/O doesnt check his tire pressures weekly only during a PM. His air pressure goes down on several tires because of the colder temps and now his fuel mileage goes down which in turn affects his pocket.

How about a person selling themselves short (hauling cheap) on a rate? Lets say the avg rate from point A to point B is 2.00 per mile but somebody comes a long and hauls it for 1.50 a mile. You just hauled it for 50 cpm cheaper than the rest of the competition and you just lost out on a lot of money.

There are many things that should be learned about the business side of things before making a truck purchase and that way you dont fail.

 

That wasn't towards you but the OP. The energy of the question was about failures. My point is put the energy towards success. You can get the same knowledge by asking "What are some of the challenges that successful O/O's have faced and how do you over come them?"

 

In the massive amount of research I have done about starting out as a O/O I have learned that if you have a good plan from the start there is no reason why a person can't be successful. Yes there could be circumstances that happen that are totally out of there control but if the initial planning is done right then a person should be successful.

A couple other reasons people fail at being a O/O. They weren't prepared for the massive amount of work it took to be successful. They thought it was easy to get good paying freight and I have found out that unless you know what you are doing or in my case knowing people that know what they are doing finding good paying consistent freight can be tough.

Money is another big reason why people fail at being a O/O I have been told. They just don't have the money in place to cover expenses such as repairs and all the other truck expeneses. As most people say it's not if but when the truck breaks and when it does your going to need to have a nice pile of money to cover the expenses to fix the the truck.

Now you have a few break downs close together and that could be a mountain of costs. I have taken the approach that a brand new truck might be less likely to break down but I still know I am going to need a nice chunk of money set aside in case it does.

Those are just a few of the reasons people have told me why it doesn't workout for some people but again the other side of the coin is if you have a good solid plan and know what you are getting into before you start then there is no reason why a person wouldn't be successful.

 

The two primary reasons why people fail as an owner operator are lack of experience and lack of capital. Some will start out without sufficient experience to know what they are doing. Some make a great company driver, but a poor businessman. When you own a truck you are no longer a truck driver. You are a businessman. Unless you run your truck like a business you will fail. All too many will buy a truck without sufficient capital to carry them through if things go bad or have a major breakdown. Major repairs can run thousands of dollars. Blow an engine and you are looking at $10-18,000 or more. I replaced a turbo a few years ago and paid over $2,700 to have it repaired. That doesn't include any tow charges. A transmission went out on another truck and cost me over $8,500, including the tow bill, parts and labor. In addition, the truck was down for a week waiting for a transmission. If you blow a tire and don't have any national discounts, you can pay $500-600 at a truck stop for a tire.

It is never a good idea to start any business without sufficient capital. I have only touched on a few things that have happened to me over the years. Maintenance is costly, but not keeping up on the small items will cost much more later. There are a lot of drivers around who used to be owner operators. Some sold their trucks and decided to become a company driver on their own, but most did not have the funds available when they had a major breakdown. So many will buy a truck and don't have anything beyond the down payment. Others may see all that money coming in and not put anything back for those inevitable repairs. Whether you buy new or used, your truck will breakdown. Having a warranty may or may not help with a repair. Warranties can exempt many repairs. Unless you have the money to make the repairs, you are out of business.

Successful people are good planners. They plan for the worst that can happen. If you fail to plan or only plan for the best that can happen, you are planning to fail. NEVER rush into any business. Some people seem to have a knack for business. Others, seem to struggle to get by. I have seen so many people who want to buy their first truck and they have not even gotten out of truck driving school. If I were just coming into this business and wanted to buy a truck I would get a composition book and keep track of everything that was spent on the truck and the amount of revenue that the truck generated. I would try to take my personal feelings out of the equation and look at the numbers in black and white. The best planning can be done from historical data. It is a good idea to drive a company truck for at least a year or two and keep track of expenses and revenue. It could even help you to work for an owner operator or small fleet owner. Not everyone who owns trucks is a good manager. Success in one business doesn't insure your success as a truck owner, but it could certainly help.

 

running cheap freight does them in as well, never get ahead enough to suffer thru a break down.

 

I have to call ######## on both those. Fuel is an O/O's single biggest expense and a truck simply cannot get the same fuel mileage at 55 as it can at 75, unless it has a massive leak in the charge air cooler, otherwise that defies the laws of physics.

 

Exactly mine goes from 6.6 at 58 to 4.8 at 75 I call b.s. unless your driving a pickup.

 

Being a successful owner operator is actually a lot easier than you would think. Having no prior experience in the trucking industry I had to do a TON of research before I even began. I learned to read between the lines on the forums, weed out the BS'ers, learn from others mistakes and successes.

I started in Feb. of this year with my own authority, got my CDL the month before by taking the test (no prior training) And have done quite well since. I attribute my successes thus far to several factors. First of all I know my exact cpm to run the truck. I guessed what it would be when I started and adjusted as I got real world numbers. Knowing exactly what your costs are is the ONLY way you can realize a profit in this business. (By the way, I run a 53' step) I joined several loadboards and run totally off of them. I treat people, both brokers and shippers/receivers with respect. I return phone calls and let the brokers and receivers know exactly where their freight is every day. I keep my truck extremely clean, I shower and shave every day. Bottom line IMHO is that if you want to be successful in this business, be the best at what you do. Know your costs, take pride in yourself and your equipment and treat people with the respect we all deserve. In doing this people will want to work with you again.

So why do people fail? The answer is simple.... They simply refuse to succeed!