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Gearing up to Become an Owner-Operator in 2020?
Before you decide to dive right in and buy yourself a truck, you need to ask yourself the following questions.
Figure out Your Suitability to Be an Owner-Operator With These 10 Questions
Will you be able to manage the business end of things after spending an average of 70 hours on the road, managing sleep, giving time to your family, taking care of your physical health, etc.? The time constraint may make it difficult but that’s what being an owner-operator is all about.
Are you in possession of sufficient funds? Planning for bad days is very important. You should develop a habit of withholding some amount for difficult times. Nothing stays the same; you could hit a snag, the job market could drop, you could fall sick, etc. With constant fluctuations in the work routine, you could be affected by changes occurring in your expenses and revenue. For that reason, having some money set aside is crucial. Just to be sure, try and make sure you have at least half a year’s worth of income set aside for such circumstances.
What is your overall target? It is not necessary to get into complex planning, but a new business should have goals. How many years are you planning to do this business? Is the long-term like 10, 20 years or lifetime? Or do you plan on doing this short-term only? You could start with yearly planning as they are actionable and simple, and you can keep checking and updating them as needed.
Are you good at maintaining trucks? If that is the case, it could lead to a lot of saving in basic truck repair work. Getting trucks fixed is quite expensive and you would have to pay a lot if you opt for professional repair shops.
Do your goals also include financial independence? Having your own business as an owner-operator means you are not dependent on anyone except yourself.
Are you fully informed about the requirements and lifestyle in trucking? How much experience do you have as a truck driver? Are you used to a life on the move? Is it something you have fully adjusted to? You have to make sure you are choosing the right career. There are a lot of difficult situations that come up frequently in trucking and they must be acknowledged fully when making this decision. Be unprepared and you will be in for a nasty surprise AFTER purchasing a truck for your business.
Did you discuss your decision with other owner-operators and take their advice? Veterans of this industry will tell you a lot of things that you may not know and these lessons are extremely valuable.
Have you considered all your financial needs? Do you have a good grip on your financial situation? Are you aware of all your expenses and what amount you will have to earn to be profitable? You should think about your family’s needs, your health and whatever plans you may have for eventually retiring. Creating a budget for both your personal and business costs is extremely important. Taking advice from a financial and legal advisor can benefit you a lot as well. All this prep will result in manifold rewards as they will help you start operating right.
How good is your bookkeeping system? Who will be responsible for keeping a record of all cashflow matters? You may want to hire someone to help you out with it.
Do you have any good trucking companies in target with an honest track record? Finding the right company can make all the difference in whether you succeed or fail. If you already like the company where you worked, you could forge a deal with them as an owner-operator. Having previous goodwill could help you a lot in such a case.
Whatever you do will determine whether or not your business find success. Give all of the questions posed here a thorough look and think all of them through before you decide to purchase a truck.
Strategizing properly, doing detailed research and remaining steadfast are all the things you need to ensure that you launch as owner-operator successfully.
Interested in Becoming an Owner-operator?
20 Reasons Why You Should Become an Owner-operator Considering the growth in the trucking industry, a lot of truck drivers
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