Is it time for you to start a career in owner-operator trucking? Are you in the business and dream of taking it to the next level? Worry not, for we got you! But firstly, let’s resolve the mystery on what is an owner operator trucking? Responsibilities of an owner-operator include all-expense incurrences such as insurance, tax rates, fueling, and equipment maintenance. Independent business operators manage their enterprise’s activities and lead to optimum performance. Sources of work for an owner-operator range from leases to consulting freight brokers who act as third parties between shippers and the owner-operator. You require a CDL, a truck either bought or leased, authority and permits, and licenses to start in the industry.
Several things should be considered before an owner-operator trucking start-up project. Any business is a giant leap not to be taken lightly. Some factors ought to be considered to reap the most out of business. After all, is the end goal not to be happy in the job and make a profit? Here are ten easy steps to propel your owner-operator trucking business to success.
1. Money management skills
How good are your money management skills? Promising drivers have failed in the business after formerly being employed since when the big cheques cashed in, they spent all the money and spared none for future trucking utilities. In other cases, there may be slow months in business. Without savings, the business will fail since truck maintenance is no joke. The main goal as an independent owner-operator is to maximize profits. Operational expenses such as fuel costs are manageable using strategies such as choosing a speed limit within 65MPH and avoiding hard braking and cornering for tire maintenance. Avoid vehicle idling which is fuel wastage, thus bad for your money management skills.
2. Accounting and legal advisors
Often at times, professional advice is taken for granted. However, to succeed in owner operator trucking, especially as a starter driver, consult the experts on business structure, income taxes, record keeping, and the region’s legal issues. The ideal business plan for an owner-operator should contain an executive summary discussing the location of your business, target market and its activities, a company overview narrating the story of your business, staff listing if any, marketing and financial plans such as a website social media platform or group networking, and set goals to remind you of the milestones you aspire to achieve.
3. Get ready to work
Trucking makes no money unless you do cover the miles. Focus on going hard, and the benefits will come to you. Ensure that your income expectations remain realistic and work the truck like it owes you money because it does. Emphasize using the truck’s specs for maximum gains.
4. Profit margin calculation
Evaluate the activity of your owner-operator business from time to time using the golden profit ratio. First, calculate your gross profit, the difference between your operating expenditure and revenue. The amount you get is the gross profit. Divide that by your revenue, and whatever number you get is the percentage of your profit. Expert advice suggests that numbers between 10 and 20 are the healthiest percentages. Aspire to be in that margin for a successful trucking career.
5. Health prioritization
Sole business proprietors should take extra care of their health to maintain operations. Take naps when necessary and avoid long hours that may cause sickness. Prioritize consuming healthy meals and have regular workouts, especially for the backside. Allocate free days to spend time with friends and family. These simple things may make or break your business since your mental and physical health are incorporated.
6. Be patient
Rome was not built in one day or even six months. Human nature thrives with instant gratification. However, in business, the economy is volatile, thus slowing the business and profits. Aim to remain focused and determined in tough times. Be tough like your truck! Plan smart and make well-thought-out decisions.
Being a successful truck driver does not always guarantee to be good in the owner operating business. Apply the above guidelines to take on a business approach in your driving. Have the necessary support systems to improve your skill. This way, there will be no stopping you in your successful owner-operator trucking business.