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Looking At Owner Op?

#SURFSANONOFRE said:
Hey Guys and Gals
I've got one year experience and I want to know if going Owner/Op is worth it?
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it can be worth it, but you have to do, your due dilligence.

you have to locate work ahead of time, get an "intent to haul" contract, form at least one future customer or 2 if you need to get a bank loan.

you need money in the bank, that you DO NOT TOUCH until you need it for the slow times.

how much do myou need...?? some said at least 3 to 6 months worth, equally your monthly payments, insurance payments, payroll, etc,etc.

some get by, with out so much on hold.

some "borrow" against that money, and that's not good.

it would help if you had "some mechancial knowledge, so you can try to repair the little things.

it owuld help if you had some business knowledge as well, you MUST run the truck and yourself as a company, NOT as a hobby.

you need a place to park that equipment

you need to keep up with all your bills

as an owner, you can take all the off time you want...but remember, the bills take no time off

too many responsibilities for me in all my years, i like my time off and my hometime

i don't want to be tethered to something 24-7 365...
 
pro1driver said:
it can be worth it, but you have to do, your due dilligence.

you have to locate work ahead of time, get an "intent to haul" contract, form at least one future customer or 2 if you need to get a bank loan.

you need money in the bank, that you DO NOT TOUCH until you need it for the slow times.

how much do myou need...?? some said at least 3 to 6 months worth, equally your monthly payments, insurance payments, payroll, etc,etc.

some get by, with out so much on hold.

some "borrow" against that money, and that's not good.

it would help if you had "some mechancial knowledge, so you can try to repair the little things.

it owuld help if you had some business knowledge as well, you MUST run the truck and yourself as a company, NOT as a hobby.

you need a place to park that equipment

you need to keep up with all your bills

as an owner, you can take all the off time you want...but remember, the bills take no time off

too many responsibilities for me in all my years, i like my time off and my hometime

i don't want to be tethered to something 24-7 365...
Click to expand...
Thank you. I've had businesses in the past. Some successful, some...crashed and burned. My desire to be my own boss is to make a Better than average living, and have the flexibility to be home 9 out of 10 weekends to have a life.
 
#SURFSANONOFRE said:
Thank you. I've had businesses in the past. Some successful, some...crashed and burned. My desire to be my own boss is to make a Better than average living, and have the flexibility to be home 9 out of 10 weekends to have a life.
Click to expand...
good luck
 
We have a bunch of guys, who run their own trucks, around town that have dedicated runs once or twice a week ( Louisville and such ) that fill in the rest of their time hauling containers. You won't get rich doing it. But you aren't in the LTL circus and still have manageable home time.
 
pro1driver said:
it can be worth it, but you have to do, your due dilligence.

you have to locate work ahead of time, get an "intent to haul" contract, form at least one future customer or 2 if you need to get a bank loan.

you need money in the bank, that you DO NOT TOUCH until you need it for the slow times.

how much do myou need...?? some said at least 3 to 6 months worth, equally your monthly payments, insurance payments, payroll, etc,etc.

some get by, with out so much on hold.

some "borrow" against that money, and that's not good.

it would help if you had "some mechancial knowledge, so you can try to repair the little things.

it owuld help if you had some business knowledge as well, you MUST run the truck and yourself as a company, NOT as a hobby.

you need a place to park that equipment

you need to keep up with all your bills

as an owner, you can take all the off time you want...but remember, the bills take no time off

too many responsibilities for me in all my years, i like my time off and my hometime

i don't want to be tethered to something 24-7 365...
Click to expand...

You should get a rewards Credit card that you strictly for business needs( fuel, tolls all exp) easier to keep track of everything. Pay it off every month- carry no debit and the rewards will be helpful. You should have at least 6-12 months cash on hand, it could be 2-3 weeks b/4 you see your 1st check yet all your expenses will need to be paid. Also you never know what breakdown exp you will have depends on a new truck or used.
 
Something to consider. At Least 25% of my coworkers owned their own. Now are company drivers. And would never go back to O/O
 
I was an O/O in the '80's to the '90's......ran it like a business,...owned three trucks(never employ a relative!...)......wasn't interested in Chrome Straight Stacks and Brushed Aluminum Wheels and Tanks.....

Never worked for a lessor who...."hinted"...that I could make more money if I ran overloaded/faster/longer.........If I leased on with a company, and I couldn't make a profit running Legally,.......
.....then there definately was a problem with the company,.....not me.......

There is the.....crux....of the situation........Your Competitors will determine how well the potential customers are paying....

And,......when you have "Competitors"........who cut rates just to get home,...or who have no Clue what their daily "break-even" point is,........or who think that continually overloading their truck(..at cut rates..)......and then bragging about putting "110,000 gross on the road, at 90 mph...."........will make them a profit.....
.....and you're forced to....."compete"...with them.....to the Delight of the shippers.........you've got a recipe for financial disaster.....

About half the guys who get into owning their own truck,...are great drivers, but lousy business people.....
And,....every year, about half of those guys go bankrupt.......

Not before ruining the rate structure........to the (once again..)..Delight of the Shippers.......

There are no Qualifiers for getting into the Trucking business.......other than a CDL.......No business degree, no accounting classes, no forums on legalities and insurance liability.......

The smart ones,...are the ones who take the business and accounting part,....just as serious..(if not more...)...as the driving part....

The dumb ones are blowing down the hill,...with $5000 of Chrome Straight Stacks,....chortling about how loud they can run that Jake,.........while they ignore regular brake maintenance, collect their receipts in a garbage bag,....and try to figure out how to "get around" laws mandating HOS..........

If they don't go bankrupt suddenly,...due to a failure of sorts,.....it becomes a slow bleeding death........saw it happen many, many times.............
 
canaryinthemine said:
I was an O/O in the '80's to the '90's......ran it like a business,...owned three trucks(never employ a relative!...)......wasn't interested in Chrome Straight Stacks and Brushed Aluminum Wheels and Tanks.....

Never worked for a lessor who...."hinted"...that I could make more money if I ran overloaded/faster/longer.........If I leased on with a company, and I couldn't make a profit running Legally,.......
.....then there definately was a problem with the company,.....not me.......

There is the.....crux....of the situation........Your Competitors will determine how well the potential customers are paying....

And,......when you have "Competitors"........who cut rates just to get home,...or who have no Clue what their daily "break-even" point is,........or who think that continually overloading their truck(..at cut rates..)......and then bragging about putting "110,000 gross on the road, at 90 mph...."........will make them a profit.....
.....and you're forced to....."compete"...with them.....to the Delight of the shippers.........you've got a recipe for financial disaster.....

About half the guys who get into owning their own truck,...are great drivers, but lousy business people.....
And,....every year, about half of those guys go bankrupt.......

Not before ruining the rate structure........to the (once again..)..Delight of the Shippers.......

There are no Qualifiers for getting into the Trucking business.......other than a CDL.......No business degree, no accounting classes, no forums on legalities and insurance liability.......

The smart ones,...are the ones who take the business and accounting part,....just as serious..(if not more...)...as the driving part....

The dumb ones are blowing down the hill,...with $5000 of Chrome Straight Stacks,....chortling about how loud they can run that Jake,.........while they ignore regular brake maintenance, collect their receipts in a garbage bag,....and try to figure out how to "get around" laws mandating HOS..........

If they don't go bankrupt suddenly,...due to a failure of sorts,.....it becomes a slow bleeding death........saw it happen many, many times.............
Click to expand...
Maybe mention also,
Don’t pickup any grocery DC freight.
Forget about having a 5 Day workweek
Educate yourself on truck maintenance
Be financially prepared to cough up $5000, at one time.
Research any 3PL’s you contract with.
Pay estimated income taxes
Pay 100% of road use taxes,license plate,truck insurance,tolls,and health care.
Watch out for companies that offer discounts on trailer rental,repair parts,fuel,pay based on practical miles.
Plus everything Canary said.
 
I had a friend who was a successful O/O for 45 years. He ran his business just like you. He tried to help a young relative of mine who eventually filed bankruptcy twice. The young man made every mistake you mentioned. He said the older guy just "Got in his way" when they ran loads together. The young man would pass him with his fast truck & be waiting for just a few minutes at the next truck stop for the "Old Man'. My friend compared his fuel mileage & tire life with the faster truck & mentioned they eventually unloaded at the same time. "Good judgement comes from experience & a lot of that is learned from bad judgement".
 
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