How to become owner operator?
How to become owner operator is one of the most is one of the most raised questions (or concerns) among the drivers who have more than one year of experience.
They heard that the status of an owner operator helps them make more money and they want to get those owner operator trucking jobs and own their own truck.
How to become owner operator and when is the best time?
Before starting the process of becoming an owner operator, one should ask himself is now the right time for them to do it.
The best candidates for owner operators are experienced drivers who are ready to operate on their own. Usually, they have around 3-5 years of experience.
These drivers already know how the industry works and are capable of being independent. But, this doesn’t have to be the case for all. Some drivers advance faster and some slower, if you think you got what it takes to become independent, then let nobody stop you!
What do you need to start?
First, you need to get a USDOT number and MC number.
Next, you need to get all the required insurances, you can check that here. Since you will be owning your own truck, you need to have your own ELD. Or if you want to be an owner operator and work with us, you will get our ELD, so you don’t have to worry about that.
Of course, you will need a starting capital to pay for all the expenses and the equipment you need. If you find yourself overwhelmed with everything but you have all the money required, then you could try and find the service to do everything for you.
Managing the expenses
As an owner operator you will have a lot more earning potential than a company driver. When you become one, the profit should be on your mind from day one.
But, however, to maximize profit, the expenses have to be minimized. Regulations, liabilities, maintenance, insurance, and fuel are just some of the expenses you will have to deal with.
Reducing the operating costs should be your focus when you become an owner operator. There are a couple of ways to reduce those costs. For example, you can reduce your fuel costs just by going a bit slower.
If you keep your speed around or below 65 MPH mark, you will increase your fuel efficiency by up to almost 30%! That’s not a small increase in efficiency!
Or go even further by contacting the company that can provide you with lowest fuel prices in the
US, and offer you fuel discounts.
How to get your own truck
The thing that a lot of drivers who are wondering how to become owner operator don’t think about too much is the financing for the equipment. You can’t blame them since today there are a lot of options to get the financing.
You will have 2 options: using your savings if you have enough to cover everything or bank financing.
Trucking equipment is not cheap by any means, and this is why most people get bank financing. Pick the bank carefully, take your time and find the best possible deal you can, the lower the interest rates the better.
Choosing a bank can be stressful, costly and time consuming so it might be a better option for
you to go through a financial advising company that will do all the work for you and connect you
straight away with the best bank.
Also, simple rule and useful advice: if your down payment is bigger, your monthly payments will be less. Balance the two according to your possibilities.
Calculating your success
The formula for your success is pretty simple.
Once you’ve calculated your expenses per mile, you will know just which load is a money maker and which one isn’t.
Once you subtract you expenses per mile from the revenue per mile you will get the number of your gross revenue.
Once you remove the taxes from gross revenue, you will get your net profit.
Conclusion
How to become owner operator? Well, now you know all the basics you need. When you become one, be sure to give us a call! We work with a lot of owner operators and together we make great money!
