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Most truck drivers, at some point in time during their careers, toy with the idea of becoming an owner-operator. Transitioning to an independently contracted owner-operator allows you to be your own boss, lets you make your own hours, and lets you choose the freight that you haul. Nonetheless, while there are several upsides to making the change, it is not easy to start your own small business.
Are you feeling entrepreneurial? Considering trying your luck as an owner-operator? If so, here are five things to consider as you make the change!
5 Things to Consider When Becoming An Owner-Operator
- Have experience before you make the switch
The average age for becoming an owner-operator is 37 years old. It is very important to have a proven track record within the trucking industry before venturing to start your own business. When you do decide to work independently, the best thing that you can sell to potential clients is your work experience—a strong history in the transportation industry will lead to a strong career as an owner-operator.
- Plan on an irregular schedule at first
When working for a company, truckers generally have a somewhat fixed, predictable schedule. When making a go of it as a new owner-operator, on the other hand, you have to be flexible with your schedule and take jobs when they come. Once you have established yourself in the industry, you can start to shape your hours and your jobs to your liking.
- Take it easy on your truck
Your truck is your business’s most valuable asset. Without it, you couldn’t work. Owner-Operator Ed Godfrey, who has firsthand experience when it comes to starting an independent trucking company, recommends that drivers never exceed 70 miles per hour on the highway and that they get consistent oil changes. Preventing wear and tear on your truck is crucial and can save you a great deal of money.
- Understand slightly more complex personal financing
Now, being an owner-operator is great—statistically they make more money, and naturally, they get far more freedom with work because they are small business owners. However, it is important to keep in mind that you forfeit a lot of the safety nets that come with working for a company. Just remember that you will no longer have healthcare or retirement plans provided to you, as you would working for a company. All of those things will be on your shoulders. So, be sure that you learn how to appropriately plan and finance these types of things, and don’t ever get caught unprepared.
Use invoice factoring
It can be tough for new owner-operators to get ahold of the working capital that he/she needs in order to achieve success. Waiting to collect money from outstanding accounts receivables prevents truckers from taking on new business endeavors. This is why invoice factoring is such a useful tool for owner-operators.
Factoring eliminates the waiting game when it comes to receiving invoice payments, and allows truckers to pursue other business ventures with fast access to debt-free working capital. Want to see how it works? Contact Factor Finders today at 855-323-1825 or fill out the form for a free quote!
