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owner operator make big bucks in trucking

Making the Big Bucks: Becoming an Owner Operator

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Whether you’ve been on the road for years or just starting your career as a truck driver, you must have spent some time thinking about your own business. Putting in the long hours on the road and flexing your muscles when loading the vehicle might be fun.  But won’t it be even more exciting if the profits were higher? If you have the dream, the guts, and the money (or a way to get it), you can consider becoming an owner operator.

  1. Find Your Niche

If you are not completely new to the trucking business, you know that there are plenty of different niches. Trying to earn money in a niche with too much competition, when you are just starting out, is complicated. Consider a niche that requires more workforce but perhaps pays less. It can help you earn some cash while getting experience and building a reputation.

  1. Get the Cash

Obviously, any business endeavor starts with the money. You need to invest some of your bucks into a truck. While trucks are far from being cheap, in reality, you just need to find some money for the down payment.

Don’t go for the old equipment even if it seems cheap. You’ll spend more time under the hood than behind the wheel. Do your research and get a fairly new model for your niche. Leave some cash for other expenses, such as insurance, maintenance, and meals.

  1. Be Ready to Work Overtime

Anyone who ever started a business knows that you need to forget about weekends and vacations for at least a year. You can’t get a good reputation as an owner operator unless you put in the hours.

Understanding that you might need to settle for lower paying gigs in order to get the higher pay in the future, can save you plenty of nerves.

  1. Get Family Support

Truck drivers often have trouble keeping their families together due to long hours spent on the road. If you don’t have your family’s support for whatever business you are planning, one of them is bound to fail. So if you don’t want this to happen, make sure to deal with your loved ones beforehand to prepare them for the hardships to come.

  1. Plan for Slow Times

Since you are not getting a salary, you have to be ready for the slow time. You won’t always be getting enough contracts to keep yourself busy. There will be down times that you have to plan for. At first, be prepared to spend about 30 % of your time on the side of the road. Plan for the slow times when the money is coming in.

  1. Get Advice

If you are an experienced truck driver, you know how important the good advice is. This goes for all the aspects of the business, including accounting and legal advice. Find people who are good at their jobs instead of trying to deal with everything on your own.

 

 

How to Start a Trucking Business with trucking management software

How to Start Trucking Business

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The global marketplace is expanding and the need for the product transportation is growing faster than light. Trucking business is on the rise and opening your own trucking company can be a profitable endeavor. You have the dream, the goal, the funding… what’s next? It may be the time to Start Trucking Business with trucking management software.

  1. Decide Which Trucking Business You Need

You can choose from two commonly used trucking company operating standards.

  • Company that uses sub-contracted drivers

This is a cost-cutting option, which has you using drivers who are employed by another company. You own the business and deal with the contracts while your drivers are managed by someone else. While such business requires significantly less spending, it brings lower profits. However, you can still find profit maximizing solutions by working with trucking management software.

  • Company that uses privately hired drivers

This is a more common type of trucking business that requires substantial initial funding. You hire your own drivers, deal with contracts, buy equipment, cover insurance costs, etc. You exercise full control over your business and the drivers.  Accordingly, you get higher profits. Such business owners benefit from trucking management software to cut operating costs and get fuller control of their company.

  1. Draft a Business Plan

Just as any other startup, a trucking company needs a good business plan. Outline the information about your goals, timelines, and strategies. Determine which accounts you will be servicing. Mention your profit-generating plans and approximate deadlines. Underline your goals, values, and wishes.  Include purchasing trucking management software in your plan since it will help you reduce the costs and improve the output.

  1. Get a commercial driver’s license (CDL)

Even if you are not planning to drive a truck yourself, you need to make sure that all your private truck drivers have valid commercial driver’s licenses.

  1. Obtain the Necessary Documents

 

  • Federal DOT number and Motor Carrier Authority Number
  • IRS tax form 2290
  • International registration plan
  • International fuel tax agreement
  • BOC-3 filing

 

  1. Get Insurance

Since trucking business carries certain hazards, the insurance requirements for it are rather strict. You need to closely study your insurance requirements and purchase the policies. It’s better to consult with your local expert. Make sure all you truck drivers have health insurance as well.

 

  1. Buy the Equipment

If you decide to hire drivers on your own, you need to acquire the vehicles. Depending on your initial funds, you can evaluate how many trucks you can afford. Remember, that most of the trucking businesses start small. You can expand your fleet as your company grows.

Before choosing the right vehicles for your company, consider the type of cargo you are planning to carry. You might need additional equipment for various types of cargo. You can also consider leasing the trucks instead of buying them. Consider using trucking management software to help you service your fleet on a regular basis.

 

  1. Find Customers

Building a client base is hard work, so start as soon as possible. Make a list of potential clients and pick up the phone.  Be ready to start with small local contracts.

Make sure to take full advantage of your business by using trucking management software. In the modern world of technologies, having an online assistant is vital to keeping up with the workload.