15 Must-Know Tips When Considering Becoming A Leased Owner Operator

The two most important things to consider when becoming a leased owner-operator are the company you lease to and the maintenance of your truck. Without either of these in place, you won't be able to operate a successful business.

You obviously enjoy driving, or you wouldn't consider making the transition from company driver to owner-operator. But when leaving a company, you're also going to leave some of the benefits they provide: health insurance, retirement plans, a steady paycheck, the hand-holding when you need help, and the dispatched loads when you need freight.

What you will have is the opportunity to create your own future by choosing your own freight and deciding how much money you want to make doing it. If you're confident you can do that, here are fifteen things to keep in mind when you make that jump.

Choosing the right company

1. Don't ever purchase a truck from a trucking company and haul for them at the same time. Many of these lease/purchase programs are set up to make more money off of you than when you were a company driver.
2. Always look for a company comprised of owner-operators with years of experience. If you talk to enough drivers, you'll get an idea of which companies these are.
3. Look for a company that allows you to pick your freight rates and load choices. This gives you maximum flexibility in running your business.
4. One of the biggest pluses of being an owner-operator is being able to take time off whenever you want without being hassled. If you can't do this, stay with your current company.

Working with brokers and agents

5. The freight is endless and companies are always in need of drivers to haul it. Don't feel obligated to accept a load from a broker or agent who claims all hell will break loose if you don't take it. They need your truck. Make sure the load fits your schedule, and if not, demand to be compensated for the extra hassle.
6. Established agents don't need you and there is fierce competition for the most lucrative runs. Don't be surprised if you can't get your foot in the door right away.
7. Newer agents are courting customers and building a reputation. They don't always get the best freight in the beginning, but if you build rapport while they're growing, they may rely on you when they land bigger contracts. It never hurts to build a good relationship.

Maintaining your truck

8. When you drive your own truck, keep maintenance and overhead to a minimum by driving slowly and carefully. You are no longer trying to drive the most miles in a day for a fixed per-mile rate. Aim for roughly 57 to 60 miles per hour, conserve your brakes in favor of your engine brake, and stay on top of regular oil changes and grease jobs. They're the cheapest mechanics you can hire.
9. You must know how to maintain your equipment. You don't have to do the work yourself, but you do have to understand what the mechanic is doing. The only way to check their work is to know what you're checking. Document everything done to your truck so warranty issues can be corrected at another facility if needed.
10. When you take your truck to a shop, the first thing you must do is get a written estimate. Indicate in writing that no work is authorized unless you are first informed of the cost in writing and you approve it. Don't let someone manipulate you into trying several fixes hoping one solves the problem. If they don't know, don't go.
11. Make sure any mechanic working on your truck is ASE certified. For specialty work like engines and transmissions, confirm the shop is an authorized dealer or service center. Nationwide chains have warranties valid at any location; small shops typically only honor warranties through their own shop.
12. Always pay with a credit card if possible. Settling disputes and getting your money back is far easier with credit than with cash.
13. Make sure the shop can fix everything. Don't take the truck to a tire shop if you also have a brake failure. Get a written estimate that fully diagnoses the problem and details any related issues.
14. Truck dealerships are often the best places to go, as they typically have all the tools needed to properly diagnose and repair your truck bumper to bumper. But don't assume a dealer is authorized for your particular engine. Do your homework before doing business with anyone, especially if your truck is being towed. Know where they're taking it.

And finally

15. Don't rush into anything. Being an owner-operator requires patience. Read industry publications, take notes, talk to drivers, and learn as much about the business as you can. Be flexible about the time it takes to transition from a company position to self-employment.

When you own the truck, you're the boss, and you make the final decision to sink or swim.