Tips on Becoming a Successful Owner Operator

An owner-operator is a self-employed truck driver who runs a small business to transport goods for customers. You are free to haul on your own authority or enter a lease agreement to dedicate your equipment to one carrier.

As an owner-operator, you can build a lucrative career as long as you are hard-working, have realistic expectations, and focus on strong relationships. Here are a few tips to help you succeed.

• Seek out carriers that serve recession-resistant industries. You will keep a steady stream of freight flowing if you work with carriers serving sectors that hold up through a downturn. Look at the customers these carriers work with to see whether they have consistent, long-term relationships. Doing your research up front, instead of jumping from carrier to carrier, will cost you a lot less in the end.
• Be realistic about revenue in your first and second year. You will need to build a book of business before the money becomes steady, and early years often run leaner than you expect. As long as your truck is idle, you are not earning, so keep the loads coming and reinvest as your reputation grows.
• Develop a business plan and a projected budget. Factor in administrative costs, pay per mile, fuel, permits, tires, tolls, scale fees, supplies, insurance, truck payments, and maintenance such as oil changes and washes. Be realistic and include the extras: GPS, load locks, binders, fluids, cleaning supplies, phone bills, and accounting costs.
• Choose equipment wisely. This is critical to your success. Look at new or quality used trucks with warranties, understand the specifications your hauls require, learn your truck's maintenance needs inside and out, and always stay within your budget.
• Hire an accountant. At the end of the day this can save you far more than it costs. Unless you are a tax expert, do not try to do it all yourself. A missed payment or a miscalculation can lead to audits or thousands in lost dollars.

Run it like the business it is, and an owner-operator career can pay off well over time.