Becoming an Owner Operator: Setting up the Operation
When deciding to become an owner operator, it’s very important to figure out and decide on what kind of business you want to be running. Are you looking to become a single owner operator with one or two trucks, or do you plan on making a carrier company with multiple trucks and drivers?
Whether you decide to venture out just on your own or looking to buy a couple more trucks, it’s probably safe to start out on the smaller end with the operation. According to OOIDA, 84% of carrier companies are 6 trucks or less in size. And if you’re starting out fresh as an owner operator or even a newcomer to the entire industry, it’s best to not stretch yourself out too thin.
Truck ownership is a major investment, with most new trucks costing anywhere from $80-200k. There’s always the option of buying a used truck, but that can get hectic with the costs of keeping it up if it’s worn out. Add in a few more trucks, employees, repair costs, fuel and insurance, and you’re looking at expenses well in the six-figure range. This is why some drivers will lease from a trucking company if they don’t have enough capital to purchase a truck. Though the upfront cost is greater when buying, you’re going to end up with a tangible asset that you can use for all of its value or even resell it.
On the DrayNow app, you can sign up to 3 trucks and drivers onto the platform, helping you maximize your earnings and keep your trucks moving. We’ve also introduced a new Intermodal Spot Rate Tracker to help carriers assess the current state of the market for their decision making. With all of the expenses associated in running an owner operator business, it’s critical to have your trucks on the road as much as possible, and we want carriers to have all of the necessary tools in their possession to keep it that way.
Even if you’re alone in the business with no one in driving in the company, you may still need help with booking freight. When using the DrayNow app, you can also sign up a dispatcher who would be another set of eyes on the marketplace and could assign you loads.
The main difference between single owner operators and carrier company owners with a multi-person operation what scale you are able and willing to take the business. But at the end of the day, they both share the same purpose of trying to maximize their earnings by going out on their own and bringing in more revenue.
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