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A Step-By-Step Guide To Become An Owner-Operator

December 20, 2024

Current economic conditions are not welcoming for many small businesses. Yet, the trucking industry keeps attracting entrepreneurs with its stability and demand. Each tenth US truck driver is an independent owner-operator.

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Being an Owner-Operator: What That Means

An owner-operator is a self-employed carrier who owns a transporting vehicle and operates it independently. Yet, transporting goods is not the only function of an owner-operator. As a business owner, you deal with documents, sales, etc.

Why Many Truck Drivers Become Owner-Operators

Being a self-employed carrier offers some interesting benefits, like:

• Perspectives for development
• More independent work schedule and pace
• Potentially higher earnings

Critical Challenges for Owner-Operators

Yet, being an owner-operator is still associated with some risks and marketing challenges like:

• Enchased responsibility
• Unpredictable spends
• High start-up costs

5 Key Components of Owner-Operator Startup

1. Licenses and documents: get your CDL (Commercial Driver’s License), US DOT number, Insurance, etc. before starting your business. Depending on the type of goods you transport, you may also need extra permits like Hazardous Material Safety Permit.
2. Plan and strategy: make a clear business plan, counting needs and spends for starting up. Some experience in the industry helps to build a clearer vision of your business, so prior work for a commercial transporting company may become your best advantage.
3. Team and partners: even if you plan to run your business on your own in the beginning, start building connections with your potential clients and partners.
4. Transporting vehicle: buy a truck and make sure it meets technical requirements for long-distance transport operations.
5. Marketing and promotions: set a working plan to find clients. Make sales via calls; promote your business online, and contact manufacturers or warehouses directly.

Expected Earnings

Average yearly earnings may vary from $ 110,000 to $ 220,000. Meanwhile, the pure annual profit is between $ 45,000 and $ 80,000. Income may vary depending on the state in which you are located. Owner operator North Carolina rates are noticeably higher than those in West Virginia or Alabama.

Legal Requirements

Just like trucking companies, any owner-operator must meet EPA, FHWA, FMCSA, and (in some cases) FAA standards and comply with state laws like:

Federal Code of Regulations (Part 395)

According to the part, you cannot drive for more than 11 hours daily. Your 8-day working time is also limited to 70 hours.

Federal Code of Regulations (Section 392.7)

It forces you to check the truck before and at the end of a working day. The data about some parts of the vehicle must be recorded in DVIR documentation.

IFTA requirements

IFTA agreements regulate reporting fuel use taxes and filling in the International Registration Plan.

Trending FAQs:

How to set prices for your services?
There are two ways to count the final price of transportation: by mile or by trip.

How to find clients for an owner-operator?
Cooperate with bigger truck companies, direct calls, load boards, or other ad platforms.

Is regular drug screening a must?
All owner-operators are obliged to undergo random drug tests.

What is the importance of a fuel surcharge?
A fuel surcharge balances the instability of fuel costs, helping to avoid extra expenses. It is normally included in the cost of transportation services.

To Sum-Up

If you are looking for a simple, yet beneficial business idea, starting up as an owner-operator may work perfectly for you. Begin with getting the necessary licenses, building a solid understanding of the industry, and converting your experience into a winning strategy.