Fuel for Thought

The Upside of Becoming a Lease Owner Operator

If you read The Downside of Becoming a Lease Owner Operator, you may have been left with the impression that it is a hard road to become an owner operator. Well, it is, or rather it can be tougher for some than others, but for those who persevere, it can be a lucrative career choice.

If you are a new driver, perhaps you are working off your CDL schooling at your first carrier, and you are interested in becoming a truck owner one day, start now. 

Most of the pitfalls mentioned in The Downside of Becoming a Lease Owner Operator can be avoided or at least minimized. 

Define. Define where you realistically want to be as a business. Once you set your goals, you will have a clearer understanding of what you need to accomplish to reach those goals. Define your own level of success. Do you want to be a single truck owner operator? Perhaps your goal is to one day own a small fleet of trucks. Maybe you want to become a carrier in the future. 

Plan. Plan to be a successful owner operator. Plan for the slow markets and don’t overextend your financial situation. Build up an emergency fund and only use it for true emergencies. They will happen, but if you are prepared for them financially, it will lessen the burden when they arise… and there will always be unexpected expenses.

Prepare. Before you even consider buying that first truck, prepare for it. Once you have your emergency funds in place, your down payment and some working capital to get started, transitioning to become an owner operator will go much more smoothly. 

Now for the upside. There are many benefits to becoming an owner operator leased to a carrier.

Choice. You get to choose which loads you take and which ones you don’t. You decide which part or parts of the country you want to drive and those areas which you do not want to go.

Freedom. You now have the freedom to reach your revenue goals and then enjoy the fruits of your labor. 

Versatility. As a small business owner, you have the ability to pivot from the norm and take advantage of new markets. Unlike a company driver where the company defines everything for you, you can change direction easily to accommodate new customers.

Back office work. As a leased owner operator, you have a carrier handling all the collections, safety, most legal issues, IFTA tax filings, some of the insurance requirements, and you generally do not have to chase deadbeat customers to get paid regularly. The carrier may also keep you up to date on safety issues and regulations. 

Instant customer base. If you had your own authority, you would either rely on brokers or pound the pavement to get your own direct customers. As a leased owner operator, the carrier has a customer base already in place and they are most likely still adding more, all you have to do is transport the load safely and let the carrier handle the office work of collecting. 

As a business owner, you will not be without your own officework to handle, but your carrier will take care of a lot of the officework you wouldn’t have time to do if you plan to drive all day.

If you were prepared, and are now an owner operator, you are starting to see why so many want to be one. You are now a business owner. You answer to you. You can only blame the person in the mirror when things go badly, but you can also praise that same mirror image when you accomplish your goals.

See you down the road,

Greg