In The News
With Great Responsibility, Comes More Responsibility
So, you’ve decided to become an owner operator. Okay, now what?
In today’s society and job market, if you’ve been paying attention to what’s going on around you, you may have noticed a change in how people are making a living. Oh sure, the tried-and-true method of working a job for someone else in order to provide a living for yourself and/or your family still exists, and that model continues to thrive. But becoming a TikTok or YouTube sensation (social media influencer) has recently become all the rage and while it’s certainly lucrative for some, it has its pitfalls. As with anything in life, am I right?
A by-product of The Great Resignation, the term coined for those who have been leaving their previous jobs en masse, has seen a wave of folks who are willing to take their life’s employment trajectory in their own hands. Maybe that’s why you’ve decided to go it on your own as an owner operator in the transportation industry. Or perhaps you’ve always liked the idea of being your own boss and working for no one else but yourself. Whatever your reasoning, just know that becoming the head honcho of your own self can be frightening, exciting, daunting, and rewarding.
Get That Bread
Most folks don’t consider that to make money, you must spend money. Sometimes that’s easier said than done. In a perfect set-up, you’ll already have some cash bankrolled off to the side. Something that may have been sitting in a rainy-day fund, or perhaps your kid’s college tuition. One way or another, you’ve got to have a little scratch if you’re going to satisfy the itch. There’s no easy way around that. And a common rule of thumb is to have at least six months of living expenses saved up, to be prepared for when the little stuff starts to add up.
If you don’t have that type of dough to get this show on the road, you’ll have to find a way to get it. Beg, borrow and deal (not steal) if you must. But do so with the notion in mind that what you put into this venture is what you’re going to get back. So, give it all you got and check that box.
The Set-Up
Once you’ve made the decision to give it full-go, there’s no turning back. Go get the training you need to obtain your commercial driver’s license. Then, check the box.
Next, find a place to drive and get the experience that’s going to stick with you the rest of your life. If it’s driving as a company driver for one of the big players in the industry, do that. If it’s signing on with an independent contractor where you’ll be able to learn the ropes from someone who’s already done it, that might be the way to go. Check that box, too.
Keep in mind that just like an over-the-road trucking route, there are many ways to get where you want to go. You just need to plan the path that’s going to work best for you.
Greater Responsibilities
Once you’ve obtained the knowledge you’ll need in order to take the biggest risk of all, it’s gut-check time. You’re ready to do this!
Assess the finances you’ve accumulated during your apprenticeship/training, make sure you have enough for a down payment on an affordable truck. Be sure that whatever company you decide to sign on with will accept your truck’s year, make and model. You know what to do, check the box.
Also, remember that insurance is going to play a big part in getting started. Most companies will allow you to run under their insurance, as well as their DOT authority. But be aware that it’s going to cost you out of pocket for that coverage, whether you obtain it on your own or through the carrier you’re going to lease with. Get good coverage, it’s imperative.
Check. That. Box.
Then, get yourself a tax professional who can help you keep track of everything. Once you get out on the road and you’re turning and earning, you’ll need someone you can count on to manage and maintain your finances. Unless you’re already an established numbers guru, it’ll help to have that second calculator in your corner. Box = Checked.
And, Finally
Being your own boss, in your own truck, on your own time, is going to come at a price that can’t be quantified in cold hard cash. Time. Time is money in this industry, but displaying patience is perhaps the biggest key to managing your time.
Stay patient. Stay determined. Know that there will be ups and downs in whatever you do in this business. And if you’ve made it this far… Box, checked.