Ever thought about dipping your toe into starting your own carrier?
We don't blame you—imagine a carrier run just the way you'd like it to be, a carrier where the only boss you have to answer to is yourself.
Of course, the lion's portion of the reward first calls for the lion's share of the work. In trucking, many drivers who start their own businesses often drive their routes as they usually would while running their business. Being both owner and operator is a challenging but enlightening way to get started and see if their love of running a company can match their love of the road.
Thinking about becoming an owner-operator yourself? Here's the Relaymile guide of things to consider first.
Sleep On It
This is a big decision, so really think about why the idea appeals to you.
Perhaps the biggest draw for this aspiration is also its most obvious one.
When the operation is yours, it's not only the truck and the profit that's yours as well, but the power to choose clients, jobs, and vendors.
Likewise, the most significant deterrent might also be the most obvious one. Think—you might love driving but do you love administrative duties? Do you love pitching to prospective clients and bookkeeping?
No longer is shuttling freight your primary duty. As an owner-operator, you are as much a trucker as a business owner and responsible for all that entails.
Money, Money, Money
This is arguably the most important thing to consider—and we're not just talking about the profit you'll be raking in when your business takes off, you logistics mogul, you.
Owner-operators typically make anywhere between $100,000 and $150,000 per year, with the average being about $141,000. This isn't a bad-looking number at all; however, it's essential to keep in mind that maintaining an established business is less risky than starting a new one entirely.
Upon first starting up, you'll probably be making between $25,000 to $40,000 a year. Don't forget, you'll still have expenses to juggle while calling all those shots and trying to wrack up a new client base.
While this can seem discouraging at first, you don't necessarily need to do it alone. Here at Relaymile, we want to help you succeed. Let us help you make connections with other drivers and clients to grow your business.
In It for the Long Haul
Overall, there are a few things one needs to do in becoming an owner-operator.
In keeping with the spirit of the above section, we're going to tell you right off the bat that the first thing should be to evaluate your financial situation. This means not only thinking about how much money you have right now but how much you anticipate having in the next year or so after potentially taking a pay cut.
You might also want to decide if eventually partnering up with a larger carrier is something you'd like to do. While this means sacrificing some of your freedom in that your clients are predominantly determined by a larger carrier, you would still be self-employed as an independent contractor. Only now, you'd just be reaping the benefits of more consistent jobs and a more certain cash flow.
Being an owner-operator can be a rewarding experience. It might be just what you're looking to get out of the logistics industry. Even if it's not, that's okay too—the country needs trucking in all its various skillsets, whether that entails trucking, operating a business, or maybe doing a bit of both. Hopefully, this article helped clarify where you think your strengths lie.
Are you interested in an alternative to the conventional trucking business model? If so, take a look at how Relaymile is reimagining trucking to provide drivers with a healthier, more consistent standard of work.
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