Why is being an owner operator such a wanted business? There are many advantages to an owner operator career. That’s why so many drivers are dreaming about getting their own rig and doing their own thing.
Independence of owner operators also comes with higher expenses. But, if you manage your business properly, your income should exceed the income of regular company drivers by a large margin.
Here are the main reasons why owner operators have more advantage over company employees.
1. More personal independence
As an owner operator, you can choose when you want to work and who you want to work with. You are able to choose your contracts, loads, and partners. That brings you the opportunity to spend more personal time with friends and family.
Making business choices independently has several benefits and gives more control to owner operators. But, you still have to be careful how you use your time because you are completely responsible for your income and expenses.
2. More income
Owner operators typically earn more money than company drivers do. Because they are taking on the risk, they earn more money. On average, they receive a higher profit margin on each cargo they move.
Owner operators can increase their profit margins by keeping their fuel expenses under control. When they enter into agreements with businesses that pay gasoline surcharges and offer fuel discounts, there is even more opportunity for profit. Owner operators receive some tax benefits that company drivers do not.
Tax deductions are available for a variety of business expenses, including meals away from home, additional on-the-road costs, license fees, interest on company loans, depreciation of the vehicle, and general operating costs.
It’s crucial to maintain precise records of these costs.
3. Make your own schedule
One drawback of a traditional truck driving job is that you could have to spend weeks at a time away from home on the road. However, if you prefer to set your own work hours so you can spend more time at home with your family and friends, becoming an owner-operator will provide you that freedom.
As an owner-operator, you are in charge of that aspect of the firm and are responsible for your own productivity and time management.
4. You manage your fuel expenses
A traditional truck driving job’s disadvantage is that you have to travel for extended periods of time without returning home. Being an owner-operator will provide you the freedom to determine your own work hours so you can spend more time at home with your family and friends.
As the business’s owner-operator, you are in charge of that area and accountable for your own fuel consumption and time management.
5. You can save on taxes
Owner operators are obligated to manage their taxes as independent contractors. But, these independent drivers can also get many tax deductions that company drivers don’t get to enjoy.
With a smart management and good tax policy, owner operators stand to gain even more profit. That can lead to scaling your fleet in no time.
How to start your career as an owner operator?
If you want to start driving as an independent owner operator, your first step is to buy your own truck. There are several options at your disposal and you should choose carefully.
Your investments can determine whether you can make a profit in your first year or not.
Perhaps it would be better to look for used truck dealerships rather than spending a lot of money on brand-new trucks. You can purchase trucks in good condition with thousands of kilometers still in the tank. These vehicles can be quite a deal because they can cost up to three times less than brand-new ones.
If you can look for trucks made in 2019 or younger. Five years old or less trucks are more likely to be in excellent condition.
But, many owner operators drive older trucks (2010 and older) so if you manage to find a well-maintained bobtail, you can get it for a great price. These oldies can return much more than you’ve invested in them in a short period of time.
Always look into lease options as well. Some automakers provide attractive rates and manageable down payments. Your vehicles will hit the road right away and start making money if you have a sufficient labor force.
Conclusion
Your career as an owner operator isn’t as far as you thought. You just need some careful preparation and planned investment. After you get your first truck, there’s plenty of good things waiting.
You’ll get more freedom, more flexibility with your schedule, and the opportunity to negotiate with the dispatcher for your payment on every route. With proper time and fuel management, your income will get much higher than before.