In both the US and Canada, there are usually a lot of small businesses that are owned by just one person who runs operations daily. These owner-operators can be found in a lot of business models and franchising companies, in different industries.
To put the owner’s business firmly on the way to success, there are a lot of critical decisions and self-assessments that need to be made.
In trucking, the self-employed commercial truck driver operates his small business by transporting goods over highways for clients and customers using his own truck.
There are a lot of pros and cons regarding being a trucking company owner-operator. One advantage is that the owner takes control of what loads the trucks carry, and where they go. He also needs to know what money that the trucks will take. This will give him the freedom to drive his truck in any way that he wants.
Another advantage of becoming a trucking owner-operator is earning more money. Since the owner owns the truck, he also runs the business. This means more money can go into his pocket.
Giving the trucking owner-operator the opportunity to bring his trucking business further than he ever could is also another advantage.
The trucking owner-operator also has the right to either do a freelance haul that isn’t committed to any firm or product, or to get into a lease agreement that dedicates their equipment to one product or customer.
Lastly, he is not tied to doing a 9 to 5 job.
There are three major cons when it comes to becoming a trucking owner-operator. The first one is having a bigger sense of responsibility for his company, since there is an increased amount of freedom and power.
The trucking owner-operator also has the responsibility of picking which loads the truck will carry, where that truck’s destination will be, and finally, what offers will the owner take. This is because the instructions aren’t handed to him by the truck carrier, since the trucking owner-operator himself is the carrier.
Another thing that the trucking owner-operator is responsible for is the maintenance, upkeep, and repairs of his truck. Aside from receiving more of the earnings, he is also taking on more of the cost. He also needs to pay higher insurance rates due to his company having a smaller size than larger ones. This means that he has to charge more, in order to balance the cost.
Other cons include the owner working many hours each day and not being able to see his family very often. There is a lot of sitting and waiting required, and sometimes, the owner can’t find the time to shower, eat, or even sleep.
Aside from working hard, there are also other things that the owner must do in order for his business to grow and prosper. Here are some of the tips:
He needs to know and understand that people will only pay him because of the work that he does. He also needs to realize that getting more money means working twice as hard.
The owner must know how to build long-term relationships.
The owner should also understand the economy, as well as the sector of the business that he is getting into.
He should also keep his expected revenue and income realistic.
Lastly, he should always remember that trucking is simply a business, and that the truck is just a vehicle.