How to Become an Owner Operator
L ook in the mirror. You've been thinking about going into business for yourself as an owner-operator, but are you ready? You crave the independence, but do you have what it takes to be successful? Now may not be the right time to go on your own. Today's freight environment is a minefield for even expe-rienced owner-operators, so you need to do your home-work before you jump into your own truck and business. Right now, there's not huge demand because freight is down, says Sheri Aaberg, general manager of ATBS Leasco, a Denver-based com-pany that works with bud-ding owner-operators. But, she adds, the want-to is still there. Aaberg says the primary reasons a driver wants to be an owner-operator is to call his own shots and make more money. Many imagine being their own boss and having control over their career without thinking about accountability. The reality is that when you're in business, you have more accountability than you did when you were an employee, she says. When you own your truck and drive for others, you are a small-business owner. Before you commit to buying your own rig, take inventory of your finances, your earning potential and whether your business will support your expenses. It's all about money, says John Nail, an owner-operator for about 10 years who's leased to Greatwide and dedicated to a Tyson Foods base at Union City, Tenn. You figure out your bills and what your base is. I look at what the shipper pays, how many miles I have to run to pay my mortgage, truck pay-ments and everything else. In checking out pos-sible income, Aaberg says you need to understand the entire compensation struc-ture of a potential carrier, because it goes well beyond the pay per mile. In sizing up a carrier, you should learn about its ter-minal operation, how it dis-patches and how much time you'll have to be on the road, Aaberg says. Decide what hauling specialty you want and if you have experi-ence in that segment. How do you know if you're ready? Nail and Aaberg both recommend a minimum of one year of experience in your specialty, preferably much more. Get a sense of what you're doing before you stick your neck out so far you get it chopped off, Nail says. Nail, of Arbyrd, Mo., says he talked with both suc-cessful owner-operators and some who failed before he ventured out on his own. He even talked with his former landlord, who was an owner-operator. This business is real easy to fail in, he says. Starting Line Before you dive into independence as an owner-operator, take time to assess your experience, finances, dedication and skills Sheri Aaberg of ATBS Leasco () says you should consider several things in mulling over whether you're owner-operator material: 1) Consider your personality, experience and knowledge to decide if you really want all the responsibilities of being your own boss something to consider when you hit the road and your office goes with you. 2) Make a personal assessment. Do you have the qualities that being an owner-operator requires? Are you dedicated and reliable? Do you have the ability to set goals? Do you have financial-planning, management and bookkeeping skills? Do you like to work with people? 3) Can you and your family accept the away-from-home time necessary to succeed? 4) Determine what kind of truck-ing refrigerated, flatbed, dry van you know and like. 5) Do you understand what cus-tomer service the carrier and shipper expect from you? 6) Have you investigated carriers that meet your experience and skills, and have you determined where you will be the best fit with the operations personnel? 7) Understand the total com-pensation structure above and beyond the rate per mile and the freight cycles of your pro-spective carrier. 8) Have you created a budget of both business and personal expenses, and are you disci-plined enough to live within that budget? 9) Identify the equipment best suited to meet the need of your potential carrier and how much it will cost to maintain and repair it. You'll have to budget those costs. 10) Consider professional help and education to assist with budgeting and planning. The Used Truck Association has a pamphlet focused on becoming an owner-operator. Visit and click on Free Pamphlets under UTA Information and Tools and then Succeeding as an owner-operator. CheCklist May 2009 32 truCkers News how to beCome aN o/o Max kvidera