Starting an Owner Operator Business: Is It Worth It?

July 2, 2021

Many drivers daydream about having their own trucks while driving. If you’re one of them, starting an owner operatorbusiness is going to make that dream come true.

Before starting any kind of business, aspiring entrepreneurs ask, “Is it worth starting this kind of business?”

In terms of trucking, yes. Starting an owner operator business is totally worth it. If done right, an owner operator business can get you loaded (pun intended) and set for life.

You mustn’t simply take our word for it, though. You must get an explanation of why starting an owner operator business is worth your time, resources, and energy.

Before we get into more details, you must first understand that starting an owner operator business involves certain requirements.

Requirements for Owner Operators

These requirements include but are not limited to:

Trucking Equipment

Buying a truck is the biggest investment you have to make when starting an owner operator business. Be extremely careful when choosing which truck to buy. If you can’t afford a brand new truck, consider taking a loan or getting a secondhand truck instead.

A Commercial Driving License (CDL).

If you don’t have a CDL yet, it’s crucial that you get one as soon as possible. You need to submit documents such as a medical report, proof of residency, and social security number verification. You need to pass an exam as well.

           

 USDOT and MC Numbers.

You need USDOT (US Department of Transportation) and MC (Motor Carrier) numbers to legally operate in the US. Usually, you have to get a USDOT number before an MC number. If you already have a USDOT number, you can go get an MC number right away.

Insurance.

Trucking accidents and cargo damage are inevitable. Hence, getting insurance is extremely important. CargoXprovides free auto liability, general liability, cargo, and trailer interchange insurance for owner operators.

Tax Reporting Plan.

As an owner operator, you need to pay taxes. To avoid any conflict with the state, you must have a tax reporting plan in place. CargoX helps owner operators with their IFTA (International Fuel Tax Agreement) tax reporting for free.

You can start an owner operator business after complying with the requirements above.

Is Being an Owner Operator Worth It?

Without a doubt, yes. Being an owner operator is totally worth your time, resources, and energy. Here are the reasons why.

An Owner Operator Business Lets You Be Your Own Boss.

Even if you love your job, you’ve probably dreamt about being your own boss. Well, we got good news for you. Having an owner operator business offers perks that are way better than a 9-5 job’s benefits.

For starters, being your own boss gives you complete autonomy. You don’t have to answer to anyone. You don’t have to wake up early in the morning to deal with traffic. You decide how to run your business― from getting loads to completing shipments.

In addition, having your own business means that you get to decide what marketing strategies to use for your business. You get to use your creativity.

You also get to give back to the community by employing people. You can choose what to focus on and spend time on. You can say goodbye to pressure and stress. Sounds amazing, right?

An Owner Operator Business Gives You Financial Freedom.

Being an owner operator means having endless earning potential. On average, an owner operator can earn up to $150,000 per year just by operating one truck.

Imagine how much you can earn if you have ten trucks. We don’t know about you, but earning $1.5 million per year is quite a big amount.

In addition, you get to allocate your business’ earnings. You determine how much goes to you, your employees, and your expansion. In short, you’ll have total financial freedom.

On top of that, having an owner operator business lets you save more for your retirement. It’s because you can make higher contributions for your 401(k) account than you can with an account given by an employer. You can also generate more money if you wish to retire early.

An Owner Operator Business Lets You Control Your Time.

Time is our most valuable resource. Unlike money, time is something we can’t make or get back. Thus, we must find opportunities to use our time for things that really matter.

The moment you get a 9-5 job, you give up control of your time. Your boss and the company you work for control your time instead.

We’re not telling you to quit your job right away, especially if you don’t have a plan. What we’re saying is that there’s must be a better way.

This is where having your own business comes in. It lets you make your own schedule. It lets you take vacations whenever you want. It lets you spend more time with your loved ones.

However, you must wisely take your breaks. It’s because you have to be consistent to grow your business. If you take too many vacations, your business’ growth will suffer.

Remember, keeping the right balance between life and work is crucial to your success as an owner operator.

An Owner Operator Business Helps You Grow.

When you become an employee of the month, you get a certificate or a monetary reward. On the other hand, when you become a great business owner, everyone in your company will reap the benefits.

This can give you a sense of fulfillment that a 9-5 job cannot do. As you may well know, self-fulfillment leads to self-growth.

In addition, your journey as a business owner makes you learn invaluable lessons about patience, motivation, management, marketing, networking, and many more.

Yes, you can also learn while on a regular job. However, learning while running your business makes you stronger than learning while being an employee.

Conclusion

Having an owner operator business is rewarding. However, building one comes with risks.

To minimize these risks, it’s crucial for you to partner with a reliable company. Knowing how to choose the right trucking company greatly helps on your journey to success.

Speaking of success, we’re rooting for yours!

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