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Trucking is a tough job, especially these days with high fuel costs and clogged roads. Becoming an independent owner-operator means you’re responsible for your own truck maintenance, insurance and fuel -- along with your own bookkeeping and marketing. But for some entrepreneurial free spirits, it’s the way to go.
The Owner-Operator Independent Drivers Association says its membership has grown to more than 150,000. That’s a marked increase from just four years ago, when it was less than 40,000, says Tom Weakley, director of operations for the OOIDA Foundation. About 15,000 of these members work as hired outside drivers for trucking firms, but the rest run their own businesses, he says. “They’re the last ones out there trying to make it on their own,” says Weakley. “They go to places others won’t go.”
Sue Lynch and her husband, both trucking veterans, run an independent trucking business with one big rig and a van trailer. “It was my job to look for loads via the computer and phone,” she says. “Now we work with just a few people and make regular freight runs.” She says it’s the working relationships, cultivated over time, that keep their business running. “You can’t always compete price-wise with the big companies, because they have quantity discounts on equipment and fuel. The owner-operator has one advantage: They can offer good service. The people we work with do just-in-time freight. We know the routes -- we can plan ahead of time and work with our own trucks.” In other words, the owner-operator can offer a client delivery of the goods to a precise location at a precise time and focus in on that client’s needs.
Going Your Own Way
Owner-operators often gain experience and contacts by working for employers before going solo. “A new guy cannot expect that he can start [on his own] immediately,” warns Lynch. “He must go out and prove himself and be accountable.”
Weakley agrees. “Most definitely, first spend time with a company, and do all you can,” he advises. By working for a company first, you can learn about which parts of the country you don’t want to do business in and other things.
Besides learning the tricks of the trade, you establish a good track record and begin preparing the foundation for your independent future. “Network with the people you deliver to (and) establish a base of future clients,” says Weakley. He also notes that it’s all but impossible to get good insurance rates unless you have had at least three years of accident-free truck driving.
In October 2006, OOIDA debuted a three-day seminar to support owner-operators. “It tells you what to look out for, taxes, truck specs, how to build a business plan, loans to get your trucks, how to go through the regulatory process,” Weakley says. The course, held at Metropolitan Community College in Kansas City, costs $450. OOIDA plans to eventually offer online seminars as well.
Proceed with Caution
As with any small business, being an owner-operator is tough. “Put some money away,” advises Weakley. “[Company] drivers usually get paid on a monthly basis. An owner-operator may go 60 to 90 days (without getting paid).”
Lynch recommends having a partner. “It would be extremely hard to do it all alone; you have to act as your own bookkeeper, load finder, mechanic and driver.” Moreover, “once the load is done and you get home, now you have to maintain the truck,” she warns. “All the mechanical work is in your lap.”
You also have to look out for your own interests. Companies and clients may try to shortchange you on what you’re due. “We read the leases and advise them,” says Weakley of OOIDA members. The organization was established to defend the rights of owner-operators. “We’ve taken carriers to court. Federal regulations require that if you take money out of an owner-operator’s check, he must agree to it.” OOIDA also offers its members information on medical benefits programs, insurance, tax issues and legislative issues.
Despite the challenges, working for yourself can be an irresistible draw. “We can pick who we want to work with,” says Lynch.
