Things to Consider Before Becoming an Owner Operator – Ready for a Life Change?

May 23, 2019 by Carla Lee

PTI Owner Operators — Paper Transport, Inc. Owner Operators Jay Brockway, Jeremiah Carson, Bud Weber, and Jesse Singh.

Life is Different as an Owner Operator

In this Paper Transport, Inc. blog series about things to consider when becoming a Class A CDL owner operator, we covered a variety of topics from financing to research and taking stock of your skill set. They’re all important factors in deciding whether or not you want to be an owner op. However, the biggest question that you’ll need to ask yourself overall is:

Are you ready for a life change?

Each current and former owner operator we talked to said that you need to be – plus, you also need to be determined and ready to take on whatever comes your way. Here’s what they had to say:

At the end of the day remember, you could be an excellent driver, but that doesn’t always mean you would make a successful owner operator. There is just so much more involved that a lot of drivers don’t see or realize. The thing I cannot stress enough is patience. The first year or two is always the longest and hardest, staying disciplined and patient will go a long way. And never assume you’re done learning and you know it all. This is when mistakes can happen and major things can be missed or downplayed, all of which can really hurt you financially,” explained Jay Brockway, PTI Intermodal Owner Operator.

The change from company driver to owner op is fairly drastic. The owner op is responsible not only for the expenses and upkeep of his equipment, but also the business side of things such as taxes, health insurance, etc.,” said Jeremiah Carson, PTI Dedicated Regional Owner Operator.

The difference between a company driver and an owner operator is massive! First, there is the responsibility of the tractor. The monthly payment, insurance, licensing, and tolls. A company driver doesn’t have these burdens. Second, maintenance and breakdowns! The expense of maintenance and breakdowns can severely affect an owner operator’s bottom line … The trade-off is that a good Owner Operator can earn 4 to 5 times the earnings of a company driver. When I say a good Owner Operator, I mean one that maintains their equipment, is available to take loads every day. A driver that is responsible, safe, and reliable,” stated Bud Weber, PTI Intermodal Owner Operator

Tips for new owner operators are: work smart not hard, control your expenses, and have a financial plan where you are able to save money,” said Jesse Singh, PTI Intermodal Owner Operator.

After reading the Things to Consider Before Becoming an Owner Operator, do you think you’re ready to become an owner operator? Feeling good about your finances, your skills, the research you’ve done, and about a life change? If so, and if you’re interested in our program or simply have questions about it, please call our recruiting team at 1-855-784-5627, email them at jobs@papertransport.com, or visit our owner operator page.

Things to Consider Before Becoming an Owner Operator – Do Your Research

May 16, 2019 by Carla Lee

Photo provided by current PTI Owner Operator Dave Luepke.

It’s Important to Know What’s to Come as an Owner Operator

In the first two parts of Things to Consider Before Becoming an Owner Operator, we focused on the subjects of finances and the skill sets of a would-be owner operators.

Today, we’re focusing on understanding what you’re getting in to. There’s the idea in your head about something and then there’s the real facts. Right now, here are a few tips to help you determine if being an owner operator is right for you:

Reach out to current owner operators – Ask other truck owners what they like and dislike about being on their own vs. a Company Driver. Their honest opinions could provide you with some good insight on if it will be a good fit for you.

Talk to lease-to-own companies – There are different trucking companies that help Class A truck drivers become owner operators. These companies have programs in place where drivers lease a truck from the company, or a bank or credit union, and make payments to eventually own that truck. Make it a point to talk with different ones to understand how they operate and what they can offer potential owner ops.

Head to your local truck dealer – Truck dealers are where owner ops typically purchase their trucks if they’re not going the lease-to-own company route. These dealerships are filled with a lot of knowledge about owning a truck and the industry itself if they’re willing to share.

Ask questions on trucking forums – If you’re reading this article, you are already doing general research online. Take it a step further: Go to Class A Trucking websites that house forums. It’s a great opportunity ask questions and connect with others.

Learn from other business owners – There is a lot that can be learned from business owners who aren’t owner ops. They can give you valuable advice on what it takes to run a successful company, which you can apply to owning your own truck.

Here’s advice from current owner operator leased on with PTI stresses why it’s so important to really investigate what it means to be an owner operator:

“Do your research so you are prepared, whether it’s researching online or asking random owner ops on the road. Being prepared for what’s to come will make planning how to be successful that much easier. So, ask as many questions as you can know matter how stupid a question may seem. Remember this is your career and a life change so get all the knowledge you can.”
Jay Brockway, PTI Current Owner Operator

By doing the above research, you should be able to get some good information on what it takes to be an owner operator. Remember, making the choice to be one shouldn’t be taken lightly and you really need to be sure before you make the leap. If you’d like to learn more about PTI’s Owner Operator program, or simply have questions about being one in general, don’t hesitate to get in touch with us. Please call our recruiting team at 1-855-784-5627, email them at jobs@papertransport.com, or visit our owner operator page.

Check back next week for the final part of this blog series. And, learn more about the first two parts by visiting Part One: Finances and Part Two: Knowing Your Skills Set.

Things to Consider Before Becoming an Owner Operator – Know Your Skill Set

May 9, 2019 by Carla Lee

Having a Well-Rounded Skill Set is Key for Owner Operators

In the first part of the Things to Consider Before Becoming an Owner Operator series, we focused on the financial aspect of starting your own business. Today, we’re going to focus on the skills that you should have in order to be successful.

Ask yourself these questions:

1. Are you a chameleon?
How well do you deal with being alone and in charge? Can you promote yourself and your business when you need to? Are you able to shift from one to the other in the blink of an eye? Owner Operators must be able to adapt to the present situation and see opportunity.

2. How do you feel about planning, preparation, and looking for companies to haul freight for?
To be successful, you need to have a plan in place about how you’re going to run your business. Like a brick and mortar business owner, successful owner operators develop a business plan so they have a guide to follow on what their goals are and what they need to do to accomplish those goals. If you’re not all that fond of planning and preparation, you might want to reconsider being an owner operator or seek professional help in building a plan you can stick to.

3. Do you like or dislike doing paperwork?
Much like planning and preparation, there is a lot of office work that’s required as an owner op. For example, there are bills of lading that you need to submit to companies for payment, receipts to keep in order for tax time, and bank accounts to keep track of.

4. Do you have the skills to be a mechanic?
It costs money to maintain your tractor and one way to save on money is to learn how to do things yourself. If you have some decent skills as a mechanic, you have the opportunity to keep your truck running without having to pay someone else to do it for you.

Here’s a current PTI owner operator’s advice about the skill set you should have:

“Having common mechanical skills will be greatly beneficial as an owner operator … Being prepared with tools and simple parts and having the knowledge to use all of them can save you hundreds and maybe even thousands. Fixing small things early yourself could prevent larger expensive repairs down the road.” – Jay Brockway (shown to the left)

And, a take on the skills needed from another current PTI owner operator:

“I don’t think it’s as important to have mechanic skills than it is to have have an understanding of the mechanics itself. If you understand the make-up of the equipment you can explain your problem to someone more mechanically inclined than yourself and can avoid being ripped off.”
– Jeremiah Carson (shown to the right)

Just having a good understanding of your finances, knowing your skill set (and whether or not it’s developed enough) is something you should think about before becoming an owner operator. PTI’s owner operator program offers access to our maintenance facility at reduced prices, discounts on fuel, and help with trip planning and preparation. If you’re interested in our program, please call our recruiting team at 1-855-784-5627, email them at jobs@papertransport.com, or visit our owner operator page.

Check in next week for part three of this blog series, which will focus on doing your research before becoming an owner op.

Main photo provided by current PTI Owner Operator Bud Weber.

Things to Consider Before Becoming an Owner Operator – What Are Your Finances?

April 29, 2019 by Carla Lee

Owner Operators Need to Stay on Top of Their Finances

In the trucking industry, there are two main ways to earn an income as a Class A CDL Truck Driver. The first is by working for someone else as a company truck driver. This is a solid way to earn a paycheck, but there are some drivers who more control over everything they do, what they drive, and how they operate. This brings us to the second way to earn money as a Class A CDL Driver: Becoming an owner operator. The major benefit of becoming one is that you’re in charge and the decision to go your own way is something that should be taken very, very seriously.

To see if becoming an owner operator is the right decision for you, Paper Transport, Inc. will be sharing a series about things to consider before becoming an owner operator. Today, we’ll be focusing finances.

When it comes to finances, there are two big things to think about before taking the leap to own your own truck and run your own business.

Do you have the capital to start? In order to own your own truck, you need to invest in yourself and your business as an owner operator. That means, you need to have enough money to start your business to properly fund the lease or purchase of your truck. Other considerations include insurance (both for yourself and your business), your USDOT, and Motor Carrier Number from the FMCSA, and many other expenses.
What about a cash reserve? Even if you have the capital to start, it’s also important to have a cash reserve to pay for unexpected things that come up when you’re on the road. Are you ready for truck maintenance or tows if your truck happens to break down? Without that extra money in the bank, you might be forced to extend your credit and that will put you in a financial hole that could be hard to get out of.

Jeff Clark, 18-year Owner Operator and contributor to the TeamRunSmart blog, shared the following thoughts with us on finances:

“It is important for an owner operator to be on solid personal financial ground when they start. An 800 credit rating is more important than $10,000 in the bank. They should have the capability of obtaining bank financing. Too many owner ops start out with a poor credit score and become subject to predatory lending. They are about 95% likely to fail.”

As you can see, finances are a big thing to consider when becoming an owner operator. At PTI, we have many regional or dedicated opportunities that offer consistent freight and weekly pay. If you own your own truck that’s a 2000 model or newer and you’re interested in our program, please call our recruiting team at 1-855-784-5627, email them at jobs@papertransport.com or visit our owner operator page.

Check back next week where we discuss Knowing Your Skill Set in our series Things to Consider Before Becoming and Owner Operator.