Guiding Principles for New Owner Operators: Building a Thriving Trucking Business in 2023
New Drivers & New Businesses
You've invested in your rig, navigated licensing requirements, and embraced the transition to independent contracting.
Embarking on a journey as a new owner operator is a monumental step in your trucking career. Here are vital considerations for every new owner operator as you embark on this new chapter.
Embrace Your Business Persona
As a new owner operator, it's crucial to recognize that you've transitioned into the role of a businessperson. Your view of the profession must shift from being just a driver to operating a business. This transformation involves managing your schedule, finances, client relationships, and contingency planning. Invest time in learning the essentials of successful business management, such as networking, monitoring industry trends, and cultivating effective negotiation skills.
Factor in Comprehensive Repair Costs
It's a well-known fact that your truck will require repairs over time. To ensure you account for the true cost of these repairs, consider your repair expenses and prepare for potential downtime by saving funds and investing in a truck warranty. To protect yourself from costly repairs. Get a warranty plan started - CLICK HERE.
Calculate the Real Fuel Expenses
Fuel is a significant expense for owner operators, and adopting fuel-efficient habits can lead to substantial long-term savings. Monitor your fuel consumption closely and remember that maintaining a speed of around 55 to 60 mph can optimize fuel efficiency. For every mile per hour over 60 mph, fuel economy decreases by 0.1 mpg, resulting in increased costs. Lucky for you, LuckyTruck offers a fuel card that can potentially save you an estimated $7,000 per year, per truck. Get this fuel card - CLICK HERE.
Master Financial Management
Effective money management will be the key to your success in your first year as an owner operator. Accurately calculate your fixed expenses and maintain a cushion for unforeseen circumstances or errors in your calculations. Make wise decisions regarding your truck, repair budget, insurance, and repair expenses.
At LuckyTruck, we are connected with TAP (Trucking Business Advisors) who can provide you with free advice and access to services like setting up an authority, and compliance. Connect with TAP for more information - CLICK HERE.
Engage an Expert Accountant
A common trait among successful business people is their ability to delegate tasks efficiently. One task you should delegate is managing your taxes and finances. Engaging an accountant can help maximize deductions, create realistic budgets, categorize expenses, and save you thousands. Beyond tax filing, having an accountant on your side can reduce stress and contribute to financial stability.
Consider a Pre-Owned Truck
When contemplating your truck purchase, think about opting for a used vehicle before investing in a brand-new one. Look for reputable brands with lightly used trucks that still offer a good warranty. Acquiring a used vehicle may involve some risks, but with thorough research, inspection, and warranty coverage, it can be a cost-effective choice.
Build a Network
As a businessperson, networking is key to establishing your presence in the trucking industry. Focus on a specific niche market and work on building relationships and a strong reputation with shippers and brokers in that sector. Remember, you're representing your business, so professionalism and respectability are paramount.
Becoming a New Owner Operator
The transition from driver to business operator necessitates a shift in your perspective and mindset. Approach this venture with careful consideration and determination, as success in the world of owner operators requires a unique blend of skills and adaptability.
As a new owner operator, you are a businessperson as much as you are a truck driver. Your knowledge must shift from being just a driver to operating a business. At LuckyTruck, we are connected with TAP (Trucking Business Advisors) who can provide you with free advice and access to services like setting up an authority, and compliance. Connect with TAP for more information - CLICK HERE.
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