Top 10 FAQ
Definitions and Industry Terms
Blackrock Auxiliary Power Unit (APU)
Interactive Cost per Mile (CPM) Calculator Spreadsheet
1) Owner Operator 411 – Welcome
2) Income and Expenses
3) Financing and Credit
4) Operating Authority or Leasing?
6) How To Do Bookkeeping and Other Necessary Paperwork
7) What You Need to Know About Loadboards
8) Companies That Lease Beginning Owner Operators
9) What You Actually Need to Get Started - Licenses, Permits, Insurance, and Taxes
10) Truck Driving Schools
1. Q: Can being an owner operator make you a millionaire?
2 : How much does it cost to start an owner operator business?
You need approximately 10% to 20% down payment for your tractor and trailer. If you are buying your own permits, you have to pay for them upfront. Insurance companies want from 1 month to 3 months worth of payments in advance.
If you buy used equipment, what does it need before you can put it on the road? Does it need tires? brakes? other repairs? If you are leasing your truck to a carrier, you may be able to charge your fuel, but if you have to buy you own, you will need to pay for that before you can haul a load (200 - 300 gallons of fuel times $4.00 or more per gallon (as of August 2013).
If you are getting your own authority, you need to pay for that. Whether you are getting your own authority or not, you will have to pay for business licenses, and equipment licenses.
3. Q: How much does an owner operator make?
Loads can pay anywhere from $1.00 to over $3.00 per mile gross, to the truck, but a good average figure to use is $1.50 per mile (I wouldn't run for less than that, but you need to make more per mile than your expenses per mile).
If you are leased to a company that pays a percentage, the average ranges from 65% to 75% of the freight bill. (You still need to figure how much that translates to per mile.) It also depends on what you haul. The average net income is about ¼ of your gross (fuel will cost you about 40-50% of your gross).
You need to know if the carrier you will be leasing your equipment to will pay for deadhead miles (empty miles: running without a load - such as going from a delivery point to a pick up point).
7. Q: What is a good business plan?
8. Q: What kind of insurance do I need and how much will it cost me?
9. Q: Is now a good time to become an owner operator?
10. Q: How much do I need to have in the bank before I become an owner operator?
You should have at a minimum enough to operate on and live on for at least two months.
Have other questions not covered in this blog? Add a comment. I check this blog almost every day and I will try to answer quickly.
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