If you’ve decided to start your career as an Owner-Operator in the Logistics industry, there are a lot of things you should know before starting. Joining the logistics industry is a highly significant decision of your life that you shouldn’t take lightly if you want to become successful. Most people choose to become owner-operators because they want the independence and freedom of profit that comes with being an owner-operator. Indeed, you also want these perks, but it’s only possible through becoming a successful owner-operator. But how can you become a successful owner-operator? This is exactly what we are here to help you with. Here, you will learn all steps of becoming an owner-operator and starting a successful carrier in the logistics industry. So, let’s get started.
Steps to Becoming a Successful Owner-Operator:
1. Choose the right type of equipment you’re going to haul
The first and essential step of becoming a successful owner-operator in the trucking industry is to choose the right type of trucking equipment you’re specialized in. Make sure the trucking equipment and freight type you’re choosing are in high demand. Remember that the choice of equipment plays a 50% role in Your success.
2. Obtain Your CDL License
You can’t drive without having the CDL (Commercial Driver’s License). It’s one of the major steps of becoming an owner-operator. Obtaining a CDL required a lot more effort than a standard license. You will need to pass a DOT physical, determine the type of freight you’ll be hauling, and complete knowledge tests. Finally, you’ve to pass road skill tests to obtain your CDL License. Once you get your CDL License, the next steps will be easy for you.
3. Get ready to make some financial investments.
Being an owner-operator, you need to pay some hidden costs. For example, you’ll have to pay weight taxes, registration fees, and fees for licenses and endorsements. To make all these payments, you need a bank account. So, choose a good bank and open a bank account by the name of your trucking business. This bank account will not only help you maintain your trucking equipment, handle any loans or leases, and tackle insurance.
4. Purchase Your Rig along with all necessary equipment
This is the most exhilarating and thrilling step of the process of becoming a successful owner-operator in which you invest your savings to buy your trucking equipment. Successful Owner-operators always buy their Rig after thorough market research. Many trucking equipment manufacturers will offer lower rates, but you can’t compromise equipment quality with low rates because it’s a matter of success for your trucking business. So, make all the decisions carefully.
5. Choose What type of Owner-Operator You want to become? Independent or Leased On?
After you obtained Your CDL and purchased Your Rig, it’s the time between being an independent owner-operator or leasing on to the authority of a trucking company. A large number of owner-operators end up leasing on to a logistics company because it gives them the freedom from finding works and managing their back-end business operations. As you’re new to the logistics industry, leasing can be a good option for you to navigate trucking operations. However, the doors of becoming an independent owner-operator will always be open for you.
6. Don’t forget to get Insurance Coverage for Your Trucking Equipment.
What type of insurance coverage you’ll require depends on whether you’re an independent owner-operator or leasing to a trucking company. You’ll require insurance coverage in both cases. However, maximum coverage will be necessary if you’re an independent owner-operator. The coverage usually only applies to primary liability; however, you can also get the following additional coverages:
- Non-Trucking Liability Insurance
- Physical Damage Coverage
- Motor Truck Cargo Coverage
- Lease Gap Coverage
7. Make Patience Your biggest weapon
You must understand that the logistics industry is one of the biggest industries in the world, and it would take some time to become successful in it. Most newbies owner-operators lose their heart in only a few months of joining the industry when they don’t get the loads to haul. So, if you want to become a successful owner-operator, make Patience your biggest weapon.
Datla Logistics is a truck dispatching and freight shipping company. If you’re looking for truck dispatching services or freight shipping, contact us today!