Vadym Viktorovych Kostyna – truck owner (trucking business in the USA). Over 13 years of professional experience. Held managerial positions in the private sector and government institutions in the fields of economics and finance.
- Financial success depends on persistence. However, work should also bring satisfaction. So, if you love driving and want to earn more than enough – being an Owner Operator (OO) might be the best solution.
At the same time, this profession requires almost surgical-level management, which can be challenging. Today, you will learn about a strategy for success in this segment.
Risk, Mitigated by Proper Planning
Working as an Owner Operator (OO) is like playing roulette. Today you have loads and a queue of clients and brokers, and tomorrow – you might be driving empty miles searching for the next order. But when you understand the market and can plan – you will find a solution to the problem.
Five points can be highlighted that you should focus on if you want to achieve stable profits:
- load planning;
- consideration of seasonal and economic factors;
- investment in the business as a key to success;
- a clear business model.
Let’s go through each aspect in more detail, as the success of your business will depend on them.
Load Planning
When traveling from point A to point B, you need to know exactly what will happen next. That is, not to waste miles returning empty to your home location, but to take cargo in the right direction.
- You deliver a trailer, pick up another load, and move back. Or you transport it to another town, where the next load awaits you. The point is to reduce downtime and empty miles.
It is better to reserve a trailer in advance than to wait later or return without one.
Consideration of Seasonal and Economic Factors
There are weeks when a single load is contested by a dozen carriers. And there are times when one driver can choose orders. Most often, these are holiday seasons, harvest periods, planting seasons, etc. Approximately 9 out of 12 months – stable load.
- With an increase in market demand, the price per mile also rises, so during such periods there is an opportunity to increase income by about 20–30%.
If we talk about times of relative calm in the segment – the best strategy is to build a base of broker contacts. This increases the chances of receiving orders ahead of the queue.
Investments in the Business as a Key to Success
Your licenses, fleet, and equipment are key elements that influence income. Of course, at the start, most people take trucks on lease or buy inexpensive trucks and standard trailers. However, this is only the beginning.
- After a year of work, you will understand which loads are more profitable, which trucks are more economical and convenient. This will allow you to choose equipment with which you will earn better.
Yes, you will still transport ready-made trailers or work on company equipment. But with your own inventory and transport, you do not pay rent and can build your business more flexibly.
Clear Business Model
Start as a driver for a logistics company, then buy your own truck, then another, and hire a driver. Looks like a plan? Certainly, but it still lacks details and guidelines.
So, at the beginning, you need to set a goal, then break it into small parts, and after that start implementing the dream. For example:
- Work as a driver for a large carrier. Save up for your own truck with a trailer.
- Buy equipment, register as an Owner Operator.
- Build your own business, gaining reputation and money for future investments.
- If possible – buy another set for transportation and hire a driver.
- Expand the staff with a dispatcher (at first, this role is yours).
- Scale up as much as opportunities allow.
At the same time, you need to deal with accounting, reports, analyze productivity and transportation costs. But over time, this will become a habit, and you will reduce these operational expenses to a minimum.
Market Realities: It’s Not as Bad as It Seems
Fuel prices, economic turbulence in the country, in foreign trade, the “demand pattern” for transportation services – typical challenges that may make someone consider the OO profession unprofitable.
- But here are the facts: according to Indeed, the average Owner Operator earns about $307,000 per year. Overall, the income range is dynamic – from around $176,000 to over $535,000.
In any case, this is more than the earnings from most typical positions in the USA. So the potential is significant.
Own Business – Not a Dream, But the Result of Hard Work
From my experience (not only as a Truck Owner), I have realized the following:
- A dream becomes a business only when you invest time, energy, and determination every day.
- Planning matters, especially at the beginning, when it is difficult, and you want to give up.
- Startup capital is important, but the experience you gain while gathering funds is critical.
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