Most people starting out in the trucking industry asking themselves if they would be better off being a company owner operator instead of being a company driver. Having the freedom of owning your own truck and getting your own truck loads is exciting and can be very rewarding. Being a company driver can be just as rewarding if your driving for the right company who cares about their truck driver and pays them worth their experience. Being able to drive and not worry about the Federal regulations of owning a trucking company and also not worrying about the maintenance of the equipment is a good reason many truck drivers prefer to be company truck drivers.
I have taken some time and thought over the last 10 years speaking with hundreds of drivers and owner operators and I believe that being both can be just as rewarding and starting as a company driver while building your trucking company at the same time is my top choice of growing into the industry as a logistical entrepreneur.
Below is a list of the best reasons of why you should be an over the road company driver.
Company Drivers can have a team foundation beneath them keeping their freight consistent. Which results in better pay.
Company Drivers do not have to worry about the cost of maintenance. Which is half of your profits on a one truck ownership.
Company drivers receive benefits if they choose a good smaller trucking company.
Company drivers can feel safe with knowing they have long term security while working with their team company.
Company drivers can earn between $1200 dollars to $1800 dollars a week clear profit for their time driving.
Company drivers get to learn logistics safely while they develop their business plan for the future.
Company drivers can purchase their first truck while driving with a small trucking company.
There many more reason why being a company truck driver can benefit the person but for me I think the most important aspect is, it gives a person a solid foundation to purchase more trucks while earning a solid pay with driving. The trucks you purchase over a time period that are brand new, could be moving freight leased onto where you are working as a company driver. The drivers will be easy for you to find since your on the road networking with other great drivers. This entire situation allows a person to keep a solid income which the banks do appreciate, while investing into a very expensive piece of equipment and keeping freight in the back of the truck.
Many company drivers turn to Logistical Forwarding Solutions for these consulting services to help individuals find the reality of doing just as we wrote above about. A company driver who is secure in moving freight with their trucking company family, can find new lanes that would support the equipment he or she purchases. You would lease the truck onto your boss company for a percentage and the company you work for is making a small profit as well. This type of relationship can go far and it strengthens not only your company you work as a truck driver, but it also lays the foundation for a person to own equipment safely and productive.
Below is a list of the cost of owning your own truck and driving it as an owner operator.
You must be responsible with corporate filings and taxes 100 monthly cost
A truck owner pays their own insurance premium based off their credit and driving record. Up to $2000 dollars for truck and trailer monthly.
Company Owners of trucks must pay IFTA and IRP Fees $200.00 monthly for small company.
Trucking Owners Pay 3% for funding and invoice fees $500.00 monthly
Truck Owners Pay truck payments $1500.00 monthly truck and trailer.
Truck Owners pay for maintenance $1000.00 weekly.
Truck Owners have large liability responsibility up to 1 million dollars for operating.
Truck Owners pay for health insurance or go with out. Cost ? to High $
You can also visit how to Start A Trucking Company and get more detailed information when it comes to owning your own trucking business.
There are many reason a person can see being a trucking company owner has a large financial responsibility. The rewards can be great when a solid foundation and consistency has been built to financially support a small fleet of trucks. Truck owners can also factor time down and loss of money from loads not moved when they are dealing with maintenance issues. Also fines and toll fees as well as insurance policy's for drivers and cargo. Its hard to say if there is a true financial worth of just owning one truck is worth it or not. The numbers show that usually 2 trucks can actually begin to move forward with some profits, and the trucks can grow from there forward.The company driver can leverage the full time income he or she is making, while successfully purchasing the right equipment once you have secured a great truck driver who will haul for your own business. The sky is the limit with the right patient individual. Trucking equipment finance company's like to see organic growth the right way. Once you are established with the right finance company and slowly building your fleet. The finance company's will then jump forward to help you move forward the right way quicker.
To answer the question of who is probably financially better off, the truck driver or the one truck owner operator. After 10 years of research and countless interviews with trucking company drivers and owner operators. The margin seems to be around $2000 dollars weekly if you own the truck and drive it yourself with no break downs that week. The company drivers comes in a little less weekly in pay without all the headache of building a business and paying the family bills off one truck.
My conclusions come that if you want to start within the industry of logistics and you want to grow one day so that you do not drive the truck anymore, then find a good small trucking company to begin to build with. For more information and consultation of where you can begin to build a trucking company business, email email@example.com for more information and advice.