10 steps to become an owner-operator
Owner-operators are responsible for all aspects of their business, including finding their own loads, arranging their own financing, and maintaining their truck. But, becoming an owner-operator — and truck driver— is more than a career. It’s a lifestyle choice with long hours on the road, alone. It is worth fully evaluating the lifestyle before diving into a driver or owner-operator role. If the demands excite you, here are some steps to help you get started.
Step 1: Get a commercial driver’s license
Begin by acquiring a Commercial Driver's License (CDL) with your state. This crucial first step involves passing both a written test and a driving skills exam. You’ll need to devote some time to studying your state’s handbook. There are CDL classes at trucking schools as well to help you pass the exams. Once you have your CDL, you can legally drive a commercial truck.
Step 2: Gain experience
Experience matters in the trucking industry. Many owner-operators get their start driving for someone else to get road experience without taking on financial risk. Before taking the leap into ownership, spend time honing your skills as a truck driver. Embrace the opportunity to learn the ins and outs of the industry, build essential relationships, and familiarize yourself with the diverse challenges that lie ahead.
Step 3: Form a business
A successful trucking business starts with a solid business plan. Outline your financial goals, operational strategies, marketing approach, and projections for growth. A well-thought-out plan will serve as your roadmap to success and guide you through the ups and downs of the industry. Once you have your business plan, go to your state’s secretary of state and complete a LLC or sole proprietorship application, pay the registration fee, and submit.
Step 4: File for a USDOT number
Next, you’ll need to apply for a U.S. Department of Transportation (USDOT) number through the FMCSA website. A USDOT number is required to operate in interstate commerce.
Step 5: Apply for a motor carrier (MC) number
You’ll need both a USDOT number and a motor carrier (MC) number to pursue opportunities as an owner-operator. Your MC number is a unique identifier assigned to motor vehicles used in interstate commerce. You can apply for your MC number on the FMCSA website.
Step 6: Buy or lease a truck
You’ll want to consider factors like the type of freight you plan to haul, fuel efficiency, maintenance costs, and overall reliability before buying or leasing a truck. If you can afford the hefty down payment, get a loan for a new truck or a used truck, then pay it off over time. Leasing a vehicle will be cheaper, but you won’t build up any equity and may end up paying more in the long run.
Step 7: Purchase insurance coverage
Insurance is a must for safeguarding your trucking operations. Invest in comprehensive coverage for your truck, cargo, and liability to protect yourself from unforeseen circumstances.
Step 8: Buy an electronic logging device (ELD)
You’ll need to buy an FMCSA-compliant ELD and connect it to your truck. An ELD is a device that is used by drivers to automatically record driving time and hours of service (HOS) records, as well as capture data on the vehicle's engine, movement, and miles driven.
Step 9: Find loads and equipment
Now is when you can start browsing load boards. Load boards are an online marketplace where owner-operators can find available loads. You can also search a trailer marketplace, like REPOWR, to rent trailers with flexible terms to carry your load.
Step 10: Manage your finances wisely
Maintain meticulous financial records and keep track of all income and expenses related to your trucking business. Good financial management is key to long-term success. Consider hiring an accountant or utilizing accounting software to ensure accuracy and organization.
Becoming a successful owner-operator requires a unique blend of skills and determination. As you embark on this journey, remember to prioritize safety, compliance, and your financ wisely.
The road ahead is yours!
