Truck Driver Jobs - Owner Operator Keys to Success
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With skyrocketing fuel prices, rising insurance and equipment costs plus an often grueling finding, maintaining and schedule meaningful success in an owner operator truck driving job is a challenge for by far the most skilled owner operator truck drivers.
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On top, it sounds simple to get a Kenworth or Peterbilt semi truck, find all the profitable truck driver jobs it is possible to handle, to make $100,000 each year after taxes. The fact of the matter is that most owner operators are not nearly this successful. Rather, it is estimated that under 10% of independent owner operator truck drivers make this type of money.
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Inexperienced or new owner-operators would be the most susceptible and vulnerable for this financial management challenge through the initial -24 month period after they choose to dive into ownership.
Unfortunately, the trucking industry has a terrible trustworthiness of chewing up and spitting out individuals taking on new, independent truck driving jobs as either owner operators or expeditor's like a tobacco chewing cowboy at a rodeo.
For many years, the Trucking industry has failed miserably to cultivate, train, and nurture drivers to help them manage the financial side from the business and steer clear of the pitfalls associated within the ranks of semi truck driving owner operators.
They have set aside an emergency cash fund. That's the most important similarity among all successful independent owner operator truck drivers have in common. Because the primary key to any successful business is managing cash flow, nothing is more important to the profitability of your trucking business than good business decisions in this area. You and you alone are responsible for managing every aspect of your small business income, being an independent owner operator truck driver.
Effective cash flow management is exactly what determines your profitability at the end of the month. Best owner operators we interviewed advise that individual truck drivers have 3 to half a year of after tax money in a fund for emergencies for instance a loss in job or unexpected major expenditure.The emergency cash fund needs to include all of your business expenses stashed away including truck maintenance, payment and insurance etc.
Here are some emergency fund guidelines for owner operators. A recent trucking magazine survey discovered that:
Almost 60% of owner operators surveyed have emergency funds that average $11,500.
Among those who have established this type of fund, about 65% felt comfortable with an unexpected emergency fund even closer to $14,000
Owner operators indicated the emergency fund should equal about 33% of your own operating income (revenue - expenses = operating income)
Newbie owner operators usually accept the danger reward ratio with simply God's blessing and a thoughtful prayer support group. Emergency funds at star-up are often non-existent.
Saving for your unexpected requires detailed record unwavering and keeping discipline.
In summary, two key points to battle the street along with you. First, discipline you to ultimately immediately establish and sustain a 3-6 month emergency cash fund that also includes your operating expenses. Second, purchase all emergencies with cash which has been earning interest for you personally instead of with cash in which you'll pay someone else.
We'll view you the next occasion with increased independent owner operator truck driver techniques to success.