Are you considering a career in trucking? There is an important decision you will have to make in the beginning: whether you want to work as a driver directly for a trucking company, or become an owner-operator.
When you work as a professional driver, you get the independence and exhilaration of being on the open road, with no one evaluating your every move. However, this usually comes at the cost of earning a substantial salary. You may wonder if it is best to take the next step and start your own truck, racking up more freedom and hopefully more earnings. How do you decide between trucking company driver and owner-operator? What is the best balance of freedom and earnings you want? One of the most important steps in becoming a professional truck driver is getting your TWIC Card, so if you’re interested in becoming a professional truck driver, you’ll have to read how to get a twic card here: https://www.hmdtrucking.com/blog/how-to-get-a-twic-card/.
Owner operator and company driver – what’s the difference?
Company driver:
As a company driver, you will be responsible for hauling loads in employer-provided trucks and you will be paid for each mile you drive. Many companies also guarantee a minimum weekly payment, just to make sure that you still have enough to get by when waiting for their next trip or facing a breakdown. With the market for professional drivers becoming increasingly competitive, many companies – HMD Trucking to name one – have started offering attractive sign-up bonuses and benefits packages.
One of the main advantages of being a company driver is that you have no property liability – meaning that when your route is finished you don’t need to worry about taking care of the truck, scheduling checkups and maintenance or looking for your next load. This can be quite a load off your shoulders!
Operator-owner:
As an entrepreneur, leasing or buying a truck and having an agreement with a trucking company to transport freight can lead to an opportunity of generating more profits than what company drivers earn. But, this comes with a high cost. Owner-operators must manage breakdowns or delays, procure insurance, and take charge of other aspects independently.
Owner-operators are in essence independent business owners, going about their daily duties with more leniency due to no dispatching control. However, more money can only be made provided that freight is successfully contracted at rates that can sustain a living. Furthermore, due to the nature of being an owner-operator, there is the heavily weighed responsibility of the transportation business. With a proactive attitude and the correct approach, the rewards for operating as an owner-operator are greater than that of a company driver, but with more extensive risks.
Which do you prefer: driving or the business of driving?
Are you an individual who loves a challenge and relishes the idea of being your own boss? If so, then you have what it takes to become an owner-operator in the trucking industry. As an owner-operator, you will have the commitment and determination to work hard 24/7 and be responsible for your own rig maintenance, bookkeeping, finding new clients and suppliers, and constantly striving to become even more successful. It takes consistency in hard work and ingenuity to be successful in this line of work, but with the right strategies and strategies in place you can earn more than you ever thought possible.
However, if you value free-time, weekends off, and the security of a steady paycheck, then becoming a company driver is a better option for you. Benefit from a career with fewer headaches when it comes to maintenance, financial, legal, and administrative concerns. Relax knowing that someone else is taking care of all of these important aspects for you.
How long have you been a driver?
If you are a truck driver with less than five years’ experience, you may want to consider a job as a company driver first. It is generally a better route than jumping straight into becoming an owner-operator, as it will give you plenty of time to assess if this career is right for you. That way, it will be much easier to switch jobs rather than being stuck with a hefty down payment or obligated to any leases and loans.
More deeply study the shipping business. Collect as much data as you can.
- What number of miles can you drive in seven days?
- What advantages do you have?
- Which regions would you rather operate in, and which regions provide the most favorable terms?
- What kind of cargo will you transport?
- Do you require additional qualifications or experience?
When you start driving on your own, there are certain outlays you should plan for to be successful. Firstly, you will need to cover the cost of fuel and of course tolls. Fines and tickets also come into play, so plan for those as well. Making sure you take care of your vehicle is also important, so include maintenance and insurance in your budget. Additionally, for a smooth running show, include the cost of communication systems along with repairs and needed upgrades. Lastly, remember to keep in mind some of the more personal expenses and benefits you may want to offer your family.
As an independent driver, researching what equipment you will need and which improvements will benefit you the most is crucial. While you are not an employee and are responsible for the transition, taking the time to find the solutions that will help you succeed and produce quality service is worth the effort.
Are you working for the right company?
Before embarking on your own driver job journey, it may be useful to test out the waters and trial one of the top driver employers on the market. This way, you can evaluate if the additional and potentially higher wages without the extra financial and managerial duties can bring a greater level of satisfaction and joy.
- Is your employer’s compensation package competitive in the marketplace? good working conditions, benefits, and pay?
- Is seniority the only factor that determines your pay, or are qualifications and industry experience also factors?
- What are the most elevated mileage rates at your organization?
- What amount do the organization’s top drivers procure?
- You will have to wait a long time: weather, traffic, and loading and unloading. Is there an agreed-upon daily minimum?
- Do you have your own taxi, or do you impart it to an unkempt troublemaker?
- Is your business considerate of its drivers? Is it reflected in your compensation, benefits, organization strategies, and the dispatcher’s disposition toward you?
Summary
At the end of the day, what drives us in our trucking job is the goal to make a living and make the most of our freedom.
If you’re just starting out in the OTR trucking industry, exercise prudence and restraint before making a huge monetary investment as an owner-operator. Prior to taking such a big step, it is best to experience first-hand the life of a company driver. This way, you can acquire valuable specialized skills, take on larger freight orders to be delivered, and get a better pay over time.
For those who have been truckers for more than five years now, you have definitely gauged what you like most at being a truck driver. You can always make the most out of this opportunity and choose to focus on a specified niche of the trade. Working for the right company, you are set free to pursue and accomplish whatever activities you desire.
On the other hand, faced with the tremendous responsibility of operating an independent business, the risk of failure can be great for the owner-operator compared to the more secure option of being a full-time company driver. It may be a tempting dream, but the nightmare aftermath is something anyone will want to stay clear from.