If you’re looking to start your own trucking company or are a new business owner, you likely understand that the trucking industry can be advantageous but taxing if not managed correctly. We’ve put together a few tips to help you operate efficiently and profitably as an owner-operator in the trucking industry.
Make Sure You’re Healthy
It’s critical to schedule an appointment to get a physical. You’ll also want to have your blood drawn for what’s called a basic metabolic panel. This will allow your doctor to analyze your health, heart, organs, glucose levels, and much more. Staying healthy on the road can be difficult, so it’s essential to have an eating plan and exercise regularly while on the road for extended periods.
Decide Whether to Lease or Not
When you become your boss, you’ll have to decide to lease through a carrier or become your own operating authority. We’ll break down your three primary options below:
- Leased Owner-Operator – You’ll purchase your truck and equipment and lease it to an operating authority. In this instance, you control who you contract with, but you’ll be provided loads from an operating authority.
- Lease-Purchase Operator – This is the easiest way to obtain a truck with little to no money down. You’ll sign an agreement with a carrier or leasing company, meaning you’ll likely need to work with them for a specific time. New drivers should analyze potential contracts very carefully to ensure their rights are protected and not set themselves up for failure.
- Carrier – You can become your own operating authority which offers you the most flexibility as an owner-operator. This option also provides the highest profit margin but has higher risks because you must develop your customer list and find your loads.
Find a Good Accountant
Before you even purchase your first truck or deliver your first load, you must set up your business structure properly. This includes selecting a business entity type to set up a system to pay taxes and track expenses and revenue. Finding a trustworthy and reputable accountant can help you to put in the appropriate processes to ensure you’re not overwhelmed come tax time. You’ll likely have to file quarterly taxes, which can be easy to overlook but is key to complying with the International Fuel Tax Agreement (IFTA).
Stick to A Budget
Ensuring financial success, whether personal or business, always starts with a reasonable budget. As a business owner, you’re likely looking to succeed for both yourself and your family. Keeping track of your personal and business expenses will help you understand how much money you need to live on each month and what can be reinvested into your business to help you grow.
An independent business owner has many expenses, including fuel, permits, taxes, certifications, truck maintenance, insurance, etc. It may help to use a software program to help keep track of these expenses. A business owner is only as good as the data to indicate whether you’re operating at a significant profit or a steep loss. If you don’t know your numbers, you’ll likely not make it for long in the trucking industry.
Properly Secure Your Loads
Safety is paramount when it comes to running a trucking business. One of the most important aspects of any trucking delivery is appropriately securing your loads. There are countless materials and ways to secure your loads, but you must be well-versed in this area to succeed as an owner-operator. USA Strapping offers various strapping products to help you safely and securely get your cargo from point A to point B.
If you’re interested in learning about any of our strapping products, don’t hesitate to reach out to us today by phone at 888-768-0001 or through our online contact form.