Time For An Owner-operator Update

Topic 9987 | Page 3

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Old School's Comment
member avatar

Steve, I really am glad to see you doing well. It's just that some of the numbers you threw out are a little unsettling to me. Really glad to know about your hefty maintenance account - that is important. My concerns are that you keep telling us about what the loads pay, that is typical talk for Owner Operators. As a former business operator I was more focused on my costs. That is where most new business owners stump their toe.

If you don't really have a good accounting system set up yet I highly recommend that as a priority. It will help you to see things in a different perspective. A good accountant is also important, especially if you can find some one who is familiar with the trucking industry.

There are a lot of expenses that I would think you should have that you don't mention, but I'm not expecting you to give us the whole picture. I just don't want to see you get squashed or blind-sided unexpectedly. We wish you the best, but we try our best to keep folks from falling prey to some pit-falls we recognize. When we see someone coming in here saying they are making five or six times what they were as a company driver, we feel compelled to sound the alarm. It just doesn't happen like that, and if it did we would all be running our own trucks. But the sad part is, that if one person says something like that in here, then there are a couple of hundred hungry truck drivers wanting to get on board that train who are going to fall flat on their faces. That is why we start raising red flags.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Sandman's Comment
member avatar

Old School, I see you mentioned an accountant that is familiar with the trucking industry. I can actually help for once! I am a CPA with a CDL. Congratulations on your success Steve. Wish you best for many more successful years.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.
Larry B. 's Comment
member avatar

Steve, I really am glad to see you doing well. It's just that some of the numbers you threw out are a little unsettling to me. Really glad to know about your hefty maintenance account - that is important. My concerns are that you keep telling us about what the loads pay, that is typical talk for Owner Operators. As a former business operator I was more focused on my costs. That is where most new business owners stump their toe.

If you don't really have a good accounting system set up yet I highly recommend that as a priority. It will help you to see things in a different perspective. A good accountant is also important, especially if you can find some one who is familiar with the trucking industry.

There are a lot of expenses that I would think you should have that you don't mention, but I'm not expecting you to give us the whole picture. I just don't want to see you get squashed or blind-sided unexpectedly. We wish you the best, but we try our best to keep folks from falling prey to some pit-falls we recognize. When we see someone coming in here saying they are making five or six times what they were as a company driver, we feel compelled to sound the alarm. It just doesn't happen like that, and if it did we would all be running our own trucks. But the sad part is, that if one person says something like that in here, then there are a couple of hundred hungry truck drivers wanting to get on board that train who are going to fall flat on their faces. That is why we start raising red flags.

It appears some folks just don't want to believe that's it's possible to succeed as an owner operator. Steve you have obviously thought this out, put together a business plan, have your goals and are actually reaching them! Some people are leaders and go getters in this business and some are happy just being a company driver (which is what I will do).

Even if you had a million dollars in that expense account, some would still say your are doing it wrong and will fail.

You have already had success in one career and I really believe that you are on your way to an even better 2nd.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Steve Marshall's Comment
member avatar

Steve, I really am glad to see you doing well. It's just that some of the numbers you threw out are a little unsettling to me. Really glad to know about your hefty maintenance account - that is important. My concerns are that you keep telling us about what the loads pay, that is typical talk for Owner Operators. As a former business operator I was more focused on my costs. That is where most new business owners stump their toe.

If you don't really have a good accounting system set up yet I highly recommend that as a priority. It will help you to see things in a different perspective. A good accountant is also important, especially if you can find some one who is familiar with the trucking industry.

There are a lot of expenses that I would think you should have that you don't mention, but I'm not expecting you to give us the whole picture. I just don't want to see you get squashed or blind-sided unexpectedly. We wish you the best, but we try our best to keep folks from falling prey to some pit-falls we recognize. When we see someone coming in here saying they are making five or six times what they were as a company driver, we feel compelled to sound the alarm. It just doesn't happen like that, and if it did we would all be running our own trucks. But the sad part is, that if one person says something like that in here, then there are a couple of hundred hungry truck drivers wanting to get on board that train who are going to fall flat on their faces. That is why we start raising red flags.

I guess the whole picture is this. When I bought this Truck in December last year I only had about 2K in my maintainence account. In 9 months I'm a week away from having 40K in it. I have also paid myself 500 every single week this year. I have also paid 3000 towards my Truck 9 times this year. I have also paid my quarterly taxes 3 times so far at 7500 each time. I have also spent several thousand dollars on oil changes and misc. . Plus my federal (2290) highway tax. Plus insurance (which ain't cheap) and those other things I failed to mention. So I guess your probably right. I am falling. Sorry if I misled any body. There is no money to be made as an O/O

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Steve Marshall's Comment
member avatar

It appears some folks just don't want to believe that's it's possible to succeed as an owner operator. Steve you have obviously thought this out, put together a business plan, have your goals and are actually reaching them! Some people are leaders and go getters in this business and some are happy just being a company driver (which is what I will do).

Even if you had a million dollars in that expense account, some would still say your are doing it wrong and will fail.

You have already had success in one career and I really believe that you are on your way to an even better 2nd.

Thanks for the vote of confidence Larry B.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Jessica A-M's Comment
member avatar

I think the point trying to be made by people here is you made a blanket earnings statement. Even I, a firmly wanting to be company driver but still a newbie, said, "Wow!" Now, imagine if I had said wow and then decided, screw company I'm going to go do what Steve does and be rich because Steve says he makes 5-6 times more than what I will! I'd invariably fall on my face because I have none of the experience. And I'd come back and ask what I'm doing wrong. "But Steve said he makes 5-6 times more than a company driver! Why am I living on pork and beans and can't even afford to run my air conditioning?" I think that it is awesome that you've found a niche and are making money at it and have the sense to back yourself up. But, the typical O/O problem is when one says, "I make more than a company driver." But, even you are only paying yourself $500/week by choice which is good sense. But, you didn't say that first.

I really am glad you found something. If you ever want to share your financial breakdown (and I really understand if you don't) I think it'd be great to see and share for anyone considering it. Something that says, "I have to manage my money wisely as a business owner, it's not all just flowing into my pockets and staying there."

I loved your Prime journal by the way. I'm already excited for training but now I'm even moreso.

OWI:

Operating While Intoxicated

Larry B. 's Comment
member avatar

I think the point trying to be made by people here is you made a blanket earnings statement. Even I, a firmly wanting to be company driver but still a newbie, said, "Wow!" Now, imagine if I had said wow and then decided, screw company I'm going to go do what Steve does and be rich because Steve says he makes 5-6 times more than what I will! I'd invariably fall on my face because I have none of the experience.so.

You would fail because you didn't do your due diligence, not because of anything Steve said.

Old School's Comment
member avatar
So I guess your probably right. I am falling. Sorry if I misled any body. There is no money to be made as an O/O

Steve, I guess you skipped right over the very sincere remarks that I made when I stated I am glad you are doing well. It is with a real sense of protection for the curious minded folks who will follow in your steps, because of the numbers you are throwing around, and fail, that I even jumped into this conversation. I never implied you were failing, but I do know what kind of detrimental influence a small amount of misinformation in a forum like this can have.

It is a curious thing how folks praise us to the skies when they are new to this industry and soaking up what we have to offer them as helpful information to get their careers underway. Yet when we try to warn them of the inherent dangers of being an owner/operator we all of a sudden don't know what we are talking about.

OWI:

Operating While Intoxicated

Jessica A-M's Comment
member avatar
double-quotes-start.png

I think the point trying to be made by people here is you made a blanket earnings statement. Even I, a firmly wanting to be company driver but still a newbie, said, "Wow!" Now, imagine if I had said wow and then decided, screw company I'm going to go do what Steve does and be rich because Steve says he makes 5-6 times more than what I will! I'd invariably fall on my face because I have none of the experience.so.

double-quotes-end.png

You would fail because you didn't do your due diligence, not because of anything Steve said.

I never said Steve would cause the failure. But, statements like that are what lead people to think that they can mirror the success. Usually hot blooded youple that want to stick it to the man. And, this forum has a major percentage of new people looking into the industry. The truth is that Steve isn't making 5-6 times more than company. The truth is that Steve is making $500/week because he's a responsible business owner that makes sure he has plenty of cushion in place for his business.

Jessica A-M's Comment
member avatar

Because no one can be a winner without going O/O? That's part of the problem. That's how recruiters entice people into being lease ops or how someone becomes an O/O and doesn't make it. "You can be a company driver or you can be a winner." Implying that company drivers aren't winners. Because I guess being able to safely navigate the states in a mobile apartment in all conditions doesn't make someone a winner. I guess Old School and Brett aren't winners because they know the trucking business well enough to not want to take the high risks that come with your business being entirely based on a machine that is disposable.

Congratulations that Steve is taking those risks and "winning" at it. But, Old School is successful and a "winner" too considering the fact that he can and does drive successfully.

I don't read, "Don't go O/O or lease" from any of Brett's or OS's warnings. I read them as a plea to please learn the industry before making a decision with that much risk. I read them as a plea with O/Os and Lease/Ops to please be more transparent instead of it sounding like they are making bank without the risk.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
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