In this article, we’ll explore the pros and cons, as well as three key considerations as your make your decision on becoming an owner-operator.
Thinking about becoming an owner-operator? Here’s what to consider first
Making the leap from company driver to owner-operator is a significant decision. It can offer independence, but that freedom also brings added responsibilities:
Benefits of being an owner-operator
- Freedom: Choose when, where, and how you work
- Earning potential: Selecting the right loads can increase your income
- Personal fulfillment: Managing your own business can be a rewarding experience
Challenges
- Responsibility: Maintenance, scheduling and decision-making fall on you
- Unpredictable finances: A slow week can impact your income without steady work or savings
- Regulations and compliance: Permits, licensing and industry standards can require effort to manage
Before making the switch, take time to evaluate your goals, financial situation and readiness to handle these responsibilities.
“If you’re not hauling a load that makes you money, you’re losing money. Every deadhead mile, every gallon of fuel, every maintenance mile — it’s all on you.”
– Stephen Lutz, CRST director of operations
Three considerations for becoming an owner-operator
We polled members of the CRST owner–operator network to get their best advice for drivers who were considering becoming OOs themselves. Here are their top three pieces of advice:
1. How can you manage your finances like a pro?
A financial foundation is essential for any owner-operator. Poor financial management can quickly turn your dream into a challenge. Lutz advises, “Understand your cost per mile to operate your truck and support your home life.”
“Understand your cost per mile to operate your truck and support your home life.”
Key financial tips for owner-operators
- Calculate your cost per mile
- Add up all your expenses — fuel, truck payments, maintenance, insurance, and even personal costs like rent and groceries. This number can help determine the minimum rate you need to charge to remain profitable.
- Separate personal and business finances
- Open a dedicated business account and keep your personal expenses separate. This approach can simplify taxes and provides a clearer picture of your cash flow.
- Create an emergency fund
- Set aside money for unexpected expenses like tire replacements or mechanical repairs. Lutz emphasizes, “Without a cushion, even a slow week can set you back.”
- Track your expenses
- Staying on top of spending can help you identify areas where you can cut costs and avoid surprises. By treating your operation like a business from day one, you’ll be better positioned to weather challenges and focus on growth.
2. How do you balance work and life as an owner-operator?
One common struggle for new owner-operators is finding a healthy work-life balance. While independence allows you to set your schedule, it’s easy to fall into the trap of overworking.
Tips for better work-life balance
- Plan your routes effectively – Strategic planning can help you get home more often. For example, prioritize long trips that end near your home base.
- Set boundaries – Decide early on when you’ll work and when you’ll rest, so you don’t overload yourself with back-to-back jobs.
- Leverage your freedom – Take advantage of being your own boss. Schedule downtime between loads to recharge and spend time with family.
Balancing work and life takes practice. But finding the right rhythm can create a fulfilling career and home life.
3. Ready to buy your first truck? Here’s how to choose wisely
Your truck is the backbone of your business, so choosing the right one can make a big difference. But it’s not as simple as picking the shiniest model on the lot. “Don’t just look at the price tag – think about the cost of ownership over time,” says Lutz. Make a well-informed decision and ensure the truck you choose fits both your budget and business needs.
“Don’t just look at the price tag — think about the cost of ownership over time.”
Questions to ask before buying
- New or used
- While new trucks come with warranties, they also come with a higher upfront cost. Used trucks can save money initially, but you’ll need to ensure they’re reliable.
- Fuel efficiency
- With fuel costs being one of your largest expenses, choose a truck with good mileage. This can save money in the long run.
- Maintenance history
- If you’re buying used, review the truck’s maintenance records. Try to look for trucks with a consistent maintenance history and fewer major repairs.
- Warranty coverage
- A warranty may help reduce unexpected repair costs during the early years of ownership.
Make a well-informed decision and ensure the truck you choose fits both your budget and business needs.
Take control of your career as an owner-operator
Owning your trucking business is no small feat — it takes discipline, financial savvy and a willingness to stay informed and adaptable. But for those who take the plunge, the rewards of independence and self-sufficiency are unmatched.
If you’re ready to take the first step, start by analyzing your finances, preparing for compliance and making informed decisions about your truck and schedule.
Are you ready to be your own boss? CRST offers owner-operators industry-leading discounts, benefits and access to a network of more than 30,000 third-party providers. Learn more about becoming a CRST owner-operator and take the leap today!
