A few tips and direction of becoming an owner operator in the trucking industry

Posted in: Freight Factoring News- Jul 09, 2013 No Comments

Tired of working for a trucking company that makes you drive your own truck or are you need of work and ready to start your own thing? It isn’t as difficult as you might think, although it can get expensive to get up and running but it does not have to be. With the right tips and information you can start up for less cost than you think.

 

    •   Getting your permits and authorities. These can be types of licensing and permits that you will need in order to transport goods for others. These licenses and permits will differ depending on where you want to haul cargo to and from. You can hire a consultant or do the paper work yourself. Doing this yourself will save you thousands and give you a better understanding of your business and want guidelines you are expected to follow under the transportation act.

 

    • Equipment or hiring an owner/operator. This is essential for your business; you will need one or the other or have both. If you can and willing, working for yourself in the beginning will help your company get started if you are short on finances.

 

    • Insurance. Of course it is essential to protect you and your customers. You will need to insure your equipment, trucks and purchase cargo insurance as well. Shop the rates, and look at coverage vs. expense. The cheapest isn’t always the best.

 

    • Obtaining Business or loads and/or contracts. Using load boards and brokers will be the easiest way to start. You can also check with companies and sites that deal with owner/operators like fundmyfreight.com (finances owner operators and deals strictly with others in your field), Bakkensocial.com (social media site that will help you connect with others in the oilfields). There are several sites and avenues which will allow you to make connections and help you along the way.

 

    • Getting paid. If you do not have very much cash and you are unable to wait then I suggest that you use a factoring company like Transfac Capital. When you are starting a company sometimes you are not able to wait 30 to 90 days to get paid from your client. Using a factoring company can put money in your account right away at a minimum fee. The benefits include no contract, possible 24hour application and set up, quicker and less stressful than dealing with a bank (which might not give you a line of credit due to the size of your company)

 

There is a certain freedom that comes with running your own trucking business, and above are few tips to help you get there. There are many other items to take care of along the way, but with the right information and talking with people in the industry you’ll get to where you want to sooner than you think.