In my last post, I gave you a few ways to determine whether your head was in the right place to become an owner-operator; questions to ponder before deciding to make the transition.

To recap, they are as follows:

1. Are you ready to operate a trucking business on your own?

2. Are you disciplined enough to motivate yourself on a daily basis?

3. Are you willing to work hard? Really hard sometimes?

4. Do you have a basic working knowledge of the mechanics of the vehicle you'll be driving?

If you've answered those questions and feel confident your head is in the right place, read on. I also mentioned in the last post that becoming an owner-operator requires a certain level of personal responsibility. Part of that responsibility is being prepared for the challenges you will face and being able to determine what your needs are going to be in order to have a fighting chance from the very beginning. The old proverb "failing to plan is planning to fail" rings quite true in this situation.

So, you'll need to think about a few things. How much money will you need to buy a truck? What kind of equipment do you need to work with the company you eventually choose? Do you need your own trailer or can you rent one from the company you lease on to? What kind of freight do you want to haul? What part of the country are you looking to work in (if interested in regional or dedicated routes)? Who is going to dispatch your loads? How will you keep up with all the paperwork? What happens when your truck needs repair? Determine your needs.

Keep in mind that each of the following sections can be expanded exponentially once you start breaking down the items within each category, but I'll just cover the basics. Here are a few of the top considerations:

Find a Company That Meets Your Needs

You'll want to research companies early on in your decision making process. My suggestion is to look into companies who either work exclusively with owner-operators or have a large owner-operator base. The reason I say this is because you do not want to compete with company drivers, you want to be on a level playing field with other owner-operators.

Once you have narrowed down the companies that interest you, contact their recruiting department to find out what the requirements are for signing on as an owner-operator. For example, they may want to know how many years driving experience you have, what your driving record is, if you have over-the-road or just regional experience, what kind of equipment you have operated, what endorsements you hold, etc. Almost all companies will be interested in doing a criminal background check in addition to checking your driving record. Depending on the type of operation they run, they may be less strict in some of these areas, allowing you an opportunity that you might not have elsewhere. When you're confident you've found a good fit, the next thing you need to do is find a truck.

Find a Truck That Meets Your Needs

Now that you know who you'll be leasing to and what kind of freight you'll be hauling, it's time to find a truck. Find out from the company what kind of truck they require: Do you need a new truck or can you lease on with a used truck? How old can a used truck be? (some companies will not allow older than a certain model year) What kind of trailer will you be pulling? Do you need a truck with one, two or three axles? Sleeper or day cab? A powerful engine to make it up big hills or a smaller one to just run around town?

In addition to this information, you'll want to determine what specifications your truck needs; gear ratios of the transmission and differentials, and engine size for instance. Does the truck need to have air ride suspension (spring ride is becoming more rare), cruise control, engine brakes, power take offs (PTO), headache rack, etc.

Another big thing to consider these days are whether the truck you choose will meet the current EPA regulations. Vehicle emission regulations are becoming stricter in many states; for instance, by 2012, California will be prohibiting trucks of a certain age to enter their ports and eventually, their state. You do not want to purchase a truck that does not meet the current requirements, as modifications can be very costly, if even possible. A great source for keeping up on new and changing regulations is the Owner Operator Independent Drivers Association (OOIDA) website. Everything they do is done with the owner-operator in mind.

You also might want to consider how the truck will suit you for the next two to five years, because if you decide to move from your original company to another, will this truck be able to make the move with you?

Find a Support System That Meets Your Needs

By this, I mean anyone who will be helping you with your business. If you use your wife, girlfriend or daughter as a dispatcher, arm them with the information they'll need to help you succeed. If your brother-in-law, best friend or local mechanic is going to be the one working on your truck, determine what their rate will be and where the best place for them to get parts, etc. is. And as for keeping records, the most successful businesses keep impeccable records. Good bookkeeping is a large part of being a successful owner-operator. You have to know what your break-even point is, what to set aside for maintenance and repairs, what you can write off as business expenditures, how to use your per-diem as dictated by the federal IRS regulations, how to pay your taxes, etc. A good accountant for this part of your operation can be invaluable. Invest some time in asking around and doing your research for finding the best. You'll thank me in the long run.

So, you’ve been thinking about becoming an owner-operator. You’ve probably heard many stories about owner-operators; everything from fairy tales to nightmares.

1. The industry doesn’t favor owner-operators.
2. There’s no money to be made.
3. Fuel prices are too high to survive and freight levels are diminishing.

Or, conversely, you may have heard:

4. There’s plenty of work.
5. Rates have come back up and fuel prices have gone back down.
6. Now’s the time to make your move and buy your own truck because prices are low and large carriers are always looking for owner-operators to lease on with them.

These are among the many topics swirling around truck stops, service shops and virtually any location where more than two truck drivers gather. It seems owning and running a rig is the brass ring company drivers are always reaching for. Turning that fairy tale into reality may be easier than you think, so don’t let negative chatter keep you from grabbing the bull by the horns and going for an exhilarating ride.

There are actually quite a few steps involved in the process of becoming an owner-operator, and I will cover those in another post. But right now, I want to make sure your head is in the right place. Making the transition from a company driver to an owner-operator is very doable. I’m sure you already know people who’ve done it and have even met drivers who are successful. So what do they have that sets them apart from the rest of the steering wheel holders in the industry? They have the mindset of an entrepreneur. They decided to take a risk, albeit a typically well thought out one, to craft their own future. They have passion. They focus on goals. They have an innate ability to turn problems into learning opportunities. They know that the “get rich quick” scenario isn’t realistic and that slow and steady work and dogged determination will get them where they want to go. They’re not afraid to ask the “old timers” questions and are open to learning from others. They’re different.

As an owner-operator, you’ll be working for yourself. The amount of money you’ll make and the free time you’ll have will be completely in your control. But that puts a lot of onus on you. You have to learn to be proactive. You have to kick your own ass. Getting yourself in gear and staying motivated is a big part of being an owner-operator. You’re not going to have the incessant beeping of a Qualcomm to remind you it’s time to get up and go to work. It’ll also be up to you to build relationships with agents and brokers, find your loads, make your pickups and deliveries on time, and keep an eye on what’s going to make you a profit. The success of your business will be in your own hands.

That level of personal responsibility can be a scary thought to some, so you better make sure you’re cut out for it. If you’re not ready to be completely responsible for your own success or failure, then you’re probably not ready to become an owner-operator. You know why I say this? Because not only do I come from a family of entrepreneurs, but I am one half of an owner-operator team and my boyfriend’s been that company driver. He has the mindset of an owner-operator because he’s been doing it successfully for the past seven years. Before you get started you have to ask yourself if you have that mindset. Before you say yes, try asking yourself these four questions. And be honest. Your answers are going to go a long way in telling you whether you’re ready to make that leap from worker bee to Queen Bee - you guys know what I mean – the head of the hive!

Becoming independent means taking responsibility for everything that happens, and that responsibility starts on day one. You will be making all of the decisions and dealing with the outcome of those decisions, good or bad. The success or failure of your business is in your hands.

Can you sit in front of that computer and look for a load? Do you feel comfortable planning trips and doing paperwork? Are you able to manage your time effectively? You have to be confident in your abilities and know that you have the self-discipline to make this happen.

Being an owner-operator takes a lot of extra effort and time, more than you may be used to in your current situation. Every owner operator falls into a groove eventually and you need to have the patience to get there. Can you plod along steadily until you get the lay of the land and learn the ropes? Can you stick with it until it pays off? NOTE: In a future blog I’ll delve into the capitol requirements of starting an owner-operator business.

Can you change an alternator? Do you know how to fix an a/c compressor? Can you read an electrical schematic to find a short in your wiring system? Are you able to change hoses, belts and filters? These are all things that will save you money and make you “one” with your truck. The better you know your equipment the less your maintenance costs will be, greatly improving your bottom line.

The answers to these questions will provide you with some valuable insight into whether or not you’re cut out to be an owner-operator. And the more you research your decision, the better equipped you’ll be to make your transition. The trucking industry always offers up surprises and unexpected turns, but being prepared and being confident in the knowledge that you can handle whatever comes your way will make it easier to step into the owner-operator arena.

In my next blog post, I’ll explain some of the steps you’ll need to take to start on the road to becoming your own boss. The path you choose is up to you.