Own/Operate vs. Company

[Buffalo]

What are the adavatages/disadvantages of owning and operating your own truck as opposed to driving for somebody and vice versa?

[SilverSurfer]

Your question leads me to believe you have little experience with the trucking industry. I mean no disrespect...only pointing out an observation. With that said...I will share the main pros/cons regarding your question.

O/O'ing allows you to control what type of freight you what to deal with and what lanes you want to develope...as well as complete control over your operations. Success or failure is in your hands, and your hands only. The downside for someone not familiar with the ropes is the need to be your own salesman and maintain all the needed permits, licensing, reports and records...as well as maintaining your own equipment. There is a level of O/O'ing where you can contract with a company to aleviate much of the paperwork side and only have to deal with the maintaining of your equipment, but you will loose much of your ability to control the freight you want to handle and the lanes you want to develope...as well as control over growing your own customer base.

The flipside (company driver) should be pretty obvious about the pros. And the downside is basically you do what your instructed for the required period out (average 15 days) before you get 48 hrs off. That's fairly standard with the big companies. If you're able to get on with a smaller outfit...the periods out and time off will be dependent upon the owner of the business. And do understand you're at the mercy of the company from the time you come on-duty through the time you're released for time-off (24/7).

Hope that helps ya out a little in understanding the basic difference.

-ss-

[Buffalo]

Yeah, I knew it would be obvious that I was not to experienced with the trucking industry. I am about ready to take the written and driving tests to get my CDL (taught by my grandfather, 35 year career trucker), and I'm trying to decide wether I should o/o or be a company driver. Thanks for the information.

[SilverSurfer]

Your welcome. I will add...take as much advantage of the knowledge your grand-dad posseses. Ol' schoolers know much about the ethics, lifestyle and do's/don't's about the business. You'll find him to be a wealth of information that may be the difference between success and failure.

Go luck, brother...

Safe Trails and God Bless,
-ss-

[RickG]

This would be a very bad time to take on truck payments as an O/O . The freight just isn't there . Different companies have different priorities with their loads . Some will give an O/O priority but many give company drivers priority when freight is slow . You don't want to buy a truck until you have at least 2 years expeience . You should also have a decent down payment and at least $10,000 cash reserve when starting .

[SilverSurfer]

This would be a very bad time to take on truck payments as an O/O . The freight just isn't there . Different companies have different priorities with their loads . Some will give an O/O priority but many give company drivers priority when freight is slow . You don't want to buy a truck until you have at least 2 years expeience . You should also have a decent down payment and at least $10,000 cash reserve when starting .

Not to contradict ya, RickG...but I don't necessarily believe this to be an honest evaluation. My brother negotiated use of authority with an independent last January. Developed a small customer base then purchased a rig and trailer in March, and has been doing quite well. He did this without anything more than $1,500.00 for start-up. Now I do have to admit we are third generation truckers and have the advantage of knowing the ins and outs...but it can be done without a large start-up reserve even during the worst of times. Believe it or not...the worst of times actually offer the best opportunities to accomplish this.

Buffalo's got an advantage going for him...he has a grand-dad that's been in the business for many many years.

-ss-

[Buffalo]

Thanks again. Another thing... kinda off topic. Are you still considered an o/o if you and another driver incorperate? And is that a smart thing to do at this time?

[SilverSurfer]

The only sound advice to give regarding incorporating is for y'all to speak with an attorney which deals directly, and solely, with corporation filings. I have never considered that as an option for personal reasons, but even if I had knowledge of incorporating...I would still only give the advice to speak with an attorney. There is much involved in that process.

-ss-

[Buffalo]

Thank ya much for all your help. I really appreciate it.

[RickG]

Not to contradict ya, RickG...but I don't necessarily believe this to be an honest evaluation. My brother negotiated use of authority with an independent last January. Developed a small customer base then purchased a rig and trailer in March, and has been doing quite well. He did this without anything more than $1,500.00 for start-up. Now I do have to admit we are third generation truckers and have the advantage of knowing the ins and outs...but it can be done without a large start-up reserve even during the worst of times. Believe it or not...the worst of times actually offer the best opportunities to accomplish this.

Buffalo's got an advantage going for him...he has a grand-dad that's been in the business for many many years.

-ss-

I'd like to hear the opinion of others on this . It doesn't take much of a mechanical breakdown and towing bill to eat up $1,500 . Your brother was lucky . Thousands of others starting on a shoestring weren't and were soon out of business .