Becoming an owner operator

UK PROFESSIONAL DRIVERS FORUMS OWNER AND FLEET OPERATORS FORUM (INTERACTIVE)
1

Hi guys, I’m an experienced trucker from Northamptonshire in a good job that pays ok, but it’s always been my quest to own my own truck and company. I’ve done a lot of research into it and I think I have a good understanding of the startup costs and processes. It would require me to get a big business loan to be able to run for the first 8 weeks or so, so it is a big decision. What would be great is if I could get different opinions and advice from as many of you who have been there and done it as possible.

From looking around and my experience as a trucker, there is lots of work around here so I believe it would be do able. Some things that would be useful to know are…

What would I charge exactly?

Where is the best place to get the work? For example freight exchange sites or local companies…

The best/cheapest prices to hire a truck and trailer?

How much profit percentage to add on?

Is it worth the risk with a young family to support?

What are the benefits?

And anything else anyone thinks would be relevant.

Thanks alot in advance guys I’m seriously looking into this so any information would be of use

2

Ryanscarborough:
What would I charge exactly?

Where is the best place to get the work? For example freight exchange sites or local companies…

The best/cheapest prices to hire a truck and trailer?

How much profit percentage to add on?

Is it worth the risk with a young family to support?

What are the benefits?

Charge exactly? - usually when you are starting out you’ll be getting told a rate and then it’s take it or leave it. You need to have a good idea of your costs to work out what you want to charge. As a very basic rule of thumb, 50% of your price is equivalent to your wages and fuel, but a better grasp of costs is needed before you can work out if that will apply to whatever job you are doing.

Working direct for a company is always going to be the better option.

Can’t answer the hire question.

How much margin - as much as you can!

With a young family - that’ll be ‘interesting’ for a while. I see you are saying 8 weeks, it takes a while to catch up and I suspect that loan will be around for a lot longer.

The benefits - I still do the job because mostly I enjoy it, some days I look at my drivers and think ‘you don’t know how easy you have it’. I wouldn’t want to work in general haulage now, it’s too cut throat.

You can make it work as an OD, but be under no illusion there’s competition out there and that is what will keep the money down. I can remember getting into a truck cab age 4 and my Dad telling me that, 47 years later, it’s exactly the same. if you look back, the same question has been asked many times, may be worth reading back over some of the earlier replies.

3

Wouldn’t touch it with a barge pole.
Unless I had guaranteed cast iron contacts to feed me.

4

hi bud am in same boat would love to be o/d and have also looked into it got quotes all things needed,but cant make the sums add up to anything like the wage and hours I get with being employed so reluctantly given up on my dream for moment seems that most companys that have replied to me £2500 per week is the norm or £400/£500 per day.like I say my wages per day on a salary with my hours per week young family and mortgage I cant afford to take the risk,a o/d friend of mine pays his drivers half of what I earn per year.take a long hard look at what you have and what you could loose and gain from it don’t jump in to quick and good luck if you do give it a go

5

Experience driver you may be but the fact your asking the questions your asking I doubt your ready to take the plunge to owner driver having a dream of doing it and actually succeeding are poles apart

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Thanks for your feedback guys appreciate it all positive or negative.

I know this is a huge step and believe me I have no plans to jump in head first, it would be a well thought out, well researched process hens why I’m trying to get feedback.

I completely understand that it is a cut throat and competitive business like most sectors these days but considering the latest figures show 50% of o licence holders in the country are owner drivers it shows with a lot of hard work and determination it can be done. I have no shame in admitting I don’t have all of the information and contacts I would need to make it happen I suppose that’s why I thought id discuss with like minded folk for some feedback.

What I do have is a great desire to make it happen. I could quite happily sit in a comfortable job that pays well for the rest of my career and do just fine but that’s not what I want. Please do not mistake this for arrogance I completely understand alot of people don’t make it and will fall at the first hurdle that’s why I suppose feedback can go a long way.

Again really appreciate your comments guys any more information that you may think would be relevant to a starting out owner driver would be great so hopefully I won’t just be bombarded with comments that tell me not to do it :slight_smile:

Thanks my trucking brothers

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You’ll get a lot of negative norris’s on here pal, and when you look back at their posts, 90% arnt owner drivers, never have been , and some arnt even current drivers. Only you can decide what’s gonna suit you.

My personal circs are I’ve got some money in the bank, kids, no mortgage.

So last year I decided to at least put myself in the running to be an owner driver.
Last October I decided to do my CPC, I did 8 hours night school, a few past papers, and took the exam in December with a intensive course. I guess it cost me a £1000 pound to take it, and prob lost £1500 pounds in wages.
I got told I’d passed in January. By this point I’m asking most owner drivers I meet they’re advice, trying to get contacts, scouring these pages , scouring magazines etc etc

I’ve paid £500 for ops application which I sent off in May. Hoping to hear something by 1st week August.

Insurance- iv had quotes around £4750, although my best was £2100 if I can get a letter from current employer showing 5yrs continuous crash free employment, if not £3100.

Breakdown £300. Git and PL £450

I committed to buying a truck last week. 57 reg iveco stralis, 500km, £7100+

So I guess it’s getting real for me.

Having a loan or tie-ing yourself in to a truck lease wouldn’t really suit me, but only you can decide what’s comfortable for you

They all pizz in the same pot when it comes to truck leasing. £200 a week for 2011 3 yr 6x2 with no maintenance, £350 a week with repairs and maintenance, 400 for a brand new one

Regards work I guess you gotta make loads and loads of calls, but the good thing is you can do that now without spending a dime, Get walking around your industrial estates, ringing anyone and everyone you’ve ever met in the trucking world.

If you can get offers of work you’ll be able to decide when and if it’s worth it.

Matt

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I’ve always said the same thing to aspiring Owner Operators- if you’ve got a good, reasonably well=paid job and a decent boss, then stick with that.

However, if you are determined to go ahead, then here’s my two pennorth.

You’ll almost certainly start out subcontracting, make sure you credit check the company, and get feedback from existing subbies- payment on the agreed date is ESSENTIAL. Each and every time.

Get your own CPC, you’ll pay £3000 plus a year to hire a Transport Manager.

Trade as a limited company.

Don’t buy a brand-new, top-of-the-range V8 Scania if a four year old Renault Premium will do the job for a sixth of the cost.

If you need to borrow money to start up, make sure you get a reasonable interest rate- not easy for a new start.

Get at least two fuel cards, if you have just one then they will ramp your price up every week until you are paying more than MSA prices.

You can make it work, but it takes luck as well as hard work, with a young family I’d say See Paragraph 1. But good luck if that’s the road you choose. I’ve been on the road for three years now, and I don’t regret it for a moment.

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Matt,

Thank you very much for your information it’s refreshing to get some genuine and friendly feedback on here which is actually really useful.

I take everything on board that you’ve said and i have no doubt it will all come in handy.

As for funding, I’m pretty limited to a loan or investment of some sort as I have 4 young kids and my earnings are the only income so I’m sure you can appreciate that saving is near on impossible and i don’t have a rich uncle lol. But like I Said this is just An idea for me right now it may take me a Few years to Take The plunge and By then my Financial status may have changed.

If you Don’t mind me asking, how are you funding your venture? Just from savings?

I Really do wish you The Best of luck and I hope it’s a success for you pal.

Please keep in touch And let me know how you Get on it Would be great To hear a success story.

Ryan

10

I never tell anyone not to do it, I just don’t want people to underestimate what it takes.

As I said, it was cut throat 47 years ago, and that didn’t stop me, so I never feel I have the right to ell someone not to.

My little company is 25 years old next year and I have 20 plus employees, so something went right! History, I started with a van and then worked up to have a mixed fleet. For me it was easier to start with a van, it was less risky financially. Got a good customer in a small expanding plastics business and we grew together for a while. It’s been a combination of luck and sheer hard work. I do honestly subscribe to putting your customers first and treating your drivers well, it reaps benefits. I had an OH, but no kids, so pressures were easier, I really can’t say how it would have affected me if I had had kids. Gotta make sure Lady Ryan is fully on board, it will make all the difference, probably handy if she can drive as well;-)

P*S. I’m a trucking sister :slight_smile:

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i started with a van 9 yrs ago then up to 7 vans over 6yrs, then one of my customers all we did was 1 pallet per week £45 job., we did this job for about 3yrs, then i was on about or o licence do we dont we :unamused:

then the said company pulled me in for a meeting, we have this said runs everyday 5 days per week 50 weeks per year, this is what we a re willing to pay are you interested

me feking to right lol :laughing:

if you can get your own customers you can make some good money a good week for me is about £3200 monday to friday give or take and my other truck does about £2700 thats monday to thurday both trucks parked up 12pm friday lastest and the only back loads we do are for the same customer, if theres no return load then its back empty

work at it mate it is do-able but get round your ind est get some fliers made up (good ones) the last ones i did i sent out 350 hard bloody work but i end up with 2 customers which bring in near 6 figures on top of my other work

dont let anyone tell you you cant do it, but ifs hard work very hard work, we are going on our 1st holiday for 9 yrs in august

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The joy of steady work si! My main customer has a completely erratic production schedule, nightmare sometimes.

Just to go all four Yorkshire men on you, it was 13 years before I got a holiday after setting up, :wink:

13

Thanks alot guys you’ve all been mega helpful!

This is something I 100 percent will do, not because I think I’m gonna get rich quick, purely because I want to do it, and seeing that it can be done by you chaps has give me a huge boost.

I may not take the plunge for a few years yet with regards to finances, I think in the mean time I’m gonna crack on and do my CPC and get talking to some old industrial contacts for some customer feedback and when the time is right I shall see about financing my business and hopefully get off the ground.

Thanks again guys and any more information anyone may think is relevant please don’t hesitate to enlighten me.

I wish you all the best in your business ventures and i shall keep you updated on my progress.

If alot more of us truckers stuck together the industry would be a much better place

For now chaps

14

Ta Ryan, for me it’s self funded. I’ve never had a good job. But always jobs I can work myself into an early grave with. So if I’m on a tenner an hour, I can work a 100 hours. That’s all I’ve ever known. Trucking, taxis, courier etc etc.
The only advantage to it is if you earn a grand, it feels like five as you don’t go out spending it on a life. Never had a mortgage as Ive lived like this since I was eighteen. Got four kids too mate so know what your saying regards getting a pot full of money together.
I think burnley Si is your probable example route, fliers, emails, telephone calls, and possibly a natural growth from van to hgv.like I said though, most of that costs bare minimum, just tendering for work or making contacts.
I’d recommend the managers cpc, as that’s sensible cost but manageable and will always help.
I guess I’m 12 ish grand in. Prob buy a couple of flat trailers at 5k each next, with insurance and other bumflufferies I guess I’m knocking on the door of 30k. Then another 10k fuel and we’ll see where I get to. Jees now iv just listed it like that I’m wondering if iv got my head screwed on correct :confused:
:grimacing: