Pros and Cons of Owner Operator Jobs
Different jobs in the trucking industry, whether long haul or freight brokers can be the solution for many people looking for work. This industry is very available and attainable to the masses. First, let’s figure out what is an “Owner-Operator” job? Just as described, it is a business owned and operated by the same individual. These jobs have become increasingly popular in today’s economy. Many people who are unable to find employment elsewhere have chosen to start their own business.
The advantages of having your own business are obvious: you can pick your own schedule, you are not answerable to anyone else (except maybe a spouse), and you succeed or fail based on your own efforts. Education is not necessarily a factor, as you are not meeting an employer’s requirements. You will be expected to provide proof of credentials and/or competency to prospective clients for jobs like interior decorating, home repair, accounting, or any other service type of business. Most owner-operators are also required to fulfill state licensing requirements just like any other business; if nothing else you will need a business license.
The risks of being an owner-operator are almost the same as the advantages. You are on your own. All aspects of running a business are your responsibility. This includes the expense of maintaining equipment, advertising, accounting and any needed supplies. You are vulnerable to possible lawsuits by disgruntled clients. Starting out as a “sole proprietor” keeps it simple for accounting and tax purposes, but become a limited liability company or “LLC” as soon as possible. This protects the owner-operator’s personal assets and separates them from those of his company.
Owner-Operator Trucking Jobs
A sub-contractor, a common practice in the construction field or long haul trucking jobs, does not have the same amount of freedom as a sole proprietor. You/your company are employed under another company for a job. This means meeting the contractor’s requirements but also eliminates advertising and possibly some supply and equipment costs. It still requires that you do your own accounting and maintain your own equipment.
Franchises or multi-level marketing are also owner-operator jobs. The purchase of a franchise can be very expensive. Both require adhering to the original business owner’s concept and rules, and purchasing all supplies and goods from them.
Overall, the owner-operator job is best for the disciplined, self-starting type of individual.