The good news is the American dream can indeed become a reality鈥攆or the right person. The challenges, however, are substantial. And that鈥檚 why trucking business expert Todd Amen calls people just starting out as owner-operators 鈥減ioneers.鈥� The characterization is appropriate: It salutes and flatters, invoking the spirit of those Americans willing to risk everything and strike out in search of a better life. On the other hand, as Amen points out, 鈥渁bout 90% of them didn鈥檛 make it聽because they didn鈥檛 know what they were getting into.鈥�
鈥淔or the pioneer, we think the most important thing is to just think about it before you do it,鈥� says Amen, founder, president and CEO of ATBS (formerly known as American Truck Business Services). 鈥淲e鈥檝e made it too easy in our industry to become an owner-operator.鈥�
Typically, as Amen explains, a company driver might find himself sitting in a truck stop on a weekend layover, and he鈥檒l decide he needs more control over his career. 鈥淣ext thing you know, he鈥檚 an owner-operator on Monday morning and he really didn鈥檛 have to do anything to become that. He just went out and found a truck, but he鈥檚 got no business skills.鈥�
Before a driver signs on the dotted line of a lease-purchase agreement, he or she needs to be prepared. Among its services, ATBS helps would-be owner-ops develop a 鈥減rofit plan.鈥� (Amen quips that telling drivers they need to work up a 鈥渂udget鈥� is like telling them they need a root canal.)
鈥淚t鈥檚 just sitting down and going through the numbers and really understanding what a business is going to look like. It鈥檚 understanding your insurance and truck payment, fuel costs, what to set aside for maintenance鈥攁 thousand questions that nobody really thinks about before they jump into this business,鈥� Amen says. 鈥淗ow much money are you going to make, and is it going to support your household? That鈥檚 the most important thing someone can do before they take the step to become an owner-operator.鈥�
The Internet is loaded with guides for coming up with a business plan (see the sidebar on page 19 for Web resources), but the concept is simple: The plan is your road map to success and needs to take a realistic look at your market, products and objectives. For ATBS, it鈥檚 a 鈥渃onstantly evolving document that projects several years ahead and outlines the route your company intends to take in order to grow.鈥�
In launching a business, ATBS also recommends that you:
- Know how to create an entity.聽 Every state has different rules as to how a business entity is required to run, but owners are typically better off by forming entities where their permanent home and tax address is located. Options usually are a partnership, S corporation, C corporation, or an LLC.
- Estimate taxes based on current revenue. Tax planning may not be the most exciting part of owning a business, but down the road it can help you save a lot of money.
- Don鈥檛 try to do everything yourself鈥攄elegate! The inability or unwillingness to delegate has led to the downfall of many business professionals and owners, regardless of the company鈥檚 size or revenue.
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