The trucking industry is one of the most competitive ones in the market, and many business owners are venturing into it. The interest in the industry is quite understandable as it brings in significant returns. However, the big question should be whether to venture into it as an employee, partner or as the owner.
Many factors are subject to consideration when it comes to answering this question. Three things of utmost importance are skills, knowledge, and strategy of starting and running the business successfully. This you can acquire by working under or with an experienced person in the market, to borrow the ideas and strategies he/she uses in specific situations. Lack of these three may lead to failure of the business, and according to the National Association of Small Trucking Companies, 15% of trucking businesses do not make it to the second year of operation.
However, if you are already fully equipped with the skills and knowledge, running your own trucking business is the ideal choice. Here are some of the reasons why trucking business will earn you more.
Escape hiring fees.
If you hire trucks from companies or carriers to make your trips, you will have to part with a percentage of the money made to pay the leasing company. While this is an innovative start, it should not be a permanent thing.
Control the money
Having your own trucking business means that you get all the money and control it. It is even better if you do the operations on your own as this will mean all the money got go to your pocket, or rather the business’ pocket. That said, it also means you’ll own your own debt. You’ll need to get truck financing to pay for the truck initially so you need to prepare to pay off your debt, too.
You are not paid from commissions
When you own your trucking business, you receive the whole amount you have worked for, and you do not have to rely on a 40% commission or so. The only amount you will part with is for insurance cover and maintenance.
You control the budget
Making your budget can be tricky, but you get to filter out the unnecessary costs and allocate resources according to priorities.
Prevent wastages
When you are the one catering for maintenance, repairs, and fuels, instinctively you will prevent wastages or avoid situations that may lead to damages, which will ultimately need repair. While damages are inevitable in any business, some are avoidable, and when running your own business, you will feel the need to avoid them
Besides the financial benefits, owning your own trucking business also has other non-financial benefits that include:
Personal fulfillment
When you start a trucking business, you always have your ideas, your visions, and your goals. You also envision yourself and where you want the business to be in a particular number of years. This can only actualize when you have total control over the business and solely make decisions without the need to consult. However, when partnering with or working for someone, your goals will often than not be dwarfed or compromised.
Flexibility
Running your own trucking business provides you with unlimited power to adjust the plans you feel need to be adjusted, eliminate those that are unrealistic and add those that are necessary. In some instances, you may also change your goals if need be. All these you can do without needing permission from anyone, a privilege that is not available when working for someone.
Security
While starting your own trucking business is risky, getting laid off from someone else’s trucking business is devastating. With your own business, you do not have to live at the leniency, tolerance, and providence of someone.
More time with your family
Owning your own trucking business means controlling every single aspect from the budget to the schedule, and when you are in control, it is easy to get time to spend with your family. This, however, will require that you have someone in control, say a manager.
So, running your own business may seem hard and risky. Working for someone may also seem easy and free-of risks. However, what benefits does owning your own trucking business have? What are its financial benefits, put against those of working for and under someone? But before looking at the benefits, first equip yourself with the knowledge, skills, and capability to run the business. Starting by working for someone can be a helpful strategy.