A plan for better business: Why do you want to be an owner-operator?

Alan Kitzhaber Portrait Headshot

Do you want the freedom? Do you want the challenge? Do you want the opportunity to earn a better income? Do you want the pride of owning your own business? Do you want an aerodynamic truck? Are you focused on trying to increase revenue and improve operational efficiency? Do you want to be a student of your occupation?

Answering yes to these questions tells me your head is in the right place.

Or do you want to have a non-aero truck with lots of chrome, lights, and a fancy paint job and be the fastest truck on the road? This option costs a lot more, and fuel economy will be compromised -- which means less of your revenue going to the bottom line (also known as your bank account). If your plan is to make this truck your hobby as well as your way of earning a living, and you’re willing to make that trade-off, it’s your choice.

Overdrive Trucker of the Year Alan KitzhaberThe author of this two-part feature is Alan Kitzhaber, today named Overdrive's Trucker of the Year.For me, the only positive thing to this option is that at least it’s a tax-deductible hobby.

You might be one of those drivers who just wants to give it a try and see how it works out. If that is your mindset, though, you’ve probably failed before you drove your first mile. To be successful in business, you need to go into it with the mindset that you are going to do everything you can to be successful, and that there is no way you ever want to drive a company truck again. Do that, and you’re probably going to be successful. With that mindset, you will always have a desire (99.9% of success is desire) to learn and improve your business. You will be one of the success stories.

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Learn from other successful owner-operators, listen to the Road Dog network on Sirius XM, read trade magazines like this one, read books on being an owner-operator, take a course on business from your local community college, take an online course on business. There are all manner of YouTube videos that can help you. Trucking forums have a wealth of information.

If you are serious about starting a trucking business, the resources are out there for you to acquire the necessary knowledge to make it happen. I would start doing this long before you purchase your first truck. The more knowledge you can acquire prior to purchase, the better your odds of being a success.

Truth be told, all you really need to become an owner-operator is for a bank to loan you the money. There is no real requirement for any level of business acumen. Most of us attended truck driving school to get our CDL. That taught you how to drive a truck with enough skill to be a company truck driver. When you become an owner-operator, though, you become a business owner, and if you want to make that business successful, you need to operate it like a business. Be that owner-operator who is always engaged in learning -- it will pay huge dividends.

Alan Kitzhaber's truck visor, with quote by Henry FordI have this quote from Henry Ford printed and displayed on my truck visor, and try to live by it.

The Owner-Operator Independent Drivers Association is another good source for information on becoming an owner-operator, as well as getting your own authority. They have a 26-page downloadable pdf dedicated to that subject. I used this when I got my own authority. I highly recommend it. When I did my New Entrant audit, required of all new carriers with authority, the officer was impressed by how organized I was, he said, and how easily I was able to provide the documentation he needed to review.

Know your numbers

I first became an owner-operator in 1998, going from being a company driver to an owner-operator with the same company. The first thing I did at that time was purchase a software program called Turbo Tax, plugging in what I thought my income and expenses would be. The goal was to see how my income as an owner-operator might compare to that of a company driver. The numbers told me I was making the right decision to become an owner-operator.

If your accountant is familiar with the trucking industry, they may be able to help you with this decision. I highly recommend using an accountant that specializes in the trucking industry. They will better understand the industry and what deductions you qualify for. The average accountant will probably miss some things, and that will cost you money.

I bought some land a couple months after becoming an owner-operator. Typically, a loan officer likes to see two or more years’ worth of tax returns for a business owner that proves you are a success before they will grant you a loan. Because I was staying with the same company, doing more or less the same work, and especially because I had plugged in all the numbers into the Turbo Tax program and had it all printed out for her to see, she believed in me. I got the loan. I think it’s an example of how knowing your numbers can pay off in many more ways than just those directly related to your business.

If you don’t know it already, learn how to use a spreadsheet. It’s like a calculator on steroids. It can be used for comparing companies, comparing loads. For your profit and loss statement, monthly and yearly ledger of expenses. For storing usernames and passwords in a password-protected file, for managing IFTA mileage records, payroll reports and more.

I think the profit and loss statement will give you the most insight into how your business is performing. Community colleges offer courses, YouTube has tutorials and there are online courses for learning how to use a spreadsheet. It’s not a big lift -- the calculations you will be using are pretty basic -- and will pay big dividends over time.

Earning maintenance dividends

Maintaining your truck is priority No. 1. If your truck isn’t running, you’re not generating any revenue. Build a good relationship with a truck repair shop and set up a scheduled maintenance plan. Paying your bill on time will pay big dividends: if you find yourself in a bind and need to get some quick work done on your truck, your shop is more likely to work you into their schedule.

YouTube, trucking forums and basic Google searches to get you there can be very helpful in finding answers for your maintenance issues.

What is that sound I'm hearing?

Why is this warning light coming on?

I use those resources occasionally, but more often than not I talk to my shop. I’ve been using the same shop for more than 22 years.

Don’t wait until something needs to be repaired before you take care of it. Being broken down on the road equals very expensive repairs and lost revenue, and the company you work with and their customers may question whether they can rely on you.

Set up a maintenance savings account. I would suggest $35K-$40K as a savings goal.

Put money away each month until you reach your goal. This should be enough to cover an overhaul, should you need it. I know it’s a lot of money, but if you don’t have a nest egg to fall back on you are putting yourself in a bad spot. Before start-up, have at least $10K, I’d recommend, and work on increasing that number as quickly as you can. I have seen too many owner-operators fail just because they couldn’t keep their truck on the road.

You never know when a major maintenance problem will occur.

[Related: Success through self-help, lane change: Trucker of the Year 'exit interviews', Part 1]

I’ve saved money long-term by purchasing an auxiliary power unit and an X45 Proheat. These units provide engine heat, cabin heat and air-conditioning. Since your truck engine isn’t running, you’re extending its life and saving a lot of money on fuel in the process. I also have an OPS bypass oil filtration system, which allows me to extend oil change intervals to 50,000 miles, using synthetic oil. If you extend drains like this, I recommend having your oil tested regularly -- request a TBN (total base number) test. TBN tells you how well the additives are holding up in your oil. The additives are what’s protecting your engine from contaminants that will damage it. I take an oil sample for the test every 12,500 miles, or about once a month.

I carry spare truck parts with me, too: lights, fuses, supplies needed to do electrical repairs, heater hose and clamps, glad hand gaskets, airline repair connectors, windshield wiper blades, windshield washer pump, air compressor governor, turn signal flasher, alternator with pulley mounted, etc. These are things that most of us can easily replace ourselves to save money and added downtime. Have a toolbox with some basic tools: Hammer, pliers, vise grips, open-end/box-end wrenches, socket set, crescent wrench, etc. Your collection of tools will grow with time.

For any and all expenses, I keep a ledger: maintenance, fuel, miscellaneous. I track fuel economy in the ledger as well, likewise the timing of when I replaced certain components, and the mileage. This way you can easily see how long it’s been since you replaced something and take a change-interval approach to wear items like brakes and shocks, brake chambers, tires, batteries, oil, and more.

Replace it before you need to. Some of this you’ll just learn through experience, or take the considered advice of your shop.

Next in this two-part feature: Take care of yourself with diet, exercise – you’ll be better able to enjoy the fruits of your labor

Trucker of the Year logoOverdrive's 2025 Trucker of the Year program, sponsored by Commercial Vehicle Group and Bostrom Seating, recognizes clear business acumen and unique or time-honored recipes for success among owner-operators. Through October, we're naming Truckers of the Month to contend for this year's Trucker of the Year honor. Finalists will be named in December, and a winner crowned early next year. Enter your business or that of a fellow owner (up to three trucks) at this link.

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