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THE CONS OF WORKING AS AN OWNER-OPERATOR

June 30, 2022 by admin0truck businessTrucking

Company drivers drive the company’s truck. They also transport loads when and where the company assigns them, giving them little control over their work schedules. Owner-operators are self-employed business owners who transport freight loads for others. They have more choices about when they work and what types of loads they haul.

The reality of being an owner-operator is that it is often more work when compared to working for someone else. Owner-operator has trucks and takes on all the management jobs with their driving role. Instead of being told where to go, they find loads to haul. They also create awareness, build relationships, and find ways to stay busy when times get slow.

But owning your equipment can be very expensive. The cost of buying or leasing trucks plus maintenance can be overwhelming. Owner-operators must pay bills on time to keep creditors from filing judgments against them. They also have to pay for liability and health insurance while setting aside money for taxes. Read on as Global Multi Services explain the cons of operating as an owner-operator.

EQUIPMENT EXPENSES

Working as an owner-operator requires having your rigs. Many often start with one truck and eventually build up to a fleet that may include several trucks, trailers, and flatbeds. Buying or leasing tractors is one of the primary and most expensive investments.

As an owner-operator, you can ask for a loan to buy the equipment, and the potential lenders will examine your credit history. That means the better your credit rating, the more promising your chances of getting a low-interest loan. But you need to finance at least a part of the investment.

Many owner-operators choose to lease their truck and other equipment instead of buying it directly. That is, they only pay for the property when they use it. These allow them to upgrade their equipment more often and get better equipment with less money up-front. Are you planning to become an owner-operator in the future? Now is the best time to start planning for your dream career. Start saving money from your paycheck to have a down payment for your tractors.

HIGHER FINANCIAL RISK

The financial risk of an owner-operator is enormous as they are responsible for the maintenance and fueling of the trucks. Although they can take time off when they want, they spend this time on truck maintenance and keeping business records. Also, the pressure and stress they face can be more tiring than an employed driver. Owner-operators also need to research and network with trucking companies to find who will pay the best and be consistent.

BIGGER RESPONSIBILITIES

While there is much freedom in being an owner-operator, it comes with new responsibilities you may have yet to consider. An owner-operator must research to know how to manage their trucking business. They are responsible for replying to emails, answering phone calls, and pounding the pavement to land new clients. They also handle things they were minimally involved in as an employee. These include repair services, maintenance schedule, truck cleaning, and compliance.

LESS FLEXIBILITY

Owner-operators start at the bottom and work their way up. That means they may not have the best schedule or routes until they gain a bit of tenure and seniority. They are also limited to other companies’ clients, patterns, and communication technology. These make their earning potential at the beginning unstable.

LESSER DOWNTIME

Owner-operators work for more hours than company truck drivers. They have a lot more of the workload to cover on their own. They inspect the truck before hitting the road, set up contracts, and haul the freight. These show they do not have much downtime. Also, starting as an owner-operator can be very stressful. Many companies will not give them loads until they have established a good reputation in the industry. Furthermore, they must constantly network and build their brand as a reliable source for hauling freight.

WRAPPING UP

Becoming an owner-operator often seems more enjoyable than working as a company driver. However, it requires hard work and more responsibility since they own their trucking business. Every decision they make affects their business and customer trust.

ABOUT GLOBAL MULTI SERVICES

Global Multi Services is a one-stop place for all your trucking permit applications across the United States. We provide expert services to trucking companies at an affordable price. Contact us today for a fast and efficient truck permit application.

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THE PERKS OF BECOMING AN INDEPENDENT OWNER-OPERATOR

June 27, 2022 by admin0truck businessTrucking

With a booming trucking industry, truck drivers are opting to be owner-operators. While some do it for the right reasons, others do it for the wrong reasons. An owner-operator is a business owner who owns a fleet of trucks or trailers. They operate under their authority and lawfully deliver freight without being hired by a company. These allow them to choose when they work, route, cost, what types of loads they haul, and many more.

There are several advantages to being an owner-operator. But, a lot of hard work and responsibility goes into owning and operating your trucking business. Therefore, weigh your options before deciding if being an owner-operator is right for you. Continue reading as Global Multi Services explains the perks of becoming an owner-operator.

EARN MORE 

The opportunity for growth as an owner-operator is endless, like most entrepreneurial opportunities. Owner-operators are generally better paid than company drivers and keep 90% of the whole rate. They control every trucking expense to maximize their profit margin and increase revenue. Working with companies that pay fuel surcharges and provide fuel discounts also increases their profit.

But owner-operators do not receive the same benefits when compared to company drivers. As an owner-operator, you are responsible for paying for maintenance and fuel. Therefore, it is essential to consider all this when selecting a freight and making decisions. You must research thoroughly to ensure going the owner-operator route is worthwhile.

FLEXIBILITY

One of the benefits of working as an owner-operator is it gives you a sense of freedom. You make your schedule, pick your jobs, and choose the company to work alongside. Unlike company drivers, you can accept or decline contracts. Furthermore, you can plan how much time you want to work and work on routes that involve visiting friends and family in other parts of the country.

Owning your truck also means being free from sharing it. Many trucks are not well cleaned before the next driver gets in for a haul. Facing the mess the previous driver left can be discouraging and irritating.

PERSONAL TRUCKS

Being an owner-operator allows you to shop for trucks with the features that suit your needs. It gives you ultimate flexibility when it comes to your trucks. You will not be driving a hand-me-down passed from driver to driver. Instead, you are free to make upgrades or choose the basics depending on your preferences. Also, you can travel with your partner or pet without anyone having any say in the matter.

Although owning your truck may seem perfect, it comes with much higher start-up costs than the company driver route. Trucks are also an asset, and you can sell them if you choose to change careers. Are you someone who wants a top-of-the-line semi-truck? Are you looking for something more basic because you only plan on driving shorter distances? Becoming an owner-operator will give you everything you need.

INDEPENDENCE

Being an owner-operator is just like owning any business. It provides the flexibility to avoid inconvenient routes like high traffic areas or parts of the country with bad weather. It controls productivity, and time management, choosing what freight to haul, who to work with, and how often to work. It also allows you to decide when to take time off. Making these decisions has many advantages and can keep the owner-operators in control.

Many owner-operators start by gaining experience as a company driver before investing in their trucks. And they often pick this option because they can set their own rules. They build their business and reputation as they work with companies. However, they must work to ensure their company is as successful as possible.

TO SUM IT UP 

Becoming an owner-operator brings the convenience, freedom, and independence you need.

ABOUT GLOBAL MULTI SERVICES

Global Multi Services is a truck permit company that help trucking companies apply for their permit in the United States. Our years of experience and expertise have set us apart from our competitors. Contact us today to obtain your truck permit hassle-free

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THE CHALLENGES OF MANAGING A SUCCESSFUL TRUCKING COMPANY IN THE UNITED STATES

June 22, 2022 by admin0truck businessTrucking

The trucking industry is one of the biggest industries in the United States and provides revenue for the country. According to the American Trucking Trends 2017, trucking generated over 70% of the nation’s freight bill. However, while the trucking industry hauls billions of dollars of goods across the country every year, trucking companies face a myriad of challenges that can prevent their companies from meeting their full potential.

Starting a trucking business usually requires more than getting the appropriate license and purchasing trucks. It poses challenges you need to overcome if you want to be successful. This year has presented multiple struggles for the industry, from government freight regulations and environmental factors to rising fuel prices. Surmounting those obstacles is not impossible. But it takes time, effort, grit, and determination.

Global Mukti Services has compiled the top challenges of managing a successful trucking company in the United States to aid in the quest for a successful business. These challenges present complications relative to finding a solution. So, keep reading to find out how to address some of these challenges in your trucking company.

MEETING CUSTOMERS’ EXPECTATIONS

The evolution of customer expectations is one of the most significant challenges of managing trucking companies. In today’s world, customers surf the net with their smartphones and expect instant gratification. They expect

start-up trucking companies to keep up with trends, despite their lack of multi-million-dollar infrastructure.

Addressing expectations relating to the feasible output is a significant hurdle for many trucking companies. Also, the advent of AI, electric self-driving trucks, and other technologies has increased the expectation for trucking companies to perform more significantly than ever.

Companies now have to convince their clients they are still human-oriented. They must also show them the value of their business even when they cannot match other companies’ infrastructure.

SOLUTION

Add extra value to your service

Adding extra value to your services is always a benefit and a bonus for customer relations. Often, the most prominent companies overlook this. Therefore, your company may be able to take advantage of it.

Use modern technology

Utilizing modern technologies is another way of proving you provide value. Using modern technology tools in your day-to-day operations implies your business is moving at the speed of technological growth.

Understand what motivates your client

Understanding what motivates your client is paramount when running a successful trucking business. You must know what they want and how they want to be treated. These make them patronize and trust your business.

Build customer trust

Being open about your business operation builds customer trust. And trust is the cornerstone of any business relationship. So, always focus on building trust first.

Be open and transparent with your operation.

No one likes a shady company, and being honest about your operations and processes makes your customers expect normal operations. It also allows smooth communication.

SECURITY THREAT

Security is one of the growing concerns for trucking companies. Valuable technologies are hauled across the United States, increasing the amount of crime. With freight disappearing from storage and trucks, trucking companies must increase security in their facilities and trucks.

Cybercrime is also a new threat that has emerged in the trucking industry. Dependence on technology determines the risk of cybercrime activities in your company.

SOLUTION

Partnering with companies that have earned their status as secure technology through adequately built systems and processes ensures your company maintains secured operating environments.

DIGITAL EVOLUTION

Trucking companies operating in similar ways for decades tend to shy away from significant change. So evolution toward digital solutions has affected many trucking companies. Many digital reports are now replacing paper ones. These include operator checklist, equipment condition report, fleet repair requests, pre/post-trip inspections, accident reports, etc.

Training older drivers

Training older drivers and staff to adapt and use modern tools and technology can also be challenging.

While some adopt the new technology with open arms, others might reject the idea without question. These affect the management when operating in a fashion that is the most effective for individuals.

Introducing new technology

Introducing new processes and technologies implies an upfront expenditure with the hope of increased revenues. For example: Purchasing new electric trucks and upgrading your driver’s communications to a smartphone and tablet requires an upfront expense.

SOLUTION

The key to understanding how to tackle the challenge of digital evolution is knowing the best methods of implementing new systems into your existing framework. Make your staff understand the intrinsic value of new technologies. Show them how the efficiency of digital solutions bypasses old paper documentation.

DRIVERS FATIGUE MANAGEMENT

Driver fatigue is another challenge faced by trucking companies. Fatigue sets in on monotonous positions and can be caused by more than mere tiredness. Therefore, a critical fatigue management program is paramount for employees. Also, fatigue management is challenging for trucking companies because they want to balance efficient service while allowing their drivers to work at a more leisurely and enjoyable pace.

SOLUTION

Implementing health and safety protocols for truck drivers is the first thing to do. Technology has also provided tools to track and manage health and safety issues at multiple locations. Using automated trucks will also eliminate driver fatigue issues. However, these trucks may increase driver influence problems since they do not need to pay much attention due to assisted driving technology.

STAYING IN COMPLIANCE

Staying in compliance is mandatory for trucking companies operating across the United States. The Federal Motor Carrier Safety Administration ensures motor carriers adhere to all regulations. The Department of Transportation provides permits and licenses for trucking companies to operate legally. But renewing those permits and authority can be hectic and time-consuming. Also, every state has different regulations, making it difficult for trucking companies to keep up with them.

SOLUTION

Working with a trucking permit provider like Global Multi Services relieves you of all the stress. We will help you apply for and renew all your permits and licenses. We will also update you on changes in regulation from time to time. These allow you to focus on other parts of your business.

WRAPPING UP

The trucking industry provides an essential service and can overcome its current challenges. With foresight, perseverance, planning, and determination, you can overcome these challenges and see your business thrive.

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