Drive your business forward with these 6 proven strategies
According to a recent study, more than half a million truck drivers in the U.S. are owner-operators. Are you among them? Or do you aspire to be?
Here are six things you can do if you’re wondering how to be a successful owner-operator. Find out how partnering with ArcBest’s Panther Premium Logistics fleet, along with following these tips, can give you a competitive edge in building and sustaining a profitable business.
1. Learn from the experts in your circle
Nothing helps you develop faster than being around top performers in your chosen field. Build a network of fellow owner-operators, technicians, customers and people within the company you contract with.
Become a sponge; ask questions and learn from everyone you encounter. These valuable connections can help boost your industry knowledge and accelerate professional growth.
2.Maximize efficiency with strategic planning
Your time is valuable. Do you make the most of it? Focus on choosing shipments that align with your goals to earn consistently while limiting deadhead miles and eliminating unnecessary dwell time.
A logistics company like ArcBest, with advanced technology and multiple types of shipment opportunities, can be a valuable resource for helping plan your weekly miles. Our load-matching functions help you plan efficient routes that optimize for total miles and revenue per mile instead of just accepting the highest-paying single load.
This reduces empty miles and wait time between loads, so you keep moving and earning.
3.Create a budget and stick to it
Protect your investment by setting yourself up for profitability. Consider designing a monthly budget that accurately accounts for all your business and personal expenses. Determine your net income by subtracting your trucking expenses from your gross revenue.
Once you figure out your net income, you can decide how to allocate it. That might look like this:
To help offset fuel, insurance and truck ownership costs (like maintenance), find out if the company you contract with offers discounts. ArcBest, for example, offers fuel and insurance programs to help independent contract carriers reduce costs so they can keep more of their hard-earned money.
- 60 percent for personal expenses (housing, transportation, food, utilities, personal debt, etc.)
- 40 percent for the rest (taxes, retirement savings and miscellaneous costs)
And when it comes to money, it’s never too early to plan for your future. Check out this retirement calendar to estimate how much you’ll need and how long it will take to reach your goals.
4. Determine your profit margin with this simple formula
It’s important to understand your profit margin to see how well your business is doing. Figuring this out is simple. First, calculate your average weekly gross profit (the difference between your revenue and operating expenses). Then, divide gross profit by the total revenue to get your profit margin.
For example:
- $5,500 gross revenue - $2,500 expenses = $3,000 gross profit
- $3,000/$5,500 = 0.55 or 55 percent
What should your goal be? Experts indicate that a healthy business has a profit ratio of 10 and 20 percent.
5.Strive for a healthy balance for the long haul
Being your own boss has its benefits, but it also comes with higher stakes. Missed time behind the wheel because of illness (either yours or a family member’s) or burnout equals lost income for your business.
Your health is your most valuable asset. Protect it by practicing the following habits:
- Spend time outside
- Drink plenty of water
- Plan healthy meals
- Get an energy boost from short workouts
- Prioritize sleep
- Communicate regularly with friends and family
- Connect with online communities
- Ask for help if you need it
- Make time for things you enjoy
6.Expand your trucking career with hassle-free options
Having an experienced and attentive team in your corner is invaluable as you navigate your career. Whether you want to purchase a single truck or build a small fleet, teaming up with Panther is an easy and efficient way to grow your business.
Learn about exclusive lease purchase opportunities available from Panther and Expediter Services (ES).
Explore the benefits of becoming a Panther fleet owner.
Unlock your earning potential with ArcBest and Panther
As part of ArcBest’s Panther fleet, you can select the loads you want in your preferred region while experiencing the consistency, reliability and support of a trusted industry leader.
Learn more about how driving as a Panther owner-operator can benefit your business.
Interested in other driving opportunities? Learn about all the ways you can drive for ArcBest.
