How to Become an Owner-Operator With No Experience

Last Updated November 20, 2024

Looking for a career change? Or perhaps, simply considering moving on from being a company driver and starting your own trucking business?

Becoming an owner-operator could be a lucrative option—in fact, owner-operators make an average yearly salary of $324,043 before expenses.

While working as a truck driver can be an excellent career, becoming an owner-operator with no experience can be intimidating. However, by understanding how to get into the trucking industry, you can set yourself up for a successful career as an owner-operator.

What Is an Owner-Operator?

An owner-operator is a self-employed truck driver who runs their own trucking business. This means they set their own schedule, own or finance their truck, and operate with their own authority. They are fully responsible for managing all aspects of their trucking business, from managing insurance and taxes to negotiating payment terms and finding loads.

This stands in stark contrast to company truck drivers, who work for a company as a standard employee for an agreed-upon salary and benefits package.

Can You Become an Owner-Operator With No Experience?

It’s rather common for someone to become an owner-operator after spending time as a company driver—but this doesn’t mean it’s impossible to become an owner-operator if you don’t have prior trucking experience.

Becoming an owner-operator with no experience involves many of the same requirements you’d need to fulfill even if you already had worked as a company driver. You’ll need a CDL (commercial driver’s license) and be required to meet other general driver qualifications. You’ll also need to go through the process of registering your business, securing financing so you can obtain equipment and insurance, and obtaining all relevant certifications for the loads you plan to haul.

To become a successful owner-operator with no experience can also prove challenging simply because you’re new to the industry and have a lot to learn in comparison to someone who has already worked as a company driver. But as long as you put in the effort, it’s far from impossible.

How to Become an Owner-Operator With No Experience

The following steps are crucial if you plan on becoming an owner-operator with no experience. By making the most of the resources available to you and doing your due diligence, you can greatly increase your odds of building a successful business.

1. Learn About the Trucking Industry

With no prior experience, you must start by learning more about the trucking industry. It’s incredibly helpful to have friends in the industry or to find a mentor who can help you learn. Their firsthand experience can help you avoid mistakes and gain a deeper understanding of what you should (and shouldn’t) do as you start your owner-operator business.

2. Create a Thorough Trucking Business Plan

A trucking business plan is essential for establishing your goals, operating costs, profits, and other factors that are relevant to the growth of your business. You can use your trucking business plan to determine the type of truck and other equipment you need, define your licensing and insurance needs, choose where to headquarter your business, calculate how much financing you need, and more.

Trucking business plans generally include an executive summary, a detailed description of your company, a list of the services you will provide, a market analysis, an overview of your sales strategy, and financial projections.

A detailed trucking business plan will help you make decisions, plan for your business’s future, and even make it easier to obtain financing.

3. Get Your CDL

To work as an owner-operator, you must obtain your CDL. You must obtain a CDL in your home state. You’ll need to get a copy of your state’s CDL manual, as each state has its own processes. However, most states require that CDL operators meet medical standards and residency requirements, as well as pass written tests.

You’ll obtain a commercial learner’s permit and complete entry-level driver training. Then, you’ll be able to take the CDL skills test, which includes a vehicle inspection test, basic controls test, and road test.

4. Obtain All Necessary Owner-Operator Permits and Insurance

To start a trucking company, owner-operators must obtain all relevant permits and insurance to ensure they are fully compliant with FMCSA regulations. This includes key steps like registering for a USDOT number and obtaining permits for the specific types of goods you plan to haul. You can obtain permits and insurance as part of registering your business and obtaining authority before you even have a truck!

Owner-operators are responsible for meeting all FMCSA minimum insurance requirements on their own, while lease-on drivers will often have many types of insurance covered by their carrier. It’s worth noting that with no prior experience, your insurance premiums may be higher than they would be for a more experienced driver.

5. Buy (or Lease) Your Truck

Obtaining a truck is one of the most important business expenses you’ll need to plan for. When buying a semi-truck with no experience, remember that it is better to buy new. Despite the higher costs, used trucks could have issues such as rust, lack of proper maintenance, body damage, and other problems that will cost you more in the long run. Always do your due diligence before buying a used truck.

If you decide to lease instead, it’s important to thoroughly understand the terms of service and ensure that the leasing costs are reasonable based on your projected income.

6. Learn How to Find Loads

Finding loads to haul is essential for generating revenue for your business. Owner-operators use several different methods to find loads. Some of the most common options involve working with a freight broker or dispatching service, which will find loads for you or connect you with shippers in exchange for a percentage of each load.

For owner-operators who prefer to find loads themselves, online load boards are a popular option. These boards serve as an online marketplace that allow brokers and shippers to connect with carriers. There are even load board mobile apps that you can use to find loads on your phone.

Other common options include leasing-on with a company or working as a government contractor to obtain more consistent work—though these can be highly competitive.

Finally, owner-operators should never overlook the power of networking and individual prospecting with potential shippers. While this requires a lot of work, it can prove key to building lasting relationships in the industry.

7. Have a Plan to Finance Your Trucking Business

Starting out as an owner-operator can be expensive. Carefully research your trucking business financing options, such as freight factoring to improve cash flow or using equipment financing to make buying a truck more manageable. A business line of credit or business credit card could also be helpful for financing the immediate needs of your operations. Make sure you understand what is required for each type of financing.

8. Start Scheduling Your First Routes!

Once you’ve set up your business, now comes the exciting part—scheduling your first routes! Effectively planning your schedule by finding loads that make sense for your business is always crucial, but especially in the early stages of being an owner-operator as you work to maximize efficiency.

Low on Funds? Tips for Becoming an Owner-Operator With No Money

If you don’t have money, obtaining financing assistance is essential to become an owner-operator. Obtaining a bank loan or SBA loan can be time-consuming, but if you have a well-crafted business plan and good credit, you are more likely to qualify with favorable repayment terms.

A business plan that details your niche, financial projections, client acquisition plan, and a breakdown of your costs can make your business a more attractive option to lenders, as will improving your personal credit score.

Equipment financing can help lower upfront costs if you plan to buy your truck. Other lower-cost alternatives include renting your equipment, buying a used truck, or using a lease-to-own program. Be sure to evaluate the long-term pros and cons of these options as well.

In-Summary: How to Become an Owner-Operator With No Experience

Becoming an owner-operator with no experience takes a lot of work—but you can definitely succeed! By taking the time to educate yourself on how to run a business as an owner-operator and creating a thorough business plan, you can lay the foundation to successfully handle tasks like obtaining permits and insurance, buying equipment, and finding loads so you can start earning a living. By educating yourself on the industry and working on your own driver skills, you can set yourself up for success.

Owner-Operator FAQs

Is becoming an owner-operator hard?

Becoming an owner-operator isn’t easy, but it is definitely worth it for those who are willing to put in the effort. Owner-operators must comply with federal regulations and go through a variety of steps to get their business set up, such as obtaining necessary permits and insurance, buying or leasing a truck, and getting financing for the business. Like any other business, it requires a sizable investment of your own time, energy, and money to create a foundation for success.

How much do owner-operators make?

Before expenses, owner-operators have an average annual salary of $324,043, which is much higher than what company drivers make. While a significant amount of these earnings go toward expenses like fleet maintenance and other business operations, wisely managing your money can help you greatly increase your earning potential.

How do owner-operators get loads?

Owner-operators can get loads by working with a freight broker, doing business directly with a large company, using load boards, working with dispatching services, or prospecting with individual shippers on a one-on-one basis. Each option varies in terms of stability, fees, and the effort required to gain new loads.

Why do so many owner-operators fail?

A variety of mistakes can cause owner-operators to fail. Without a detailed business plan in place, it can be harder to determine your long-term vision and make decisions for your business. Other common issues include poor cash flow management, failing to comply with FMCSA regulations (which can lead to fines and other penalties), and not saving money for unexpected downtime or expenses. A lack of driving and business experience can also make it harder to manage the business, which makes education an absolute must.