See my other posts:
A Holiday Wish
The Way it Was - A Short History of TruckingPro and Cons of Being an Owner Operator
FAQ for the Owner OperatorPicturesAnti-Idling RegulationsDefinitions and Industry TermsBlackrock Auxiliary Power Unit (APU)Interactive Cost per Mile (CPM) Calculator SpreadsheetPrivacy Policy 1) Owner Operator 411 Welcome2) Income and Expenses3) Financing and Credit4) Operating Authority or Leasing?6) How To Do Bookkeeping and Other Necessary Paperwork7) What You Need to Know About Loadboards8) Companies That Lease Beginning Owner Operators9) What You Actually Need to Get Started - Licenses, Permits, Insurance, and Taxes10) Truck Driving Schools
There is one more thing you need to decide before you apply for a loan (assuming you have read my previous posts): what kind of freight do you want to haul?
This will determine what company you can lease to (all companies dont haul all types of freight) and what kind of equipment you will need. If you are buying your own trailer, then you need to know what kind to buy based on what you will be hauling. For example, do you need a refrigerated trailer (reefer) to haul food, a dry van for general freight, a flatbed to haul steel, or a drop deck or goose neck to haul equipment?
Even if you dont buy your own trailer, knowing what you will be hauling will determine how to spec your tractor. If you are going to be hauling heavy loads, you need to spec a tractor with heavy duty suspension and a big motor. If you are going to be hauling mostly light loads, you might be able to get by with a tractor with a smaller engine or lighter suspension. Also, the type and length of trailer might determine the length of the wheelbase of your tractor. What you are planning to haul will definitely decide how much your tractor can weigh.
Deciding what you will be hauling will also tell you what other equipment you need to buy. If you are going to pull a drop deck or goose neck, you will need chains, tarps and binders. If you are planning on pulling a flat bed, you will need all of those things plus a side kit. If you pull a dry van, you most likely will need load jacks.
When you are deciding what you are going to haul, dont forget to think about the physical side of what you choose. If you are going to be pulling a flatbed, you will have to be outside in all types of weather chaining and tarping your load. If you want to pull a reefer, you may be required to unload it, which means you will be working in very low temperatures, regardless of what the outside temperature is.
When you spec your tractor, there are several factors you need to need to consider. Will you be making long or short hauls? If you make long hauls, you will probably want to spec a sleeper. You dont want to spend all of your money on motels, and besides, there are a lot of times when you have to spend a night on the road and cant get to a motel.
What kind of engine do you want and how much horsepower do you want? The three major engines are Cummins, Caterpillar, and Detroit.
You need to decide what size tires you want, and what kind of a transmission and how many gears. Today, you can get a semi with an automatic transmission! Definitely a far cry from the old days when many trucks had two sticks (two gearshifts).
Modern trucks have power steering, ABS brakes, heat and air conditioning. They have big comfortable seats and privacy curtains. The beds are large and comfortable and some have a couch, and some have two beds. Most have closets and storage space. You have to decide what you need, then decide how much of what you want you can afford.
Other equipment you will need is a CB radio, gloves, coveralls, fuses, flares, a fire extinguisher (mandatory), tools, oil, fuel, and water filters. You should also carry oil, grease, and anti-freeze.
Optional equipment you may want is a cell phone, a satellite radio, and a TV. If you are planning on being gone from home a lot, you might want to consider buying an inverter. Then you can buy a coffee pot, a toaster and a microwave, and save yourself a lot of money on meals.
A note about meals: When you file your taxes, the IRS lets people who are in the transportation industry and those who are regulated by hours-of-service rules (see "Income and Expenses") deduct meals differently and at different rates than everyone else. See an accountant or tax preparer for details. To simplify a very complicated rule, basically you can flat-rate your meals for every day you are on the road long enough that you are required to take a sleep break, even if you dont eat a thing, or spend a dime. Of course with the IRS, there are 40,000 ifs, ands, ors, and buts, so be sure to check it out with a tax professional or preparer.
An auxiliary power unit (APU) is becoming a must have. These range from about $6,000.00 to $10,000.00. What is an APU and what does it do? Basically, it is a generator. It is used when you are not driving to eliminate idling. Why is idling necessary? If you have to sleep in the truck in the winter or summer, you will probably run your truck so you can have heat or air conditioning. It is hard to sleep when it 25 degrees or 118 degrees in the sleeper.
With an APU, you can heat or cool your cab without running you truck. This is very important, as an APU can reduce your fuel consumption by about 75 %. Yes, I said 75%. Instead of using a gallon of diesel an hour idling, you use a quart with an APU. Not only is this important for your bottom line, but more and more cities and states are making anti-idling laws with fines ranging from $50.00 to $25,000.00 and/or up to 1 year in prison, for idling your truck.
Sometimes the idle time allowed is as few as three minutes. These anti-idling laws were written to reduce noise and air pollution.
Click here to go to an: Anti-idling Regulations Chart