Success for the long haul

“There are a lot of good drivers, but not all of them are great business people.”

That was the message from Andrew King during his opening remarks at the Owner-Operator Independent Drivers Association’s annual Truck to Success. The three-day course is designed for drivers looking to become a leased-on owner-operator or an owner-operator under their own authority. This year’s course was Oct. 25-27 and was available to in-person and virtual attendees.

For those looking to take that leap, being prepared for what lies ahead is integral to being successful.

King, a researcher with the OOIDA Foundation, is well aware of the pitfalls that await those starting a new business. According to data from the Foundation, 25% of new businesses in the transportation and warehousing sector will fail within the first year. Making it past the first year doesn’t guarantee success either, as 35% of those businesses will fail within two years. Finding long-term success is even trickier, with around 60% being forced out of business by year five.

“I think people don’t even think about it, and that’s part of the problem is they don’t really know what exactly they need to do. Even those who are starting to become (owner-operators) – or already have their own authority,” King told Land Line Now. “We had an individual today that mentioned that they feel like they’re building the airplane as they’re flying it. And that’s kind of how they describe their operation. There’s so much more that people don’t realize they need to do in order to stay compliant and stay in business. You know, maybe it works for a little bit, but eventually those things catch up to you.”

King says these are the top three reasons businesses fail:

• Lack of sufficient capital.
• Inadequate management.
• Poor business planning.

Truck to Success aims to combat those failure rates by arming prospective owner-operators with the tools for success. Over the course of three days, participants received in-depth guidance from industry experts on developing a business plan, equipment purchasing and financing, permits and licensing, taxes and more. A question and answer period was available at the end of each session, ensuring those in attendance had a firm grasp and understanding of the information.

Lewie Pugh, executive vice president of OOIDA, says far too many are ill-prepared to handle running their own business.

“I’ve said lots of times, and I don’t mean this disrespectfully, but it’s too easy to get in this business, and it sets people up for failure, unfortunately,” Pugh said. “That’s why there are so many statistics and that’s part of the reason we started this, because it’s so hard to go out there and find information all in one place. This is kind of the A-through-Z steps on how to become a trucker and to do it and be successful in it.”

“The seminar has shown me so many things that truckers do not realize from the wheel,” said Melissa Borchardt, an OOIDA member from Birmingham, Ala. Borchardt was among the in-person attendees for the three-day event. She said the course helped to cover all the things drivers need to know to stay compliant and on the road.

“You get all your training. You get all your bookwork. You go to school and get your CDL. They teach you all this, but it’s around the truck,” she said. “What about back office? The back office opened up whole new doors for me when I thought I knew my taxes. … What if you get audited? This seminar has helped me to understand what they’re looking for, what the DOT is looking for, what the IRS is looking for, and what do I need.”

Throughout the three days, industry experts gave attendees a real-world look at what it takes to maintain a business in the trucking industry. This meant being real and honest with those looking to become their own boss – laying out in plain terms the do’s and don’ts of the industry. Borchardt said she appreciated the “tough-love” approach when it came to the course.

“It’s a tough-love world. You don’t want sugarcoating,” she said. “You want to know what can get you and how to protect yourself and how can you protect the one that you’re trying to help. So it’s been an eye-opener, but I’ve appreciated it.”

That tough love can go both ways. For some, it helps to open their eyes to aspects of being a business owner they may not have previously considered. For others, it’s a wakeup call that perhaps they’re not ready to take that step. Pugh says that regardless of the outcome, participants walk away from Truck to Success better prepared to make that decision.

“If you take this course for three days and you decide, ‘Hey, this isn’t for me, I don’t think I want to do this.” That’s a win. Because it’s a lot better to come here and spend the money for the course. … that’s a lot cheaper than what it’s going to be in the long run to go out here and buy a truck and fail,” Pugh said. “Or, if you decide to buy a truck, do it armed. Do it armed with the knowledge you need, because knowledge is power.” LL