What Do Owner Operators REALLY Make?

Summary

In this video, Tyler Freed shares his experience transitioning from a company driver to an owner-operator in the trucking industry. He discusses the financial considerations and benefits of being debt-free, emphasizing the importance of having an emergency fund and low operating costs. Tyler provides a candid analysis of the potential earnings and risks involved, advising viewers on how to determine if the investment in trucking is worth it, and advocating against taking on debt for such a venture.

Takeaways

• 🚚 The speaker, Tyler, is an owner-operator truck driver who recently switched from being a company driver and is currently operating in New Mexico.
• 💡 He is discussing the decision-making process behind becoming an owner-operator and how to determine if it's financially viable compared to being a company driver.
• 🔢 Tyler emphasizes the importance of analyzing personal finances and business expenses before making the switch to avoid high costs that can outweigh potential profits.
• 🏦 He shares his personal experience, mentioning that he had a high-paying job as a company driver at C.R. England, making over $100,000 a year, which influenced his decision to become an owner-operator.
• 🚛 Tyler explains that being debt-free and having an emergency fund are crucial for owner-operators to manage unexpected costs and maintain a low cost of operation.
• 💰 He illustrates the financial benefits of being an owner-operator by comparing his potential earnings to his previous income as a company driver, highlighting the potential for higher profits.
• 📈 Tyler uses a hypothetical scenario to calculate the return on investment (ROI) for becoming an owner-operator, suggesting that a 50% ROI is a good benchmark for considering the move.
• 📉 He warns against taking on too much debt to start a trucking business, as it can lead to financial strain and high risk, recommending a conservative approach to investment.
• 🤔 The speaker encourages viewers to consider the true profit of an owner-operator, which is the income above what they would make as a company driver, as the key indicator of the business's viability.
• 📊 Tyler suggests that a minimum ROI of 25% is necessary to justify the risks associated with owning and operating a truck, especially when considering the potential for unexpected expenses.
• 👍 The video concludes with Tyler's endorsement of the owner-operator lifestyle for those who can manage the risks and costs effectively, and his intention to create more content on this topic.

Q & A

Who is the speaker in the video and what channel is he representing?

The speaker is Tyler Freed, and he is representing The Living Freed Channel on YouTube.

What is Tyler's current location and where is he headed?

Tyler is currently in New Mexico, heading westbound on I-40 towards Albuquerque.

What is the purpose of Tyler's trip to Albuquerque?

Tyler has a delivery in Albuquerque and a pickup headed to California, which are the first two loads of his week.

Why does Tyler enjoy being an owner-operator for Creed?

Tyler enjoys the owner-operator side of Creed because he finds it very good and it's worth it for him after doing it for almost three full weeks.

What is the main topic of discussion in the video?

The main topic is determining whether it's worth it to switch from being a company driver to an owner-operator in the trucking industry.

What is the importance of analyzing the financial aspect before becoming an owner-operator?

Analyzing the financial aspect is crucial to understand the true profit potential and whether it's more beneficial than being a company driver, considering the higher expenses involved.

What was Tyler's annual income as a company driver at Creed?

Tyler made $105,000 as a company driver at Creed in the previous year.

What factors contributed to Tyler's decision to become an owner-operator?

Tyler decided to become an owner-operator after considering his high income as a company driver, being debt-free, having an emergency fund, and the potential to make more money with lower operating costs.

What is the significance of having no debt when starting as an owner-operator?

Having no debt allows for lower operating costs and less financial stress, which is beneficial for the business and personal peace of mind.

How does Tyler calculate the potential profit as an owner-operator?

Tyler calculates potential profit by comparing the income he could make as an owner-operator to what he made as a company driver, considering all fixed costs and expenses.

What is the minimum additional income Tyler believes is necessary to justify the risk of being an owner-operator?

Tyler believes that making at least a 25% return on investment, after paying himself a good wage, is necessary to justify the risk.

What advice does Tyler give regarding the use of debt to start an owner-operator business?

Tyler advises against using debt to start an owner-operator business, as it can set one up for failure due to high costs and financial stress.

How does Tyler view the comparison between investing in a truck and investing in an index fund?

Tyler views investing in a truck as riskier than investing in an index fund, but acknowledges that with sufficient capital and low operating costs, the trucking business can yield higher returns.