One of the very FIRST REASONS why people fail as “newbie” Lease Purchase or Owner Operator truck drivers lies in the very words “truck drivers.”
When you consider Lease Purchasing a semi-tractor with any company there needs to be a changing of the minds; minds?? Yes, minds. You need to put on the mind of a business owner, study what it means to actually own and run a successful business, that is IF you plan to be successful. However, most folk that fail with a legitimate Lease to Purchase Program, fail to plan, let alone ever get around to thinking like a business owner.
I better add this quickly before we go much further, There is absolutely nothing wrong with thinking like a truck driver, IF you are a company driver and all is provided for you. You MUST think, work, and act like a good truck driver (in most cases!) to make it, right? But, we’re talking about changing the Game!
This Tutorial was not written to discourage you, but to alert you to the reality of owning and running any business.
There are more Truck owners who actually do make a good living as Owner Operators than those who fail. You just need to be aware of the potential pitfalls in order to avoid them.
Please read this first, and then we’ll list many tools and motivations to help you succeed; work for you?? I knew that it would.
The Small Business Administration has dealt almost exclusively with what are called “brick and mortar” type businesses. In fact most of the staff is composed of previous executives who have retired from all types of business, ranging from mom and pop stores to the top Fortune 500 Companies in America today. Here is their list of the most common reasons for business failure:
What are the major reasons for small business failure?
In his book Small Business Management (published by West Publishing Co.), Michael Ames gives us the following reasons for small business failure:
Lack of experience
Insufficient capital (money)
Poor inventory management
Over-investment in fixed assets (Too much out of pocket money spent on start up – Buck)
Poor credit arrangement management
Personal use of business funds
Gustav Berle in The Do It Yourself Business Book (published by Wiley Co.) adds two more reasons to Michael Ames’ list:
I’ve looked at this list several times over the years and it doesn’t change much. Lack of experience and not enough money to keep it going until it starts producing with paying customers have been Number 1 and Number 2 reasons for failure on this countdown list since I can remember.
And, they match most all the failures I’ve seen in 25 years as an Owner Operator Recruiter, including the time I’ve been with CRST, since 1999.
Quick Example: An Owner Operator that I recruited finished orientation and accepted a load to Jackson, MS. He called me just outside Jackson with a blown head gasket and said he was going to limp on in to Jackson and get another truck to power his load while he was being repaired. By the next time he called, he had a Diesel Mechanic come over and look at his tractor, the damage was just shy of $8,000. He had hurt a lot of other parts and pieces by continuing to drive the overheated damaged truck on in to Jackson.
Care to guess how much money he had in his own personal maintenance account?? You guessed, not a thin dime. Boom! He was out of business until we were able to put him into a fully warrantied Lease Purchase tractor. He ended up selling his old truck as scrap.
But, I sincerely believe that Reason # 2 for failure as new business owner, say new truck owner operator (L/P) is due to personal reasons and probably should be the # 1 Reason, maybe for all new business failures, but especially in trucking business.
Some common Personal Reasons for failure to make it in the trucking industry as a successful Lease Purchase truck driver are: (And those we hear all too often after starting)
“I’ve got a wife/husband and kids at home, or sick relative and need to be home more often to be with them, take care of them”, etc.
Here is the simple fix for this issue: DO NOT, I REPEAT DO NOT GET INTO THIS BUSINESS IN THE FIRST PLACE AS A DRIVER!!! Don’t put yourself and everyone else who is working to help you through it all in the first place. STOP and think. THIS IS JUST NOT THE PLACE FOR YOU right now.
More coming……………Stay tuned
lease purchase driver failures