The true cost of starting up as an owner-operator
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christopher.wattonfarbi.co.uk AN INVESTIGATION by CM has revealed it can cost an individual some £31,151 to become an owner-operator, taking into account all the necessary skills, licensing and equipment.
This figure includes getting an HGV licence and CPC training (12,100), proof of financial standing (L8,100) and £6,430 of fuel. CM estimates that any owner-operator will need to cover their own costs for eight weeks based on 60-day invoice terms from customers.
Simon Chapman, chief economist at the Freight Transport Association, says: "Given the huge financial commitment involved in setting up in the industry, it makes the need to keep your good repute that much more important.
"If you operate outside the law and lose your good repute in front of the rfraffic Commissioner, you risk pouring tens of thousands of pounds down the drain."
Kate Gibbs, head of media relations at the Road Haulage Association, adds: "If anything, the high entry price acts as a deterrent to the less conscientious operator.
"For those who are prepared to commit. the rewards can he great and for those fortunate to have guaranteed work, the rewards can be even greater."
Users of online drivers" forum TruckNe1 remain undeterred by the high costs. One poster says:" It really annoys me to hear someone dismissing owner-drivers, especially if they haven't tried themselves. If you go about it the right way. you can have a successful business and make a good living for yourself" • See p18 for the full report.