60k to start a trucking company in california. Any advice?

Actually starting a business in a downturn is a better idea than starting it on the peak. If you weather this you will be just fine afterwards and also have some valuable experience.
I don’t know if you can get good enough equipment if that savings are all in including truck/ trailer purchase.

I started with my authority in a bloodbath of 2019 and remember going back and forth on this, but I was also calling some carriers inquiring about getting leased on and they were all telling me haw bad the market was and how hard they had it with freight but they were still pulling thru. I though to myself f it, if I’m to struggle with them I might as well do it on my own, and I did. No regrets.

 

It can be done, but not with the small amount of cash you have to start with. Six years ago I became an O/O in California. I paid cash for a new truck and reefer, so I didn't have monthly payments or repairs. Even with that huge burden off of my shoulders, I still barely broke even the first year. It takes a year to figure things out and get everything running smoothly. If you don't have a lot of money saved up to get through the first year or two, you'll never survive and lose everything. If you can manage to make it, there are ways to do better in California than many other states. It just takes a while to figure out.

 

OK did you learn how the business end stuff works in those ten years of driving?

If you didn't, stick to driving until you do, you have the oppertunity to learn and get paid for it.

 

I would say get into now. You've got the capital and you're asking the right questions first. You'll be fine.

Ive owned my truck for 2 years and was a lease on for that time. I learned a lot and made some good connections. I finally just decided to get my own authority last month.

I'm not worried about the downturn and recession. Yes, there is too much capacity right now but there are also lots of idiots out there. You seem to have a good head on your shoulders and the money to back it up.

Most of these guys out here are in debt up to their eyeballs and can't afford tires.

Follow your dream.... you know best. Not us

 

Simple answer, right now, don't do it.
I'm a company driver.
I haul gas.
We're not seeing the normal increase in sales we usually see this time of year.
By now, we generally have contracts with other major carriers to support their stores.
They haven't happened.
We're generally busier than we're seeing.
Same time last year, we were slamming.
Same year before.
This year it's slower.
A lot slower.
What's that mean?
Things aren't moving.
Minimal travel.
Minimal recreation.
Minimal transportation in general.
If fuel isn't selling, nothing else is either.
Cause everybody buys gas and diesel.

 

Watch the embedded video in this Forum thread (very first post)-- then think about it.....

Freightworks Ceases Operations | TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board (thetruckersreport.com)

-- Lual

 

f you saved that much money as a driver, then I can assume that you are disciplined and if you are disciplined you will listen to people here , you will investigate , you will ask questions and you will make a good decision.
in my opinion you must ask yourself why you want to be an O/O ?
in my case, my answer was FREEDOM. so, I do the best I can to live that kind of life. 100% independent.

 

I could easily start out with that amount. I would probably be successful too. Minimum or 0 dn payments on equipment. I’d try to keep the total spent $60-$70k max. $40-$50k for a Truck, $20-$25k for the Trailer. Payments below $2000 per mo. Keep at least $40k, in reserve, the more the better. Biggest hurdle will be insurance cost. Next is unexpected Truck repairs. Worst case horror story scenario is $15000 repairs to the emissions system. Add possible towing bill, and downtime costs. Remember downtime costs include overhead, and personal obligations. That number will vary greatly, depending on personal obligations. Obviously the less the better. Finding a good Truck right now at a decent price is challenging. That should be changing soon. Supply chain issues being addressed, more backordered new Trucks being delivered, possible wave of repossession’s happening soon, will drive prices down, maybe as much as 50%. The right Truck, with good fuel economy is very very important. The less your fuel cost, the easier your payments are made. An ecm report can give you the lifetime mpg average. I always tried to be one month ahead on payments, even if it took 4-5 months to get there. Paying a week early at a time. Hardly noticeable in the budget. Comes in handy when needed, even at Christmas time, or vacation time. I say it’s possible, but honestly, I don’t think it’s worth it. Given the costs of insurance for a new entry, along with all the new compliance rules, it can become a full time job that never ends. Better to take one step at a time. Find a good Company, buy a Truck and Lease onto them. Get your feet wet, after while you can decide if you want to go deeper. Each step deeper costs more money, time and aggravation. Better to learn, decide as you go along how much more responsibilities to add, and at what costs. Jumping in deep with both feet right off the bat is too risky simply because you’re getting hit from all directions at once. Starting out having to only worry about the Truck, figuring it out along the way is much better. You can always go deeper, but can’t always get out, once your in too deep.

 

If the choice for him is stay company driver or jump into the deep end of the pool with both feet with his own equipment and DOT/MC because of CA laws, would say that's a bad idea unless you already know what you're doing. A guy who already knew the ropes and already knew the right people to call for everything possibly could get going with that kind of money, but most people don't if it's their first rodeo. If the goal is to get into his own equipment he needs to do some research on whether that will even be possible based on where he lives and who he works for. I don't know enough about that AB5 law that CA passed a few years ago to comment further. That would be something he should do the homework on to see what his options are.