Starting a Tractor, Sand & Gravel, Road Repair, Brush Clearing Business

[kermitismydaddy]

Hello Tractor Folks!

Thanks for all the great advice to date.

I recently started off asking specific questions about how to buy the right attachments for a new Kioti DK 5010 or NX 5010 HST and wound up asking broader and broader questions until now...

So Here Goes the "Big Question":

How do I start a successful tractor business: grading and drainage, gravel road repair, brush clearing and mowing, that also offers sand and gravel delivery, and equipment transportation on the side?

Here's some information about my situation:

I do a LOT of hauling and yardwork for people--so much in fact that I baked in the sun last summer to pay the bills. I am on the verge of getting my landscape contractor's license which will allow me to do more work for people under better legal guidelines (ah-hem). I'm also about to get my class-A driver's license.

The upshot of all this is that I want to do more tractor work and less weed eating this year. I'm shopping around for a used Ford f-800 bobtail dump truck and a 20-ton equipment trailer so I can bring my rig to the job site with a load of rock and or haul away brush for folks.

With this setup, I can also deliver sand and gravel (or soil and other amenities) and move equipment for guys without their own trucks and trailers.

Does anyone identify with my business plan and can anyone comment on what the pitfalls might be?

Thanks in advance!

Ben

 

[kthompson]

You might find a niche with smaller contractors who don't own such equipment or with bigger equipment company who has jobs smaller then they find profitable for them or their large equipment. You can talk with the yards that sell the products you want to haul as they do get calls for do you know anyone who will deliver a small load or such. Be careful in calculating your prices to be sure you include ALL cost and income for you.

 

[kermitismydaddy]

Great thinking! Thanks K

You might find a niche with smaller contractors who don't own such equipment or with bigger equipment company who has jobs smaller then they find profitable for them or their large equipment. You can talk with the yards that sell the products you want to haul as they do get calls for do you know anyone who will deliver a small load or such. Be careful in calculating your prices to be sure you include ALL cost and income for you.

 

[CADplans]

I have a best friend that moved to New Orleans during Katrina,, and "learned" how to make $$$

He came back to Roanoke,, and now does landscaping.

His largest truck is a F450 (3 others are Chevy 3/4 ton)
He does ALL work with Bobcat skid steers. He has 5 zero turns for mowing.

They try to do all the mowing in two days per week, landscaping 3-4 days a week.
He has a BIG crew.

He has never owned, or desired a "farm" type tractor.

I think mostly, the skid steer "looks" professional,, that is part of his "sell"
you have to "look" like you know what you are doing.

 

[lamarbur]

In my mind the biggest problem is not the acquiring of equipment, operation thereof, or knowledge what to do in a particular circumstance, the problem will be insurance, the right kind for the right reasons,, being new into a business and insurance can be the highest costs to cover,, really research what the landscapers in your county do for insurance, why, and their pricing if one is wanting to tell you,,,insurance can save the day and lack of can cost you the day and probably a lot more

 

[MESSMAKER]

I think you might be shooting a bit too large unless you are going to have a crew. I get $50-75 per hour for running a bushog.I do some loader,grading and tilling work but mowing is the moneymaker. Most people get about the same for a skid steer but jobs tend to be shorter in duration and are one time only. I just don't know how you will be able to maintain and pay for equipment of the size you are planning unless you go for some big jobs. Don't forget D.O.T. rules and regulations. It can be quite a pain.

 

[plowhog]

Ben,

Well maybe your inquiry is already paying off. Please PM me. I may have some work for you in your local area. And a lead on a trailer.

It's natural to focus on "what equipment" to obtain. But my .02 cents is that your focus in other areas will at least equally decide how successful you become. Regarding "what" to focus on, I would inquire with every competitor in the area and ask a LOT of questions. How much business do you do? Where do you spend most of your time, and make most of your money? As you talk with other businesses, you will find some commonality. That commonality exists for a reason-- it is where people in the local area are spending time and making money. Some competitors will refuse to talk with you, but in my experience many will. I would talk with Hansens gravel and gold and green equipment as well. What services do they get calls for, but cannot fulfill? What materials or equipment do they most commonly sell or rent, and why? Would they be cooperative and steer business to you if you agreed to fill some of the niches where they cannot help a customer?

Then, the focus on a marketing plan is also key. How do new accounts learn about you? If someone calls you, will they reliably reach some one and will the call be handled promptly and professionally? If it's only you and a cell phone in areas with spotty cell coverage, that's not ideal. I would also obtain quality insurance with a good agent. Personally, I won't let anyone come onto my property without up front proof of insurance. Too many craigslist and other scammers out there. Sorry to be so long winded about non-equipment stuff, but I have built other businesses and I believe these other factors will be equally important.

 

[CobyRupert]

Someone (here on TBN?) once mentioned getting in touch with real estate agents. (Although they weren't landscapers, they were tree removal / lumber harvesters, etc...)
The point being:
They tend to know of "little niche site improvement jobs" that other contractors may be too big for.
Or maybe you'll put the idea in their head that if they give you a dollar, they'll get a 2 dollar improvement on the property they're trying to sell.

 

[Orange Convertible]

While not directly on point, I have a friend that started a business more or less in the same way you are thinking of. In his case he was retired, had lots of tools so he was constantly doing small jobs for friends and relatives and was a little bored. So he started with a simple local ad in the Calgary newspaper; "Handyman, small repairs and renovations, Call xxx xxxx" That was it . While waiting to see what happened he got himself insured and bonded. Gradually the calls began to come in. Small jobs at first but almost entirely by word of mouth he soon had all he could handle. As time passed and his reputation spread he ended up with 5 trucks on the road and about 15 to 20 people he could call on for whatever the job required. So if he were advising you I think he'd say: Start small, control your overhead,get insurance and get bonded, use everything you have on hand before investing in new equipment and be patient. If you do good work and you customers are happy, word will spread.
I hope this is of some help.
Kevan

 

[kermitismydaddy]

You are absolutely correct and I already have insurance. Will contact you.

Ben,

Well maybe your inquiry is already paying off. Please PM me. I may have some work for you in your local area. And a lead on a trailer.

It's natural to focus on "what equipment" to obtain. But my .02 cents is that your focus in other areas will at least equally decide how successful you become. Regarding "what" to focus on, I would inquire with every competitor in the area and ask a LOT of questions. How much business do you do? Where do you spend most of your time, and make most of your money? As you talk with other businesses, you will find some commonality. That commonality exists for a reason-- it is where people in the local area are spending time and making money. Some competitors will refuse to talk with you, but in my experience many will. I would talk with Hansens gravel and gold and green equipment as well. What services do they get calls for, but cannot fulfill? What materials or equipment do they most commonly sell or rent, and why? Would they be cooperative and steer business to you if you agreed to fill some of the niches where they cannot help a customer?

Then, the focus on a marketing plan is also key. How do new accounts learn about you? If someone calls you, will they reliably reach some one and will the call be handled promptly and professionally? If it's only you and a cell phone in areas with spotty cell coverage, that's not ideal. I would also obtain quality insurance with a good agent. Personally, I won't let anyone come onto my property without up front proof of insurance. Too many craigslist and other scammers out there. Sorry to be so long winded about non-equipment stuff, but I have built other businesses and I believe these other factors will be equally important.