Getting Philosophical: The paradox of the one-person business

[Dougster]

Doug,

I think this might by one of your problems. Sometimes, you need to take another look at what you have and then bite the bullet, and replace it. I'm not sure an additional tractor is what you need, but maybe a new combination of what you already have. That 3/4 ton truck isn't really the best choice for towing, and towing is a VERY HUGE aspect of what you do.

At least a one ton duelly with a flatbed should be the minimal truck. A dump bed would be even better. I know allot of the small operators around here have either 5 yard, or full sized 10 yard dump trucks that they tow around their equipment with. You are missing out on too much with that small pickup truck.

If you are serious about another tractor, then maybe you need to think about replacing your current tractor. You've mentioned a few times that it does everything, but nothing extremly well. Or something to that meaning. I'm not dogging your tractor, but it sounds like it might not be the right tool for what you are doing.

A skid steer AND a small excavator would probably cover just about everything. Add a small dozer to the mix, and you'll have it all covered. Of course, we're back to the problem of towing all of it.

With winter coming on, you might consider selling everything you have and then starting over. Your knowledge base isn't what it was when you bought what you have today. My guess is that will buy different. The hard part is going to be doing it.

Good luck,
Eddie

All good points Eddie... and I have considered taking the last of my money and putting it into a significant truck and trailer upgrade instead of buying another piece of equipment. Unfortunately, residential zoning restrictions all but rule that out... and I would have to give up on my residential plowing business and go full commercial (with a huge increase in complexity, maintenance and insurance costs). The bottom line is that any meaningful truck upgrade will happen after I move to New Hampshire.

The concept of selling and replacing everything cannot fly. Complicated and potentially-devastating tax issues aside, there is just not enough current value plus cash money available to make this happen. The plan will either be to add one more piece of equipment or to sit tight and make things work "as-is". Until New Hampshire, those are my only two remotely viable options.

Dougster

 

[Reg]

We've been looking at the supplier side, without focusing very much on the consumer side.

As boyzs with toyze who want to push dirt around (perhaps for money) we should be asking not, "Who will pay me to do this ?", but "What do people want done and how does that involve pushing dirt around ?"
Yes, there is a difference.

If I had a skill saw and a hammer (I do, but forget that for the moment) I shouldn't be looking for homeowners who want wood cut or nails pounded.
I should be looking for homeowners who want the home improvement projects done for them and who don't have the skills - the projects that involve sawing wood and pounding nails. Tiling kitchens and bathrooms would require buying more tools, so forget that for now.

 

[tlbuser]

It did the job, but it was neither quick nor pretty. I believe that using a slightly more powerful machine (JD110, L39, L48 or CBL40) would have been quicker and easier.

I just had to refuse a house drainage system job based on the fact that the Mahindra weighed too much and was much too long to maneuver around a house on a small, congested, pitched lot... all while not crushing in an old septic system. The job absolutely begged for a mini- or micro-excavator.

Skidsteers can do LOTS of things faster that the Mahindra... but they can't do everything that the Mahindra can. Do I really end up with a net time savings if I need to haul around two machines instead of one??? Merely to save some time spreading fill or loam???

Dougster

TLB, all I can say is compare the specs. Maybe it's time to let go of what you have, maybe you're better off than you think.

A mini-x for one job out of how many? Still an overall loser (imo). Besides, sounds like that one job was an accident waiting to happen (too confined + septic location)

The current way you haul out, two machines = $$$ loss (time + wear/tear)

Decisions,decisions it ain't easy.


I'm off for now, meeting with homeowner and architect for more changes and we don't even have a response from the environmental impact study. Oh well, their money.

 

[curtisfarmer]

Interesting debate, one I am in with myself all the time. I wouldgo with a bigger TLB, L48 with thumb, so you still have 3pt. hitch. I bought a KX121 and was ?ing whether it would hold its own in terms of productivity and cost. I know find it expands my capability by being to do more than what just a tractor can do. Tracks allow you to do so many more things than wheels do. I hear you about the 1 man show and having too much iron, but what happens when your main machine is down? If you have to rent, there goes the profit margin and flexibility. I sub out my machine moves @ $50 a move so I don't have to own a $40K 1 ton dump which requires huge overhead and doesn't make me money as my deliveries are usually 10 wheelers or larges. This allows me to own the equipment as that is where the money is. I am getting 2nd L48, no hoe to have 2 TLBs and the KX121 so I can have 1 TLB mowing and raking, and the other 2 out at a bigger job. I still think the L48 with Hyd. thumb is the best investment for you, then a KX for the ultimate versatility.

 

[Dougster]

Don't be afraid of used if well taken care of and consider that rentals are rented by people that have no idea what they are doing

Yep. 96% chance I will end up with "slightly used." Just can't afford that big initial depreciation hit. Frankly, I don't see how anyone can.

Dougster

 

[Dougster]

Tell me what your tractor can do that a SS can't...

With enough costly attachments, a skidsteer can do almost anything! But that's not my desire... to become an attachment collector!

My silly little "business" will always fundamentally be TLB-based. And the Mahindra's 3-point hitch and PTO make all the difference in the world on many of my jobs. I don't want to be a construction guy. I want to be a tractor & backhoe services guy.

Whatever new purchase I make, if any, it must fix into that basic marketing niche and mission statement.

Dougster

 

[Marc 21]

to tell you the truth, i don't know why anyone buys new things like trucks and equipment. As soon as you sign the paper it's worth much less then you paid for it. I'm all about buying used, then you get something that's broken in already and you don't have to bite the bullet on depreciation. My vote is for a skid steer. with the right attatchments you can do almost anything.

 

[Dougster]

We've been looking at the supplier side, without focusing very much on the consumer side.

As boyzs with toyze who want to push dirt around (perhaps for money) we should be asking not, "Who will pay me to do this ?", but "What do people want done and how does that involve pushing dirt around ?"
Yes, there is a difference.

If I had a skill saw and a hammer (I do, but forget that for the moment) I shouldn't be looking for homeowners who want wood cut or nails pounded.
I should be looking for homeowners who want the home improvement projects done for them and who don't have the skills - the projects that involve sawing wood and pounding nails. Tiling kitchens and bathrooms would require buying more tools, so forget that for now.

Well, a very good point Reg. But consider this: At first I had made the (now understood) mistake of defining my business purely in terms of what equipment I owned rather than in terms of what products I could offer folks. But I've corrected that mistake and now I pointedly offer products instead of equipment capabilities.

But the calls keep coming in for work in my targeted areas that is STILL not well-suited to my Mahindra for a variety of reasons (mostly where the Mahindra is either too dang big or too dang small... this is no joke!). Everytime I need to turn down a job or I lose the job due to high cost for the equipment I must use, I turn to thinking about what equipment could have done the job... or at least done it faster/better. That's why I am here today with this thread. To figure out if another piece of equipment makes sense or not.

Dougster

 

[Dougster]

TLB, all I can say is compare the specs. Maybe it's time to let go of what you have, maybe you're better off than you think. A mini-x for one job out of how many? Still an overall loser (imo). Besides, sounds like that one job was an accident waiting to happen (too confined + septic location). The current way you haul out, two machines = $$$ loss (time + wear/tear) Decisions,decisions it ain't easy.

Nope. If it were an easy decision, I wouldn't need all this input from you guys.

Dougster

 

[Dougster]

Interesting debate, one I am in with myself all the time. I would go with a bigger TLB, L48 with thumb, so you still have 3pt. hitch. I bought a KX121 and was ?ing whether it would hold its own in terms of productivity and cost. I know find it expands my capability by being to do more than what just a tractor can do. Tracks allow you to do so many more things than wheels do. I hear you about the 1 man show and having too much iron, but what happens when your main machine is down? If you have to rent, there goes the profit margin and flexibility. I sub out my machine moves @ $50 a move so I don't have to own a $40K 1 ton dump which requires huge overhead and doesn't make me money as my deliveries are usually 10 wheelers or larges. This allows me to own the equipment as that is where the money is. I am getting 2nd L48, no hoe to have 2 TLBs and the KX121 so I can have 1 TLB mowing and raking, and the other 2 out at a bigger job. I still think the L48 with Hyd. thumb is the best investment for you, then a KX for the ultimate versatility.

Man, if I could find someone to haul around my equipment for $50 a move, I'd think I had died and gone to heaven! My gasoline bill is more than that for some of these jobs!!! And moving the equipment into place and then back home is always the worst part of any job as far as I am concerned.

The L48 is a magnificent machine... expensive too. But I'm getting the impression that you must have several employees... yes? That changes everything in the formula. Even one employee and I would be ready to invest in more equipment without any reservations at all... but that one employee complicates legal requirements, overhead costs & life in general beyond the imagination (again... at least in my view).

Dougster