Getting Philosophical: The paradox of the one-person business

[jmfox]

Seeding and grading was something I did full time in the 70's. We used a 6-way box scraper on a full size tractor. Today they have some fancy attachments to make the work easier. I'm wondering if anyone here has enjoyed any success with finished grading attachments like this one:

 

[Dougster]

I guess I made my point poorly. The point is by dropping those less than perfect fit jobs, I'm making more money on the other jobs and not beating up my equipment not making as much money.
Being "in my niche" instead of "close to my niche" I think people appreciate that I'm honest and they then look for work to give to me. I know a couple bids lately have gone that way. Of course it kills me I have all this equipment and still can't do some stuff.

Hi Brian - perhaps that's the difference between us. Your schedule is pretty much filled up with "in the niche" work while my schedule could still benefit from capturing some of that "just outside the niche" work that I've either declined to bid or otherwise lost to folks who could do it faster/cheaper with either: a) different equipment or, b) manual labor. I can't do anything about the latter... but perhaps I should do something about the former (hence the whole point this thread).

Dougster

 

[Dougster]

Around here, the fire depts. have boot drives to raise money. They "panhandle" at the intersections. Maybe you could fab up a mini bucket and do your own "bucket drives" ?

Tried it. Didn't work. Got caught and had to donate all the money to Jerry Lewis and Muscular Dystrophy.

Dougster

 

[Dougster]

The only problem with running a niche operation is when the niche part fizzles out. Then what? Huge problem for a lot of the residential market right now. The remodeling market is supposed to be doing an upswing due to declining sales. We'll see.

Fortunately for Brian, he is in a "niche" market that never stops growing!

Dougster

 

[LarryRB]

Around here, the fire depts. have boot drives to raise money. They "panhandle" at the intersections. Maybe you could fab up a mini bucket and do your own "bucket drives" ?

I can see it now, Dougster at the local intersection while drivers by, throw in rocks and stones,,

 

[Dougster]

I can see it now, Dougster at the local intersection while drivers by, throw in rocks and stones,,

Is was working well until those cops appeared and made me take off my fireman's outfit.

Dougster

 

[civesnedfield]

I can see it now, Dougster at the local intersection while drivers by, throw in rocks and stones,,

No they were not. We were throwing Peanut butter and stale bread at him. How do you think he managed to eat last winter.

 

[Dougster]

No they were not. We were throwing Peanut butter and stale bread at him. How do you think he managed to eat last winter.

Okay for you Ed! You guys are ALL just miserable and cruel... to a poor old man just trying to get by any way he can.

Dougster

 

[AlanB]

See if this thought makes sense as to your situation Doug.

From what I read (probably primarily in other posts) you would rather do less, (or maybe no) handwork.

If that is the case then my suggestion is to go bigger rather then smaller in your thinking. IE, get a track hoe, or large back hoe or whatever. The smaller equipment tends to lead to comparitively smaller jobs, which in turn, kind of the nature of the beast, leads to more handwork, while bigger stuff, done by bigger equipment tends to involve less Hand / finishing work by nature.

So, that said, how bout a baby dozer or very large SS and do yard preps for contractors. Personally I feel it is a loosing propositioin (why we do not do it) but for the folks with the right contacts it can be pretty rewarding.

 

[Dougster]

I've been reading thru these posts & am a little bewildered. Lots of expense side criteria but not much in the way of revenue generation, P&L, BS, IS and mighty cash flow impact. Business is about the money not the machinery. Depreciation is a non cash expense.

Very true. At least most of it. But this thread was never intended to be another detailed "soup to nuts" reanalysis of my business... it's already been done a thousand times. While the discussion has been a little difficult to contain, I'm trying very hard to keep it focused on what specific item of equipment, if any, might make sense for a one person, one machine "tractor & backhoe services" company to add to it's current one machine "fleet"... no more no less. Let's please not over-reach or over-think this now.

If your business plan continues into the new location but starting from zero cash generation you might be collecting social security before reaching breakeven.

Correct. But that's life. Like it or not, I will be starting all over in a new venue... most likely with different equipment selected to be more appropriate for that area. Let's just hope I learned something from this first attempt at a "tractor and backhoe services" business so that I don't repeat all my many start-up mistakes again.

If smaller jobs double your net margin and additional smaller equipment investments pay back within 12 mos it makes sense. If larger more competitive jobs add 10% to net margin plus additional heavy capital investment causes payback to be nowhere in sight...

You lost me a little bit here. Nothing I could buy, in terms of rolling stock, could ever pay for itself in 12 months (at least not without killing me). On that basis, I should fold up shop right now and go back to an office job.

And another thing to remember: It is a lot easier (and cheaper) for me or anyone else to rent small stuff than big stuff. So while small stuff may sometimes have a better chance at quicker payback... you could also argue that bigger stuff is much less likely to lose out to the growing market of cheap, "direct-to-homeowner" rentals.

If your pickup is used to plow but you are losing money why are you not adapting: doubling accounts now before the snow flies or cutting the capital investment or divesting entirely?

I am more than doubling my number of snowplowing clients. I am tripling them this season. But it still won't pay the bills if there is no snow to plow like last year. Still, I cannot divest myself of my truck (which also tows my two trailers) and selling the plow itself would not be of much benefit I'm afraid. But what this has to do with the specific topic at hand is beyond me.

I don't mean to sound negative but the decision to buy which machine and when is an easy one if you know where you are going.

Well, I am not finding it easy at all (so maybe you can conclude that I don't know where I'm going... that's fine with me). I'm finding the decision extremely hard. But that's why I am soliciting the input and experience of others here who have been in the same boat. I'm hoping their collective experience can also help me.

Dougster