Hello Everyone

Simpleman922 · Apr 9, 2007

Hello Everyone,

I have been lurking here for sometime, taking up the info like a sponge (I appreciate everyone's time). I have some questions, and would appreciate your opinions/experiences.

I'm thinking of starting a SMALL business utilizing the Power Trac (PT425). I believe there is a place in the market for a small tractor like the PT. I would for starters offer brush cutting, VERY light bucket work, stump removal, and SMALL grading. What do you all think? I'm not looking to make a living solely from this business, just a little more pocket change to help supplement the cost of the green monster.

BobRip · Apr 9, 2007

Simpleman922 said:
Hello Everyone,

I have been lurking here for sometime, taking up the info like a sponge (I appreciate everyone's time). I have some questions, and would appreciate your opinions/experiences.

I'm thinking of starting a SMALL business utilizing the Power Trac (PT425). I believe there is a place in the market for a small tractor like the PT. I would for starters offer brush cutting, VERY light bucket work, stump removal, and SMALL grading. What do you all think? I'm not looking to make a living solely from this business, just a little more pocket change to help supplement the cost of the green monster.

It could work. I would stay with small stump removal. Six inch is easy and can be pulled or worst case ground up. Grinding a 2 foot or bigger stump is very time consuming especially if it has dried for a couple of months or more. I like how many of the PT attachments work, but the stump grinder is probably the least satisfying. That said it sure beats digging it up and I have ground up to 3 foot diamter with the 422 stump grinder. It probably took about 5 hours to do it, as a rough guess. Others I am sure will speak to the commerical viability better than I can.

sawdust_maker · Apr 10, 2007

Simpleman922 said:
Hello Everyone,

I'm thinking of starting a SMALL business utilizing the Power Trac (PT425). I believe there is a place in the market for a small tractor like the PT. I would for starters offer brush cutting, VERY light bucket work, stump removal, and SMALL grading. What do you all think? I'm not looking to make a living solely from this business, just a little more pocket change to help supplement the cost of the green monster.

I'd pondered about similar things once. Mentioned the idea to my wife, she said one word: insurance.

Sigh.

John

JD-Beach · Apr 10, 2007

Simpleman922, I commend you on your idea to form a small business around the capabilities of a Powertrac. I believe that here in America, we could form a small business around just about anything that we enjoy doing. There seems to be an unlimited demand for goods and services out there. Twenty-two years ago I stepped out (in faith) to form a small business and my life has never been the same. It has been a blessing beyond belief. I encourage you to do the same. You have nothing to loose and everything to gain.

Sawdust-Maker, Insurance expenses are just a cost of doing business. ... a very minor expense at that. My business's insurance costs, including that much feared professional liability policy, adds up to less than one-percent of the fees that my business earns. To use insurance as a reason to not follow your dreams is simply not healthy. ... the glass is half-full, ... get it? .... Let's paint the sky blue again.

Sorry for the soapbox. I just hate to see discouraging words thrown about when they inhibit the creative thoughts and actions of good folks, here in the land of opportunity.

sawdust_maker · Apr 10, 2007

JD,

Insurance would seem a must, unless one has absolutely nothing to lose. So I was merely pointing out a factor that should not be forgotten in a business plan. Consulting a lawyer or appropriate professional might also be important, even for a small enterprise, to consider tax consequences and protect your assets in the event of a lawsuit. Incorporation should also be considered.

For a very small enterprise, the cost of insurance could indeed be a significant factor. The OP was talking about a doing merely enough work to offset part of the cost of a PT. So I assume this is "small business" on the order of a few thousand dollars per year. In this regime insurance would seem a very significant factor.

Not to plan these things out and consider all pertinent factors is asking for trouble.

John

MuncyBob · Apr 11, 2007

I would be interested to hear how your new business makes out. I can see the light at the end of the tunnel and am eyeing retirement in the not too distant future and had always thought of a lawn/property maintenance business to keep me busy and perhaps add some pocket change to the fixed income of retirement. After I take care of the big projects on my own property in the next few years I hope to start and establish a small customer base to grow from once the "golden years" hit me. As long as I can stay in the black I'll never let insurance or any other business cost stop me from doing something that I can get paid for and enjoy at the same time!

KentT · Apr 11, 2007

As far as insurance goes, IMO the "cheapest insurance" -- other than common sense and a cautious approach -- is to form a "limited liability company" or LLC (which is similar to incorporating, but much simpler/easier), so that the assets of the company and your personal assets are clearly separated. This makes it much harder for someone to sue you and take your house and everything else... they can sue the company, but it's much harder for them to sue you personally.

My Delaware LLC costs me between $250 and $300 in "fees" and also makes it much simpler to take "business expense deductions" and such on taxes...

My two cents, your mileage may vary.

RegL · Apr 11, 2007

KentT said:
As far as insurance goes, IMO the "cheapest insurance" -- other than common sense and a cautious approach -- is to form a "limited liability company" or LLC (which is similar to incorporating, but much simpler/easier), so that the assets of the company and your personal assets are clearly separated. This makes it much harder for someone to sue you and take your house and everything else... they can sue the company, but it's much harder for them to sue you personally.

My Delaware LLC costs me between $250 and $300 in "fees" and also makes it much simpler to take "business expense deductions" and such on taxes...

My two cents, your mileage may vary.

Kent, seems to me when I looked into an LLC that it would only protect you if you had employees and they screwed up. If you are a solo operator like me and did damage or hurt someone, you could still be sued personally. Since you are already an LLC I would be interested in what your understanding is on that, as insurance is a pretty big item in my budget.

KentT · Apr 11, 2007

RegL said:
Kent, seems to me when I looked into an LLC that it would only protect you if you had employees and they screwed up. If you are a solo operator like me and did damage or hurt someone, you could still be sued personally. Since you are already an LLC I would be interested in what your understanding is on that, as insurance is a pretty big item in my budget.

Laws in many states now recognize a 1-person LLC -- for a while, many did not. I added my wife, in a 60/40 split, so there'd be less issues with ownership or temporary control when settling in our respective "estates" such as they'll be. If I die, my wife can legally run the company until my estate is settled, and vice versa.

If the suit is about your performance of your business -- you still should have protection behind the LLC. Though you might be personally named in the suit, the judge should deflect it toward your company, since it was as a result of you conducting your primary business and not something done as personal recreation, a social event, etc. If you're getting paid to do whatever it was that resulted in a suit, then they should be suing the business and not you. At least that's what my lawyer and accountant told me...

I went this route because I couldn't find anyone who had a clue about how to insure me for my "web-based business" should someone get hurt or cause damage by following any information or advice they found on my website...

Simpleman922 · Apr 11, 2007

First off I would like to thank all those who replied. I apologize I did not communicate very well, what I was looking for was opinions/experiences with the implements themselves.

BobRip thank you for your input on the stump grinder, that's the information I was looking for. Five hours to grind up a 3' stump?! Doesn't sound very practical. I have quite a few stumps on my property with the majority being around 18" in diameter, so if I decide to get the stump grinder; I'll be able to educate myself on the practicality to offer this service.

Sawdust maker (John) you bring up some good points and I appreciate your input. I'm just trying to come up with something to keep me busy and also to make a little pocket change for when I retire (possibly in 7 years, Farmall140 I'm sure you understand). I figure within the time period I'd be able to tell if there is a market for such a business.

JD-Beach thank you for your incouraging words, one of the reasons I started thinking about going into business for myself was due to the experience I had 3 years ago while building my home. It was very disappointing, it seemed like no one took PRIDE in their work. I wondered if we had any craftsman anymore (I have worked construction).

Again thanks to all for your input, and if anyone has any info on the use of the implements and there durability I would appreciate it. I will keep all informed as I progress.