However, I was thinking of starting a bush hogging/tractor services business. If I do 1 or 2 jobs a month...to make the payment..I essentially have a free tractor.
It's no different than Lunch in that "There is no Free Tractor."
How seriously were you 'thinking about a tractor services business?'
Did you draft a business plan yet? Do you know the cost of the liability insurance for instance? Would your existing insurance on your 150 be voided if you were involved in an accident while transporting your tractor to or from a jobsite? Or would you even tell the company about your "tractor service business" and hope they didn't stumble upon one of your ads or this post?
What is the local competition like? What are they charging?
"Roughly half of all small business' fail within the first five years"
What would your service area consist of? Your average round trip? Do you record you fuel consumption presently? Know your average MPG? Empty? Loaded? Towing a ????# tractor and implements?
"The best tractor financing programs require credit scores over 680 . . ."
At current rates (7.25-7.35%), what would a $20,000 tractor actually cost if spread over six years? What would teh Financing costs amount to? With shop rates as high as $125/hour what would you expect your maintenance costs would average per annum? BTW, would the finance company require you carry insurance on the tractor and trailer?
Add it all up and add ten percent or more just to be 'conservative.'
Now, what would it cost you to rent equipment as needed? Or how about hiring someone else to accomplish those few tasks?