New tractor business

[Anonymous Poster]

Re: Business decision versus \"just do it\"

Wasn't offended Rick at all.

I've had dig safe out several times for projects here, and yes, I think it's nationwide. We're getting a water well dug (no I'm not doing it!), so marking it for that. They are sending me their "contractor's manual".

When I talked with the lady, I asked her how close I could dig to a mark. She explained they have a 1 foot on each side tolerance zone, where you should exercise caution, whatever that means. I mean if you are digging a post hole, my guess is that means don't lean against the tractor!

My plan would stay two feet away from the lines, and if a customer is unhappy, so what. All you have to do is think how much it would cost to splice thousands of fiber optic cables back together!

I would hope $1M liability is enough, but you never know these days. I figure insurance alone is going to cost me about $9 an hour for work outside!

My part time plan is based on working about 250 hours per year. I used that figure to calculate my equipment costs and insurance costs per year. Sounds like about $30 an hour, and that's not counting any wages for me.

I did this to come up with numbers I can use to estimate jobs. The best price I could quote would be $30 an hour, and my plan is to estimate the job and not have to be rushed or harrassed by a clock watching customer. Think it will be the best way. I've written up an estimate sheet that I will provide for each job--no surprises.

Hey, thanks for all the great ideas!
Ron

 

[icat]

Re: Business decision versus \"just do it\"

Hey guys,
Sorry for not replying sooner - been to a family reunion and just got back into town. Everyone will please note that in my FIRST statement I did say that this was a can of worms! /forums/images/graemlins/grin.gif

I've had several businesses that failed because I didn't do the math before I began. I tried for many years to make a living as a professional photograper, but wound up shutting down because I couldn't make a decent living. During that time I acquired all sorts of great equipment and enjoyed my self to boot. Heck, I might even do it all over again just for the fun factor (assuming I was young enough to bounce back - which I'm not). /forums/images/graemlins/tongue.gif

I also took a stab at owning a bicycle shop. Here I did the math - but I ignored the numbers and went in anyways. That one almost cost me everything. /forums/images/graemlins/frown.gif

Now I have a successful computer business that generates a profit and pays the salaries of 4 employees. To stay in business though, I have to do a new MLB on a regular basis. Prices change very quickly in my line of work and I need to stay on top of costs.

As to side line jobs with the CUT - I say go for it. As I and others have mentioned, you already have the tractor. The original question I replied to wasn't "IF" you should do this, but rather what one should charge. The "ONLY" way to determine what you should charge is to do a cost analysis of what it cost you to perform the work. Once those costs are covered, then anything that remains is profit. What I was attempting to point out in my post was that there are a lot of costs the average Joe doesn't consider when hiring himself out. Then, as time goes on they wonder why they aren't making any money.

In addition, I wanted to get everyone to look at what they actually earn. For instance, I can't work part time with my CUT because I make too much money in my day job. I'd have to charge an arm and a leg to do anything and that would price me out of the business. I can make more money working at the office than I can charge cutting grass. Heck, it would have made more sense to hire someone to cut my own field that to buy a CUT and do it myself (and yes - I did do a cost anlysis on that as well). But where would the fun be in that. /forums/images/graemlins/cool.gif

My biggest fear isn't the money though - it's the liability. I've built a nice little nest egg for my family. I have no intention of losing it just to earn a few bucks cutting someones grass.

So, if your situation warrants I say do it. It's fun, it gives a sense of accomplishment, it's an excellent way to offset the cost of the tractor. Just keep in mind that you're really not making any money - just kidding! /forums/images/graemlins/grin.gif

 

[hosejockey2002]

Re: Business decision versus \"just do it\"

FWIW, an update on my business since I started this thread. The last two months I've pretty much had as much work as I want. Right now I'm getting ready to take a trip with the family so I've backed off for now. I'm licensed and bonded as a landscaper, so not all the work I do I use my tractor for. I've done some weeding and cleanup jobs and a couple of lawn installations. When I do small tractor jobs, I charge $40 an hour. My Yanmar 1401D is not much bigger than a Kubota BX, so it takes longer than the big boys to move a big mountain of dirt. However, I have been able to get in and do jobs that the access would have prevented a bigger machine from getting in. So far it's going well, but I have to admit it would be tough to make it doing this as a primary job.