Opening shop?

[SteveInMD]

I’ve accumulated a number of implements – backhoe, tiller, auger, grader blade, rotary mower, snow blower, FEL with bucket, and pallet forks. (What good is a tractor without them?) Anyway, I’ve been thinking of trying to start a small business. I’d need to get a trailer, but I have a ¾ ton truck for towing. I’d be shooting for fairly lightweight jobs that the bigger guys may not be interested in. I’m not aiming to make a fortune, but just help offset some of the expenses I’ve got into this equipment (and maybe get a few more toys if all goes well). Has anyone tried this sort of thing? Any advice would be greatly appreciated.

 

[RonR]

If you have a CPA friend, take him to lunch and you BUY his. Find out what you need to do.

Then find an insurance agent that will write you liability insurance. I had trouble finding that! It was Catch 22--you can't buy insurance until you have been in biz for years, and you can't be in biz without insurance.

Develop a biz plan that shows you can break even. Mine shows it, but so far (2 yrs) it has not happened!

I found out I underbid the hours it would take a LOT on the first 2 jobs I did. I was working for less than nothing!

With my equipment, I have to charge $50 / hr to make anything for me. For those that balk at my estimates, that's fine. I don't need to work for nothin'.

Have fun; good luck.

ron

 

[frank_f15]

i really don't have any experince in this , but 1st thing you need is INSURANCE then figure out what you time and wear and tear on your equiptment is worth.

 

[hhw]

Definitely shop for insurance.

Here is what I can say from having done 10 years ago, what you are about to do now /forums/images/graemlins/crazy.gif

Start slow, but be aggressive in searching out small easy jobs to learn on. You might have to really discount your initial bids to get some of these jobs. What is important is that you do a good job and others are able to make note of it, this is where you build your "word of mouth" reputation. Some examples that worked for me;

1. lawn cutting
2. snow removal
3. lawn care
4. garden tilling
5. field mowing.
6. pad installation for garden sheds.
7. small lip-lock retaining walls

Backhoe work and FEL work can become a problem for you if you are not careful. Always remember to "call before digging" so you don't dig up something you are not supposed to. Also, remember this; people are not perfect and you may discover something like a gas line where they said it wouldn't be. Sooo, go slow, look and listen. /forums/images/graemlins/grin.gif

At some point you will need to get something for "dumping" Maybe up front you could buy a dump trailer to haul and carry with. There are pros and cons to this approach but, if you don't have the $$$ for a dump truck, you can make this work, I did. /forums/images/graemlins/tongue.gif Now I use an F-650 dump, but I still use my 10,000# E-Z dump trailer frequntly.

The other avenue to explore is tax time benefits. Check into this with an account or do some internet research.