Part time tractor business

RonR · Sep 11, 2005

Spiffy, I also wanted to enter this biz and jumped in part time a year ago. I know all the rental places rent the size I bought (22HP), but a lot of people don't have the skill or desire to do that kind of work.

I looked at landscapers and realized I didn't have their flare for flowers, nor desire to mow lawns.

And the big contractors have a lot of people and expensive stuff they have to keep running. They also have to do stuff per a set of drawings, so there's a lot more risk/reward at that level.

I tried to focus on the homeowner who needed some power more than he had, but less than what a contractor would be interested in.

I chose to do rototilling of yards, spreading topsoil, re-seeding lawns, etc. I was getting some bids to do work, but some outside issues distracted me this year and I've suspended the biz. I do plan to restart next year.

I don't think doing it part time, you can expect a significant income for at least the first several years, doing it on a small scale. You should be able to easily recoup the cost of your operation and have a few bucks to stick in your pocket though.

I think one key is to keep from sinking a ton of $$$$ into the equipment. I spent probably $20K getting the tractor, equipment, trailer, and misc stuff to get going. If it sets idle for awhile, I'm not stressing over making the payments. Another big issue (to me) was NOT having employees to deal with. Yes, you can greatly expand your opportunity, but you also create a slug of headaches for yourself (hiring, Insuring them, getting them to show up, getting them to do a job YOU are satisfied with, keeping them busy, seeing them tear up, steal, and/or lose your stuff etc, etc).

And while my 22HP seems to be underpowered much of the time, I will resist getting a bigger tractor--until I can prove it will pay for itself with business! I might rent a bigger tractor for a few jobs and see how that works out. That way, if it doesn't work out, I'm not out a bunch of bucks. And I can pass the rental costs through to the customer!

Adding to some of what was said, I point out to folks that I am NOT a civil engineer--I will move dirt where they want me to, but I cannot guarantee exact drainage. I explain to them what I propose and give them a written estimate. I don't think I'll get in a pickle where a customer says its not enough and I won't pay anything. I'll try to work it out with them. If it looks impossible, I'm not out so much as to just say, "Hey, sorry, this isn't working out for either of us. I'll gather my stuff and be out of here." I can't imagine a situation where my livelihood is tried to one or two deadbeats............

Jump in and enjoy!
ron

2nstonge · Sep 11, 2005

Well said, Ron. It's the same niche I serve - and the same philosphy.

I have a simple 1-2 page contract that gets signed before I do the work. It lists exactly what I will and won't do.

I usually schedule jobs 2-3 weeks out, so I get a check for half up front to "put it on the schedule". At least my out of pocket expenses are covered should someone try to avoid payment (hasn't happened yet!).

I also take credit cards. The cost is 2-3% of the total amount. Big deal. A small price to pay if your worried about getting paid - and you will occasionally run across someone who you just think might try to stiff you. So, I ask for a credit card and run it through before I even start (you can put a set amount "on hold" and then authorize payment to your account at a later time). You don't need a 'swiper' like the restaurants and stores use, I call it in on my cell phone and it goes into my checking account the same day. Easy.

I carry a digital camera, before and after shots. I store the images on my PC, if something comes up about what I did - or didn't do - I'm covered. I also use the images for advertising.

I now have customers that call and don't even ask me to look at it or quote it - "just do it" - and send them a bill. I send the bill with a self-addressed-stamped-envelope, these things come back within a couple of days. Amazing.

A nice niche, a little customer service, honesty, and give them just a little more than they expect. You will be successfull.

-Norm

LBrown59 · Sep 11, 2005

We have a rental place that rents the Terramite to homeowners.
Makes me wonder how safe that practice is. 

 I know all the rental places rent the size I bought (22HP), but a lot of people don't have the skill or desire to do that kind of work.
*******************

odleefs · Sep 11, 2005

You may want to check out Bobcat Be Your Own Boss Website if you are serious about further exploring this realm. Good luck!

familyman · Sep 12, 2005

Rental fees are stiff, and when a homeowner realizes that you can do far more work for your 1/2 day charge (equipment delivered to site, 4 hours of operating, removal of equipment) than he/she could possibly do for the small amount they would save just paying for the rental, and suddenly the lights go on. Not to mention the liability insurance that the homeowner doesn't carry (and hopefully you do!).

DKinWA · Sep 13, 2005

I think we're going to see rental prices go up in the near future. Rumor has it the big rental outfits may send a lot of their equipment south for the clean up and rebuilding. It makes good business sense and I know I would.

LBrown59 · Sep 13, 2005

The people a mile down the road from me have been renting a Terramite .
It's been there for several days .
Glad I'm not paying out the coins for that.
Makes orange look real good in my garage.

Moon · Sep 19, 2005

( Just be generous and give them an extra trench for free..........across their driveway.
)

Hey Spiffy,
Good luck with your part time business. Sounds like it could work, and now your aware of most of the pitfalls (hopefully all of em) ....
But the quote above reminded me of dealing with a local small business contractor.
I was having some gas line installed and buried. He was giving me the estimate when his phone rang. His wife was calling about a customer. Next thing I know he's moving off towards his vehicle (for some privacy i think) and talking to the customer. A short while later I hear him yelling (really yelling), "I'll tell you what, either I get paid today or I'll be out and take out every bit of gas line I buried for you!". The customer must've said something like you can't do that ....cause next I hear (still yelling) ..."I'll hook onto one end and yank every inch of it out of the ground." Now, I don't know for sure, but I'd guess he got paid that day.
It's a shame, but, sometimes you gotta get tough with folks.

Jstpssng · Sep 20, 2005

Years ago I had a garden tilled up by an oldtimer down the road. He was the type who was always full of stories, and he told me about a job he did one May, but never got paid; so he went down again in late July and tilled everything under. The landowner called him and said "What the H*** did you do that for? Old Cudgie replied "well, I figured you weren't happy with the job I did the first time; so I went and did it again!!

Whether this story is true or not, it sure helped him get paid in a timely fashion.

RayH · Sep 23, 2005

I had a side businessdoing land clearing, grading, hauling and snow removal in the winter with my Kubota and an F350 dumptruck. The potential is there for lots of money, at least in my area, but it takes alot of dedicated time to make anything. I work almost 50 hours a week at my fulltime job. It only took me a couple years to get tired of spending every nice sunny day working for someone else instead of doing things for myself. I got out of it this year. I worked less and less at it till finally it didnt pay to own the equipment anymore. I sold the dumptruck a couple weeks ago, next week the Kubota 3130 gets traded in for a BX23 that fits my own yard better.
That liability insurance quote of 1000/per year. Does it include backhoe work? When I checked into it, they were going to stick it to me if I even muttered the word backhoe.
I operated for cash only and didnt carry additional insurance or claim income. This year it was time to go legal. Once I found out what it was going to cost me to go legal, I realized I wasnt going to make enough to justify my time doing it unless I increased the amount of work I did. I wasnt interested in doing that, so I gave it up completely. I was fortunate and didnt break the tractor, truck or someone elses property but if I had, I wouldve been in the red for sometime (nothing on my 3130 costs less than $300).
Once I get the BX, I may still do the occasional job for friends and so forth but thats it.
The short of it: Just make sure that the amount of time you can (or are willing) to spend on the equipment is enough to make you something in the end, after insurance, repairs, taxes, expenses and such.