starting a small business

[Dougster]

look into doing your bookkeeping on your computer using quick books.

I do plan to make extensive use of my computer for record-keeping and anything else that will help... obviously including business website generation! In fact, if I had to do things by hand, I'd probably give up right now!!!

Dougster

 

[Dougster]

I'm only using a JD 4110, my little tractor biz is called "Backyard Tractor Works". In my area there are tons of guys with TLB's, excavators & 10 wheel dump trucks tripping over each other to dig the next foundation or cut a new driveway. My target is homeowners that have small projects; trenching, drainage, gravel drive repairs, lawn prep, brush removal...all the small stuff no one else wants. Yet, I know I'm charging more for a day of my services than the big guys are getting to do excavation work. I literally have no competition in the immediate area.

I charge a flat half day or full day rate which includes my trailering expenses - again, no hourly work. My half day/full day rate fluctuates based on how far away they are, access to the site, the type of work, the terrain, am I going to beat the snot out of my tractor or is it a reasonable job...it all comes into play. -Norm

As usual... excellent advice. Thank you Norm. I too came to the conclusion that I can't bill like the big boys by adding delivery fees to hourly equipment fees to hourly operator fees to hourly accessory fees, etc, etc. I've got to keep it simple... no nonsense... no BS.

In that regard, I came to the same conclusion: half day and full day fees. My initial thought... a ballpark guess, really... is $300 half-day and $450 full-day (subject to a far more complete market analysis) plus a pass-through of any/all fees. This will include delivery and use of my truck and a 5-ton dump trailer for material pickup or disposal if necessary. I thought of a reduced charge for loader-only amounting to $200 half-day and $350 full day, but I am concerned that some tasks will end up requiring the backhoe anyway just for "liberating" hard packed material. Perhaps a better approach is defining an excavation project vs. a non-excavation project.

I too hope to slip into a near-empty local niche somewhere below the big boys but above what can be done easily with a rental terramite and/or bobcat... plus none of the delivery hassle and renter learning curve inefficiencies. I think I've got a pretty good shot at that. My only known *aggressive* competition is from a guy who lives a bit away from my town and appears to specialize more in assisting the trades... plumbers, electricians and others... as their small task excavation subcontractor. He also has other business interests far more lucrative than this... so maybe he won't be much bother. I'm thinking there is plenty of potential business in my area for both of us... but also remember how I still believe in the Easter Bunny!

Dougster

 

[2nstonge]

This will include delivery and use of my truck and a 5-ton dump trailer for material pickup or disposal if necessary.

This is the same set-up I use for my biz. The dump trailer is sooo useful for alot of things but it is a compromise as an equipment hauler. With the BH on it takes some funky manuevering to get it on the trailer. And it seems I'm always whacking a knee or elbow on something. Since this is only a part-time portion of my business I can deal with it. If I were doing it full-time I'd do an equipment trailer and small dump truck.

Photo is with a tiller on the tractor.

-Norm

 

[Dougster]

This is the same set-up I use for my biz. The dump trailer is sooo useful for alot of things but it is a compromise as an equipment hauler. With the BH on it takes some funky manuevering to get it on the trailer. And it seems I'm always whacking a knee or elbow on something. Since this is only a part-time portion of my business I can deal with it. If I were doing it full-time I'd do an equipment trailer and small dump truck.
Photo is with a tiller on the tractor. -Norm

Great set-up Norm!

While already picked out, I won't actually be purchasing my equipment trailer and dump trailer (and snowplow) until after my business is "officially" formed... hopefully this month but certainly no later than Nov 1. I had toyed with the idea of buying just one big 14' dump trailer for obvious reasons (not the least of which being my strict residential zoning bylaws)... but sadly, I concluded that it would not be practical for the Mahindra with the potential attachments.

While the two trailer concept will clearly be limiting range-wise and even time consuming in some respects, it could have some advantages too... particularly if/when I start to employ my FSIL (future son-in-law) and his truck on future jobs.

Perhaps the day will come when I buy a second, smaller TLB (or TL without the B) or Bobcat that can fit nicely into my dump trailer. I recognize that there will be places and instances where the 7,000+ lb, 72" bucket width Mahindra is simply not practical or just won't fit.

Dougster

 

[Dougster]

In the construction industry, I assume the issues are more complex and potentially much more costly. Still, ask your agent about "umbrella coverage" --- if not for the business, then for yourself personally --- that way, if you are held liable personally even though a corp or LLC, you will NEVER "lose it all." Sad we have to calculate this way, but what a world we live in...

That's a very good point, although I believe it would require that I move all of my current and desired insurance (i.e., cars, truck, motorcycle, boat, home, tractor/business, etc.) to a single company or perhaps a single broker. It's not clear if that is even possible to do here in the insurance-screwy People's Republic of Taxachusetts. So few companies do business here anymore... and the ones that do tend to specialize. Still, it's a good question worth asking.

Dougster