Starting A Tractor Work Side Business with Ford 8N or 9N

[troverman]

Part of the problem with America today is that you are discouraged to try to take on something ambitious unless you have lots of shiny new equipment, a big insurance policy, registered company, and charge big rates.

I've found being motivated and hard working to be much better traits for getting things done. If you have older equipment, you become resourceful in learning to fix it. I've done plenty of "side" jobs with undersized and old equipment - took a lot longer to get done than if I had something better, but I put the time in and got the job done, and got satisfaction from it. And after years of doing this, I've finally made enough money to have new and nice equipment. I still don't charge what others do, and I do just as well of a job, or better, than the other guy.

When you start hearing the "professionals" talking about the cost of transporting their equipment, and all the insurance costs, and cost of the equipment...you can plan on them probably overcharging their customers. Yes, these costs exist. But nowhere near the extent they'll tell you. I mean really, how much does it cost to chain a tractor down to a trailer...drive it across town...and unload it to do a job? Maybe $10 in fuel? A $1,000,000 general liability policy is $1500 a year. Workers comp insurance only exists if you have others working for you.

I like to see initiative...I know you decided not to spend on the tractor now, but I think you could have made a go at it. The tractor still has value when you are done.

 

[radios1]

Mine has a paint job nicer than that one... it's been sitting in the same spot in the field since I dragged it there with my Kubota about 6 or 7 years ago. Someday I may find time to get it running... It was my father's so I don't want to scrap it.

what a shame, it will have rust and moisture damage!.. it could be scrap already by now!..

 

[DerekF]

Part of the problem with America today is that you are discouraged to try to take on something ambitious unless you have lots of shiny new equipment, a big insurance policy, registered company, and charge big rates.

I've found being motivated and hard working to be much better traits for getting things done. If you have older equipment, you become resourceful in learning to fix it. I've done plenty of "side" jobs with undersized and old equipment - took a lot longer to get done than if I had something better, but I put the time in and got the job done, and got satisfaction from it. And after years of doing this, I've finally made enough money to have new and nice equipment. I still don't charge what others do, and I do just as well of a job, or better, than the other guy.

When you start hearing the "professionals" talking about the cost of transporting their equipment, and all the insurance costs, and cost of the equipment...you can plan on them probably overcharging their customers. Yes, these costs exist. But nowhere near the extent they'll tell you. I mean really, how much does it cost to chain a tractor down to a trailer...drive it across town...and unload it to do a job? Maybe $10 in fuel? A $1,000,000 general liability policy is $1500 a year. Workers comp insurance only exists if you have others working for you.

I like to see initiative...I know you decided not to spend on the tractor now, but I think you could have made a go at it. The tractor still has value when you are done.

Thank you to you and others for the encouragement. I definitely want to do this sort of thing in the future still, maybe not with an old 8N, but it’ll probably be older less expensive equipment when I get around to it.

I have decided to peruse something a little more safe, less of an investment for good extra “side” money. This trailer I’m buying is going to have high sides and already has a winch on it. I want to put a 1/2 ton manual crane on it, and I’m going to try junk removal instead. Not near as ambitious, but maybe a little more appropriate for where I am right now. After talking it over with the wife, we decided we need to this good chunk of money saved, and after we are done with school, use it to help us get in a decent little property, and once that’s done, consider getting some equipment and adding that to the “side business”. Just need to be a little more on the safe side, but I appreciate your thoughts and encouragement.

 

[Fallon]

My landscaping insurance policy is $850 a year. It doesnt cover any digging or dirt work except post holes & sprinklers (I only do tractor work, not manual work like sprinkler installs though). An insurance policy for any dirt work is over $10k a year. I avoided dirt work because of that. Snow plowing, post holes, but mostly mowing, manure mucking & driveway maintnance. Mowing is definitely the biggest need around here.

Your truck will now be a commercial vehicle. You probably wont need a CDL, but need to look into stuff there. Just because your truck will pull the tractor & trailer doesnt mean it will comply with all the GVWR stuff. Lots of info out there on that stuff, but it takes a while to paw through & learn.

We moved onto 5 acres partially so I'd have an excuse to get a tractor. Some neighbors needed help on stuff & I realized I could spin up a side hustle doing it. I upgraded from a Kubota L3200 to a nice cabbed L4060HSTC. Really I don't make any money doing a couple hundred hours of work a year but I have a nice new tractor that pays for itself. I could make money at it, but never more than my day job as a cybersecurity engineer. My free time is more valuable so i only do enough to pay the note on the machine.

You'll also need to learn accounting & taxes. Depreciation on a new machine gets written off over a few years & decreases your tax burden very noticably. Depreciation on an old machine won't help much at all & you'll be wrenching on it all the time.

You need to know your operating costs. I calculated mine out a while ago at $35/hrs. Fuel, tractor payment, maintnance stuff, insurance, truck, trailer, an accountant if you need one. It all adds up. I give firm quotes most of the time. I base that on $75/hr from the time I leave the house. I add in a pain in the *** factor for some jobs I dont want as much. If I estimate good I make decent or good money. If I estimate bad or run into unexpecelted issues I'm probably not making much at all. Some jobs are billed hourly, but those are the minority.

 

[DerbyRunner]

I have decided to peruse something a little more safe, less of an investment for good extra “side” money. This trailer I’m buying is going to have high sides and already has a winch on it. I want to put a 1/2 ton manual crane on it, and I’m going to try junk removal instead. Not near as ambitious, but maybe a little more appropriate for where I am right now.

Good for you! Still pursuing a side business but already moderating risk and keeping the investment low. You might go very far with those traits!

 

[GeneV]

 

[Big Barn]

My landscaping insurance policy is $850 a year. It doesnt cover any digging or dirt work except post holes & sprinklers (I only do tractor work, not manual work like sprinkler installs though). An insurance policy for any dirt work is over $10k a year. I avoided dirt work because of that. Snow plowing, post holes, but mostly mowing, manure mucking & driveway maintnance. Mowing is definitely the biggest need around here.

Your truck will now be a commercial vehicle. You probably wont need a CDL, but need to look into stuff there. Just because your truck will pull the tractor & trailer doesnt mean it will comply with all the GVWR stuff. Lots of info out there on that stuff, but it takes a while to paw through & learn.

We moved onto 5 acres partially so I'd have an excuse to get a tractor. Some neighbors needed help on stuff & I realized I could spin up a side hustle doing it. I upgraded from a Kubota L3200 to a nice cabbed L4060HSTC. Really I don't make any money doing a couple hundred hours of work a year but I have a nice new tractor that pays for itself. I could make money at it, but never more than my day job as a cybersecurity engineer. My free time is more valuable so i only do enough to pay the note on the machine.

You'll also need to learn accounting & taxes. Depreciation on a new machine gets written off over a few years & decreases your tax burden very noticably. Depreciation on an old machine won't help much at all & you'll be wrenching on it all the time.

You need to know your operating costs. I calculated mine out a while ago at $35/hrs. Fuel, tractor payment, maintnance stuff, insurance, truck, trailer, an accountant if you need one. It all adds up. I give firm quotes most of the time. I base that on $75/hr from the time I leave the house. I add in a pain in the *** factor for some jobs I dont want as much. If I estimate good I make decent or good money. If I estimate bad or run into unexpecelted issues I'm probably not making much at all. Some jobs are billed hourly, but those are the minority.

Thank you for the post Fallon. Now this is what I can appreciate. A well thought out business plan as opposed to....well the other guys.

 

[Molalla1]

Boy Gene that fellow can certainly blow smoke up one's @ss. :laughing:

 

[Big Barn]

Boy Gene that fellow can certainly blow smoke up one's @ss. :laughing:

Yup. He’s smooth. I didn’t watch the whole thing as I wasn’t interested but I’d give him a job on my sales team. LOL

 

[GeneV]

Boy Gene that fellow can certainly blow smoke up one's @ss. :laughing:

What part do you think he's wrong about?