The reason you will not be able to compete with companies who have there equipment paid for and you renting is because they charge a foolish rate which would not be substainable(if they had a payment) otherwise.basically they are working for less than you can rent the equipment for.you could be competitive renting if you line up a good amount of work and then rent the equipment and go straight from job to job,reason being (I am using local rental rates)a mini ex (8500 lbs. machine) rents for $219 for 24 hrs. 8 hrs. meter time,or for $700 for 7 days 40 hrs. meter time. And if you can line up for a month solid you can cut rental cost again by roughly 30%.Best of luck.It can be done but you will need enough capital for insurance,fuel,business license,contractors license,first several rental fees,any tools needed you dont already have(shovels ,rakes,laser level,etc.etc.).It would be beneficial to learn on the other mans dime but if you just half to do it buckle down and dig hard.