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Reply To: Starting your own company

AzIron is right about everything. You need to look at what size jobs you are going after, what the paper work requirements would be for them and what of those opportunities are really going to be available first. If you are going after municipal projects bonding and insurance will be a must. Even on some private work you might have to bond because of the GC. Many bond companies are going to want to see personal financial statements in lieu of corporate records because you'll be new to the scene. Same, but not as difficult, for the insurance. Once you have worked through the above issues you can then get into looking at what your realistic cash flow will be off the projects you want to go after. The larger the jobs get the larger the month to month overhead cost is going to be. Most vendors are going to expect to be paid before you will likely get a draw processed and paid. So cash flow is something you really need to be aware of and understand. Fuel, equipment moves, materials and payroll will really knock some big holes into your bank account. Same for repairs on equipment. You're looking at bigger earth work projects which just means bigger repair bills on the iron. Cash flow is what takes down a lot of younger businesses trying to get started and those trying to grow. I would recommend to start with the smaller projects to get your name out there and get some lower risk work under your belt so you get a grip on what cash flow looks like etc. It'll also help you to start getting some help on board that'll stick with you. I see you are in Australia, so maybe your work is all union? That may help with getting quality help out of the gate. Here are some maxims to live by that I was taught working with the mega monster corporate company I worked with out of college before coming back to local work: - Get Work At the Right Price - Know Your Cost - Know your Contract - Take Care of Your Assets Best of luck to you if you take the chance. Running a business can be very rewarding.