Hi I am starting my business as a site work contractor ,There are so many option for equipment out there and I don't know where to start. I have limited budget.I will start from site work of residential building(new construction) and my aim is site work of commercials. the scope of the work is demolish the existing building, dig the basement, back fill the basement, rough Grade and Final grade. can you Please answer my questions: 1- I have to buy small loader. I don't know if I should buy a bobcat or cat or something else, and which size i should buy. 2- I am thinking of buying used one, what do you think about used and what is the maximum age of the machine which i can still make money from, ( I don have to pay all the income for the maintenance) 3- I have to buy a mini excavator. which size and which manufacturer. 4- what do you think of buying a backhoe instead of mini excavator.
You're starting a business with a limited budget and you don't know what machines you'll need? It sounds like you don't have any experience in the business you want to go into and that's a recipe for disaster.
Thank you for encouragement Yes, The answer is "unfortunately you are absolutely right. and your help will make the process with less pain."
Saving your money would be the least pain.
If you have contracts lined up I'd suggest renting different machines to see what suits your needs. Same if you don't have contracts. If you can't rent machines and still make decent money, you're not pricing the jobs right.
Welcome to the Forums aia. Tells us a little of your background and experience in the site work industry and we can better give you advice. For instance - Work experience in the field Mechanical ability to fix an older machine when it breaks down Prior small business ownership Anyone can go out and buy a machine and tear a building down and push dirt around, the difference in being successful and making money or not is the combination of knowledge of how to get the project completed on time and what it costs you to do it. The only way one can accurately price a job is knowing how much it will cost to complete it.
Hi. Thank you so much. I have more than 10 years experience of project management in residential construction. I am mechanical engineer, I am specialist in stormwater management facility maintenance, and construction. I have at least 3 site work contractor which are currently working for me.I am fully familiar with grading plan design and my company started last year. I am still working for a builder. next month I will quit and now I lined up 3 project which should be started in next three weeks.
for a start up I would look at renting to own or leasing for the season to see how it goes. its not always the cheapest per month, but it saves your cash for paying bills until customers money starts coming in. and also keeps you from buying a money pit. nothing worse then using all your capitol up in down payments and then have a major repair. a guy could be bankrupt before he even got a start. I would get the first year on the books before I worry about balance sheets and assest. it also allows you to also try out different brands and sizes to see what is fitting for you.
Thank you so much.
It would have helped a lot if you would have listed your experience in your original post. If you're doing demolition you probably don't want anything with tires that could go flat.
Thank you.
anyone can learn to run equipment good enough to fool most home owners they need you. I would take your game plan to a banker and see what he says. small business is not easy thing to start. every spring I go to the bank for money they want to know how I am going to be able to pay it back with interest along with all the other operating bills. being told no by a banker isn't the worst thing, frustrating yes but also a good learning moment. take what he says no about and fix it. also the home owners and supply companies want to know if you have insurance or financial backing so when you order 20 grand worth of rock or dirt your good for it.
Out of curiosity and it may be none of my business but why bother with residential demo and grading when you are an engineer with a specialty in storm water management? Storm water management and treatment regulations are only getting tougher, having the knowledge to design and inspect such structures is a growth market. If I had the credentials I would open an engineering consulting company. There's a lot of us broke site contractors competing for the same work.
I started last year. I dont have enough client to cover my expenses and construction of stormwater mangment systems need equipments which can be used in site works. On the other hand I have to have some experience and equipments to get commercial project.I think the only way to go there is starting with site work.
Did you look round for a existing contractor/ business who is looking for a business partner or to sell their business? You will get the equipment and skilled machine operators and avoid a machine learning curve.
I will look for it. Thank you.
Some people aren't cut out to be equipment operators and you're not going to get far if you if you don't do good work. You can only fool some of the people for so long. If you want to have any kind of a reputation you have to do good work on time and on budget.