First real post here. I've read and have commented a few times but mostly just reading. Since 2008 I have been doing freelance equipment repair and maintenance. Iv always don't pretty good making side money however, never enough to be self employed but now I want to quit my day job and actually start working for myself and hire a few guys. My question to you guys is what is the best way to advertise locally? I have an ad on Craigslist but its not reliable enough. Also, around Denver (my city of business focus) there is no small companies that do what I do. If anybody wants or needs work done they are forced to go to the dealer... am I wrong? do these small companies like me exist? Thanks in advanced for reading my thread.
I don't think advertising has much benefit with your work unless your going after homeowner one machine type market find the smaller sand and gravel companys show up and let them know what you do once one hires you and the work is good you will be to busy to think. Also find the independent lowbed drivers they know were all the equipment is at and whats broken its 100 percent word of mouth around here
Like Jonas says if you do good work soon you will have more than you can do. I have trouble finding good help, just seems that to many kids think getting dirty is beneath them . Go ahead and get a million in general liability insurance right off the bat. Most companies with the means to actually pay you will require it. What out for the little things that will cost you big. Around my place two people are required to double check drain plugs including myself. Any time someone tightens a drain plug a second must be called into to double check. It sounds silly to some, but it accomplishes two things, no engine loss liability from something as simple as a drain plug and it emphasizes the importance of completing every step. We have yet to loose an engine from a loose drain plug but have heard of others doing so. Be prepared for the workers comp rates, they are sky high for heavy equipment mechanics. We have a state program that forces insurances carriers to pick up high risk policies but it is expensive. Almost 20 percent of payroll and that is with no loss runs. The kind of work you are looking for advertising will probably be futile. Equipment contractors don't often go to the yellow pages to find a mechanic.
Would I be slitting my throat by saying my business focus is as described above with the hobby farmers, small herd ranchers, or even small landscaping companies? So far I have been able to make decent money doing old equipment maintenance and repair. I also don't want to be working on large equipment ie. anything larger than about 9000lbs (not much experience with large equipment)but maybe i could grow into it.
Consider whether your various market segments are willing to pay you what you are worth. Landscape companies I like the sound of if they are underserved because their machines are important to them and they know what things are worth. Hobby farmers makes me nervous because they might jerk you around and waste your time before deciding against a job because "it's too expensive".
I agree, I have had people flop around even when I knew I was performing business ethically. On the other hand there are people who would pay what ever it takes to get work done because they are physically or mentally incompetent. The hardest part is trying to get 1099misc forms from the private sector.
If I could find a good reliable mechanic around here I'd use him. I have two machines, a tractor and a CTL. My tractor dealer is great but my CTL dealer sucks wind. You don't need and won't get 1099's from hobby farmers and some of the smaller contractors. Some smaller companies do send them out. It's really in their best interest anyway, not yours since you should know what's going out and coming in anyway. You can use Quickbooks to keep track of everything for tax purposes, but a good accountant is real handy quarterly and at the end of the year to make sure you've covered all of the bases. I don't know how your state works, but keep track of taxable materials so you don't find yourself behind the eight ball if they come calling. I work almost entirely for small ranches and land / homeowners. Dealing with the private sector means a bunch of running around, but it's worth it when you get a good rep in the area. Good luck!
JNB, If I didn't know who you were now. How would I find you and what would you like to see from a sales pitch from me or similar company? Thanks for your help guys.
Smaller guys like me can usually be found in local searches on the web and in small town classifieds. A lot of those have an online version too. For the hobby farmers, a flyer with phone number tearoffs works good at farm and feed stores, mom and pop restaurants / gas stations and such. Basically anywhere that will let you tack up a flyer. In small towns, folks still read the paper too so don't discount an ad. It takes time to get a website up, have the search engines to find it, and then rank well. You might try a Thumbtack ad. They always come up in local searches. I find that the majority of my customers are internet savvy. They want something done and they'll pay for a good job. The old timers always know some Jethro that will work for beer money, so I don't target that market. That holds true for Craigslist for the most part too. Looking for a deal... As a one man show I don't have time to chat on the job and I'll never return a sales call. The best way to contact me and actually get my attention is through an email.
I would stay away from hiring a few guys until you get established and find you really need help. You don't get a lot more done with hired help but your expenses and stress go way up. Keep it simple and just turn away anything you can't or don't want to do.
Another good place to network is at an equipment auction. The equipment at many auctions will need work on them right away. Often, there is a good mix of end users and equipment jockeys. Don't overlook the equipment jockeys or independent dealers. They are always looking for a good mechanic to work with.