Hello All, I know theres a lot of threads on starting out but none I could find in any recent time and I have a few other questions. First off, as a general consensus, how is the work load for you all been this year? Is there enough work for more companies? Second, I have a Ram 2500 cummins and have gotten a great deal proposal from my local bobcat dealer for a 2015 E50 with 400 hours for 46k fully loaded and would give me new equipment finacing on it and 12k for a 16ft towmaster 12k lbs dump trailer. 1. Do you think that is a good deal? 2. Would it be possible to cover the $600 truck payment and the $1000 a month equipment payment with this equipment? Third, I have many years operating equipment just no experience in bidding work. So what's the best way to learn that? I was an apprentice operator in the IUOE, when the economy fell I joined the Army where I continued to operate equipment, and when I got out I got a job operating equipment. I now work as a train mechanic and hate it, I always loved operating, so I'm seriously considering jumping in the game for myself. Let me know what your opinions are on starting a residential excavation company in today's economy. Thank you, Austin
This is just my 2 cents, take it or leave it, YMMV. For someone starting out, I would not go buy a brand new mini excavator. I can't think of any way you're going to keep a 5 ton hoe busy with just residential work, squeezing out realistically $2,000 a month minimum for payments, fuel, and insurance (don't be that guy with no Ins.) At $85 a hour thats 24 hours MINIMUM a month. You're going to need to know people, plumbers, electricians, concrete contractors, anyone who could possibly need that size machine, you're going to have to be competitive on price, speed and skill. I would throw the dump trailer idea out the window, waste of $12k, I'd dump the truck payment (2500 is small for pulling a 12k lb hoe anyway), buy a decent shape 2 ton single axle dump and a equipment trailer, you can find a decent shape used one. That doesn't sound like too bad of a price on the machine, I personally don't think spending all that money for something MVwith no work is even a good idea, if it was a year from now and the economy was booming I'd say go for it, and while I can't speak for your area, mine (IL) isn't moving much at all. I like to think I don't mind taking risks, but this isn't even something I would dream of. As far as bidding work, thats going to come with experience on the machine, I know Cat has Performance books for their machines, dig times in various materials etc. Might look and see if Bobcat offers something similar. Might be better off putting that money towards a down payment on a rental complex, saw today that rental demand for housing is at a high.... again YMMV.
Ok I'll bite since Movindirt seems to be the only one to have replied yet. 5 years ago I started out with a paid for Ram 2500 Cummins, a $200 trailer, and a paid for skid loader to make a break into the business. I'm sooooo glad I didn't have $2000 a month in hard expenses to cover starting out. I would avoid debt as much as possible. Reality is you'll probably end up taking on some but keep it as low as possible. Until you have an established name and business line there will be months that its very hard to cover the payments, insurance and still make a little. 5 years later I am running an updated CTL, a mini ex, a backhoe, a 953 Cat and a dump truck, and I've never had $1600 a month in payments. That said I don't run brand new machines, I don't drive brand new trucks. But my machines bill out for the same money as the new ones. Cash is king and grow slow. Theres a long list of guys out there who tried to go big overnight.... Guys like me buy their equipment when they go under. I don't personally advocate renting equipment because the only person who makes money with rented machines in the rental man. Personally I think making a go of things with just a 50 class min would be a tough start. My mini is so versatile but it definitely thrives with the support of a skid steer, and or dump truck. Good Luck John
Sounds like you have a bit of experience around equipment . Your currant train mechanic position sounds interesting . The good news is you can get in the residential excavation . 99% of it is showing up & give the customer what they want , get paid & move on to the next job . Sounds easy , rite Ok , the bad news ......... Probably need to stay at your train mechanic job awhile & work after hours & weekends on the excavation game . Try that at first & see how it go's . Work into it slow but steady & test the waters so to speak . As far as equipment I would buy something you could haul with the existing truck . Buddy of mine has a compact Deer 110 loader backhoe . That rig is handy as a shirt pocket & might be something to look at . http://www.machinerytrader.com/list...r-backhoes/manufacturer/deere/model-group/110 Good luck on your new venture . On edit also have a customer that uses a " Gatermade" dump trailer . They like it for hauling material and the added feature of moving compact equipment as well . http://www.gatormade.com/gooseneck-dump-trailer-16-ft-14k-gvw