Been on the dirt job for a long time 25 years or so all bulk earthworks Looking to start my own operation Do a bit of free lancing Most of the jobs I go to now get asked by my boss or even sub contracting off his company how to do it what’s the best way of starting off
If I were you, id start by renting what I needed by the job. You may not make much of a profit, but it would tell you how busy you can stay before a banker owns you for years. At that point you can make a wiser decision on what equipment would serve your purpose and buy right.
Big dirt is a tough place to start you will probably find it more manageable to start in light commercial work and go from there I would say your looking for jobs that are 25 to 50 grand unless your sitting 200 to 300 grand then maybe a 100 thousand dollar job is manageable You will find the toughest part of a new outfit is not getting work its can you financially qualify for the GC risk department. They will want you to bond meet some ridiculous insurance requirements and will probably put you on a paid when paid contract witch could potentially up end any business before it ever gets started Something else seems to be common dirt guys are first in depending on how a contract is written they don't have to pay your retention money till the building is occupied and in some cases until the sale of the building You posted this in the scraper forum so the jobs your looking for are larger than 400 to 500 grand that is a lottery ticket to succeed starting out from scratch and if it gorles sideways the bonding company will come after anything you have of value Just one guys opinion
Just how big of jobs and what type of equipment are you looking at to do them? Will you have employees? Best way to start off is to have work lined up if you want it. Perhaps your current employer would give you smaller jobs to free them up for bigger jobs or jobs they couldn't do because they are too busy.
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.