So Ive always been a member of this forum and lurk around from time to time. A lot of people on here might want to start a business, especially in excavation but they might believe that the barrier to entry ($$$) is too high. Ive been meaning to share my story but Ive wanted to wait until I hit a good milestone to start. In later posts I will go into more details about my progression with more pictures. I worked for a large excavating company, about 300 employees for about a year, while living in seattle. I have be around some form of utility and excavating work my whole life, but did not have much hands on experience, aside from a natural ability for operating, and learning very quickly from my mistakes, which were many. I wanted to start a business because after my first child, I no longer wanted to work for someone else into the 7 to 8pm days while my wife was waiting for me at home, while being lucky to take home $1,000 in a week. If I was going to be working late, Id do it for myself and make the money accordingly. I grew tired of people telling me to stay off equipment if I didnt know what I was doing. Which was true, I really didnt have a clue while I was learning. So off I went, put in my two weeks notice, had about $5,000 saved up, a plate compactor and demo saw I bought used off of craigslist and my ford fusion that I would need to take the car seat out of so I could go do a job. I go a phone from sprint that had unlimited minutes for about $35/month with their framily plan, a PO box to use as my mailing address and a registered agent to use as a physical address, which to this day I still use. I do not like to associate my home address with the biz. And I was off!! I had recently moved to Seattle a few years back so I knew basically no one, the only thing I knew from a previous business when I was younger was that property management companies had tons of small jobs, like concrete sidewalk panels, that would be perfect for me. So I started cold calling, 4,000mins a month, local property management companies, and kept track of who I called and how often I would call them back to hound them more. The first year was rough, I did $19k gross. Terrible. Anytime I got a job, I would either use my car, or go to U haul and rent a pick up truck to get done what I needed. I learned to fit a 8' form in my car and actually got quite a bit done that way. After property management companies picked up in the second year, I moved into digging in utilities for comcast, doing house burials. I saved money from that, which was a huge battle by itself, and started purchasing equipment. We now do commercial foundation backfills, excavating and utilities. We do very little residential work. As time goes on I will add to this thread, I hope some use it as motivation/inspiration to get started on their own. If you have the determination, nothing is impossible and this thread will be proof of that. This was taken in 2014, somewhere around June And this was just a few weeks ago (2017)
Some glamour shots. The 130 is a beauty, 2500 hrs, hyd quick coupler, PSM progressive link thumb, fully loaded. The mini, 35D, is a dog, my first machine, bought it at 5800 hrs, came with hoe pack, tilt attachment (helac head), 3 buckets, has about 6600hrs now, its getting traded in tomorrow morning for a zaxis 35 with 400 hrs, Ill get some pics.
That's a heck of a story! I'm very impressed by the effort that you put in and got some dividends finally paying you back!
nice story, one question, did you get proper insurances from the beginning? incorporate to protect your personal assets from lawsuits? there is alot more to starting a business then just buying some tools and going to work..looks like your doing good..and hustling for yourself is alot more rewarding than for someone else to reap the profits of your hard work..
So I would like you to discuss financing if you want. You started in the car because work flow was not steady enough to finance a new/used truck? Once it got going were you able to pay cash or finance new stuff or a combination of the two?
I filed my own articles of incorporation, and filed for my subchapter S designation myself. I was bonded, had a general liability and commercial auto policy from day one. My ford fusion was listed as my first commercial vehicle so I could create a policy in the first place. I also had a amex business credit card from day one which allowed me to build history for the biz. I did not have space for two vehicles first of all. Second I had zero customers and zero income, nothing to justify buying a work vehicle. Property management companies, my first target customer base did not care what type of equipment or vehicle you had, they just wanted the jobs done and looking good. First excavator, the 35D, I bought cash. Before that there was quite a few tools I had purchased, all cash (minus the trucks), by that point I had two 70cfm compressors, two hole hogs, a vibratory plow, single axle tilt deck, two work trucks etc. etc. I mixed cash and financing. I have really pulled out all the stops this year, which is risky, but the market is literally as good as it can be over here, were absolutely swamped with work from multiple customers at this point.
I assume you have done a comparison against renting? If you are swamped with work I am curious if it allows you to accelerate payoff of financing, or at least pile up cash elsewhere so that you are gaining equity?
People wont take you seriously if you are renting equipment. I rented when I needed to for the first two years, it got me nowhere. Work came when I bought the gear. If the machines turn every day, they will pay for themselves in a hurry.
So I said goodbye to the old deere, 6600 hrs, it had done its fair share of work. It was time to move on. The first week of July we are supporting a piling crew on a hillside, and a mini with almost 7,000hrs has no place on a job like that. 2015 Hitachi 35 with 400hrs, still under warranty. Got a good deal on my trade in and I keep all my attachments, minus swapping my 2' dig bucket for a new one. I didnt realize how much stress that deere caused me until it was gone. My right hand guy on the machine
congrats on the new equipment..looks like you have a sound business plan..best of luck..
Very kool story.. thanks for the pics.. Most of us started that way but didn't think to document it.. thanks again.
We didn't document it because we'd rather not remember it! Great story. It would be an inspiration to all the snot nosed snowflakes that think they should be given everything . I started with nothin myself. Still have most of it left!
Right on Randy.. & don't want the reminder of the failure.. lol
Funny you say that. I work for a major construction rental outfit and our new strategy is to remove all the decals from our equipment except for unit numbers. The theory being exactly what you said. Makes it appear that the customer owns the machine and isn't renting it. Very inspiring story BTW.
Maybe it is the regulatory climate out here but it seems like most contractors, large and small, tend to own specialized pieces and rent 50% or more of your run of the mill tractors, excavators, generators, etc. Just my observation from the side of the road.
I remember following some of your earliest posts here on HEF, and am happy to hear you are doing well. It takes a lot of hard work and commitment to succeed, and it sounds like you are getting it done. Congratulations.
I'm most impressed by the plate compactor in the car. It makes me tired just thinking about picking up the phone to call for one of those things. I don't even like running them. Let alone shoving one into a car.
Heres some more of pictures of the beginning for you guys. This was my second time around, as JD remembers so I knew that I wanted to take pictures as I went. This was literally everything I owned at the end of my first year, as far as tools went. I also traded in the fusion for a 2015 F350, gasser, but it had 96 miles on it and other than the gas motor it had all the options that mattered, 4x4, locking rear, towing package etc. It was just an XL but I didnt care, I was so happy to have a truck, no more renting U haul pick up trucks. Hertz was the only place that would let me rent a dump trailer and load a mini into it. This was for a job for a mall where I tore out a few landscaping islands, made some smaller and some paving. Started with cold calling the mall, turned into about a 12k job. Concrete was how I broke in. I did need anything but a few small tools and I could charge a good price for my work. This was to repair part of a basketballs court, got this job also from cold calling a real estate agent. Kids vandalized the concrete as soon as I left....
Congrats man that's quite an accomplishment in 3 years. Good luck in the future. I find the reasons for you starting your own business interesting. Since I didn't take over my father's business for those exact reasons just a different point of view. When I was off work I wanted to be off work. Not worrying about vendors, jobs, employees, and etc. Your story reminds me of one of my old employers. He started out just like you pretty much. He would remove concrete slabs by digging a hole underneath the edge. Using an old mechanical jack he bought from the railroad so he could lift it to break it easier with a sledgehammer. Then he would hand loaded all the broken concrete in it in the 1970s ear F150 that he converted into a dump bed.
Congrats on the company you've built. I too have followed the old threads on HEF and your company FB page and enjoyed watching the progress. Hard work and determination still gets results. Just a question about the commercial backfill jobs. Here the initial site contractor usually takes all foundation backfill, I do in my contracts. Just curious as to why the GC's break out the foundation backfill in your work area.
I wished I had a dump bed, I was breaking them out with a sledge hammer and loading them into a U haul truck. Hand unload at the dump! Another contractor did the sitework on that one then passed on the foundations, some projects go that way, other times the sitework contractor will deliver the finished product. I would imagine because the foundation work is usually very time consuming being that there is so much sidewalk grading and small work, weve been on this job since november just doing backfills and grading.
Nice work Aliate. When people work hard, good things can follow. Couldn't agree more with Junkyard on this one --- I didn't document the startup of my business because I would rather not remember the 4AM to 11pm work days. First truck I bought for my business 1982 Toyota long bed with 22R. Still got er, and runs better then ever. I'm and always amazing at people complaining about not being able to find work, If only they would work at finding a job! Good Luck Aliate.
I love to hear other peoples start up stories....great stuff! my first "work Truck" was a ford focus with a roof rack.....Haha! Second work truck was an 88 f350 dump, with so many holes every where your feet would get wet if you drove through a puddle....
Very good story! The only problem is whiners cryers and lazy complainers is not on this forum! This would be story for them! I still catching a lot of flack about my 1997 F450 as being too old and that I wasted money and should have bought newer truck! Well, I bought it because it has 7.3 in it and 6000# crane instead of 2000#! And I can fix it myself! After reading this thread - I understood that I actually started out pretty good! Compare to OP and lots of other people who had to start out like that. And people who criticize me for buying old truck - can kiss my ass every time they sign the payment check for their trucks!
TVA- well put! Ive also have 97 f350 with the 7.3 and a dump....I love it... Let it be known I also have a 2016 f350 6.7 Love the power windows, hate the payment!
The mirror heaters and power window, at least on passenger door is what I lack!
Think about how much it would cost to have that option. Think about how much [little] time you lose wiping it with a rag vs. how much time it would take you to earn the money to pay for that option, that is what I do.
2024 update : Crazy to look back at this thread. So I’m still at it and we’ve grown a lot. We own about 10 excavators now, 2 dozers, 2 loaders, dump truck etc. We’ve gotten into design built work and went union. Also purchased 5 acres of industrial zoned property for our yard and office. We bought a new D71pxi and HM300 as a package deal for a job we’re about to start.
Some more pics. Just wrapping up this hospital we’ve been working on for 3 years. Edit - seems like it’s hard to upload pics but maybe I’ll try when I get to the computer.
congrats to you on your success and for going Union, brother. (Local 612 in Tacoma).
Fantastic man! You have worked your arse off over the years and it shows. Keep up the good work and keep us posted.
That’s funny, we’re 302 and 612. Next big job is in Lakewood.
Thanks I appreciate it. We demoed the D71 against a cat D6 btw. You should try out some of the new komatsu dozers!
They balance nice, the visibility is better.
Way more power and $100k cheaper
Yikes 100K?
Yep that's a decision maker. Bought a D6R XW new back in 2007 and it was right at $300K. What are they going for now - $600-650K? Our D3 has appreciated in value since we bought it back in 2021. Never in my 20 years of owing yellow scrap iron has that happened. Crazy times.
The D6 with GPS was about 695k. A D6 is not even a true comparison to a 71, with the 71 slightly larger. 71 with GPS was right around 600k brand new. Our best dozer hand and myself ran both machines all day, the 6 was a really nice machine but the 71 just felt like something that was 5 years ahead. Way more pushing power, better control, amazing visibility. You can see the top of the blade from where you sit. The 6 XE stacks up better to the 71 with what is basically a hydrostatic drive but I’m sure that’s even more expensive. They didn’t have one we could try out. Just the standard 6 non LGP. We buy all cats but they’ve gotten out of control with their pricing. I told them flat out too. The 71 is hands down a better dozer than the 6 and someone who says otherwise hasn’t ran both.
Man you gotta move a lot of dirt for $600K. I could get 2 - D3's with GPS and have some change left over but then you would have to find another but to put in the seat.
We pushed out a few thousand yards of dirt in a day with those two machines. Two D3s couldn’t even keep up with the 71. I have a D3 also, it’s a great machine. Around here though you can’t always take an extra few days to get the dirt moved, you gotta beat the rain. An operator also costs about $95/hr.
We had a 60 series Komatsu, I don't remember which on the sail park job In Ruston. It was a wide track and the operator was cutting 2:1 slopes with it. One area was so scary slick they yo-yoed him with the 490 JD and a big choker. It might have been this one. It was sketchy as you can imagine. The toe was a little 12' road and then the marina. Splash! The operator was experienced with it and thought it was a great tool.
Just messing with ya. We don't do enough large dirt jobs to justify the cost. A D4 may be our next dozer. Just a little HP and weight for not much more money. Probably swap over the GPS equipment from our D3 and sell it for more than we paid for it. I do enjoy a mass ex job where you can move a couple thousand yards a day. Something about getting the rhythm of the hoe loading, the trucks making the rounds, dozer hitting the loads and achieving compaction tests all in orchestra.