Looking at starting a small tractor services business

[blsawdust]

I'm considering starting a business offering bush hogging, driveway grading, material spreading, miscellaneous front end loader work, etc. I may even add small backhoe work to the list. I'm not looking to do this full-time, in fact I'd be perfectly happy with making enough to make the payments on my new tractor.

Now before anyone gets too upset, I also want to do it legally. I intend to form an LLC and purchase liability insurance. I'm already purchasing the tractor for personal use, but I will never wear it out (in fact, it will probably take me a couple years to break it in. :) I have a regular 40 hr per week job, but my hours are somewhat flexible and I've accumulated enough vacation days that I have to either "use them or lose them." I already have a truck and trailer that I can use, so I don't have to worry about that expense other than switching the insurance policy for business use.

I have several years experience with tractors, bush hogging, grading, etc. although I know there's always more to learn - especially when doing custom work.

I'm purchasing a 40hp 4wd tractor with front end loader and as I said above, the backhoe is optional. I already have a 6' blade, 5' bush hog and disk harrow and I'll probably add a 6' box blade to the purchase.

Any thoughts or comments? I want to charge a fair rate - I don't have time to work for free!
bls

[CTS]

2009 will be the 3rd year for me in the same type of business, starting out the same way. I normally keep clients once I do work for them but you do not have to grade driveways, seed, etc. every week. I added lawn maintenance this year because of the weekly income. The largest purchase I made after the tractor was a power rake, it helps with almost every type of tractor job. Good luck. CTS=Compact Tractor Services

[blsawdust]

... I normally keep clients once I do work for them but you do not have to grade driveways, seed, etc. every week....


That's one thing I was thinking about. I want to do it right so that I have return business, but even bush hogging doesn't have to be done that often. I only do my property 2-3 times per year. One good thing is that it will give me some flexibility, but when someone calls wanting work done, I'm sure they'll be ready for it to be done right away.

Thanks,
bls

[kurtis169]

How did these buisnesses work out for you guys? any advice?

[blsawdust]

I've delayed purchasing the tractor and still haven't committed to starting the business yet. I figure if I'm going to do it, now is the time to get started. As soon as spring hits, people will be ready to have some work done. I've just read too many posts on this forum and others that were really discouraging. I think I have a business model that will work - especially since I can start out debt free - I may still take advantage of 0% financing if the cash discount is less than the interest I can earn leaving the money in my bank. I guess I really have nothing to lose by trying it other than the increased insurance cost for being commercial. I still want to purchase the tractor, so I think I should go for it.

bls

[g21]

If this is the only service you are going to offer, it may take a while to build a solid customer base. However, I will tell you that I have worked with many guys like yourself that were smart enough to market themselves to hundreds of landscaper maintenance companies in their surrounding areas and they couldn't keep up with the work. Most maintenance operations don't have tractors or bush-hogs since they don't have a high demand for the work. But when they do have a need for it, they will sub-it out to someone or just refer it to them. Market your services right, and I think you will do fine.

[JMLandscaping]

From my experience (limited) stay away from backhoe attachments. Tractors are great for versitility but leave excavation etc to guys with excavators and real backhoes.

I know ther eis money to be made but you can make 5k on month and nothing the next 2. unlike where grass you pretty much know your going to work next week

[CTS]

Still working with tractor but slowly adding other services such as lawn mowing, mulching, etc. 37 HP tractor works well on small acreage but when tracts get over 5 acres, farmers with larger equipment can do it cheaper.

[kurtis169]

ok thanks a lot guys, ya im still considering getting in to this for summer employment. I like on a farm and have lots of know how when it comes to these jobs. and am also consideing adding some chainsaw work or something. just wondering what services you guys offer, or are going to consider offering? any help greatly appreciated thanks

[JMLandscaping]

I do On site firewood processing. Its me and one of my buddy's I have a little pickup, splitter and a handful of saws. At the hourly rate I set I make more money or about the same per cord as my buddies that buy logs cut them split them and deliver them. If I dont work I dont make moeny but I dont end up having 50 cord just sitting if business is slow, I have the machines anyway so its basically all profit besides the 5$ per hour in fuel and the 15 bucks I give my buddy to help