Originally Posted by Scag48
Write a business plan. If you don't know what to buy, you don't need either. Not trying to be negative, just trying to point you in the right direction. Fail to plan, plan to fail. Sit down, figure out what you want to do and the services you want to provide and get into business. Rent for a while, find out what you use most and buy that. Better yet, at 20, I'll tell you to go to work for someone else and learn the trade before you go at it for yourself. I'm all for self employment, been there, done that and would love to get back to it at some point in my career. However, I've been pulling levers for someone else for 5 years since I let go of my business and have had more opportunity to learn working for someone else than I ever would have had on my own. Worked with equipment and done some things most people in the industry have never seen, never would have had that chance without taking a job for someone else. Something to think about.
There is some real truth to this comment.
I think I can add to it ....
I started my own business 12 yrs ago...and was faced immediately with an equipment dilemma...I worked for a large nursery for 6yrs prior to starting my own landscape construction company, I worked at my real job during the week and started side work on the weekends. The side work was going very well and I was making much more on the weekends then I was at the nursery. Well it went like this.....I had a side job come up which as I figured would take me 3 weeks solid to complete, but it would be the equivalent to 6months salary at the nursery....I couldn't do both. So I gave my employer a 2 month notice....I wanted to maintain the best possible relationship...so I gave them way more than 2weeks. The big side job was completed and I had seriously miscalculated what equipment rental was going to do to my profit
. Basically I made half of what I expected....and you can't pass equipment rental costs off on your client....at least not here anyway....after all there are dozens of other companies ready and equipped to do the job....(So the dump truck and backhoe rental for 3 weeks I ate)....I had figured that what I paid in rental fees for that one job was the same as making monthly payments on a brand new skid steer for a year!!!
....I bought a brand new skid steer 2 weeks later, less than 2 months in business...
My opinion is this.....first off if you have 40K, do not drop it on a piece of equipment! Invest it in your future!....take a piece of it and use it as a down payment on a machine, finance rates are so stupidly low it just makes more sense....I view my major purchases like this "so its gonna cost me $550. a month......can I work it 5 1/2 hrs a month" if you can use the machine just one day a month it has paid for itself
Now CTL vs... Mini Ex for your first piece......I say neither....a CTL has very very high maintenance costs (ie undercarriage and tracks)...and a Mini is too limited.....save yourself 15000$ buy a skid steer, rent whatever attachment you may need for a given job until you can afford to start buying them...then after you have a feel for how things are going and are financially stable buy a mini....then you have it all covered with the two machines.....upgrade to a CTL later on...when you can gauge how your business is doing
Just my 2 cents.......and as several have mentioned....going to work for someone else for a few years is greatly to your advantage!!!!!!!!!