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Old 02-07-2013, 12:28 AM
EH909 EH909 is offline
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mini ex or ctl

I'm 20 years old and in the process of starting up my company within the next month or so, and was wondering what everyones opinion is on the work load of their equipment. To get started I am either going to be getting a Deere 35D mini excavator or a Deere 323D compact track loader just cant decide on what will be better to start with. This will be a second job and just want to get my dream started well I'm young. Thanks for the help
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Old 02-07-2013, 04:06 AM
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dstifel dstifel is offline
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mini ex or ctl

Dont know much about either but everyone on here will want to know what you intend to do to start with.
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Old 02-07-2013, 04:21 AM
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Scag48 Scag48 is offline
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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.
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Old 02-08-2013, 08:23 AM
N.E.MCH N.E.MCH is offline
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Quote:
Originally Posted by Scag48 View Post
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!!!!!!!!!
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Old 02-07-2013, 04:22 AM
EH909 EH909 is offline
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There is a ton of potential for both in my area. Nobody has a ctl, which opens the possability of slope work and wet terrain work and better grading services. I believe once people see it in action the demand for it will be there. On the other hand though if I go with the mini ex, I would equip it with a mower head for brushing (also something no one has in my area); And talking to a friend with a railway in the area he told me they would more than likely have high demand for it being that at the present time they are using a hand brushing crew that comes all the way from back East, 2 days away. I also will be subcontracted out to a buddy who owns a landscape maintenance company and he is pushing for me to get both. See what the dealer comes back with for prices, may just go for it and get both.
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Old 02-07-2013, 08:54 AM
AWJ Services AWJ Services is offline
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Starting a buisnes is a tricky situation. You usually have no work and no equipment too do work. It takes work too get money and equipment to get work. It takes equipment too do the work that gets the money too pay for the equipment.

So as Scag said try too plan exactly what this buisness will entail, determine operating expenses, come up with a game plan for revenue. Write this down.
This is a basic buisness plan.

Options for equipment are leasing, rental, subcontracting and purchase. Each has it's pros and cons. Rental will always be the most expensive and purchase will usually be the least expensive. Rent has the least amount of liability.

So once you get all that figured out then you can decide how much you feel you can afford for equipment and then decide on equipment.

The deere excavators have a good reputation but there CTLs/Skids are not for me.
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Old 02-07-2013, 08:53 AM
whiffyspark whiffyspark is offline
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I plan to purchase a ctl with a brush mower for it and then add on a 35d or similar when possible.
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Old 02-07-2013, 09:42 AM
NEUSWEDE NEUSWEDE is offline
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I think there are other things you need to look at before deciding on machines and a Business plan like scag said would show this. Why does no one in your area have a CTL? what is the limiting factor, is it work or available dealers? Just because no one has one doesn't mean you can buy one and everyone will use you.
You mentioned a buddies landscape company and a railroad company would sub you, at what rate? Is it a contract or hourly? Have you figured out what it will cost you pe hour for the machine, fuel, maintenance, unforseen problems and profit. There is a reason they don't own the machine, they don't want to pay for it, so why will they pay you?
Just some things to think about. Personally I would get the work then get the machine and then go full time. Doing it on the side or part time will be very hard to make enough.
good luck.
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Old 02-07-2013, 11:07 AM
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AEL AEL is offline
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Start advertising and pick up some jobs so you know what type of jobs your area is requiring. Rent equipment at first to do the work and see which machine you use more and then purchase that machine. Don't go into this blind and buy a machine with "hopes" of getting you work.
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Old 02-07-2013, 02:04 PM
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ksss ksss is offline
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I am always skeptical when a friend says "spend 90K on equipment and I can keep you busy". Well if it as such a sure thing, he would already have the equipment and be doing it himself. I would also advertise and make contacts and try to lock down some work. Depending on the amount of work, you could either rent by the day, week, month or do a rent to own agreement where your rent reduces the price of the machine. Dont forget you will need to have a tow vehicle and trailer, if you get both you may want to have the ability to pull both at the same time. You will need insurance, and licensing to pull equipment. That wont be cheap at 20 yoa. Do you realize your payment for both if you could get finianced would be I would guess around $2500 a month just in yellow iron if its new equipment.

Dont let your dream turn into a nightmare. You need to really think this through.
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