Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #21  
Old 02-08-2013, 03:07 AM
Scag48's Avatar
Scag48 Scag48 is offline
LawnSite Fanatic
 
Join Date: Jul 2000
Location: Marysville, WA
Posts: 6,061
If you have $40K to work with just lying around at the age of 20, I'd say you should stick with whatever it is you're doing and not screw around in this business.
__________________

Go hard, go fast, or go home
Reply With Quote
  #22  
Old 02-08-2013, 07:19 AM
LandFakers's Avatar
LandFakers LandFakers is online now
LawnSite Fanatic
 
Join Date: Aug 2011
Location: CT
Posts: 5,729
Who has 40k to start a business???? I started my business with 2500 bucks and a neighborhood full of accounts already aqcuired. If you have 40k to work with I would say dont bother buying equipment, Get the work, Rent the equipment, charge accordingly, and you will be making money, and finding out which machine would be more valuable in your operation. Do you have the truck and trailer to haul around your new mini ex?
__________________
Rob

PlowSite-SnowFakers
Reply With Quote
  #23  
Old 02-08-2013, 07:23 AM
N.E.MCH N.E.MCH is offline
LawnSite Member
 
Join Date: Oct 2007
Location: S.E. Ma.
Posts: 32
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!!!!!!!!!
Reply With Quote
  #24  
Old 02-08-2013, 11:45 AM
EH909 EH909 is offline
LawnSite Member
 
Join Date: Feb 2013
Location: Kootenays, BC
Posts: 18
Understood. I have work for landscape and two excavation companies since I was 15 and am close to all the owners and they have been helpful along the way, as well as now. They too have provided great insight and have offered their support down the road. I was quoted $54,000 at 0% for 42 months for a fully loaded 2013 35D. I am thankful for all your guys help and defiantly won't be running out tomorrow and buying anything
Posted via Mobile Device
Reply With Quote
  #25  
Old 02-12-2013, 02:32 AM
buzzyng buzzyng is offline
LawnSite Member
 
Join Date: Jul 2006
Location: OR
Posts: 79
Wish you the best in your pursuit. I started out wanting to buy new and finance but stayed on CL/MT/etc until I found a great deal. I got tired of renting even though I was making money on it, I really wanted to have my own equipment. THree years ago ended up with a 257b2 with 80 hours for 30k. Financed it by using my truck as collateral and paid 2.9%. Even with the ~$2k in interest, it was thousands cheaper than a new one at 0%

I also picked up a Cat 305 with less than 500hrs for $40k, 4 buckets, thumb, cab. Used my truck again as collateral.

THe advice on here is priceless and I also wouldn't buy new, still a lot of good deals if you are willing to search. Two of the credit unions we use offer a low interest loan if it is secured by a savings account. So you could have $40k in savings to get $40k to buy equipment. The work gets you money to make the payments but your capital is safe and not tapped out.

Good luck
Reply With Quote
  #26  
Old 02-12-2013, 08:58 AM
rawtoxic rawtoxic is offline
LawnSite Member
 
Join Date: Mar 2008
Location: Evergreen Colorado
Posts: 79
Quote:
Originally Posted by EH909 View Post
Understood. I have work for landscape and two excavation companies since I was 15 and am close to all the owners and they have been helpful along the way, as well as now. They too have provided great insight and have offered their support down the road. I was quoted $54,000 at 0% for 42 months for a fully loaded 2013 35D. I am thankful for all your guys help and defiantly won't be running out tomorrow and buying anything
Posted via Mobile Device

If you have cash on hand don't buy brand new equipment the only time I can justify buying new equipment is that I need it financed or it's new and not available in the preowned market. Just like cars equipment depreciates the second it's off the sales lot. Buy a year old model with 200 hours or less on it. I was able to buy our $30k skid steer for $8k less than new with 92 hours on it remember the adage 'cash is king'. The most successful people I know in construction own all there equipment outright and if they can't afford it they rent until it justifies purchase. I tore my ACL in my knee skiing the other winter and setup a much slower year to recover if I had a bunch of equipment payments I couldn't had that luxury. Another angle to consider is my local equipment (Case) dealer will do rent to own programs where 90% of your rental costs go towards purchasing the equipment you gain experience in testing models etc, I was able to try out 4 excavators over a 2 year period before purchasing one and they actually sold me the rental I had used for fair market value.
Reply With Quote
  #27  
Old 02-12-2013, 06:09 PM
treemover treemover is offline
LawnSite Senior Member
 
Join Date: Dec 2007
Location: lost in the trees, ks
Posts: 359
Quote:
Originally Posted by Scag48 View Post
If you have $40K to work with just lying around at the age of 20, I'd say you should stick with whatever it is you're doing and not screw around in this business.
x2 on that statement!! stay doing whatever u are doing
Reply With Quote
  #28  
Old 02-14-2013, 11:04 PM
mellimac mellimac is offline
LawnSite Member
 
Join Date: Jan 2012
Location: Garden Bay. BC
Posts: 8
Quote:
Originally Posted by Construct'O View Post
..................Go to work for a old man like me that has more equipment then he can run at one time.That is over the hill and close to dieing soon.

Your have to would cheap,but in return your learn the trade,inpress his customers,take good of my equipment .Then when i die your get all my customer,my good equipment at half price,and have a life time of experience given too your for free.

How's that for a business plan.Who knows you might even end up in the will.Good luck!
Haha, I like your view. I was thinking it would be a good way to go too, but I think if a young guy can save 40k, maybe he is good to go. Who else on this board saved 40Gs by 20? Certainly not me...
Although, it wouldn't hurt to work for a multi-platform company if possible to get a feel for a wide range of machinery.
Buying that first piece of metal is important, both from a utility perspective (can it do what folks want done in your hood) and that it isn't a repair daily machine. Also, consider resale value of machinery in your hood. Getting a good deal on a piece of metal that doesn't have a parts dealer nearby could sink/stall you. You don't want to wait weeks for a part...been there....
It's human nature to want to own their own piece of heavy metal, and it motivates one to learn it inside out. Plus, when folks see my machine in the hood (make it visible and tag the crap out of it - telephone/name etc.) they have me top of mind for excavating gigs. All the best.
Reply With Quote
  #29  
Old 02-14-2013, 11:28 PM
EH909 EH909 is offline
LawnSite Member
 
Join Date: Feb 2013
Location: Kootenays, BC
Posts: 18
Thanks guys. Parents are pushing for me to continue pursuing a lineman apprenticeship but I just have such a love for equipment and operating, that it's all I want to do. (I'm not affraid of a good stick of hickory and working with my hands in the dirt either though).
Reply With Quote
  #30  
Old 02-14-2013, 11:49 PM
stuvecorp's Avatar
stuvecorp stuvecorp is offline
LawnSite Fanatic
 
Join Date: Feb 2008
Location: lake wissota, wi
Posts: 5,146
Quote:
Originally Posted by EH909 View Post
Thanks guys. Parents are pushing for me to continue pursuing a lineman apprenticeship but I just have such a love for equipment and operating, that it's all I want to do. (I'm not affraid of a good stick of hickory and working with my hands in the dirt either though).
Would you not mind being a lineman? I think that can be a pretty good deal and at nothing else it can be a fallback and potentially very good contacts with it. Do the apprenticeship but why not do some sideline work? Get yourself a single axle and Takeuchi 130 and maybe even a mini x, with that 40 large you should be able to get rolling with solid equipment.

Remember, someone with skills is always compensated better than a shovel holder...
__________________
Do or do not. There is no try. yoda
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 03:34 PM.

Page generated in 0.09967 seconds with 7 queries