mini ex or ctl

Discussion in 'Heavy Equipment & Pavement' started by EH909, Feb 6, 2013.

  1. EH909

    EH909 LawnSite Member
    Messages: 18

    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
  2. dstifel

    dstifel LawnSite Senior Member
    Messages: 928

    Dont know much about either but everyone on here will want to know what you intend to do to start with.
  3. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    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.
    Last edited: Feb 7, 2013
  4. EH909

    EH909 LawnSite Member
    Messages: 18

    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.
  5. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 6,559

    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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  6. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Messages: 4,281

    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.

    NEUSWEDE LawnSite Bronze Member
    from Maine
    Messages: 1,150

    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.
  8. AEL

    AEL LawnSite Bronze Member
    Messages: 1,724

    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.
    Posted via Mobile Device
  9. ksss

    ksss LawnSite Fanatic
    Messages: 7,168

    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.
  10. JNB Construction

    JNB Construction LawnSite Senior Member
    Messages: 282

    You're getting some really good advice here...I'd pay attention closely.

    Boy, ain't that the truth! I have a friend who wanted to get into the HVAC biz. He supposedly had a deal going through a friend for school district work, but nothing else on the board. He quit his job with his family's HVAC supply company, got his license, bought a truck and all the tools, built a nice office in his garage...and spent most of the summer sitting in it drinking beer. The school district deal didn't pan out. Last time I saw him he was working for the school district though...pushing a broom.

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