# New Business



## gravtyklz (Dec 24, 2005)

I'm seriously thinking about starting a small excavation business. I'm currently doing electrical work, but I want to shift things a little.

I'm thinking about working with someone to get some experience first though.

What excavation work for a small business owner seems to be the best? Thanks a lot.


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## ProWallGuy (Oct 17, 2003)

Completely fftopic: but Gravity Kills is a fairly kick-ass
band hailing from my hometown of StL.


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## chrisherk (Dec 11, 2005)

gravtyklz, I'm a former electrician turned excavation contractor. My true passion has always been heavy equipment.I bought one of those compact backhoes ( JD 110 tlb ) $40000. I started doing hardscape projects. Then i bought a dumptrailer. then i bought some land and decided to build a house, well I started part time, weekends, days off, keep in mind im still working part time for an elec co.I did all the excavating with my machine. ( took forever though). 
luckily, I got laid off, at the same time my sister wanted to build a house. So i said i would do the excavating and give her a break. then I bought a 30k excavator. I have since finished that got fully licenced, gave my first quote didnt get it, actually i was never going to get it, but my price was right on. Any way , my next quote i gave i won, and ill be making a lot of money. tomorrow I'l be picking up my new d3 dozer. I'll be taking my class 1 licsence in two weeks, and when the house i built passes papers at end of Jan. I will be buying a dump truck with that money. Then I will have what I need to do excavating this spring. please ask me questions about anything

chris


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## jmic (Dec 10, 2005)

Chris,
What kind of excavator? And does it weigh in at 30k pounds or did you pay 30k$$$ for it? Just curious. Happy Holidays!
Joe


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## chrisherk (Dec 11, 2005)

JMIC, Its a JD 120lc, long stick, wide pads, and a ridgid thumb. It weighs just under 30k lbs. I actually paid $48k for it. its a 99 with 3300 hrs on it. if I were to buy another ex, it would be a 160 or a 315 cat. ive already had a hard time picking up a 8000lb headwall. Other than that it is a nice machine


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## PipeGuy (Oct 8, 2004)

chrisherk said:


> ...if I were to buy another ex, it would be a 160 or a 315 cat.


I have both a Hitachi 160 and a 200 - both with JRB quick-couplers. I never imagined how useful the quik-attach implements would be but after having them I can't imagine working without.
I also ran a Cat 215 for several years (many moons ago). Nice little utility hoe but it wasn't much on lifting. IMHO, Cats are overprices and JD isn't far behind.


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## mdshunk (Mar 13, 2005)

For what it's worth, I'm an electrician, and I like to sub out my earth work. Playing in the dirt is not my idea of a fun time. I do have a small old Case 320 wheel loader/hoe and a 580L with a 4 in 1 bucket for jobs where we need a hoe for a little bit each day for a longer time (like a a commercial job). Other than that, I try to stay out of the excavation business. It is handy, though, to have a machine for the odd tasks. At least one of my guys lives a breathes for the times when he can jump in the cab of the 580. The 320 is a piece of junk, but it is small and reliable for small things.


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## chrisherk (Dec 11, 2005)

pipeguy, do you have a grading blade for those machines?


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## jmic (Dec 10, 2005)

Chris,
Our 2 excavator's are :
Kobelco 200SR with quick disconnect with a 4' bucket and a 6' gradeall bucket.
Kobelco 115SR which has a 3' bucket and also has a blade.
Joe


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## chrisherk (Dec 11, 2005)

JMIC, what do you think of kobelco's dozer blade setup? have you tried it?


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## jmic (Dec 10, 2005)

Chris,
We've had the machine a couple of years, I've logged a few hrs. on it, great machine. What I find nice is the zero clarence swing. But then I'm sure all the main brand machines that offer the same features are comperable.
Joe


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## gravtyklz (Dec 24, 2005)

Starting in this business seems to take a lot of $$$ up front.

Is it common to start with smaller machines? Like buying a small excavator thats less than $20k. Or a Skid Steer around that price. I've also seen a small machine called the Magnatrac.

Obviously those machines cant do every thing a bigger one can do. But with the money I make I dont think I'm game for anything too expensive.

Another question....what kind of licensing is required to start doing jobs?

Thanks a lot!


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## jmic (Dec 10, 2005)

My advise would be once you determine what aspect of excavation work you want to pursue, and start to line up a few jobs . Don't get under sized equipment to accomplish the kind of jobs you want to do. I always prefer new equipment you can't be trying to start a business and constantly be puting bandaids on junk equipment, also doesn't make good impression on customers. Go to dealer and lease to own equipment, usually like 70% of lease monies will go towards down payment on machine if you don't have $$$ upfront. Also if you're from cold climate when you convert to buyout you might want to think about skip payment option for 2-3 months in winter. Just something to mull over.
Joe


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## chrisherk (Dec 11, 2005)

Buy a backhoe and put on the road. That way you can drive it to jobswithout a truck and trailer. maybe you can sell underground electrical utilities as a package. Im finding thats starting to work for me, being an electrician. As i am starting out im holding off on a truck and trailer, untill i have enough work to use them almost on a daily basis. I believe a dump truck is the largest cost of doing buisiness. You can sub out all your hauling and deliveries
chris


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## gravtyklz (Dec 24, 2005)

Would there be a minimum size for a backhoe?

I've seen some backhoes that seem smaller than usual, but they're significantly cheaper.

I know you get what you pay for, but at the same time...I want to use my money wisely.


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## chrisherk (Dec 11, 2005)

I actually have one of those backhoes its 7500lbs, I tow it with my pickup. It is good for underground utilities. believe it or not i can register it for the road, but i dont recomend it. If I were to buy again, I would buy a cat 416 or 420, john deere 310, or case 580. you can do almost anything with these.


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## Alan Mesmer (Jan 5, 2006)

You may consider the rental of different equipment at first based on the type of jobs that you undertake. It was a good way for me to find likes and dislikes of machines and untill you build up your business level to a consistant flow of business it helps not having to make monthly payments when things get slow. Most rental equipment is in very good condition and you don't have issues with breakdowns or maintainance. 

You also really need to determine what direction you want to go with your business before you invest big money in equipment you really are not going to use. I found a need in my area of NE Ohio for small to mid-sized equipment and the return for the investment is satisfactory to me.

Good luck.
Alan


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## PipeGuy (Oct 8, 2004)

chrisherk said:


> pipeguy, do you have a grading blade for those machines?


No. Haven't much use. Most of what we do is "rip'n gouge".


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