# Looking to start a Excavating company in south nj need help thanks



## dayexco (Mar 4, 2006)

denick said:


> Gee,
> I'm sorry, I should have said Hi and Welcome to E&SW forum David.
> 
> David, I think most of us are trying to express to you that there are risks to what you would like to do that far out weigh the benefits. jmic, dayexco, tgeb, rino, tnmtn, ctkite, dirt works, backsight, "read what they have written and listen to them"
> ...


thank goodness nick is around to spank my butt...i read my prior post, and geesus...i sound like walter mathau from grumpy ole men....if i offended you, excuse me, i apologize...sometimes crown royals on friday nites give me the courage to blow my mouth....anyway....................

it's not my intent to discourage you, i don't profess to be a know it all, other than the fact i have 40plus years experience from the school of hard knocks....
my suggestion still stands, get a handle on how the biz is run before you jump head first into a commitment you can't get away from without costing you a pile of money. you've heard the saying...if it sounds too good to be true, it probably is....same goes with the dig biz. locally, we have a lot of fly by nites that continually beat our prices into the ground, until the bank comes and takes all their stuff. 
get a good taste of what you're going to have to chew for a long time before you order a whole plate of the stuff


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## denick (Feb 13, 2006)

dayexco,

In your first post you stated the truth about our business very well. Don't ever hold back telling the truth. And you only put out 2 cents worth. Someone could start a successful business if they listened to a dollars worth!


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## tgeb (Feb 9, 2006)

I agree with Denick on this one. Sometimes you have to tell it like it is.


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## joecabinet (Aug 5, 2007)

*Listen oh Padowan!*

These guys know what they are talking about. I think we all suffer form yellow fever a throw back from our Tonka truck days. I am buying an excavator but it is mostly for my own use as a builder. 
Remember, even if you sub out the work you are still responsible for the outcome. What if you hire someone and he does not finish or he digs up a water line or ?? I am not sure but your bond will probably be in jeapordy.
I think the advice to rent a piece and do a job or even better to be an apprentice is the best advice. It is the cheapest way to pay for your education! Either way, It may be a little slower to learn this way but my guess is it wont be a painful.
I know for sure that asking for advice is way easier then following it. Dont let your plans cloud your thinking.
Hope it all works out for you!:thumbup:


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## davidmiz (Jul 22, 2007)

Hi I did not mention most of the work I am starting with is for my brother who is a gc, for a very good friend of mine that is a mason. and for another friend of mine that is also a gc I will also be doing work for others.I will make Of clear to whoever I use that if he goes back to my costumer and offers to do work for him I will never use him again. of course I will only use people who can give me good references that I know and i know and am friends with allot of gc so he must have at least worked with one of them.
anyway I did my first job today a friend of Mine a gc called me up and said he had 2 truck loads of topsoil he needed graded I did it for about $100 a hour and I used a friend of mines little kubota got the job done and some $$$ in my pocket. I also priced out 2 houses for demo and it looks like i may be doing them. so there my business is starting slowly and i have not invested allot oh $$$ yet.


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## young gun (Mar 20, 2007)

Gosh, Why did I just waste 16 years building up good connections, learning from the school of hard knox, and growing a company? Hmmm... I always give credit to someone that has the fire burning. But, it just doesn't appear that way here! To think (from what I've read) this is how things work in the field of general contracting, noway.
Good luck


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## Dirt Works (Jan 27, 2007)

*Be Careful*

Demo Work many variables involved. You can make very little $$ or end up having to pay big $$ when you are done. Better make sure your insured if you are doing demo.


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## Glasshousebltr (Feb 9, 2004)

Davey Davey Davey ........ya gotta play to your market buddy .......South Jersey always has plenty of room for another 24hr emergency excavator ......The retirement plan sucks but what the hell.


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## jojo (Jan 11, 2006)

Hello David,,
These guys are right..this can be hard work,,but rewarding and profitable,,,,if you decide to go through with it,,I have a dumptruck backhoe and trailer in good shape to sell,,,I live in southern lancaster pa.,,if interested send me a privite message and we will take care of the details,,,
jojo


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## Dirt Works (Jan 27, 2007)

*Good deal for a new business*

I have a bunch of equipment and toys for sale!

The only thing is you must take the wife and two kids.
But with the combo special you get the house and pole barn.:laughing:

Just kidding, I'm not selling any equipment or toys.:no:

A wise older gentleman, he is like my second father always used to
tell me "TIME & PATIENCE" whenever I used to say that I was going to buy a bunch of equipment & trucks. He was and still is always right.
Hope that helps Dave.


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## dayexco (Mar 4, 2006)

my pappy always used to say....it's easy to get big, but a ***** coming back down


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## Dirt Works (Jan 27, 2007)

*Words to Live By*

I forgot this one by my own father. I used to tell him anytime I needed help that my "BEST FRIENDS" would be there for me. His reply (the only best friend you have besides your parents is what's in your back pocket, when you need something you can get it. It sounds better with his broken Italian accent or actually in Italian:laughing:. After 40 years of hearing this I understand and find myself telling this to my employees.


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## young gun (Mar 20, 2007)

As, dayco said, it's easy to get big.... Now you just need to control the quality, costs, employees and on and on and on!


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## jojo (Jan 11, 2006)

Hello David,,If you decide to go through with your plan,,I have a dump truck,,backhoe,,and trailer to sell,,,ready to work,,,good equipment for the money,,pm me and we can talk about the details
Joe


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## denick (Feb 13, 2006)

JOJO,

Where the heck have you been?

Why are you having the yard sale of truck and equipment?


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## rino1494 (Jan 31, 2006)

He's been so busy working that he made so much money that he doesn't have to work anymore.


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## PipeGuy (Oct 8, 2004)

young gun said:


> As, dayco said, it's easy to get big.... Now you just need to control the quality, costs, employees and on and on and on!


Having an accurate understanding of how much time and effort is required to make your business succeed, and being honest with yourself about how much time and effort you are willing OR OTHERWISE ABLE to dedicate to the business is a good place to start. Upon close examination you may find that certain critical aspects of the business (marketing, estimating, sales, bookkeeping, government compliance, accounting, insurance purchasing, securing lenders. bill paying, bill collecting, etc.) require a level of staffing that you may not have otherwise anticipated, isn't supported by your "vision of the business", or is simply more comprehensive than you are willing or capable of executing and managing. No matter how simple some work might look many businesses, by virtue of both their nature and the markets in which they are operated, require much more "behind the scenes" support than a "one (or two) man show" accomplish.


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## Vermaraj (Mar 6, 2007)

davidmiz said:


> What i am saying is i have a source of work but no way to deliver it.


Well if you truly think you have a steady supply of work then you are half way home. Now you just need to produce the means to execute the work. That would include pricing, scheduling, insurance, delivery, etc... digging the hole ... back filling. As all of the above professionals have indicated that is not easy.

I'm not in the excavation business. I know the end result and I vaguely understand the equipment involved. The rest of the business is totally foreign to me. 

If I were in your shoes I would be looking for a partner. Ideally either:
(a) recently established (but successful) excavating contractor looking to expand
(b) successful excavating contractor that is looking to retire

Either one of these businesses would be a natural extension to the position you are in. Option (a) you bring enough work to profitably expand the business. And your partner brings the excavation expertise. Option (b) the retiring excavating professional should have no problem with teaching you the business in exchange for your qualified leads and has a ready buyer for his equipment.

Keep in mind finding a partner and managing a partnership is no picnic either.


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## davidmiz (Jul 22, 2007)

Vermaraj said:


> Well if you truly think you have a steady supply of work then you are half way home. Now you just need to produce the means to execute the work. That would include pricing, scheduling, insurance, delivery, etc... digging the hole ... back filling. As all of the above professionals have indicated that is not easy.
> 
> I'm not in the excavation business. I know the end result and I vaguely understand the equipment involved. The rest of the business is totally foreign to me.
> 
> ...


I understand nothing is easy and life is not easy and I am willing to work. I am looking for a partner like plan B and that is why I came here if any one knows any one let me know. 
Thanks David


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## Vermaraj (Mar 6, 2007)

davidmiz said:


> I understand nothing is easy and life is not easy and I am willing to work. I am looking for a partner like plan B and that is why I came here if any one knows any one let me know.
> Thanks David


One way to locate businesses in your area is to contact local accountants and attorneys. Write a letter expressing your interest in acquiring an excavation company and ask them to contact you with leads. Usually someone contemplating retirement and liquidation or sale consults with their attorney first and their accountant next. 

You can also express your interest at local equipment dealers. But your interests may be opposed to their own.


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## davidmiz (Jul 22, 2007)

Vermaraj said:


> One way to locate businesses in your area is to contact local accountants and attorneys. Write a letter expressing your interest in acquiring an excavation company and ask them to contact you with leads. Usually someone contemplating retirement and liquidation or sale consults with their attorney first and their accountant next.
> 
> You can also express your interest at local equipment dealers. But your interests may be opposed to their own.


Thanks I will ask some attorney's and accountants.


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## LNG24 (Oct 30, 2005)

Subbing Out.

Sounds easy enough. I have been dabbling with the idea of getting back into excavation full time. Even ran the numbers on a couple of machines including one I posted on here (FYI Its still for sale) About a month ago, I started to hear others say how slow it was getting. Now I have a number of excavators asking me if I have any work for them. Everyone I know is beginning to hurt. 

So I subbed some work out. Easy money, right:whistling. Spent 4 days fixing a broken sidewalk they crushed with the machine, bringing in extra fill as they forgot to compact when backfilling, regrading along a foundation properly, and repairing the fence they took out as they loaded up the machine.

4 days of back breaking hand work. Customer comes first, so it had to be made right ASAP while I work this out with the sub who caused all of it.

The housing market is continuing to fall in NJ as well as NY. Builders are slowing way down. The downturn in housing prices left little if any equity in most homes purchased in the last 3 years. So fewer Home Equity Loans can be issued for renovation projects.

I will continue to sub out my excavation jobs, but having done the work and knowing how to estimate a job to be both profitable & professional makes this easier, I could not imagine tryng this without the knowledge and experience I have. 

All I can add is..Thank God I didnt not just purchase equipment. I miss not having my own stuff, but I dont miss those huge payments, repair bills and insurance.


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