done workin for the company

C

COtransplant

Active Member
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173
So after 10+ years in a gas plant, I quit. Well orchestrated, but Im out and couldnt be happier about it!Been planning my exit for 2 years.
I have 2 backhoes and the other necessary equipment to get started in my own excavation business.
Gimme your one best piece of advice on getting rolling on your own?
 
ADVERTISE! Nobody will find you if you don't figure out a way to get them to call you. They will have lots of options, make sure they can consider yours.
 
Good for you on taking that step . Hopefully it works out for you , and you haven't burned any bridges in case you need to go back .

I have allways wanted to be self employed , and only have me as my boss .
 
Have a good grub stake to get you through the 1st year. It's hard for the new guy to get the chance to prove himself.
 
Advertising is a good way to go. BUT...I wouldn't advertise in the traditional way. I am in the same client-based business you are in...or going to be in. You can spend $1,000 a month advertising with postcards, in the paper, etc. Put that $1,000 in the bank and CALL your friends and family. Let them know what business you are in and that you'd really appreciate it if they pass your name along to their friends. Let them be your advertisers. You'd be surprised at how much word of mouth gets the business. I understand your business is new so you may HAVE to put some other advertising out there to get rolling. But, when you are established, don't waste the money on traditional advertising. I don't think it is worth what you spend. Good luck!

Steve
Derkha derkha Muhammed jihad hakha sherpha sherpha abakhala- Gary of Team America World Police
 
One word of caution (which may already be aware of) is payment for completed work. I've got an uncle in the same type of business in Wyoming. He does a lot of work and never gets paid. Watch out for people who try to take advantage of you and make sure you get what you deserve.

Good luck with the new endeavors.

TRH
 
Good call wisard.

You definitely need to find the most productive ways of advertising. For me print advertising is a huge waste of money. I might as well donate the money. But getting people to my website is HUGE. I spend probably 8k a year on getting people to my website and then they call. Then I spend around another 6k on other advertising. Sometimes direct mail (not newspapers) such as money mailers will work. If you live in Utah give the best rates around. Utah is extremely price sensitive and will shop around. I'd rather sell my product for 25% cheaper than the competition and be busy all the time then be priced the same and only be busy a couple days a week.

Here is what I do.

www.uintarecreation.com

My most productive ways of advertising is and in this order.

1. Website. Just building one is not enough, you need to figure out how to get people to it.
2. Brochure distribution
3. Direct Mail. Postcards and money mailers. I do less of this now than before.

Lastly, once you get a customer, keep them! Take good care of them and they will come back and bring other people to you.

I let every customer know that return customers never pay full price when they come back. They always get a deal and incredible service. I have dozens of customers that come back many times a year.

If there is a problem with your work, then fix it on your dime. Take care of the customer. First it is just ethically right and second it will go a long, long ways in their perception of you and your business.
 
LAST EDITED ON Mar-19-11 AT 07:42AM (MST)[p]Have my own backhoe business on the side, and I turn down alot of work as I am not doing it full time. I don't advertise. Word of mouth is your best advertisement. (I'm not saying don't advertise. Like I said I'm just doing this part time) IF you do a quality job at a reasonable price you will have customers. It only takes a few people bad mouthing your work to cost you a bunch in lost calls. To many people anymore trying to hurry to get the job done and the customer has problems later. Good luck...it will be hard for the first couple of years I'm sure till you get your feet under you.
 
I would sell the backhoes and run as fast as I could, but it sounds like its too late for that. Not trying to discourage you, being your own boss is great but everybody and there uncle has a backhoe and a bobcat. If you must.... The one thing I would do is add a swivel knuckle to the end of your dipper.....you cant run a quick change bucket but it allows you to swivel the bucket from l to r using one of the buttons on the joystick. It will allow you to do slope work/ dig trapazoidal ditches, etc. There are a couple owner operators around here who run them and they fetch an extra $15-$20 an hour. Another way to get some work is to join the operating engineers union as an "owner operator". Alot of the big contractors will hire owner/ops for small jobs because its cheaper than renting a hoe and paying there own guy. Also call all the pluming and irrigation companies, they also usually only need part time work....its cheaper to hire a guy than to maintain there own hoe....Good luck

"A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed."
 
Where i live Backhoe guys are going broke. There are very few housing starts, very little work and everybody and his Brother has a hoe sitting aside the house waiting to be called to work. I live in snow country so there is some bucket work with that but even then it is pretty competitive with everybody wanting friend prices or they'll go elsewhere.

Know and understand the underground utilities systems in the various locations in your area. One screw-up with that hoe can cost you your, or someone else, their life or maybe a seasons wages.

Expect to work long hours. When you do have work, do your best to get the job done in a day...even if it means working into the evening to do so. Your customers will approve and their word of mouth about your working habits is everything.

You're most likely going to need a good helper from time to time. If it be pot-holing, running a shovel to clean the ditches, or someone to help with driving the rigs, get someone who is worth their money, looks ahead, and stays on the same page as you. This is not a place for a beginner or lazy employee.

Good luck!

Joey
 
I would think that advertising in the Yellow Pages would be a good move. Most people don't think about excavation work until they need it or want it. If I didn't know anybody, the first place I would look is in the phone book.

Hustle, and do the very best job you can. Make the customer more than happy. Make them feel like they got a great deal.

Be honest and trustworthy.

Don't take on so much work that you can't deliver on the time schedule agreed upon.

If you tell someone you'll meet them at a certain time to give a bid or whatever, be there a few minutes early.
 
Take your rifles, shotguns and fishing poles and sell them, you won't need them any more. I have known several businesses that failed because the owner wanted to go fishing and would leave some kid to run the business.

As mentioned above don't extend credit very far. All of the people that don't pay will find the new guy. If they haven't paid you for the first job don't do the second. not getting paid will break you fast.

Try to work for some major industry, oil, gas, mining or construction. It will be hard to make it on mom and pop jobs.

Answer your phone calls promptly, be willing to look at jobs during the evenings and weekends. We are a society that wants everything right now.

I have seen successful partners where one would sell and the other would get the work done. Separately neither would be successful.
 
Always remember their time is worth just as much as yours. Being punctual on bids and meeting times shows a lot about your company.

4b1db2ac644136c4.jpg
 
I worked at a gas plant when I was young. I ran a business too when younger. I used my kids to hang ads on doorknobs. That helped more than the newspaper.
 
You guys are awesome! Lotta good info there.
*got the advertising thing covered...gonna hit it hard for about the first three months to get the name out and then taper off as word of mouth takes over.
*Didnt burn any bridges when I left. Turned in notice, left with an above expectations rating on my 2010 review.Good to go there-but I aint goin back!
*Got a good grubstake established. Its called the 401K I maxed out every year sinced the beginning! I know, not generally wise to cash it out. But I have a mobilehome park business that I have built up over the last 8 years that I intend to invest my money into. At least then I will have control over MY money instead of being at the stock markets whim.
*GREAT point about getting paid for what you do. If you dont get paid, you dont get to eat. Being a mobilehome park owner, I am very good at making sure I get paid. With 140 spaces, it doesnt take many not paying to have you scraping by to make bank payments. So, agreed, if they havent paid for the first job, I wont do the second.
*I will be mostly servicing the contractor sector. Plumbers and electricians mostly. Also some amount of work for farmers on pivot irrigation leaks underground. Hope to get some oilfield work, but its pretty competitive. They seem to be cutting each others throats for work in my part of the world.
*The statement about your employees is right on. If theyre worth having, theyre worth paying well. Your employees should make you money, not cost you. If they are costing you money, they need to go down the road.
*Punctuality...amen brudda! Part of my business plan is being able to offer 2 machines. So it will be very rare that I have to put off a job. I will be able to work on YOUR timeframe. Not you having to work around when a backhoe is available.
*Thanks for the great responses guys...Several points in there that I hadnt considered. COtransplant
 
CoT,

Are you in the Grand Junction area? I need someone with a exdtenda hoe or trackhoe to clean out about a quarter mile of drainage ditch. A regular hoe won't have a long enough boom.

Bean
 
>I would think that advertising in
>the Yellow Pages would be
>a good move. Most people
>don't think about excavation work
>until they need it or
>want it. If I didn't
>know anybody, the first place
>I would look is in
>the phone book.
>
>Hustle, and do the very best
>job you can. Make the
>customer more than happy. Make
>them feel like they got
>a great deal.
>
>Be honest and trustworthy.
>
>Don't take on so much work
>that you can't deliver on
>the time schedule agreed upon.
>
>
>If you tell someone you'll meet
>them at a certain time
>to give a bid or
>whatever, be there a few
>minutes early.


Eel

For a redneck from Eureka you are pretty dang smart.


Ransom
 
BeanMan-Sorry bud...wrong side of CO.
Well, I guess for scenery its the right side of CO, but for me to help ya Im on the wrong side...
 
I had an excavation company for 5 years. I have done excavation for 30 years. The biggest problem I had was getting paid for your work. It wasn't getting the work. Most crooked clients will be more then glad to have you they don't care about price and or paying. I was shorted 1/2 mill from one job and if that happens you won't have deep enough pockets to bail yourself out. And if you're shorted you can't afford your attorney or afford to pay your vendors and you're left holding the bag. And they will come after you. With big sticks and attorneys.
A couple things hire a good Attorney i.e.: Business and or Development Attorney. Hire a good tax / Accountant/ Bookkeeper/ even if it is just quarterly. Pay your taxes no one worse then the IRS coming after you or the State. Get good insurance and bonds. No exceptions here you have to do it or watch out.
Get the right contractor license. Don't forget Med insurance.
Pre lien your jobs or you don't stand a chance in court. 30% of your customers will not pay in full and that is all of the profit. The bad thing about that is say you do a job that costs 10 grand and they don't pay you 2 grand. It costs you five times that to chase it down and there is a good chance you won't get it anyway. And if that is the case what is the sense of working.
Have a good Attorney draw up a contract for work and payment schedule.
Get a SBA if you can so you have funds to work with.
Bill heavy up front and bill lower on the back end of jobs that way you're not carrying the load.
Things like Mobilization, Fuel, Materials, Bonding, Insurance, Engineering etc.
Get up front money to cover these costs. You will find customer wants the work done and have you carry it all. They get a job done and you get stuck with the bills. Don't do it.
Take care of yourself first. Because you have to stand on your two feet before you can take care of anyone else. What I am saying let the business take care of you. And if you go under it is the business not you. I know you're a good guy but this is Business.
Now if you really want my advice don't do it. Unless you want to sell your fishing poles, guns, house, Stay up late at night never have a day off.
You will find you have as much down time as May West or Marilyn Monroe if you have old equipment.
Consider weather during your projections. The fun of no work in the winter is no money. Spend all you make in the summer to carry you in the winter.
Do you like Ramon Noodles? Good luck
Rutnbuck
 
Eel I am just like a ant pile some one kicked. Digging the hole is the easy part diggin out is not fun. My next plan is diggin gold dirt. Playing in the dirt is a lot funner then working in the S&^%.

Rutnbuck
 
Joey brought up a good point. Call before you dig. USA's are free and a must have....you never know when there will be a fiber optic line, phone line, gas line, electric, sewer, storm, dom water, reclaim water, irrigation, fuel, etc. I'm on a job right now that has a Intercontinetal fiber optic line running through it.....if some one hits it, it's $20,000 per MINUTE of down time. Even a small line could kill someone and put you out of buisness right now.

"A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed."
 
Wow Rutnbuck-sounds like she treated ya pretty bad! What part of the world did you do business in?
I have an ulterior motive in my backhoe business. It is to run another business I built-mobile home parks-and have the backhoes to make me enough money to live so I can manage them full time.
I did start with newer equipment. Ive learned that in prior business escapades...slightly used is about perfect. And also that I will have to do my own maintenance to get it done on my schedule and be satisfied with it.
Thanks for a lot of good starters guys. Rutnbuck I appreciate you sharing your bummer to help me avoid some of the pitfalls.
Hope to see some of you in the field

COtransplant
 
Don't undersell your serves and don't gouge the customer either. Know what your bottom line is and figure a reasonable profit above. I won't turn the key on my truck for less than $40/hr for plowing or animal damage control jobs. That is break even. I would expect it to be much higher with heavy equipment. Most people grossly underestimate the depreciation, maintenance, and general business costs until they've been in it awhile. Find out from a reputable accountant what tax advantages you can gain from. Many are totally unaware of what they can and can not deduct.
 

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