Small Business Start-up.

[GreensvilleJay]

Ah the joys of running a small business... do real work(making money) for an hour, then spend 3 hrs doing 'paperwork'. Those hours don't count though,as you'll do 'paperwork' after dinner into the wee hours of the next day. You'l soon forget you have a wife, children, friends, actually HAD a life....admist all the 'paperwork'....
Hopefully you'll figure out a 'system' for the 'front office' PDQ !

 

[ctfjr]

All these replies (for years) and I'm surprised I didn't see anyone mention a business plan. To start it doesn't have to be elaborate but it should include all the big points - income (where is it coming from, how to price, etc), expenses (payroll unless you work for free, euipment maintenance, legal, accounting, etc) and a growth plan (what will it be in 1 year, 5 years and how do I get there).
If you can't articulate a business plan in simple terms you may as well play the slots.

 

[mikester]

All these replies (for years) and I'm surprised I didn't see anyone mention a business plan. To start it doesn't have to be elaborate but it should include all the big points - income (where is it coming from, how to price, etc), expenses (payroll unless you work for free, euipment maintenance, legal, accounting, etc) and a growth plan (what will it be in 1 year, 5 years and how do I get there).
If you can't articulate a business plan in simple terms you may as well play the slots.

I remember a quote "[50-85%] of small businesses fail within the first 5 years"

Insert your favourite number here.

If running a business was easy everyone would do it.

 

[NorthwoodsLife]

In my humble opinion, this opening a business has various stages.

One is the guy with a tractor and equipment that wants to make a few extra bucks on the side. Working out of his home garage he starts by doing projects for friends and neighbors. It may grow if the need is there and his work is done well. If it grows he'll need to consider legal matters such as an LLC and or a Contractors Licence. Insurance should come first especially if he's working for strangers or those that might sue him for damages. Homestead your house.

Some states allow work without a contractors license if it's under a certain price point. Many tractor businesses start that way. Another option is working under the umbrella of an established business as a sub or pay by the job situation. I did lots of work that way 40 years ago.

Another totally different business plan includes investors and a brick and mortar business address and an attorney on call.

Respectfully stated; To compare a small tractor businesses to Amazon or Tesla / Spacex is circumstantially valid, but it is a stretch in capital, volume, and liability.

Generally, you won't be making Tesla money in a construction / contractor business unless you're really good and can go global with investors.

If you want to put food on your table and pay your mortgage, a small tractor businesses might do. But it depends on you. Get your legal bases covered. Protect yourself and your family and home. A small tractor business is just that. A small tractor business.

 

[NorthwoodsLife]

And?

The OP probably isn't paying attention. Just reiterating what @Benhameen stated.
But continue for the sake of knowledge...

 

[lynnmor]

I guess that I should give a quick view of my small business.

39 years ago I was working a full time job with some compulsory overtime. That job was looking like it may have only a few years left till the products would be manufactured off-shore. So I started building my lifeboat by constructing a two story shop building with a bathroom. While building it, I bought used machines that needed some work, and an enormous amount of tooling. It was financed by borrowing against my retirement plan. All work was done by my wife and I.

While still working the full time job, I took in work for the shop and worked till late at night. The place where I was employed did in fact go belly up and I had my lifeboat working. With all those hours and expenses, I finally made a dollar and it was taxed with double SS and Medicare, state income tax and local tax, leaving me with about 50 cents. I give this as an example to show how much government cares about small business.

Things went well for quite some time and I retired with my own funds that are at risk, unlike a government pension. Now I have a building that is costing me property tax, and equipment that dropped in value due to the fact that so much has moved off-shore. If I sell that equipment for those low prices, guess what, I need to pay income taxes on the money.

I'm glad that I no longer had to go to a job and most of it was far more rewarding, but it sure ain't for everyone. I tell every young person to simply look for government employment and retire at a young age with benefits.

 

[trailrider675]

Good luck with the business! I’m from IAFF local 3045 and have had good luck offering a variety of services based around my MX6000. Most of my work is gravel driveway repair/installation and light clearing but I also do good variety of other tasks that require equipment. I’ve found it’s worth renting the larger equipment like excavators and skidsteers when the job requires it. Just remember to figure all expenses including insurance and stick to your initial quotes. Working to meet a price point will make you and customer unhappy. Keep it small and most of your work will be based off referrals and repeat customers.

 

[D2Cat]

I guess that I should give a quick view of my small business.

39 years ago I was working a full time job with some compulsory overtime. That job was looking like it may have only a few years left till the products would be manufactured off-shore. So I started building my lifeboat by constructing a two story shop building with a bathroom. While building it, I bought used machines that needed some work, and an enormous amount of tooling. It was financed by borrowing against my retirement plan. All work was done by my wife and I.

While still working the full time job, I took in work for the shop and worked till late at night. The place where I was employed did in fact go belly up and I had my lifeboat working. With all those hours and expenses, I finally made a dollar and it was taxed with double SS and Medicare, state income tax and local tax, leaving me with about 50 cents. I give this as an example to show how much government cares about small business.

Things went well for quite some time and I retired with my own funds that are at risk, unlike a government pension. Now I have a building that is costing me property tax, and equipment that dropped in value due to the fact that so much has moved off-shore. If I sell that equipment for those low prices, guess what, I need to pay income taxes on the money.

I'm glad that I no longer had to go to a job and most of it was far more rewarding, but it sure ain't for everyone. I tell every young person to simply look for government employment and retire at a young age with benefits.

When enough folks do just that we will REALLY be in a fix. Tax payer's funding non-producing occupations. Soon the income will be less then the outgo!

 

[PHPaul]

Good evening,

I am currently a firefighter in North Central Florida and I am looking to start a business in land clearing I'd like to start up with some small tractor work and bush hogging and work into growing and doing more work. Looking for any advice on Tractors and Equipment to get started. Note: there was a lot of debris clearing work in my area after the hurricanes last year. I also live where there is a lot of horse and cattle farms. I am also interested in marketing and business tips. Thank you.

PS I have been looking at the L series and MX series tractors.

My grandson is doing just that. He's a one-man show that started with a chainsaw and a 25 HP compact tractor with a loader and rotary mower. As business picked up he added a 3 point hitch stump grinder, a box blade and a grapple for the tractor.

This year he added a forestry winch and a rototiller and just a couple of weeks ago bought a brand new JD 26G excavator with a thumb and a ditching bucket in addition to the regular bucket.

Two things have led to his success thus far:

1. Word of mouth. He does good work, leaves everything neat and well finished, shows up on time and as planned.

2. He's tighter than bark on a tree and gives salesmen fits when he's shopping for equipment.

 

[fried1765]

My grandson is doing just that. He's a one-man show that started with a chainsaw and a 25 HP compact tractor with a loader and rotary mower. As business picked up he added a 3 point hitch stump grinder, a box blade and a grapple for the tractor.

This year he added a forestry winch and a rototiller and just a couple of weeks ago bought a brand new JD 26G excavator with a thumb and a ditching bucket in addition to the regular bucket.

Two things have led to his success thus far:

1. Word of mouth. He does good work, leaves everything neat and well finished, shows up on time and as planned.

2. He's tighter than bark on a tree and gives salesmen fits when he's shopping for equipment.

Be proud,... grandpa.
He has got his chit together!

 

[PHPaul]

Be proud,... grandpa.
He has got his chit together!

He texted me yesterday and said his new tractor is ready. Traded up to 40+ horsepower, a cab and more hydraulics. I think the cab and hydraulic top link on the B2650 spoiled him...