Starting new business with $100k budget

[Timark80]

Need opinions from experienced owner operaters:
Starting with a LLC setup.
Looking to get into some type of landclearing/landscaping in the Southeastern US.
My original plan: Buy ASV PT 100 with mulcher head,bucket,grapples.
Buy a used medium duty truck,I already own a 26' 10 ton g/n trailer and Dodge 3500 srw with cummins.
I live in NW FL,not much construction going on around here,mostly farming and pinetree plantations.Eventually construction should pickup because this the only part of Fl that is not as developed yet.
A mini ex was my second choice,and it costs about half as much as the CTL.
I want to keep it a one man operation for now.

Thanks for your advice,
Mark

 

[Timark80]

$100k = $100,000

I guess $100,000 is a rather limited budget.
Maybe someone could give a little input on getting started?
I will do enough research to make it happen.

 

[Steve Frazier]

The landscaping market here in NY is dead as a doornail. I've been in business for 11 years starting out with maintenance accounts in a 1 man operation. I expanded slowly, I bought a second mower and hired a man in my 3rd year. I started picking up landscape construction jobs and by my 4th year bought my skid steer. It wasn't until my 6th or 7th year that I had a dedicated maintenance crew and I was on the dedicated construction crew. All was well until 2 years ago when housing started to slow, the construction jobs began to dwindle.

This season, I'm back running the maintenance division, I've had only one construction job for the year. Several of my "construction only" competitors have gone bankrupt this season, there's virtually no work to be had. Now would be a tough time to start any business, but if you do, start small, grow slowly, don't overextend yourself. The way the market is now, it wouldn't be hard to lose everything.

 

[Dwan Hall]

I would think that instead of buying equipment then looking for work for it, I would find work then buy equipment for the job. That way if you could not find the work you would not be out the money.

 

[90plow]

or rent it until you see what jobs are really out there...

 

[Steve Frazier]

or rent it until you see what jobs are really out there...

That's how I determined the time to buy my skid steer. When my monthly machine rental fees met the cost of a monthly payment I made my purchase. One other thing, even if you get commitments for work, do a thorough check on your client as far as how he pays his bills. In my area, contractors are notorious for stiffing a sub or hanging him for 6 months, I do very little work for other contractors.

 

[Timark80]

Thanks for the replies,
The good news is that I owe $0 on my home,land,vehicles,etc...
I will "not" be financing any part of the new business,I live on 80 heavily wooded acres and the mulching head will be used here at my home while getting used to operating the ctl.
I realize it may take 2 years before the machinery will pay for itself.
Having occasional work starting out is what I expect.
If I could gross $40-50k a year starting out,working maybe 1 day per week, that will be ok with me.
Also my pretty wife is not a "high maintenance" woman,thankfully.

 

[HeyUvaVT]

OK...

www.clearviewgroup.com

just so you know that I know where you are coming from

call me if you want some good advice 804-761-4738

 

[Timark80]

$100k in hand/nobody wants to deal

Alot of folks want to sell but will not drop their price much at all.
Been checking out alot of CTL's in the southeast with mulcher heads.
They must not mind the $2k a month payments and...
I guess I'll keep my $100k in hand and just watch.

 

[Timark80]

Even the dealers around here are not budging much.
Whatever...

 

[CM1995]

I guess I'll keep my $100k in hand and just watch.

Now that is the best plan, in times like these........

 

[milling_drum]

Its always good to keep an open mind to specialized jobs/machinery/contracting. In AL/MS/LA along the interstates ALL kinds of logging contractors are clearing brush of the right of ways. I can imagine a little bit of that is going on in NW FL.

See if you can get on rental with some of them, ask them what type of machine they may use hourly which you have. To stay confined to landscaping is rediculous these days. You have to be able to diversify.

 

[Timark80]

Its always good to keep an open mind to specialized jobs/machinery/contracting. In AL/MS/LA along the interstates ALL kinds of logging contractors are clearing brush of the right of ways. I can imagine a little bit of that is going on in NW FL.

See if you can get on rental with some of them, ask them what type of machine they may use hourly which you have. To stay confined to landscaping is rediculous these days. You have to be able to diversify.

Along I-10 they are doing a little clearing with ctl's.
Further south along I-75 and I-95 there seems to be alot more mulching going on.
The advantage to owning a ctl is the fact that one can be very diversified.
Landscaping was just one area I was looking at.

 

[Thinktank.ws]

Is there a company out there that coordinates rental of equipment between companies not in the rental biz?

 

[Speedpup]

Alot of folks want to sell but will not drop their price much at all.
Been checking out alot of CTL's in the southeast with mulcher heads.
They must not mind the $2k a month payments and...
I guess I'll keep my $100k in hand and just watch.

:drinkup


ever been in business before?

 

[Timark80]

:drinkup


ever been in business before?

Yes sir,
Been involved in business for the past 18 years.
This is the first business I've started on my own.
I'm completely aware this is the worst possible time to get started.
No wolves knocking at my door.

Have you ever been in business before yourself?