Starting Land Clearing/Mulching Bussiness ??

Hi all, kind of tired of working for the other guy and letting them make all the $
Have operated since the 70's and nearly everything and this one guy I used to work for had a case 85hp skidsteer with a land tamer (mulching) attatchment on it and I would clear brush etc. with it and really started enjoying running it, a change from the big equipment I had been running. Anyway I had moved back to my hometown from doing a 7 month project in N. Texas (oilfield) and started thinking I need to start my own thing so I decided I would consider purchasing the same skidsteer and mulching attatchment but pursue mulching contracts to see if I could have some degree of success. This contractor was charging $150.00/hr. and keeping the machine running all the time, my question is and I would be interested in hearing about is from the contractors in this type of business and how they are pursuing jobs, hourly rate they are charging, minium hrs. etc. any advise would be appreciated !

We have an ASV RC 100 with a loftness timberax and have had great success in this business...there is a thread over at www.tractorbynet.com under the construction equipment forum that covers in detail all the pros and cons and the expenses of this business search for the business plans for mulching thread.... check this thread out too

https://www.heavyequipmentforums.com/Forum/showthread.php?t=2455&highlight=equipment+work

Hi all, kind of tired of working for the other guy and letting them make all the $


Just keep in mind all of your expenses - the other guy is not making all the $$ most think he is. Insurance, fuel, maintenance, payments - which the bank does not care if you don't have any work, and most importantly you will have a partner that does nothing that will get 40% of your earnings off the top - the Federal Gov. Owning your own business is a struggle as well as an accomplishment. I wish you well in your endevors.

The tax issue just chaps my behind this time of year. It always seems that you owe money at the end of the year to the tax man yet you don't have any in the bank.:Banghead :soapbox

CM1995 said:

Just keep in mind all of your expenses - the other guy is not making all the $$ most think he is. Insurance, fuel, maintenance, payments -

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That was the first thing that came to my mind.....I have to work a month just to pay my workers comp bill.

As far as minimums go, I won't do a job without getting at least 4 hrs. I don't care if it takes 15 min. Always be up front with people about that. Also, honesty is always the best policy.

Start out with a tracked skidsteer....Rayco is actually the best tracked skidsteer for landclearing as it was designed just for that use....check them out here

http://www.raycomfg.com/crawlers.htm

Thanks for your posts, any advise on the tax stuff would be appreciated as I will be a one man operation for now.

You may not pay much in income taxes the first few years unless you make way more than most. Depreciation on equipment, health care, insurance etc. are all tax deductions and they really add up. A good tax man is worth what you pay him.

jhill said:

You may not pay much in income taxes the first few years unless you make way more than most. Depreciation on equipment, health care, insurance etc. are all tax deductions and they really add up. A good tax man is worth what you pay him.

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I couldn't agree more. First get a good accountant and second a good attorney. The attorney can write up a good contract for you. Just remember that equipment depreciation is really just tax deferment.

As far as taxes go you will have - federal income,SS, medicare,state income, ad velorum (if applicable in your state), property taxes on any company land, truck tags/licenses, business licenses and I am sure I still haven't listed them all. I am not trying to be a negative nelly but it is a lot to look after owning your own business.

My favorite tax is the ad velorum. In our state you pay a yearly tax on all business property IE: office equipment, small tools, equipment. Basically you buy these items and pay sales tax but then you are taxed on them yearly until you dispose of them!ointhead I have been paying this yearly tax on an air compressor for over 10 years!

mulching ideas

DirtDobber said:

Hi all, kind of tired of working for the other guy and letting them make all the $
Have operated since the 70's and nearly everything and this one guy I used to work for had a case 85hp skidsteer with a land tamer (mulching) attatchment on it and I would clear brush etc. with it and really started enjoying running it, a change from the big equipment I had been running. Anyway I had moved back to my hometown from doing a 7 month project in N. Texas (oilfield) and started thinking I need to start my own thing so I decided I would consider purchasing the same skidsteer and mulching attatchment but pursue mulching contracts to see if I could have some degree of success. This contractor was charging $150.00/hr. and keeping the machine running all the time, my question is and I would be interested in hearing about is from the contractors in this type of business and how they are pursuing jobs, hourly rate they are charging, minium hrs. etc. any advise would be appreciated !

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#1 I think this is the correct place to add this. Just something, that is working for me, is contacting the President of the Homeowners association of sub divisions. Most of the HOA, has a regulation, that requires lot owners to keep their un-built lot appealing looking for the other owners. I have gotten 5 jobs in the last 2 weeks, by contacting the HOA and getting referrals.
#2 Another thing I am doing, is find a sub division and look for the lots, that look bad, most of them has lot numbers on them. If you cant get up with the HOA, go to the tax office and get the owners name and address, its public knowledge. Just send them a flyer.
#3 Yellow pages, get phone books from different areas and send them a nice flyer. They have got to be nice looking and have good information. I am sending to realtors, surveyors, forestry management companies, contractors, land clearing services ( explain to them, how in some cases, you can cut the hauling rate to zero) I am also in the land clearing business and thats one of the reasons, I bought the mulching machine-cutdown hauling and disposal costs.
#4 Ads in yellow pages, these are kind of costly, but if you are not in there, you will miss a lot of jobs. Mulching is fairly new, in the lot clearing business and in some cases, you could be the only one under that ad.
#5 Business cards, I took a picture of the machine and had business cards made with it on it. There is a lot of people, that doesnt know what these machines are and a pictures tells a 1000 words (or however that goes)
None of this, is cut and dry, it takes a bunch of work, too make it work. Have good looking machine, trailer and truck. Keepum clean and painted good.

Well this is my 2cents worth, I have only had the Fecon machine for 3 months, but these is what is working for me.

Anyone got any other ideas?

I found this thread in a search. Are you gentlemen still working in the mulching business? I am just getting started in my area.

Tony

There are several in my area

This time capsule from 2007 is interesting! It's a good example of getting into new technology before everyone else. Same here in north GA- lots of folks are in mulching now.

$100-$125/ hr is going rate around my parts, $150 sounds very steep but guess depends on location. I know that isnt your question but sure makes a difference

That post was from 2007 for 150/ hour.

I went to the Bobcat dealer and asked about renting a skid loader with a mulching head. They charge $3000/ week, with a 40 hour limit. That is 75/ hour plus fuel and operator. And they do not rent by the day.

Most people don't need more than a few hours of work. So 150/ hour seems fair to me.

Our local bobcat dealer rents a setup for $1k/day. That's what most businesses charge for 8 hours with an experienced operator. But it is a tough life especially for machine, especialy a rental machine.