G day legends!
I am currently 18 years old and thinking I could start a small scale earth moving company.
I'm in the planning stages of considering ways in that I could own and operate a machine. My current thought is that buying a 1 tonne excavator/mini skid steer ( 1 tonne because I would be able to transport this weight on my ute ) would be the way to go. I am Starting an apprenticeship in civil construction in a week so through my job I will learn how to maintain a machine and basics on how to safely operate as well as plenty of shovel work so I will be able to take notes from some pros. I am aiming at a machine for around $15 000 AUD so definitely a lower end machine. When I buy the machine I will buy it outright so I will be under minimal pressure to turn over a dollar. My current thoughts of offering the machine as dry hire throughout the week and having wet hire available on weekends so I get a chance to run my machine.
Ive done some basic maths figuring that I would offer dry hire for $100 - $150 per day or $450 to $550 for a 5 day week. These prices would be well below the big hire companies in my local area. Potentially I would be aiming to make $500 a month which would equal $6 000 a year. I think that sounds pretty reasonable as $6 000 would cover the maintenance and servicing and potentially I would make profit on top. To be 100% honest My aim would be to break even throughout my first year as I know this will be a HUGE learning experience.
I believe I could save the funds to start this project somewhere between 6 - 12 months.
So lads let me know am I onto something? is this a terrible idea? what have I forgotten to consider?
Also I am located in Australia so if my prices seem extremely low or high they are in the Australian dollar.
Cheers!
I am currently 18 years old and thinking I could start a small scale earth moving company.
I'm in the planning stages of considering ways in that I could own and operate a machine. My current thought is that buying a 1 tonne excavator/mini skid steer ( 1 tonne because I would be able to transport this weight on my ute ) would be the way to go. I am Starting an apprenticeship in civil construction in a week so through my job I will learn how to maintain a machine and basics on how to safely operate as well as plenty of shovel work so I will be able to take notes from some pros. I am aiming at a machine for around $15 000 AUD so definitely a lower end machine. When I buy the machine I will buy it outright so I will be under minimal pressure to turn over a dollar. My current thoughts of offering the machine as dry hire throughout the week and having wet hire available on weekends so I get a chance to run my machine.
Ive done some basic maths figuring that I would offer dry hire for $100 - $150 per day or $450 to $550 for a 5 day week. These prices would be well below the big hire companies in my local area. Potentially I would be aiming to make $500 a month which would equal $6 000 a year. I think that sounds pretty reasonable as $6 000 would cover the maintenance and servicing and potentially I would make profit on top. To be 100% honest My aim would be to break even throughout my first year as I know this will be a HUGE learning experience.
I believe I could save the funds to start this project somewhere between 6 - 12 months.
So lads let me know am I onto something? is this a terrible idea? what have I forgotten to consider?
Also I am located in Australia so if my prices seem extremely low or high they are in the Australian dollar.
Cheers!