When you set out to make money with a backhoe, the first thing you’ll encounter is expense. Amassing your equipment will set you back significantly, but if you play your cards right, manage your money well and control your expenses, you will soon reap the rewards of running your own backhoe business. In this article, we review important considerations in getting started making money with a backhoe. Read on to learn more on how to make money with a backhoe.
What You'll Learn Today
Equipment Is Costly
When you start your backhoe business, you’ll need to be prepared to lay out some cash to purchase your backhoe; however, it is this very fact that ensures you will be able to find plenty of clients for your service.
People would far rather pay you an hourly rate than buy or even rent costly equipment. It just works out thriftier for them.
You’ll Need More Than Just A Backhoe!
When you are planning your initial expenses, remember that you’ll need more than a backhoe. You’ll also need a solid truck and trailer combination to get your backhoe from point-A to point-B. Your transport may end up costing as much as the backhoe, itself.
Additionally, you may need a dump truck to haul away the dirt and debris you excavate. While all this may seem like an astronomical expense, having all the heavy equipment you need at your disposal will enable you to offer your clients a complete package of service.
This gives them convenience and value and adds to your earnings.
Where Will You Keep Your Machinery?
Once you’ve invested in valuable equipment, you’ll naturally want to keep it safe from the elements and from tampering. If you happen to have some acreage, you can build a garage or carport to protect your investment. Be sure to install a security system, as well.
Before building, double check with your local authorities to be certain you’ve obtained all necessary permits. This is a good time to find out how much your construction will affect the value of your property, and therefore, your property taxes, insurance rates, etc.
If you don’t have your own property, or if you are not able to invest in construction at this time, you can always rent garage space to protect your equipment.
Whichever you choose to do, remember to calculate your costs into your cost of doing business. This is an important consideration when setting your rates.
Who Will Run Your Equipment?
While you may see your backhoe enterprise as a one-man show, the fact is, you’ll need some help. For many of your projects, you’ll need a spotter on the ground to keep excavations on track.
Having a second person to help with loading and unloading, to drive the dump truck while you drive the backhoe, etc., will help you perform your jobs quickly, accurately and efficiently.
Even though hiring and managing employees adds to your business costs, you will soon find that good teamwork results in high quality jobs. In the long run, this means more satisfied customers and more work for you.
When hiring employees, be sure to do solid background checks. Hire people who have clean criminal and driving records. To operate heavy machinery, you and your employees should have commercial drivers’ licenses (CDL).
Making sure all formalities are dealt with properly will help keep your insurance rates down. Thorough background checks and thorough training will go far toward getting you the best insurance rates.
You and your employees should also participate in training to earn proper backhoe operation certification.
Who Will Use Your Services?
Most of the time, you will be getting jobsites ready for construction to begin. This means that more often than not, your client will be a contractor, and you will be sub-contracting. You can search online for websites specifically set up to bid on this type of job.
In addition to contractors, homeowners often have a need for backhoe or excavation work. You may get work digging a driveway or a swimming pool, grading or flattening areas to improve drainage, prepping for the installation of a concrete slab, etc.
To get this type of work, you’ll need to set up a professional looking website that facilitates easy contact. Connected social media accounts can also be helpful.
Make A Name For Yourself!
In addition to online interaction, make yourself known in the community. Invest a portion of your budget in old-fashioned print ads and business cards. Join local business groups and do a little charitable work from time-to-time to make local connections.
My uncle has been running a backhoe business for almost 10 years. It is a profitable but also very stressful job.