How to Start an Excavating Company ($360K a Year)

#excavator #excavators #construction #contractor
How to start an excavating company - Land Clearing, Basement Digging, Excavating for Foundations, and Excavating utility work.

1. You need to understand your excavating costs:
You will need to buy the following equipment:
Excavator
Skid Steer
Truck and Trailer
Random Tools
Overall Total Costs: $200,000.
For a loan, you will need 20% down = $40,000
For 5 year loan, your monthly payment will be $3,400 a month.
The insurance monthly payment is $300 a month.

2. How much can you make in the excavating business:
Basements - $10K - $30K = Average $20K
Land Grading - $1K - $3K - Average $2K
Foundation Preparation - $3K - $4K = Average $3K.
For an average month, this is what you can make:
1 Basement = $20,000
2 Land Grading Jobs = $4,000
3 Foundations = $6,000
TOTAL REVENUE: $30,000
Now let's go through the expenses:
$3,400 loan
$300 for insurance
$3,000 for gas
$4,000 for labor
TOTAL EXPENSES: $11,000
NET INCOME: $19,000
GROSS REVENUE: $360,000
GROSS PROFIT: $228,000 - $40,000 (down payment) = $188,000

3. Think of all the ways it won't work
You don't get jobs. You need to do marketing. You need to network with general contractors and home builders.
Your equipment breaks down all the time. You need to acquire a base knowledge to fix your equipment.
You can't fulfill your jobs because of time management or lack of employees. You should hire an assistant or a hiring strategy for workers.
Your quality is horrible. You need to know what you are doing or it will put you out of business.

4. You need to legal up.
Create an LLC for asset protection.
Buy Insurance. If you need pricing options and quotes, look up wexfordins.com

5. Commit and start your excavating company today.