The best way to go about starting a business is find something that is very niche that not many people are doing.
And then to see if there is a need for that type of service. An example would be an excavator.
If somebody wants to have a pool installed, then they aren’t likely to have the equipment to dig a huge hole in the yard and certainly are not going to use a shovel. There is only one solution for that person. Hire an excavator company.
It’s these thankless and heavy jobs that are basically recession proof as there is always a need for it and not many people starting these types of companies. Instead of a startup, the money is in these unglamorous jobs.
Here are some ideas to get you started.
1 – Get your machinery
This will be your biggest expense when starting out as the equipment you are going to need is big and complex. You can start out small, however, and buy a backhoe and maybe a small Bobcat to do the more simple jobs. Luckily, there are a lot of options to buy them used so you can stick to a budget when getting started.
Besides the equipment itself, you’ll also need to have a truck that can bring the machines to the job site. Expect to pay around £25,000 for a small operation for your equipment to get started. It could be less but this is a good starting point to have in mind.
2 – Secure funding
Rather than use your own money to start, try to secure funding for the initial cost to get started, plus at least six months of operating expenses.
Your operating costs are going to include the maintenance and operation of the equipment. You can save some money by using tax free red diesel off-road fuel but it is still an ongoing expense, and there is also the cost of replacing parts as they wear out.
Then there is the insurance for the trucks and machinery, plus liability insurance. And of course, your employees need to be paid. All of this will need to be paid before you are able to get paid by your first customers so make sure it is included in your loan.
3 – Get licensed
While you are waiting for your funding, you should also be getting your licenses ready to be able to operate a business like this. Go to your local council and find out what paperwork you’ll need to gather to make sure that you are properly licensed and legally able to operate.
4 – Find your customers
The first thing most people will tell you to do to get customers is to start using social media. While this is not bad advice, when it comes to drumming up your first customers, networking is still king.
Going to networking events in your town is going to help you establish your presence and will get the word out to people that want to help their fellow local entrepreneurs. Shake some hands, pass out some cards and help people put a face to the name.
Then you should hit the social media platforms to brand yourself and let people know what your services are. Then create a website and get it listed on Google My Business so people can find you when they are looking for local excavating services.