Getting Philosophical: The paradox of the one-person business

[Dougster]

As I sit here unable to work on a rainy day after just having had to reject a new job for lack of appropriate equipment, I am left pondering in what direction my struggling little one-person "compact tractor & backhoe services" business should take. I've mentioned before that my Mahindra 4110 with ML112 FEL and Bradco 509 BH is a wonderful little "jack of all trades"... but it is also too often the master of none (or at least too few). It is amazing how many jobs the Mahindra is too small for... and, conversely, too big for. Along those lines, I've thought hard about adding one of the following three items of equipment to expand the range of work I can accept at the high and/or low end of the job size spectrum:

a) A track-type or wheeled skidsteer, or
b) A mini-track excavator, or
c) A more powerful compact TLB (think: JD110, L39/L48, Yanmar CBL40 or equal)

I am limited to no more than one possible addition right now by both economic and practical/legal/tax realities... and the one addition MUST pay for itself in expanded business or I end up in very deep trouble very fast.

As if that question isn't already hard enough, the paradox of the one-person business also comes into play. With absolutely no ability (or any real burning desire) to hire on experienced, qualified, licensed employees, I must do everything myself. I must maintain, store, move and operate each piece of equipment that I own all by myself. Even if I owned 10 pieces of rolling stock, I can only deal with one item at a time and the logistics of moving and using such multiple pieces of equipment eventually becomes self-defeating in increased wasted time... mainly related to equipment movement.

So what is the answer? Am I already at the maximum/optimum size and practical job size limit for a one person business? One person, one machine? Should I just sit here and try to be happy??? Or is there a way to increase my effective job size range with another item of equipment from the list above without significantly increasing non-productive time... or at least increasing it no more than the time savings I'd realize by owning a wider range of equipment? And if so, what item of equipment might that be??? And please don't suggest rental equipment. I end up working for nothing (or worse). Same with subcontracting. It's a big net loser at my level.

Does adding another piece of equipment makes sense? Or is the "one person, one machine" situation I'm currently in "as good as it gets"?

Dougster

 

[SnowRidge]

What are you going to do if your one piece of equipment has a critical part on back order for a month or more? Can you stand for that to happen.

You also mention transport costs, as if it comes out of your pocket. You have to bill that to your customers, at least to their property from your property or the last job site, whichever is closer.

 

[curly]

Sorry, that's just too much for me on a Wednesday...stay small

Hey man, you're welcome to borrow my tractor anytime yours breaks or something...it's a long drive to get it though ain't it

 

[Dougster]

What are you going to do if your one piece of equipment has a critical part on back order for a month or more? Can you stand for that to happen.

Obviously, that is a potential problem. Right now, I would have to go into full-blown rental mode. This is obviously a concern which tends to favor Option (c)... another, more powerful TLB... in most cases.

You also mention transport costs, as if it comes out of your pocket. You have to bill that to your customers, at least to their property from your property or the last job site, whichever is closer.

I try to bill for it. It is in my standard price sheet. But reality is that you bid what you must bid in order to get a job. In most cases, the first thing that washes out is transportation time & costs.

Dougster

 

[Dougster]

Sorry, that's just too much for me on a Wednesday...stay small Hey man, you're welcome to borrow my tractor anytime yours breaks or something...it's a long drive to get it though ain't it

Well, this is exactly where buying your tractor (and adding a powerful backhoe) would have fit in. It's so painfully obvious that I've got to do something different or I'll be out of business by this time next year. And yet it's not at all clear to me what that something is.

Stay small and pray a lot is one option. It might even be the best option if I could just clean up and improve upon some of the non-equipment related business issues.

Dougster

 

[curly]

Well, this is exactly where buying your tractor (and adding a powerful backhoe) would have fit in. It's so painfully obvious that I've got to do something different or I'll be out of business by this time next year. And yet it's not at all clear to me what that something is.

Stay small and pray a lot is one option. It might even be the best option if I could just clean up and improve upon some of the non-equipment related business issues.

Dougster

Maybe if you spent as much time working as you do on the TBN you could come out ahead But we'd miss ya

 

[SnowRidge]

Okay, I know a guy who was in a position somewhat like you. Besides the tractor and a bush hog, he also had a big pickup and a large high side trailer, which he used to haul brush and such. He did not have a backhoe. He rapidly added a Bobcat skid steer, and he uses that for most of his work.

This guy has pretty good connections in the community he lives in. He was also helped by a couple of hurricanes. They brought lots of work and a FEMA contract.

If it hadn't been for the 'canes, I'm not sure he would have made it this far. I know he would have gone under just trying to make it bush hogging. It's one thing to do that on the side, hoping to make some beer money. It's another trying to make a living.

 

[Dougster]

Maybe if you spent as much time working as you do on the TBN you could come out ahead But we'd miss ya

Ha!!! I guess you haven't noticed that I've been working every single non-rainy day for the past 3-4 weeks... ever since I recovered enough from my August foot injury.

Dougster

 

[curly]

Ha!!! I guess you haven't noticed that I've been working every single non-rainy day for the past 3-4 weeks... ever since I recovered enough from my August foot injury.

Dougster

Does it rain a lot there? Alright alright, I'm just poking fun at you. Maybe one day when I learn how to drive my tractor I'll do the same thing.

My father-in-law (sorta, it's a long story) has been in the earth movinig business his entire life. He's prolly gonna soon call it quits and has a lot of stuff that I could get from him. But he prolly won't give me any price breaks

 

[Dougster]

Okay, I know a guy who was in a position somewhat like you. Besides the tractor and a bush hog, he also had a big pickup and a large high side trailer, which he used to haul brush and such. He did not have a backhoe. He rapidly added a Bobcat skid steer, and he uses that for most of his work. This guy has pretty good connections in the community he lives in. He was also helped by a couple of hurricanes. They brought lots of work and a FEMA contract. If it hadn't been for the 'canes, I'm not sure he would have made it this far. I know he would have gone under just trying to make it bush hogging. It's one thing to do that on the side, hoping to make some beer money. It's another trying to make a living.

I do almost no bush-hogging. It's just not in demand up here in suburban Boston/Eastern MA. Most of my work so far is FEL, box blade and rake-related... grading, demo and materials collecting/spreading... followed by backhoe & grapple work or some combo of everything. I too have a dump trailer and many attachments for the tractor. I transport my attachments as needed in the dump trailer. It's funny, but hurricane related with in 2004 and 2005 is what got me started in this funny little business. Long story for some other time...

In most cases, I am competing directly against skidsteer operators... so hence Option (a). They are the biggest thorn in my side. But the job I could not bid the other day really begged for a mini-track excavator... hence Option (b).

I am currently spoiled by having a single machine that does absolutely everything... but just doesn't do everything really, really well. It is too big for some jobs... too little for others... too slow for some. The addition, if it happens at all, must be something that significantly improves performance and speed in at least one or two key business areas.

Dougster