In need of advice....

Smiff · May 31, 2014

First off I would like to say Hello! I am new to the forum but I read almost daily. I have to say this one of the best forums I have read yet.

Any way as the title says i'm in need of some advice...

I work a full time job in law enforcement and i'm thinking about buying some where around 40 hp tractor to start a side business (looking at kubota L3800) i'm going to need a trailer and implements also. I'm not going to be quitting my full time job to run this business just going to be doing it on my days off. I've got a 2009 Seirra 1500 Z71 to tow the equipment with for now. I'm looking at buying at least medium duty implements and going to try and start off with just 5ft bush hog and box scrape. A 5ft disc harrow, tiller, and maybe a single turn plow will be soon to follow. I'm also going to have a FEL on the tractor. I will buy more implements and maybe some type of smaller diesel dump truck later on as I need them and according to how the money is being made. Im looking at providing bush hogging, driveway work, pasture maintenance and renovations, un developed lot maintenance, garden tilling, food plots for hunters, small clearing jobs, basically any types of tractor work. The area I live in is mostly rural with several big farms and lots of "smaller" acreage/farms.

Im going to be doing this paying taxes and having insurance, its not going to be an "cash under the table" type business. Not that there's anything with that I just dont want it like that. I live in the central NC about 45 minutes east of Charlotte. I've looked at other peoples ads for this type of work on craigslist and have found a few. Most are charging by the hr and prices range from $50 to $100 per hr. I am wanting to price the jobs by the "job" not by the hr. I think that would be more fair to me and the customer.

If there's anybody out there already doing somthing like this please chime in and give some pointers. But some questions I have are as follows.

My first question is with roughly a $25,000 investment will I at least be able to make a equipment payment and maybe make a little money with the competition that's out there?

Second is it better to buy new at 0% financing or slightly used?

Third whats the best way to advertise?

Im looking at possibly turning this into something I will do after I retire and maybe even expanding into hiring a additional crew in the future.

Sorry for running on and on but just seeking some advice from more experienced people. But thanks in advance for the help!

skyhook · May 31, 2014

I can't help you with the business aspect,
but "word of mouth" is your best friend when it comes to advertising.
The L3800 is a nice tractor, but,,
If it were me, I would be looking at something with a little more (pto hp)
for the type of work your looking at. The L4600 is a nice machine,
36 to 38 pto hp and comes in gear or hst trans.
If your going to expand down the road, ( a dump truck ) you really
should consider something larger, you may regret it down the road.

Botabill · May 31, 2014

Eight years ago I bought a liitle Kubota BX 1800 tractor with a front end loader and mid mount mower to do a bit of work around my property. Now I am retired and have a nice little excavation business. Basically what I did was bought machinery I personally needed to do work around my place then I advertised through any free forum that I was availalble. Once I picked up a few paying jobs I became a registered business. That allowed me to have income tax write offs. Since the government was helping to support my love of machinery I bought more. The more I bought the broader the scope of my ability to do work became. If someone asked me if I could do a certain job I would take it on and buy whatever I needed to get the job done. Basically it was demand that shaped the direct my business took. This year I quit advertising because I wanted to work more around my house but folks keep calling me to do work for them. I believe that is because I have been fair with my pricing & provided good service. I will work by the hour or by the job. If a person wants to pay by the job I price double what I think it will cost as problems can occur. Usually I do well by the job pricing but on occasion I lose money but gain experience. With regards to your questions... Maybe. Depends where you are and what the competition is like. Question 2... I like to buy new but I know some folks have got incredible deals on slightly used. Free advertising is best to start. Word of mouth will become your best if you do good work . An ad in the phone book gives you legitamacy but I have barely paid for the ad with the work picked up through the yellow pages. Many folks find businesses on the internet these days. It sounds like you are in a more rural area. I'm in a more urban area though I'm a country mouse. I do plowing and tilling however it is seasonal work. There is a big flush in the spring then it dies. I do just about anything that requires dirt or aggregate to be moved. The demand for armour stone has spiked lately. Good luck!

motownbrowne · May 31, 2014

I agree with skyhook.

Check out the MX series too. When I priced them the mx4700 was bigger, heavier, more lift, and cheaper than the l4600. The l3800 is known for having a jerky 3pt hitch, and not the most robust PTO clutch system.

RogueFab · May 31, 2014

I've looked at the MX line too, nice slightly bigger tractors.

From a business standpoint, it is going to depend on how much time off you have and how many jobs you fit in. I think you can easily cover your payments and make a few hundred a month if you keep decently busy and don't take on jobs at the wrong price and end up working for too little per hour.

We're talking about around 600-700 a month in payments, right? That's only 2 full work days at a decent rate. Figure 8 days off a month, 1 day with "learning about quotes" (jobs running over), 2 days promoting and quoting, and 5 work days at around 6 hours at 60/hr average, and you have about $1800 in gross income. You will spend a little on business insurance (~$150), maybe $150 on fuel, and another 100 on maintenance. Charge for material on top of labor and that won't cut into the bottom line.

I think you have room to pay off the equipment over a 5 year period and make $300-600 a month without working yourself ragged. I don't have the most experience running large equipment, but I would go with a lot more weight and power than an L3800. Even if you have to take on one with more hours to do it.

Smiff · May 31, 2014

Thanks again to all that has chimed in. I would like to have something a little bigger than the 3800/3901 size tractor but my truck I have now is rated to pull 7,000 lbs. The 3901 is 2778 lbs plus im going to figure around 1000 for the loading the rears and another 1000 for the loader. The MX4800 is 3729 plus the same extra 2000 lbs. My concern is by the time I get a 18 ft trailer and a implement or two on the trailer its going to be more than my truck can handle. I agree 100% that the bigger tractor will be safer and more productive. But ive also talked to some people that say that my truck can handle more than the advertised tow capacity. I have a built in trailer brake controller and im planning on buying a trailer with brakes on both axels to make sure I get everything stopped when I need to. By the way my truck is a extended 1500 with 3.73 gears and the 5.3 L vortec engine.

RougeFab the best way to explain my work schedule is im off 7 out of every 14 days I work. So ill have plenty of time to quote jobs/work/advertising and all the other things it takes to get it done. I figure my payments will be around the 375-475 range.

And by the way im open to different brands of tractors too. I have John Deere, Mahindra, New Holland and of course Kubota dealers local.

RogueFab · May 31, 2014

Trucks can handle more than the rated loads in a pinch sometimes, but buying a regularly towed setup over 100% of your load rating is a terrible idea. You will eat rear tires, fuel, brakes, transmissions, and it isn't very safe. Most guys recommend 75% or so. Every truck is different, so maybe those guys are right. But if you are over your combined GVWR and hit something, you should know if your insurance will cover that before you start the truck with that load

With that many days off you will have the time to make some dough if you have the jobs. I understand why you aren't going with a bigger tractor. Use the little one to make money and buy a bigger truck with it

you are making the safe decision...

Smiff · May 31, 2014

I would like to try and stay as close to 6000 lbs as I can. Im not wanting to wear it out no sooner than I have too. But I also remember a day when my dad pulled a JD 1020 with what ever implement he had hooked with a 87 model ram 150 2wd with a 318 under the hood. All that was on the bumper not a class 3 hitch and no trailer brakes...all I can is wow.

Im hoping this may turn in something for me and if it dose ill upgrade to a bigger tractor. But for now ill have to keep my equipment size in mind will looking at jobs.

RogueFab · May 31, 2014

6k is probably plenty safe. I forgot, I'm in Oregon. Not much flat here, and weather changes quick. Depending where you drive, you might be able to stretch it a bit.