Hi guys, my names Liam I'm looking for some advice on starting owner driver excavator company

[V8Druid]

That's one thing i see on occasion self employed fellas who think they are in charge and not the customer. Yes if you work direct for the customer they have got you in because you know what you're doing and they don't but you still have to have that respect for them as if they are the boss. End of the day whoever is paying is in charge. There's a fair few jobs I've done which I've had more work from where other trades who've been there haven't been asked back purely from this.

yeh .... you need to learn the art of diplomacy pretty quick ....... just don't get the immunity with it

 

[Giles]

So much to unwrap here. Everyone's comments are valid but we are all in our own areas and what works for one person in one area, might not work for another.

Step 1.
Like any business you have risks and rewards, if you haven't already I would sit down and work out what you want to earn in wage, what your overheads are (or estimate them to be) and then you can work out how many days you need to work to cover your costs and potentially what your profit might be. Then compare your daily rate to others in the area. Call them up, don't pretend to be a customer. Just ask saying you are also looking to start up and don't want to undercut them. You never know, they might be flat out and offer you some work to get you started? Its happened to me and I've done it to others so don't think I'm crazy. Or they could tell you to f**k off but that's always the fun part and they wont be much competition if they say that.
Essentially this is a form of business plan and you should have a good idea by the end of what you need to earn (I say NEED not want) what your costs are and what your profit might be (profit is separate from your wage - wages are cost) You can do this for any size machine you like, and see how they compare.

Step 2.
Having worked out what your overheads are, find out what your market is. This is much harder as you have to kind of take a guess where you think your customers will come from. But mull it over and see if you cant work for as many kinds of people as possible. I work for private people, builders, landscapers, schools, local parish council, farmers, Heathrow airport, hospitals. Start off trying to appeal to as many as possible and narrow it down as you go. For example, I no longer work for people with Horses - its always trouble but you learn these things as you go.

Step 3. Knowing what your market is now you can work out how to tell them about who you are and what you offer. Personally I have never paid for marketing, I think you can be smart in the modern day about putting yourself in front of people. Come up with a name, simple logo/ branding then keep it consistent across your website, google business page, facebook business page, twitter, instagram, farmbackup, yell.com (free listings only- don't pay!) If necessary find other business like yours who's blurb you like and copy/ modify it to suit your business and style. Use some unique photos of work you might have done in your mums garden, or you've done at work before to get you started.

So far you have spent £0

Step 4.
Ask yourself if you really want to do this. Like really really. My business journey (well documented on here and the old CEF forum) has been the hardest thing I have EVER done. And I constantly ask myself (and Rory) if I should just give it up and work for someone. And I've made money! Some dont.....ever! You have to really want it. Want it so much you would work 14hrs a day 7 days a week for months on end. Not go out with your mates, not go on holiday, and when things go wrong or it rains when you're topsoiling, or a trench collapses, you have to be wanting it so much you laugh at your luck and keep dogging on the job into hour 15 on a Sunday evening. Then when you get home, write some invoices up and quote the next job. Nothing any of us can say on here will prepare you for what its like, but when it goes right, its the most satisfying feeling turning a job from a quote to a payment in your account.

Step 5.
Having passed step 4 you must be as crazy as the rest of us so welcome to the club! Now its the fun part, buying the machine! This is mandatory to open to discussion on the forum and the Bobcat and Takuchi reps will fight over who offers the cheapest finance and who has the most awkward nipple to grease. Things to note here though - VAT. Register for it and you have to charge it on top of your rate. This makes you expensive to private customers but is irrelevant to other contractors and commercial clients as they claim it back anyway. So if you have identified private clients as a big market in step 2, maybe think about swallowing the vat on the machine so you don't have to charge it. This might sway you away from new to maybe a tidy used machine to get you started? Finance (some on here have forgotten) is impossible to get when you first start on the sort of rates some of us enjoy now. All play a part in your decision.

Step 6.
Now get to work! You will be surprised the phone will start to ring from your various online pages. Obviously very slow at first. Personally I would try and get started while you still have some employment, just say you are busy and can only do a weekend if someone calls (which is technically true). Weekend work build experience, brings in some cash, and gives you a start before you have to rely on the income.

I could go on here, there's so many lessons I've learnt the hard way. And if you're truly committed there's nothing that would put you off anyway. And you need that naivety to take the leap in the first place! Good luck and hope something of what I have written above is helpful to you. Ill leave it to Eric Cartman to summarise.

Excellent that Ollie

I have a mate who runs all new kit brand new fastrac/tm220/Valtra 14 trailers balers etc newish js145 3cx and new jcb 10 tonner think his fiancé payment is £5k a month or more, anyway ever few weeks we speak and always comes down to jacking it in and going working for someone else lol, like a bunch of old women about s**t clients new competition under cutting everyone and hassle of running own firm etc but we keep doing it.

good luck to your new venture and look forward to following it.

who was the young lad south coastway who started with kobelco micro now got a u27 and engcon Edwards? He might be good one to look at.

I was in the barn till 8 last night adapting a bucket for today’s dig out, joys of being the boss

 

[doobin]

I remember that lad. What happened to him? Not seen him on the new forum. He started with a micro and a recovery truck if memory serves, and I think he had a grab too.

Would be some good brains to pick.

 

[V8Druid]

Excellent that Ollie
who was the young lad south coastway who started with kobelco micro now got a u27 and engcon Edwards? He might be good one to look

Was Tom Edwards, Giles ...... Bristol way he was from .... don't think he's on here.. haven't heard from Tom in a while

 

[maz]

I'm not in the business, but have a few bits of equipment. I would advise that you dont be afraid of finance in moderation. Consider it wages for a machine and some machines earn their wages better than some employees

 

[Bucket on wheels]

Most of the posts on here seem to be steering @Liam1992 to a small machine, and @JD450A comment about the market being flooded.
Absolutely no idea on cost, but what about a hybrid/electric machine, and use that as the main selling point? Most manufactures offer one, being green is all the rage at the minute. Might open up some niche work, private works willing to pay the extra for greenness?

Just thinking of a different angle

K. Baugerød Anlegg ordered the Volvo ECR25 Electric in January 2019. On Tuesday 19 January 2021, it was handed over. From left: Sara Iselin Nysveen Bakke (General Manager, K. Baugerød Anlegg),Kai Baugerød (Chairman, K. Baugerød Anlegg) and Kim Nymo (District Manager, Volvo Maskin). Photo: Volvo Machine
First in the world
K. Baugerød Anlegg and Veidekke were the first in the world to order the new electric compact machines from Volvo Construction Equipment.
The editorial staff of AT.no.
PUBLISHED Wednesday, January 20, 2021 - 10:58 LAST UPDATED Wednesday, January 20, 2021 - 11:10

Volvo Construction Equipment (Volvo CE) and Volvo Machine recently marked an important milestone in the journey towards a more sustainable construction industry: This week, K. Baugerød Anlegg and Veidekke received a Volvo ECR25 Electric compact excavator and a Volvo L25 Electric compact wheel loader, respectively.
K. Baugerød Anlegg ordered its Volvo ECR25 Electric already in January 2019, while Veidekke ordered its Volvo L25 Electric under Bauma in Munich in April 2019, where both models were unveiled for the first time.
K. Baugerød Anlegg and Veidekke were the first in the world to order the new models. Both customers participated when the machines were unveiled and launched for the trade press during Bauma 2019 in Munich with top executives from Volvo Group and Volvo CE present. Together, they took an important step on the road to a sustainable future.
K. Baugerød Anlegg will use its Volvo ECR25 Electric in the work with pipe and cable work in Oslo, and Veidekke will initially use its Volvo L25 Electric in a job for the Norwegian Public Roads Administration in Trøndelag.
Noise and emission-free operation

Delivery of Volvo L25 Electric 19 January 2021. Veidekke ordered its Volvo L25 Electric during Bauma in Munich in April 2019 From left: Are Ellefsrud (Chief Engineer, Veidekke) and Kenneth Hansen (Sales Manager, Volvo Machine). Photo: Volvo Machine
- Our customers demand more environmentally friendly solutions, and we want to be at the forefront. The new quiet and emission-free excavator will also provide a better working environment for both machine operators and others at the plant, says Sara Iselin Nysveen Bakke, general manager of K. Baugerød Anlegg.
Are Ellefsrud, chief engineer at Veidekke says:
- We appreciate being among the first to use a Volvo electric machine, and show both customers and partners that we take an active role in the work to reduce emissions and prevent climate change.

An electric Volvo truck from NCC on its way to deliver the electric excavator to K. Baugerød Anlegg. Photo: Volvo Machine
By replacing the diesel engine with 48-volt lithium-ion batteries and electric motors, the machines can offer the performance that customers expect, but with zero emissions, less noise and vibration, and easier maintenance. According to Volvo, the battery capacity gives the machines an operating time of up to an eight-hour shift in typical applications such as landscape gardening, material handling and other service work.
The machines can be charged overnight with a standard 10A socket, or fast-charged with an external charger.
Volvo CE top: - Nice to see their commitment
- We would like to thank K Baugerød Anlegg and Veidekke for the trust they have shown us by ordering completely newly developed machines. It is exciting to work with customers who invest in new environmentally friendly technology that Volvo ECR25 Electric and Volvo L25 Electric represent, says sales director at Volvo Maskin David Kristianslund.
Volvo CE's President Melker Jernberg met both customers at the launch at Bauma in 2019, and also sends a greeting to K Baugerød Anlegg and Veidekke:
- We are proud to hand over electric compact machines to you today. You had faith in us when the machines were launched, and you have faith in us now. It is good to see their commitment, and it is important that we build a sustainable future together, where this is a big part. This is a great day, both for me and for my colleagues at Volvo CE

 

[Thomas7740]

You say you arent just a lever puller and can do repairs, but what experience have you in groundworks? I cant imagine working for a dredging company to have involved typical groundworks jobs like taking levels, kerbing, paving, drainage etc? Do you what building control in your area expect when it comes to work?
Have seen it a few times lately in my area, drivers from quarries or sites go out on their own and don't have a clue when it comes to working on their own, maybe a good driver but means nothing when you don't know anything else.
Have you considered working to a groundworks contractor for awhile to learn?

All that may not apply to you, in which case ignore and good luck

 

[Nick...]

Agree with a lot of above.I started by myself in 2001.had my CASE590sle bought brand new from savings and borrowed half from parents.paid my loan back in first year.had a few contacts prior to starting by myself.been doing groundwork in previous 15 years along with being a farmer.bought a mini digger couple years later and kept a machine working pretty much full time.luckily I got in with a developer and done a lot for them and picked up lots of other jobs too,private and commercial.advertised on yell and parish magazine at the time and often done 6/7 days a week.done work for big concerns too like British rail,may gurney,British Gas,tesco,keir,persimmon and Norfolk and suffolk councils.big companies allways pay after lots and lots of chasing but often takes months and I’ve avoided them for years.still do a bit for a local developer now but after 20 years I’ve pretty much had enough of it all.still get local private customers phone for little jobs which may take half an hour but don’t want to pay for more than half hour,then joe bloggs says billy down the road will do it for x amount with a worn out mini digger with no insurance or experience either.then you get the people who think you earn too much having in my case a year old pick up and 3 year old mini digger which are both kept imaculate and look new as I try to present a professional image.I used to operate for others when I started to keep the money coming in so that’s another option for you.unless you expand you won’t make a fortune but you will get by.in last 20 years I’ve had 3 backhoes,all gone now and 4 x1.5 ton mini diggers and now just my 2.5 ton volvo.if you want to give it a go I wish you all the best but there are plenty of issues to contend with.allways get good insurance and read the small print and maybe hire what you need till you get established.
nick...

 

[maz]

And for my last piece of advice. Always carry one of these

 

[V8Druid]

Was Tom Edwards, Giles ...... Bristol way he was from .... don't think he's on here.. haven't heard from Tom in a while

Tom Edwards | Facebook
T.Edwards Plant | Facebook .... classic example of a great FB page for advertising yer 'wares'

 

[Gunners]

Spoke to Tom yesterday, we keep in touch on Instagram. He’s doing well, not sure why he’s not on here anymore? Probably too busy!

 

[GazCro]

And for my last piece of advice. Always carry one of these

View attachment 21153

Farmers blank costs nowt, just bend it over a tie a bit of string round

 

[V8Druid]

Spoke to Tom yesterday, we keep in touch on Instagram. He’s doing well, not sure why he’s not on here anymore? Probably too busy!

told him he's being asked after here, this afternoon and tried to 'encourage him ' to sign up ... he used to be a fair contributor on CEF ... seem to recall his last posts were about a builder's crap retaining wall collapsing on his machine and causing a seeeerious amount of damage to his new Kub .... looking at his FB page he's come on well since then

 

[Danny]

Youve really got to love it as it will take over your life.

My girlfriend left me recently we had been together for 5 years and she had always jokingly said its, me you and the business.
I would rather invest money in growing the business and said i wasnt ready to buy a house with her so she bought her own and left she was great through out and saw it grow from me being a owner operator to 3 guys but remember to try and have a home life its knocked me for six and ive honestly thought about packing it all in and going back to drive for someone else just for an easier life as it does take its toll.

Leave home 6/7am get home 5/6/7pm then invoicing, replying to emails, pricing it never stops. I feel like i honestly never switch off.

There is money in plant hire and the private sector but its not great you turn up to a job and they have no idea what they want so want 3 quotes from you and then guess what you never hear back from them as joe bloggs who is semi retired with no insurance gets the job for beer tokens, you will make a living but never get much further down the road.

Commerical sector / decent groundworks jobs but takes years to get there

 

[Brendan]

Do you most of you guys have separate yards or live on farms

 

[Nick...]

I’m a farmer and live on a farm
nick...

 

[Jimbo69]

Do you most of you guys have separate yards or live on farms

I have a yard and a small shed on my friends farm. It started off as just somewhere to park my trailer but it’s expanded a bit since then

 

[V8Druid]

Youve really got to love it as it will take over your life.

My girlfriend left me recently we had been together for 5 years and she had always jokingly said its, me you and the business.
I would rather invest money in growing the business and said i wasnt ready to buy a house with her so she bought her own and left she was great through out and saw it grow from me being a owner operator to 3 guys but remember to try and have a home life its knocked me for six and ive honestly thought about packing it all in and going back to drive for someone else just for an easier life as it does take its toll.

Leave home 6/7am get home 5/6/7pm then invoicing, replying to emails, pricing it never stops. I feel like i honestly never switch off.

There is money in plant hire and the private sector but its not great you turn up to a job and they have no idea what they want so want 3 quotes from you and then guess what you never hear back from them as joe bloggs who is semi retired with no insurance gets the job for beer tokens, you will make a living but never get much further down the road.

Commerical sector / decent groundworks jobs but takes years to get there

nail and head ...... Pam always used to 'complain' that Milsteel came first .. end of .. TBF she was pretty nigh on right .. my life revolved around my biz .... last fifteen plus years, aside from B/hols. and crimbo ... had two one week holidays, 'til i was forced into retirement.
when you are pivotal to the smooth operation of your biz, simply organising time off was/is a nightmare and took/takes months to work toward. You end up not bothering because of the grief and hassle and it applies to most other facets of life too

 

[TiltyShaun]

I’m a farmer and live on a farm
nick...

And another one of those here!!

 

[TiltyShaun]

nail and head ...... Pam always used to 'complain' that Milsteel came first .. end of .. TBF she was pretty nigh on right .. my life revolved around my biz .... last fifteen plus years, aside from B/hols. and crimbo ... had two one week holidays, 'til i was forced into retirement.
when you are pivotal to the smooth operation of your biz, simply organising time off was/is a nightmare and took/takes months to work toward. You end up not bothering because of the grief and hassle and it applies to most other facets of life too

Something you have to be able to do to get beyond a certain size is delegation. Tried it once and didn’t like it!!