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Crawlers, Dozers, Loaders & Backhoes Discussion Forum

slow start up of business

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John of the Nor

05-10-2005 18:52:55




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I have started a small excavating business last year and business is just slow. My competators have all kinds of work. Can not figure out why they get jobs to bid on and hardly no one contacts me, I even advertise in five local papers. What experience did you guys have in starting up? Any suggestions?




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kyhayman

05-12-2005 18:36:06




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
Slow is normal for starting out. I've started a half dozen businesses, all did well, all made money, and all started slow. Advertising is great, but advertise smart. Here, I can buy 5 $15 ads in 5 county papers, or I can buy 1 $90 ad in the major daily. I have never made the ad cost in the local weeklys, always done well in the daily. Spend smart.

I've never been cheap and Ive almost always had a 'regular' job. My first jobs were 'emergency jobs', Joe got drunk, Jim broke down, etc and the person needed it NOW!

People skills, when I learned I am not selling a skidloader job, a load of hay, or a tractor but marketing myself, it made a difference. I always clean up and dress decent to bid work, offer an ironclad guarentee that I will do a job on time, on budget, and have a sane and sober operator with good equipment. I remind myself every time I see what some operators are working for about a guy who cussed me and said I was too high (when I was first starting out hay baling), I thanked him and left. I watched one operator break down (running junk), and the next get drunk. 4 days later, on Sunday afternoon he was in my driveway (with rain coming) and asked me if I would do the job. I told him yes (at the rate I quoted him). Never, ever havent had to turn away work since/

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havvey

05-12-2005 06:20:52




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
don't be too discouraged and try to do something everybody else is doing. your area may have reached a saturation point on your type of buisness if so the going is tough. around here you will go broke doing little home owner jobs but you will work 7 days a week. Dont be too cheap as it does not always work.



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Roy Suomi

05-11-2005 18:18:12




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
Here in northern Ohio , of all things ,do the jobs that you wouldn't think would pay didley.. Here excavators won't do the small jobs . Like yard ditch pipes.. In my township there is a man and son team doing yard drainage and ditch pipes and they are busy, busy , busy..In developments where people are building $ 300,000 + homes, they don't want an open ditch in their front yard.... Think about it.. Get with your local road department, and tell them you are available to do custom work for residents. Do a few good , clean jobs and word will get around.....

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John of the North

05-11-2005 16:42:37




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
I'm from northern Minnesota, thank you for the input.
Any others reading the posting please comment also.



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King of Obsolete

05-11-2005 15:40:04




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
john of the north, where abouts are you??? in the great white north we have the same problem. i kept my rates down on the welding and loader work. everyone knew me when the competetion was busy. but as soon as it slowed down, no one came by.also now i pick and chose the job that pay, 3 years ago we worked 7 days week and the bank account was empty. now we work 5 days and quit at 5:00pm (not like before with late nights)and the jobs all pay and got money in the bank. so one of my sayings is WORK SMARTER, WORK LESS, and make sure the cheque is good. when the phone rings now, i know it will be a good paying customer because i have serviced him well in the past. thansk

www.kingofobsolete.ca

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Case450

05-11-2005 15:37:35




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
I have found word of mouth to be the best thing. Whatever job you do make sure and do it as best you can. I have my own personal equipment and as soon as I bought it guys started asking me for work. I told them I wasn't in that business and word travelled really fast to "dont' call that guy". lol!



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Rob in Yukon

05-11-2005 07:51:02




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
I know what you mean. The other guys gave you good advice, especially not undercutting too much and being too available. On undercutting, I keep my rate competitive but will quote a little low on a job as long as I won't lose my shirt. I kind of think your own labour is your cheapest expense. I also work for larger contractors on highway construction and whatnot part of the year to pay the bills and also you get seen working. Good word of mouth is probably the best thing that can happen to you when breaking in, any time for that matter. Good luck, keep on trucking, so to speak.

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marlowe

05-10-2005 20:23:48




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
been doing this for 35 years and this year is the worst in the last 29 people don't have any money. what part of the north are you in ?



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Dale(MO)

05-10-2005 19:49:52




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 Re: slow start up of business in reply to John of the North, 05-10-2005 18:52:55  
John,
When I started up in '93, everybody in my area (so it seemed) had a backhoe and a dump truck, and they were all busy. I almost starved. My advice is to keep plugging along. Something to keep in mind is to not undercut the competition. It is okay to be a little cheaper (5-10%), but stay in the same ballpark price-wise. People will shy away from someone who is too cheap just as fast as someone who is too expensive. If you get work because you are too cheap, you will lose your a$$, and a LARGE number of those customers aren't going to pay you anyway. Better to get paid for a few jobs, than to not get paid for a whole bunch.
Something else that I learned the hard way: DON'T drop everything and run to do a job when someone calls, even if you have nothing to do. In my experience, every time I did, it always was one load of rock (single axle), or a 10 minute job. While every little bit helps, when those same people had bigger work, if they called, they always got someone else because they figured I was busy "doing what I did" (go figure). They would expect me to come as soon as they called; if I couldn't because I was busy, I would always offer to work them in as soon as possible (sometimes jockeying my schedule around to put them in sooner), but they would always try someone else. When they got to the last person they wanted to call, they would go with them, because they would get to it just as fast/slow as the rest of us. Sometimes I think it would be helpful to be the last in the book! But if you schedule each job as if you have a lot of work (from the first job), people will expect it from the start, and they also figure you are busy, so you must know at least a little about what you are doing.
Just stick with it. If you have to get a part-time job to help with the bill, so be it. If it's something you really want to do, it will work out. Who knows, someday I may be asking you for a job!

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