Starting an excavating company can be a lucrative and rewarding career. This endeavor, however, is not without its difficulties and risks. For starters, operating and maintaining various pieces of heavy equipment such as bulldozers, backhoes, and cranes necessitates a lot of hard work, long hours, and specific skills. Furthermore, market competition will be determined by the amount of capital invested at the start-up stage, as well as the reputation built up during the first few contracts completed while establishing the excavating business.
Taking inventory of current skills, experience, and equipment is the first step in starting an excavating business. If you’re reading this article because you want to start your own business as an independent contractor but don’t have any on-the-job experience or training, you should consider working for another company for a year or two first. This would serve as a foundation for understanding certain logistical aspects of negotiating excavation contracts, such as bid proposals and project planning. It would also give students a firsthand look at how to collaborate with other professionals, such as construction engineers and environmental conservation consultants, to ensure that local and federal laws are followed. To put it another way, running a successful excavating business necessitates far more than simply knowing how to move the earth.
When it comes to equipment, it’s best to start with a few basic pieces. Obviously, some cash or the ability to finance equipment with a reasonable payback structure will be required. However, a backhoe is the most important piece of equipment to start with because the most common job is to dig out the area where construction will take place. Furthermore, a large number of small jobs completed with this single piece of equipment can quickly add to the number of contracts and referrals. For example, homeowners frequently hire a small excavating company to dig trenches and improve drainage around their homes’ foundations, as well as excavate land for a man-made pond or other landscaping projects.
If you want to start an excavating business in your area, you’ll need to look into any mandatory licensing requirements. A general business license is usually required, and it is likely that specialized equipment, such as a backhoe or bulldozer, will also require licensing. Depending on the services you plan to provide, you may need to obtain a residential contractor’s license in some areas. Most contractors also buy liability insurance to protect their personal assets as well as the company’s.