Backhoe yes or no

[badranman]

Hey guys,
First off let me state that I have almost no knowledge of the excavation business. I own a Bobcat 763 skidsteer which I bought last Sept. I had a partner with a framing bussiness and we bought it with the intent to rent it out but we split under good terms since then. I took the Bobcat and 2 plow trucks. I am currently doing snowplowing with these 3 pieces of equipment. My dilema is that next year I hope to get a fairly large commercial lot to plow. Where I have the Bobcat those guys rent out a Cat loader for 4 months at a cost of $20 000. I was thinking it would make more sense if I bought a backhoe instead of renting a loader like they do. I know it isn't going to handle as much as the loader but it should do okay. This way I'll own something instead of giving it back and I could use it in the summer to make money too. I was looking at maybe a 2001 cat 420d IT. Does this plan make sense? Can I keep it busy in the summer? How about maintenance costs? Any info or opinions on this would be helpful. Also tips on buying a used backhoe as well.

Thanks

 

[Blademan]

Badranman ,

it is hard to know realistically from Calgary whether or not you can keep a piece of equipment busy over the summer in Halifax . Is your market booming ? Is construction in your area busy ? Or if it would be wiser to use a backhoe versus a loader to do snow removal for a large commercial site . Do you get huge dumps of it ? Does it all need to be cleared in a short time frame ? You also say you don't know much about the excavating business ,but want to just get right in .Well if there isn't much competition in you area ,then that might be ok . You can learn as you go . But if things in your area are very competative and profit margins are slim , I'd advise going toward a more prudent and cautious route . My biggest advice would be to sit down and put togther a very thorogh business plan ,and get all you financial advisors to look it over to ( banker , accountant etc. ) . Ask as many locals in your area for advice about everthing you can think of like insurances ,licences , potential customers , etc .etc .Even see if the competition will talk to you about how they started and what they think the market will do . Ask as much as you can ,then try to be honest with your self and make up a business plan you think you can stick to . You really don't need to know everything about the business to know how to hire those who do and have experience ( a good operator can be the difference between profit and loses ,and big ones at that ) . As for good equipment ? Cat has always seemed to be the choice if money is no object , but look around at what other in your new venture are using , and maybe ask them why ? Around here , great customer service can be better then having the best piece of equipment . Some dealers are offering smoking deals cause the market share is getting just a wee tight . Looking for something with a warranty is always good .Or even look at leasing ? it could make good sence . Lots of options really . And if I were looking at a backhoe , look at thing like how " tight " it is . Is there lots of " slop " in the hydraulics ? Ask to see any or all maintenance records . This is important as on the newer stuff I believe there is less room for deviating from maitenance scheduals before things deteriorate . And , find out about who the previous owner of the equipment was . Is he a good operator or do they employ good operators ? ANYwhoooooow , Just some food for thought . Pretty vague I know ,but it's just my two cents . Good luck and have fun ....



Hope this helps ,



Rob

 

[badranman]

Cooper
Thanks for the info. I am doing exactly what you said actually. I am talking with as many people in the business that I know, asking you guys etc. This is something I don't want to rush into. I was framing houses for the past 3 years and the market can't keep up, that's what leads me to beleive there's a few more good years out there. From talking with many people they say Cat is the best and I usually buy the best I can get. I am open to that though. Like I said I'm not buying one tommorow or anything like that. There is a large excavation business out here which gets mostly every contract to build anything and I hear they're always looking for backhoes. I do have a few jobs lined up for the spring/summer that I could use it for, if not I'll have to rent a mini-x. Any and all replies appreciated, I'm here to learn. Which reminds me, I know this business is mostly learned through actual hands on but are there any resources out there that are any good for the new guy? Books, magazines, dvd's etc. This forum is a big help too, any other places, things out there that could help?

 

[mert0714]

Ditto down the posts. I would like to add that a local business doing a mall parking lot here has backhoes and skid loaders (to compliment trucks) equiped with large snowpushers 10'-12' on skids and 16'-20' on a backhoe. Must be working for them. Maybe those can be rented or leased if purchasing does not work out?

 

[badranman]

Well like I said I was thinking I could put the $20 000 towards the purchase of a vehicle instead of renting it. When they rented the loader they got a bucket and 12' blade. If I did get the 'hoe I was thinking more of getting a box blade.