Excavation Contractor Business




Business : Excavating and construction services.
Business type : Contract.
Requirements : Excavators, dozers and dump trucks, a parking place.



Planning to start an excavation contract service? Good. There are many aspects to consider before starting a small scale excavator service. This business is a very unconventional business. There is a considerably pretty good income especially if you have regular customers (like construction companies, real estate developers).

Excavator Business model
There are many services you can offer in this business. The main business revolves around agricultural land owners and real estate developers. The excavators, dozers are normally rented as per the requirements of the customers. They are normally rented for a fixed hourly price.
The best thing about this business is that even if you have a regular daily contract, you can always find time for other small contracts in your neighborhood. But there is a catch, to make your business economical, you have to put your vehicles to work for at least 80-120 days a year.



Try the following tricks to get more contracts
– Try to contact as many builders, engineers you can and offer them your service for low price. This helps you to set up yourself in the industry.
– Maintain a website. Thanks to low-priced services, you can maintain your own geo-targeted website for less than 300$ a year. Put your prices out for public and tell them that the prices are negotiable. This attracts more customers
– City municipal corporations are important targets. If your region is prone to calamities, you will get a handful of contracts each month.



Investment, maintenance and return estimation
If you are a newbie in this business, you better start with used equipment and vehicles. You need at least 100000$ – 300000$ to buy your vehicles and advertise about them. It’s a large investment, so, you have to plan your returns accordingly. Do not buy more than one vehicle of the same kind initially. Study your business thoroughly in your first year and then plan for expansion.
Since the business includes heavy-duty vehicles and equipment, there is always a risk of maintenance and technical issues. Plan your budget for the worst case scenario.
Your income strategy should depend more on the market value and less on the return of your investment. It is a good business even if your return surpasses your investments in 2-3 years.


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