#excavator #excavators #construction #contractor
How to start an excavating company - Land Clearing, Basement Digging, Excavating for Foundations, and Excavating utility work.

1. You need to understand your excavating costs:
You will need to buy the following equipment:
- Excavator
- Skid Steer
- Truck and Trailer
- Random Tools
Overall Total Costs: $200,000.
For a loan, you will need 20% down = $40,000
For 5 year loan, your monthly payment will be $3,400 a month.
The insurance monthly payment is $300 a month.

2. How much can you make in the excavating business:
- Basements - $10K - $30K = Average $20K
- Land Grading - $1K - $3K - Average $2K
- Foundation Preparation - $3K - $4K = Average $3K.
For an average month, this is what you can make:
- 1 Basement = $20,000
- 2 Land Grading Jobs = $4,000
- 3 Foundations = $6,000
TOTAL REVENUE: $30,000
Now let's go through the expenses:
- $3,400 loan
- $300 for insurance
- $3,000 for gas
- $4,000 for labor
TOTAL EXPENSES: $11,000
NET INCOME: $19,000
GROSS REVENUE: $360,000
GROSS PROFIT: $228,000 - $40,000 (down payment) = $188,000

3. Think of all the ways it won't work
- You don't get jobs. You need to do marketing. You need to network with general contractors and home builders.
- Your equipment breaks down all the time. You need to acquire a base knowledge to fix your equipment.
- You can't fulfill your jobs because of time management or lack of employees. You should hire an assistant or a hiring strategy for workers.
- Your quality is horrible. You need to know what you are doing or it will put you out of business.

4. You need to legal up.
- Create an LLC for asset protection.
- Buy Insurance. If you need pricing options and quotes, look up wexfordins.com

5. Commit and start your excavating company today.

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