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Another Stump Grinding Business Thread...

Discussion in 'Business Management' started by TX_DKW, Sep 15, 2016.

  1. TX_DKW

    TX_DKW ArboristSite Lurker

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    Hi, I wanted to get some input from everyone's thoughts on my current stumping biz plan.

    Equipment: The plan is to purchase a 65+ HP diesel tow behind and a good sized self propelled unit that fits through a standard yard gate (I have some experience with towables). Accommodate a heavy duty flat bed pickup with ramps for the self propelled unit to piggyback so I can haul both at ALL times. I have a couple of saws and plenty of mechanical experience, tools, and the facilities to maintain and repair equipment on my own. Buying used but low hour equipment I can be in all of it for under 36K with my credit and the business startup loan I have discussed with my banker the equipment and insurance would run me less than $700/month

    Business Plan: (the part I need the most input on) I understand the set aside 25% for taxes, 25% maybe more for maintenance and repairs pay myself roughly 25% put the remainder in a business checking for general use. And don't leave the house for less than 75$ in city limits $100 inside county lines. Out of my county charge the regular $100+ $.50-$.75 a mile. Pricing and estimating: I will be doing under advisement from a 25+ year vet.

    Marketing: (My strong suit) of course I plan to pass out cards plaster the business name everywhere I can go out on the road and (fish) for work and pick up deals with existing tree companies. I have connections with 3 different home builders (blood related to 2) that build 8-10 homes a year, 2 landscaping companies, I also would be taking over work that belonged to my friend that is leaving the business. I know folks at the 4 local golf courses personally. I live in a town of 45,000-ish people founded on the timber and oil industry so I personally believe I'll always be finding work. 4 of the 5 local tree services hire out for stumps. There are 3 local stump services I can find on google 2 of which only have a towable and can't do backyard work. I am centrally located within a 2 hr drive of Houston, Dallas, Tyler, Longview, Beaumont/ Port A, Shreveport and Lake Charles.


    Do I have the gist? Or am I setting myself up to crash and burn.
     
  2. jefflovstrom

    jefflovstrom It was a beautiful day!

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    Do you have a regular job?,,,I hope so,
    Jeff :buttkick:
     
    pro94lt likes this.
  3. TX_DKW

    TX_DKW ArboristSite Lurker

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    I do, I make a decent living right now but I want to go in for myself and make it..... decenter:reading:

    Also considering a tracked Skid Steer with a high flow cutter and other attachments so I'm not limited to JUST stumps. I could swing small trees general dirt work and throw a brush cutter/reclaimer in the mix too.
     
  4. MSgtBob66

    MSgtBob66 ArboristSite Operative

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    Get all the gear for $36K? Or do you have existing equipment? The two stumpers that big for that cheap are going to need up front maintenance. You should be able to swing it, but check the local pricing before you jump all in. I'm a part-part timer, subsidized everything until June with my regular job, like Jeff is talking about, so all my junk was paid for except for a loan on my new grinder in June. Now I need to make $1800/Month for payments and expenses during the busy months, and the new grinder is making me change out my whole operation. Got the old F-Super Duty with a flatbed (like you are talking) from a buddy that needed a new (old) truck, so I'm going to sell the whole old stumping set up and get a commuter car. I do more than just stumps, I do non-technical & smaller tree removals, a lot of branch clean up and work part-part-part time with a tree guy that we through the appropriate business to each other, plus I work with 2 lawn services. I am setting myself up for my retirement years so I have a reason to get up in the morning, yet it is stumping hours (only had 1 that was an emergency).

    Prepare for the worst and hope for the best. That way, you'll surprise yourself.

    Bob
     
  5. MSgtBob66

    MSgtBob66 ArboristSite Operative

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    Have a dump on that truck as well, or a dump trailer. I make a lot of money because of a dumper!
     
  6. TX_DKW

    TX_DKW ArboristSite Lurker

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    The SC752 I have locked down is under 1000 hours and is pristine comes with 4-5 sets of teeth belts and a couple of misc. bearings. I can be in it for 12k I'm also looking at the Toro STX 26 I can be in for about 7500 I would just have to buy a flatbed pickup for about 15k my half ton just won't cut it.
     
  7. MSgtBob66

    MSgtBob66 ArboristSite Operative

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    Should be able to get a decent dump truck for $15k. I have under $4k in on my flatbed.
     
    hseII likes this.
  8. TX_DKW

    TX_DKW ArboristSite Lurker

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    UPDATE:

    Haven't been on in a while. Got all of my equipment together a few saws a dump trailer and I can say I'M MAKING IT!!! I've only been working FRI-SAT-SUN for the past few months and havent done less than 2500-3k a weekend! only 2 weekends have been too wet to work and spent those days maintaining equipment in the shop. I picked up a 16ft Big Tex Dumper used for pretty cheap and I can honestly say if I don't continue with the business I'll still hang on to it. It's too handy. I picked up with a contractor buddy of mine thinning out lots for future home sites. It's a lot of work but hiring friends or some local kids on the weekends speeds things up. 15541134_547574762118924_8734394630923688079_n.jpg 15401104_547574765452257_8287529187892826669_n.jpg
     
    Jimbo209, MSgtBob66 and Firemoore98 like this.

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