Starting a small business

[glowdotGlock]

I have worked for the "man" and the man has been pretty good to me but the last few years I have really wanted to start a small business. I drive a truck and absolutely hate to be gone from home 4-5 days a week. I have a couple ideas and have thought them out (I think). I used to work for a rental company in Columbia as a driver. I hauled backhoes, dozers, etc on a lowboy to customers. He has a hell of a business and still does. One idea I have pondered about running on the side at first is a small rental company. Very small at first. I am thinking about leasing a skid steer from John Deere and renting it out. This particular company I worked for does the same. The last I checked he rented skid steers (bobcats to most) for around $140 per day and $550 for 7 days. He had around 12 leased pieced and they stayed out all year round. I can lease a new one for around 4-500 per month and rent it for $100 a day or so and just haul it with equipment I already own for an extra fee. Even if it only rents 15 days a month it would still be a nice little profit and could expect more in the summer. Then maybe later on add a mini excavator to my lineup. I wouldn't want it to get too big, maybe 3 or 4 pieces. Couple skid steers, mini ex and a backhoe. And with the equipment being leased I am just responsible for routine maintenance like oil and filters. If there are any major breakdowns I know John Deere will bring you a replacement during repairs. I would have to do some research as to the business end such as taxes and permits and so on but I feel the need to go out on my own but just on the side as first. I admire small business owners and respect what they do and I hope to be one soon. I know there is a lot of hidden things involved most don't think of but I would like to think I could endure them so I could be my own boss and be home with my family. I am not looking to be rich. Honestly I can do good on $700-$1200 per week. I have another idea but the equipment rental seems more practical. I know some of you are small business owners. Does it sound like I am in dream land or maybe have a shot?

[Dirtshooter]

I say go for it on the side first and not get in over your head. From all I know about small businesses is that most go out of business for now having enough cash flow. So make sure you can get the financing if you need it to keep going. I recently retired and all the people that I personally know that has any money to speak of worked for themselves. I never had the money or the right idea to make it myself. I always wanted my own sporting goods store. You will put in more hours and have more headaches, but if you treat your customers with respect and friendliness then you should do go. Good luck and keep us posted to your progress.

[Ugly]

I commend you! I'm not business owner yet but have been going to school for years on the subject and have worked the economy for number of years in construction.
You've got a business plan!
Start it on the side and go from there. I think you are onto something and should give it a go!

[Raoul]

Insurance? Permits? Are you located in an appropriately zoned location to do this?

[NextExit]

As long as your customers aren't abusing that leased equipment, you'll probably do well.  (Go to Home Depot and look at the condition of some of their rentals)  The other thing I'd check into is insurance requirements.  I don't know how it works out on equipment rentals.

[VERO1]

Who will cover break down expenses? As mentioned above , you know some idiots will abuse the equipment just because they can.

[glowdotGlock]

I will definitely have some dough put back to cover unforseen expenses. I don't see it being too high being one machine at first. And if I just have a bad month the lease is 500 a month so nothing that will plunge me into poverty. My fiance has a background in keeping books and clerical work once I get things rolling. I have another idea and will post it and see what yall think after I eat here in a bit.

[runco]

Risk and Reward!

 

As a "former" business owner, I loved the sky is the limit on what I could make as a business owner, but there is comfort in that steady weekly paycheck. 

[10-Ring]

I've been self employed and I've worked for "the man."  Each has it's benefits.  Right now I work for the man, but he's a good man and he's very good to me, IMO that's the way to go.  I wish you the best of luck and if I could give you two pieces of advice they would be 1)  Don't ever get a full nights sleep, you will operate better just being tired all of the time since you are used to it.  And 2) Don't put all of your eggs in one basket.  See to it ahead of time that if your business doesn't work out that you are not going to loose everything and not have a place to live, it happens to more people than you would think. 

[45guy]

I have been self employed fo close to 20 years with 2 different businesses. 1 I bought that was already operational 1 I started from scratch. We have always lived conservatively so I did not need to make much money(good thing to). There are a lot of highs and lows. I have always been in a B to B business. Running a business is much diferant than working for someone else. Meaning you may be a good painter but be very bad at running a painting business. Most of the time failure is caused by underestimating all the cost including the TAXES. Do your home work. Get a good CPA. Put a detailed business plan together and then have it looked at by others. Then add 10% to all your cost and see how the numbers come out. The work you do ahead of time can be the difference between success or failure. It will also save you a lot of money. Good luck.

[Fourtyfive]

As above , but I assume you have seen how people treat rental equipment. Be prepared for broken stuff and have the renters sign up to cover it ; and the collateral to back it up.

[56FordGuy]

I currently work as a technician for an equipment dealer, and have owned two 'side' businesses in the past. One of them I sold, the other I closed due to some life changes. My advice would be to operate very, very conservatively. Rental/ lease customers will damage things in ways you can't even imagine. I've talked with factory engineers in my current job who told me "X part can't break", while I emailed them pictures of that exact part broken clean in half. Our lease customers pay a certain amount per month and we keep their machines running, with the exception of customer (or sub-leaser) damage. The cost of those repairs gets billed to our client, who can pass that cost on to their sub leasor or not at their discretion. Start small, as a side business you can manage on the weekends and evenings. Spend the money to open an LLC. Expect things to break that you never thought could fail, and expect customers to not pay or argue about what seem like pretty clear costs. 

 

Having done both, I'm very happy being a dealership employee instead of an owner right now. I work for a good company who takes care of it's people, and if a job really falls apart I can move it up the chain and let management deal with the client. 

[Dustbuster]

I know you can hustle but remember it all starts with a vision! Basic rules apply to all enterprises!

Edited January 3, 2015 by Dustbuster

[MacGyver]

I've been on my own for 10 years in March. Not having a guaranteed paycheck on Friday will keep you honest. With small kids, I'm our sole breadwinner, so it can be stressful. Even with the stress, I'm not sure I could go back to the man. It would really have to be the right deal.

That said, there's an old saying, "nothing parties like a rental." It's definitely worth spending some time with some folks who have done equipment rental.

[swim615]

As far as equipment goes I keep a extra of everything. (It is always about to break down). Even when its new and under warranty the dealer will keep it for at least 2 weeks try explaining that to 80 customers that want to know where you are. The only thing I don't have 2 of is me.

 

I can't make enough money no matter how hard I work or how much I make. It is never enough.

 

I am always just about to go under and just about to make it to the top.

 

I wouldn't have it any other way.

 

I could go on and on but I have to get back to work. time is $

[Fourtyfive]

Love to hear from business owners , and that's what I'm hearin ....

[glowdotGlock]

I haven't put anything in the works yet but just wanted to get some opinions. I would love to lease a mini ex and do work myself. I have ran equipment my whole life and I'm not bad but just knowing how to operate doesn't make me a good business owner though. I don't know how to bid jobs and all the codes and whatnot. Edited January 3, 2015 by glowdotGlock

[glowdotGlock]

The other idea I have been daydreaming about is a hospitality business. I have land about 600 feet from I-65 in Maury county that is zoned commercial. It was bought from a larger parcel of land that had a business on it and I am lead to believe it still carries the "commercial" status but I am not sure. Nevertheless, I wanted to dig about a 1.5 acres lake/pond which I have the equipment available for and around the lake build about 5 small "cabins". Really just small 12x20 type dutch storage buildings that are insulated and wired like a house and rent them by the night. People could camp around the lake and fish and grill and just relax. I have a great location but always wondered if it would go over well. Maybe start with 3 buildings and add a couple more. I pretty much have the prototype building in my backyard. It has pine wood interior walls with A/C and vinyl windows and a bed in the small loft. I can build each one in about 3 weeks at a cost of around $5,500 a piece. I think that would be neat. Edited January 3, 2015 by glowdotGlock

[Trekbike]

Describe the surrounding area. Is it open fields or wooded, etc. ?

While being 600 feet from I-65 is good from an access point of view, it sounds too close to the interstate to give people the "peace" they might be seeking unless the area is wooded. Can you hear the interstate traffic?

Is there other recreation opportunities you might be able to offer in addition to fishing to make it more attractive to guests? Edited January 3, 2015 by Trekbike

[10-Ring]

On rental damages...  I could see damages destroying your business.  A friend of mine owns a motorcycle rental business, talk about people tearing stuff up, his customers crash a few of his bikes each year.  Can't remember off the top of my head but he puts a hold of something like $3,000 on their credit card when they rent, plus in his contract he specifies that the client is responsible for any damages beyond that as well.  Big difference between equipment and motorcycles is that 3 grand can about replace most of his motorcycles while 3 grand wouldn't cover most heavy equipment repairs.  Also working against you using something like this is that it is not the industry norm (to my knowledge anyway) to put a hold on a credit card so you would have to find something that would be appealing about renting from you compared to your competition.  Obviously the advantage of doing this is that you can immediately recoup some damages without having to argue or go to court.  

[No_0ne]

Do most leases for equipment allow sub-leasing and/or rentals?  I have no idea of the terms of the lease agreement you're talking about, but it seems unlikely that a standard agreement would cover damage repair costs from third-party operators.

[Grand Torino]

Good luck with your endeavor....whatever it may be. After 26 years in the military I was tired of taking orders from everyone else. No matter how high in rank you go there is always another butt hole you have to listen to.

 

I ran a very successful trim carpentry business for about 20 years before closing it down in 2008 when the economy went south. Being your own boss means loooong hours, book keeping headaches, and equipment costs among other things. I worked myself nearly to death but you know what? It was the best thing I ever did. :D

[Wyldk2]

The other idea I have been daydreaming about is a hospitality business. I have land about 600 feet from I-65 in Maury county that is zoned commercial. It was bought from a larger parcel of land that had a business on it and I am lead to believe it still carries the "commercial" status but I am not sure. Nevertheless, I wanted to dig about a 1.5 acres lake/pond which I have the equipment available for and around the lake build about 5 small "cabins". Really just small 12x20 type dutch storage buildings that are insulated and wired like a house and rent them by the night. People could camp around the lake and fish and grill and just relax. I have a great location but always wondered if it would go over well. Maybe start with 3 buildings and add a couple more. I pretty much have the prototype building in my backyard. It has pine wood interior walls with A/C and vinyl windows and a bed in the small loft. I can build each one in about 3 weeks at a cost of around $5,500 a piece. I think that would be neat.

I'm not knocking any of your ideas. (Which happen to be good ones). But this "Cabin by the lake" idea does seem interesting. It would probably do well if it were near another attraction. Like, say maybe an OHV park. But maybe the "relaxation" part of your fishing park would go over well assuming there really is peace and quiet. I don't know if anyone would want to be that close to the interstate for a relaxation trip.

 

I don't know if this parcel is close to an interstate exit or not. But if it is, you might look into other options for business. Best to find out what people need/ want and can afford, and what will last you a long time.

[glowdotGlock]

The actual entrance to the road is close to I-65 but the actual site where I would build the pond is probably .30 miles from the big road. There is low traffic noise except for in the winter when the foliage is down but that would be the slow season anyway. I know both of these I will probably never do but I do daydream about it.

[Wyldk2]

The actual entrance to the road is close to I-65 but the actual site where I would build the pond is probably .30 miles from the big road. There is low traffic noise except for in the winter when the foliage is down but that would be the slow season anyway. I know both of these I will probably never do but I do daydream about it.

in addition to the cabins i guess you could offer RV camping sites. Like a KOA.

 

Always good to dream. This nation was built on dreams that became reallity. Thing is, never give up on your dreams.