New business question and opinions

JOCCO

Well-known Member
Recently this came up (ECONOMIC AND DEVELOPEMENT) and I observed and only added what negatives I had seen in the past. STUMP GRINDING BUSINESS!!! A guy and couple young fellers were looking at starting one. What I see in the past is horribly costly to start and ditto on repair and parts. Many places now they just dig them out with excavator. Not sure of demand and seems like it needs to be coupled with some other business like lawn care, tractor work etc. Yes in reference to my rental thread post many people rent them although in my area that option has gone away to a point. And I see the places that did had quite a pile of gearboxes, blown engines, and so on!!! SO what are your opinions and what is it like in your area??? What can you add????
 
I live 120 north of Houston Texas. Little town called Centerville. We have three stump grinding companies shut down in four years. Or got out of that side of the business.The last guy I know doing it is also talking about getting out.Regulations,insurance, equipment cost and repairs and other reasons is what is killing his business.
 
Stump grinding here is either a side line to a full tree service business or a lawn care business for the most part. There was one old guy here that did it to pay for his toy, a Bobcat. Thing is here we have a lot of lake shore summer homes. Most of the owners have money to burn. They don't want their pretty lawns torn up with something like an excavator. So they will pay extra to have stumps ground if they have to take a tree down. Most of the farmers just cut a tree in the yard at ground level so they can be mowed over and leave them. No idea what the rental places have but I haven't seen any advertised.

Rick
 
Stump grinding is high capitol business that involves a high maintenance piece of equipment. I would only think about it IF they already are in the landscaping business and this would be an addition. For this to be a stand alone business would be too risky income and maintenance wise.

This sounds like three guys drinking beer together trying to start a business to make them rich. LOL
 
I work at a stump grinder manufacturer. Sales have been good and parts sales even better. The guys that come in for parts all pretty much say they have plenty of work. A few I know say they can buy a new machine and pay for it in the first year ! I am surprised they keep that busy ? I know money is tight for many people but they are still finding plenty that have some left over to grind out a stump. There are many VERY old machines still out in the field working too.
On some of the large construction jobs like pipe lines I think a few years back the laws have changed so these guys can no longer dig out stumps and pile them. They have to be ground out. This has been a big help for the guys with the large crawler based stump grinders. Many put their machines back into service after years of not running them much and many have even purchased or rented NEW machines.
The ash bore has helped keep the tree guys busy too.
 
Seems to me with the Emerald Ash Borer stump grinding would be a business with growth potential. One of the tree services I used to use for tree removal didn't do their own stump grinding they hooked up with a guy and sub contracted it to him. And he folks who ran this "tree service" didn't miss much, they were predominately loggers that dabbled in tree removal, but when they took a tree down they harvested logs and any tops they chipped were at a pellet manufacturer's site with in 24 hours of harvest. In short they charged you to remove the tree and marketed the tree like it was a tree they bought to cut. Maybe that's why they were about 10% cheaper than anyone else I could find.
 
My son keeps his landscape business going in the winter with his stump grinder. He has some contracts with some golf courses in the Detroit suburb's. They like to remove the trees in the winter hoping the members won't notice them gone in the spring. He has a 40thousand dollar machine and it does require allot of repair and money to keep it running.

I guess it does pay off for him though. It leaves a lot smaller imprint on the course too as opposed to something big to dig the stump out.
 
What regulations?? Insurance I can see as being bad. Far as I know no licence or any regulations,your area might be different.
 
A neighbor bought his own to grind ash tree stumps. His fits on the back of 100 hp tractor 3pt. Works like a charm.
He has people begging him to come grind stumps (including me) but he only does a few when he feels like it.

The regulation thing is a figment of lots of peoples imagination. Like the guy that decides not to go in business because if he makes a profit the taxes would be too high. Right.
 
Deere seller what some of this is there are not to many factory jobs in my area so lots of people "start your own business" Some make it some don't. Some things are just a sideline or need another business to thrive off. I think we are on the same page here. Of course every area is different in what works and what don't.
 
My buddy owns a tree service, they do a lot of stump grinding. They have a lot that they do after a tree job in residential yards, and a lot of dead ash stumps elsewhere. They have a couple big ones hitched to the back of the truck and a small one that can travel through a gate and into a back yard. Their going rate is $ 0.50 an inch across the widest part of the stump, not sure if there is a minimum charge for small stumps or not.

Ross
 
I have no idea about the regulations. I know he does clean up trees that fall. Some on state land and some on govt property.Maybe that is what he ment.
 
There were some investors going to build a bio-gas plant outside of town. They had a big party govt and state offcial's all came.All bragged about green energy and what a great deal this plant would be.Then the EPA,OSHA and every other govt group showed up.Plant was canceled.The head man is a local rancher and now has his feed mill there.

Local feed mill was going to build a new plant. Expand out hire around fifty new workers. Govt got involved. So now he is staying where he is at.
 
Jocco, I am so old I remember when the new regulations (1969) that the banks and car dealers had to actually print the interest rate of the auto loan on the loan document was going to "put them out of business"...obviously it didn't.

I also remember when "clocking speedometers" (1979) was outlawed. That reg...and the paperwork was going to "KILL" the used vehicle business forever! It didn't.

Business folks actually went to DC and testified that consumers did not want to know the interest rates of their loans or the true mileage of the vehicles they were buying......Hummmmm? Seems silly now.

There is a huge difference between we can not do it....and we don't want to do it....or it is not to my advantage to do it.
 
A few years ago in southern Indiana an investor group was going to build a bio-mass energy plant, with 50 jobs, in a very poor, extremely rural county (poorest county in the state). Apparently the govt agencies had given preliminary approval, but then a local and very vocal group of citizens protested long and loud and the project was killed. These were locals, folks that needed the jobs, and certainly not a bunch of city protesters being bused in for staged demonstrations.
It was just another one of those "Not in my backyard" situations. Government regs were not the problem...at least not until the howls of protest made the county commissioners nervous about their relection.

So, there are 2 sides to all regulation issues.
 
Which one do you work for, Mike? I retired a few yrs ago from a full line forestry equipment builder (one of the biggest..orange) that build quite a few..most of them track driven.
 
I agree 2 sides to everything. But in our case people wanted the plant. Wanted the jobs. I guess it all depends on how hungry you are.
 
I would sub-contract with larger tree trimming businesses that are too busy to do the stump grinding.
 
That $0.50 per inch rate sounds pretty low, only $15 to drive to a site, grind out a 30 inch stump and haul away the chips?
 

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