Discing Business

With the economy being so horrible and our state cutting all the time in my work sector (education), I'm really thinking about starting my own little lot cleanup business. I have several tractors, a disc, and a brush cutter. To transport the machines I have a truck and a capable E-350 Van. However I am lacking a major piece of the puzzle, a trailer. If and when I get the trailer can anyone offer me some tips in regards to this business?

Do it right and make it a LLC Company.

You will end up owning some body something before you get started out. Insurance etc etc etc will eat up any thing you can make. Sad but true BTDT and now days the only way to get ahead is to lie and cheat and steal like the big guys do in the white house

You could go that route.
Cash has no paper trail.

As someone who has done custom work since my sophomore year of highschool, which was longer ago than I care to admit here's the answers to the questions you didnt ask.

Focus on a local niche that works in your area. Here I'd not make minimum wage trying to disc. You just cant charge enough for garden and small plot work. For bigger jobs you would be better off working for wages. As to mowing, I've done very well over the years. Five and ten acre farmettes, lots slated for development, highway and utility right of ways. I'd try to bid enough governement work to cash flow and then take the other jobs as they come. There are some costs up front, insurance for one. A lot of people say incorporate but my attorney's advice was if they are going to sue they will sue the operator and manager as well. Better to insure yourself well up front. My farm owners policy covers custom work at 500K in the regular premium, an extra 4M was under 1000 a year with an inland marine rider that I needed for some of the commercial work. Governement work takes a bond or letter of credit but since none of my bids are over 10K I can cover my own bond. Getting paid is the worst part. It seems that today no one has any money. While I only have two accounts really past due almost everyone is asking for short term paper. Even the city has lengthened the payment terms from 30 days to 45.

Trailer-wise get the size you think you will need. It really doesnt matter what or where, let price be your guide. I'd definitely want a 5th wheel. Check local laws as to what kind of plates you need on your truck and trailer. I stay in state, within 150 miles from home. Here non commercial trailers dont have to be titled or licensed and my truck plate is good to 38,000 pounds. Since sometimes my trailer is over 10,000 pounds I have to have a DOT medical card but am farm exempt on a CDL though I've had one for years anyhow.

You will fall under commercial as far as the DOT is concerned. No DOT # plus a few other things like a CDL and medical card to name a few will cost big time if they catch you. That's what stinks about going into business for yourself nowadays. All the fees and regulation it costs before you ever earn your first $1.

I have a 7k 16 ft utility trailer I use to transport a IH C, Jubilee, terramite, and a 4.6k lawn roller. It's only 75 inches wide. Wish it were wider, both tractors have 6 ft mowers. If I were to buy another trailer, it would be 83+ inches wide with stake pockets, so I could remove the sides and use a fork lift to load with. I think you can get a new utility trailer for around $2.5K.

As for CDL and DOT, I don't have either and never been stopped. I could be wrong, but I think as long as you don't have advertisement a business on your truck and your trailer isn't over 7k they turn a blind eye. However, if you have 3 Dixie choppers, push mowers, weed eaters and a load of mulch on your truck,9k tags, you may catch their attention. Other states may be different.

Check with your CPA on the new external_link care tax changes. You will have to fill out a W-9 for any business you do work for and get over $599. At the end of the year, that business will send you a 1099. You will have to do the same. The IRS is trying to put an end to cash business and people who work under the table.

Good luck, get insurance, get a good cpa.
LOL
George

Wish you the best. I was in business for 23 years and give it up because of just to many new regulations we had to abid by.
Be sure and get the US DOT number on the side of your trucks and a ball peen hammer under the seat, so when the DOT stops you for no reason (because they need some money) you can break out a tail light so they have something to write you up for.
Otherwise you will spend a long time sitting along the side of the road while they look for something.

Thanks for the tips and advice guys. It's really disappointing how many regulations there are that almost force people to go the cash only route. With that said I am thinking of just keeping it on the low and hopefully getting a few steady customers which will give me some decent side money every other month or so. Around here we have plenty of lots with weeds that come up every other month so it could work. Also, the local code enforcement is all over land owners and the looks of their vacant lots. I have a lot to consider and think about.

not really a buisness tip,but maybe a customer tip?.Look around for vacant fields in town,behind a grocery store or gas station.Beside a office building ,etc. bro in law has mowed these places for years,he just locates he owner and asks if they would like to have it mown.Lots,if not most major towns have ordinances about keeping lots cleaned up,or they will fine you.Many of the owners of these places dont even live in town anymore so they just let county mow it and pay the fines.He has made a fortune over the years just by asking questions .In the beginning he just under cut county rate for mowing by a few dollars and got a lot of buisness. He has done it so long now that he just carries a book telling him what lots need to be mown,and when owners generally want it done.He just calls them up ,on a certain date and asks when they want it done.Many he has mown for 20-25 yrs now.BUT a word of warning!,he has destroyed hundreds of tires over the years,lots of these places become a local dumping ground for all manner of trash.He also carries insurance,just in case something happens or something flies out of mower and hits a passing car etc.another place to check..local banks,mortgage companies etc. with the forcloseure rates what they are these places probably have all kinds of places to mow.believe it or not ,theres quite a few people around who make six figure incomes just during the growing season,simply mowing grass.