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Owning a heavy equipment company can be a lucrative business. Since it requires a lot of money to start up and maintain, most cities only have a few companies that specialize in this field. This allows the companies to battle it out for jobs in which their heavy equipment is needed. If you’re interested in this field, here’s what you need to know about how to start your own heavy equipment company.
Secure funding to start your company. The funds needed to start a heavy equipment company are rather large since the heavy equipment machines cost a lot of money. Even if you choose to lease the equipment rather than buy it, you will still need a minimum of $100,000 to ensure your company has enough money and capital to last at least six months to a year. That way you have time to build up your clients and get projects coming into your company.
Choose whether to buy or lease equipment. The size of the funds or loans you are able to secure will determine whether you buy or lease the equipment. You may find that it is more cost-effective initially to lease the equipment since you don’t have to have as much money as if you were buying it outright.
Register your business with the government. The federal government will require you to obtain an Employer Identification Number (EIN) from the IRS. This will be used to track your business much like a Social Security Number is attached to a single person. You will also be required to register with your state government and, in some communities, your city or county government as well.
Network with general contractors. While most businesses are required to advertise their products and services to the public in order to get customers and businesses, as the owner of a heavy equipment company, you should spend your time networking with contractors and construction companies. They are the ones awarded construction jobs for new buildings and homes, and they subcontract what they need done but can’t do themselves, i.e. heavy equipment operation is something they typically don’t do and must hire out. By getting to know the contractors, you can begin to get jobs that require use of your services.
Once you’ve got your equipment and a project to complete, it’s time to hire your staff. You should determine in advance your procedures for hiring employees as well as training them. Some employees will come to you with experience in heavy equipment operation while others will not. You will have to decide what jobs they can perform and how you will train them to use the equipment.
It is a good idea to require all staff operating the heavy equipment in your company to have a CDL (Commercial Driver’s License) as this makes it easy for them to move equipment from one job site to another.