Excavation startup (side biz)…your thoughts/advice?

kittyio

New member
So my husband and I recently formed a LLC and started a small excavation business in our local community. He is a heavy equipment operator by career and has been for the last decade or so. Currently, he works full time at a quarry, usually running a huge loader in the pit, but he does all kinds of things with equipment just depending on what is needed.

We also bought some acreage a few years ago and he has done all of the work (land clearing, roads, ditches, culverts, trenching utilities, leveling/grading for buildings, etc.) We learned a lot working on our land with heavy equipment and it is really what planted the seed for this new sweaty startup.

Details of start-up so far:​

  1. We DIYed forming LLC and getting EIN (YouTube helped). The first job we took was for a friend so SOI
  2. We got two leads for jobs just through friends. The first was a small job resurfacing a road to prep for new gravel which we bid on and finished in a weekend. The other is still pending…the homeowners are suing for the neighbor to pay for the damage so we provided an estimate and have stayed in contact with the homeowner while pursuing information on permits that would be needed…the county moves slow but we have at least determined we only need one thing, just waiting on the guy to get back to us since we received an out of office reply to our inquiry.
  3. We made our own logo/branding on Canva using the free trial of pro. I definitely think we could go back and pay someone to do this better one day if the budget makes sense, but we really tried! It’s not just clip art next to the name lol
  4. We formed a Facebook page using logo/branding from step 3; joined local community groups; like and follow local businesses near us, especially if they interact with us; alternate days/weeks posting in community groups with either an introduction as a new business or before/after pics (I’m still posting intros bc we’re still pretty new and rural so there are a lot of different towns/communities around with different Facebook pages)
  5. We got 3 calls off the first two ads we posted. One was a big job and took us a few days to price materials and send the estimate just because of the scale, the other we are set to complete this weekend. With this being a side-job and working part time I didn’t post again in the community groups until after Easter just because I didn’t want to get us overwhelmed.
  6. We got signs and business cards made online with designs from Canva (5 plastic signs with stands for $40, business cards were 500 for $20, both prices include shipping). In hindsight, I wish I had looked to see how much the double sided signs were instead of single sided bc I want one already.
  7. Last weekend we put one sign out at the end of our road at a crossroad with a busier street, near similar signs from some other businesses. Last night we put another sign out, in the ditch by our neighbors land across the street from us—with their consent and permission ahead of time. So far no calls from them but it has only been a few days so I’ll be patient.
——————————————————
Next steps
  1. ??????????
—> I do think we should maybe pay a lawyer to draft a standard contract for us to use. With the small jobs we have taken so far it’s fine but we have a big grading job and a bridge job that are still in the planning phases and I think a contract would be valuable protection

—> don’t go online and google liability insurance for ___ business, you’ll just sign up for spam calls. We reached out to a local office and we’re definitely going to get insurance figured out ASAP…I probably should have been doing that instead of writing this post.

Any thoughts on our process? Criticism? Something big I am forgetting? I have never done this before, my husband has, we will both be replying to comments on this post later on if we get any interaction though.

—————————————————————

Update- we have another bid we are going to go look at tonight down the road from our home. This lead came from Facebook, I commented on a post where he asked for someone to grade and gravel his driveway before the end of the month. I know he has a few other companies coming out so it’ll just depend on price and if they have availability this month like we still do right now. We aren’t going to try to lowball it to win the bid, it has to be worth the time and effort and lost weekend day.
 
@alivewithchrist I left that out, we signed up back when I first did the LLC, still waiting on the mail verification

Edit- also I will save your info or you can dm me if you want. I imagine at some point hopefully we will scale up and pay for rebranding and a website beyond Facebook if all goes well
 
@alivewithchrist Thank you! I would probably put that up near step 3 or 4, I totally forgot about it because I haven’t gotten the mail verification yet so it’s still not even active lol.

Signing up for Google was the big thing my husband said got him his biggest contracts for his business from a decade ago so he pushed for that before I was supposed to make the Facebook account lol

Any other advice? That was a good one lol
 
@kittyio Usually having your internet presence be tied to the local area so that the business shows up in online searches as “excavator contractor in X county/city” — that way there’s less competition showing up to the top of those searches.

I’ll send you a dm.
 
@alivewithchrist Yes I love that, we did this with our name bc it’s a relatively well known creek and road in our close regional area, thinking it would make people want to choose us over some bigger company based in the closest city. We also try to reference locations (communities, towns, and counties) in the specific posts we make online. I’ll check my messages too, just replying quickly on here, I really do appreciate the feedback!
 
@kittyio Insurance is easy, you could just use a service like NEXT
But definitely have it
Apply for a business license with the county of city you are working in as well as any specific trade license you may need.
For a simple contract use chatgpt and save yourself a couple hundred bucks because a legal contract only needs a few things but they have to be precisely worded and you know better than the attorney what the correct information will be
 
@torellion No, don’t. Find a local independent agent who will shop multiple carriers and get the best coverage for the best price.

Next is literally called “NEXT!” As in, sell that policy and move on to the next. Some of the coverage gaps I’ve seen in direct to business insurance policies is shocking. Get an agent that specializes in commercial lines insurance.
 
@jaugu I made inquiries with two businesses in town that offer commercial insurance, one has been in contact and collected information, the other hopefully will today. Are you in insurance? Are there any red flags to immediately avoid?
 
@kittyio I am in insurance. Started my career at a small agency doing commercial lines (handling businesses just like your company). Now I work for a large brokerage handling insurance for large corporations. I’ve long thought that the final step in my career would be opening up my own agency. I’m reading previous comments and you also likely need commercial auto.

My advice would be to ask questions. You’ll learn about insurance and it will give you a good idea of whether or not these agents know their stuff.

Ask them about themselves first (how long they’ve been in insurance, what kinds of accounts they normally work on, etc.).

What are each of these coverages for?

Do I need different coverage if I grow or the business starts taking on different kinds of jobs?

Just go with where your curiosity takes you. If they seem annoyed it’s a red flag. Insurance people are strange birds who act like to talk about insurance. If the agent doesn’t it’s because they don’t like their job or they don’t know the answers and are afraid of being asked something they don’t know.
 
@torellion Thanks for the chat GPT tip! I had thought about it but wasn’t sure, I haven’t used ai much but I can youtube and figure out how to apply it in this context.

I have 2 quotes I’m waiting for from local insurance guys now (I made some calls since posting), and before I did that I tried Tivly…and summoned the robocallers lol. I’ll look into next while I wait to hear back from the local folks.

Thanks again! I really appreciate the idea
 

Similar threads

Back
Top