How fast did it take you to get your business off the ground?

climbingmonkey24

climbingmonkey24

Carpal tunnel level member
Location
United States
How long did it take you until you got to a point where you were booking jobs weeks or even a month in advance because of your overall workload? What was it like you first started?

I started my company in August and to say the least I'm happy with how steady the work has been for a newer business. Not at a point where I have things lined up every single week in advance but up until recently when the cold has come in I was going fairly consistently.
 
Unless someone had been doing a lot of side-work for years and had $1 million in starting capital, I'd guess the average is 2 years.

Aside from building return customers and a good reputation, it takes time, experience, and capital to nail down market prices, find quality laborers, acquire certs, insurance, and licensing, and financing for quality equipment.

It can be a trudge - but pays off if the outcomes and actions are clear.


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It's all in your ability to respond to your market. We went full time 3 mths before Sandy struck. That could've overwhelmed us but instead we were able to take advantage of it and build our equipment capacity out to support the crew. That really launched us into the market. Success can kill a business.
 
Rob is absolutely correct “Success can kill”. As you grow, managing that growth and not over purchasing/spending is key. You watch so many small companies go out “in a blaze of glory”, buying a ton of equipment without thinking about the actual cost.
We started out in ‘06 part time, by ‘07 we had work for every weekend lined up a moth or two in advance. By ‘08 we i was working Saturday, Sunday and a few afternoons a week just to keep my head up. We actually lost a ton of work for a few years cause we couldn’t effectively get it done. We bought equipment to make it easier and quicker every years or so since ‘06 but it always seemed to make the work load heavier. By ‘15 I had no time at home, working full time then going to do tree work. When I took the full time jump in January ‘16 everyone said you are nuts, what are you going to do this winter??? I had 3 month of work backed up, we were solid. Going into our first winter season (16-17) we were in great shape but slowed in March but at that point we needed a break.
We grew unconventionaly but it has set us up with an absolutely fabulous customer base with 75% call backs/repeat business and 24% referrals. We did try advertising through a lead service in June but found that to be a very large waste of time. Networking with the right people has been absolutely key.
 
flyingsquirrel25 said:
Rob is absolutely correct “Success can kill”. As you grow, managing that growth and not over purchasing/spending is key. You watch so many small companies go out “in a blaze of glory”, buying a ton of equipment without thinking about the actual cost.
We started out in ‘06 part time, by ‘07 we had work for every weekend lined up a moth or two in advance. By ‘08 we i was working Saturday, Sunday and a few afternoons a week just to keep my head up. We actually lost a ton of work for a few years cause we couldn’t effectively get it done. We bought equipment to make it easier and quicker every years or so since ‘06 but it always seemed to make the work load heavier. By ‘15 I had no time at home, working full time then going to do tree work. When I took the full time jump in January ‘16 everyone said you are nuts, what are you going to do this winter??? I had 3 month of work backed up, we were solid. Going into our first winter season (16-17) we were in great shape but slowed in March but at that point we needed a break.
We grew unconventionaly but it has set us up with an absolutely fabulous customer base with 75% call backs/repeat business and 24% referrals. We did try advertising through a lead service in June but found that to be a very large waste of time. Networking with the right people has been absolutely key.
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This is nearly identical to my story. Perhaps I started a little slower, just a few jobs per month for a few years. In 14-15 I bought some small equipment, and moved up to 3 days a week. Been running 4-5 days since Jan 1, and it's been great. Certainly needing to invest in quality help, and equipment upgrades. Aiming for a good mini by spring 2018, more versatile truck, and then perhaps a chipper upgrade. I aim to have most of this together by 2019..
 
On all equipment I have saved and paid, vs taking out a loan. This option does make older used equipment more of an option, instead of buying newer. Atleast until the money really starts coming in. As long as the inflow of money is steady, I think a loan is a viable option, just have a plan for the slow months.

In fact, waiting until spring may not be a bad idea as this is your first winter in business.
 
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climbingmonkey24 said:
When you purchased your first "big" equipment, such as chipper and truck, did you save for it or take a business loan? Thoughts on the saving route vs loan.
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I have always done the loan. Most of the time I would rather have the cash on hand to insure good cash flow and make the payments.... as long as the interst rate is reasonable. This also gives me credibility when it comes to banking. I intend in buying land/building and a expensive lift in the next couple years. I want to make sure my bank knows me when it comes time fir the big purchases.
 
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