How to Start an Excavation Company

The effort of starting an excavation business requires some things other businesses do not need. If you have an interest in the excavation business, you already have the drive to get it started. You now need the equipment and the contracts to go with it.

Instructions

1. Obtain the permits you need to operate the business. You may need a special permit to dig or just to operate the machinery. You may also need a CDL endorsement on your driver's license to drive the truck to transport the machinery. Check with your state and county offices to determine what specific permits you need.

2. Purchase the equipment and supplies that you need. At a minimum you need a 12-ton back hoe, a single-axle dump truck like a Chevy C-60 or Ford F-700 and a 12-ton flat deck trailer with a pintle hitch (or larger).

3. Find a place to keep your large equipment. You may decide to start small with your equipment with the intent of growing. Don't be afraid to find a small space for your small equipment now. You don't need to go and buy a huge warehouse with large plans to expand in 10 years, if you only have a few pieces of equipment currently. Keep the business as simple and cost-effective as possible to start.

4. Talk with local utility companies about doing business with them. Utility companies may supply you with a great deal of work, if you can befriend them and let them know that you have the equipment and know-how to dig up water lines and telephone wires.

Tips & Warnings

• Determine your budget first. This is a very expensive business to start. Your budget can help you decide what kinds of equipment and supplies you can readily afford and which ones you may have to wait to purchase. Also, this is a good time to determine what portion of the capital will come out of your pocket directly and what you may need in business loans.