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How To

How to Start an Excavation Company

Contributor
By eHow Contributing Writer
(2 Ratings)

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.

Difficulty: Moderately Challenging
Instructions
  1. Step 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. Step 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. Step 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. Step 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.

Comments  

qolampoor said

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on 4/11/2009 hi. i want to excavate a pit and the ground is too hard and we need a machine which can excavate it i need a machine which can do with a person and it must not be heavy almost 15kg and easy to use it and if it found a problem we can fix it thanks

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