Possible Business Opportunity?

[245dlc]

I wanted to run this through some of you guys who have many years of operating your own business. So since about July or so I've been working for two guys that jointly run their own excavating company they have three excavators two Kobelco SK210's and one Hitachi ZX160. They bought a second Kobelco this past winter when an job opportunity came up requiring a newer machine, at the time they considered trading off the Hitachi but having a smaller machine comes in handy for more confining jobs and it doesn't have very many hours on it only about 4050 hours or so. They had also bought new pins and bushings for the bucket linkage and main bucket pin as it's a little loose. There has been some talk about me buying the Hitachi and acting as the third owner in the company, I have known the one owner Clint for some time and know he's a stand up guy same with Terry. They have also been kind enough to give me a fuel card to keep my truck fueled and so I can fuel the machines so they don't have to come out from their own projects to do the same.
If I was to buy this machine off the guys I was thinking of removing the thumb completely and possibly buying a rotating grab which would require installing a second auxiliary spool, it currently has one and a low pressure return for the case drain on a brush mulcher attachment they have. Either that or if there is enough work for it I'd consider getting a tilt-rotator with a grab and a couple buckets. I'd like to be able to tackle a wide variety of jobs and feel that such an attachment could give me an edge on the competition and enable me to do work I couldn't do before or in a more efficient manner.
I was originally thinking of getting a smaller machine in the 5-8 tonne class as it may be easier for me to transport the machine around either behind my pickup truck or possibly on a tilt tray type truck sorta like Ian's. However with the Hitachi I might be able to rely on Clint and Terry to transport it as they have their own truck and trailer that's good for up to 25 tons. Any thought and opinions is appreciated this is just talk at the moment and drumming up work takes precedence of course.

[Muz]

I wanted to run this through some of you guys who have many years of operating your own business. So since about July or so I've been working for two guys that jointly run their own excavating company they have three excavators two Kobelco SK210's and one Hitachi ZX160. They bought a second Kobelco this past winter when an job opportunity came up requiring a newer machine, at the time they considered trading off the Hitachi but having a smaller machine comes in handy for more confining jobs and it doesn't have very many hours on it only about 4050 hours or so. They had also bought new pins and bushings for the bucket linkage and main bucket pin as it's a little loose. There has been some talk about me buying the Hitachi and acting as the third owner in the company, I have known the one owner Clint for some time and know he's a stand up guy same with Terry. They have also been kind enough to give me a fuel card to keep my truck fueled and so I can fuel the machines so they don't have to come out from their own projects to do the same.
If I was to buy this machine off the guys I was thinking of removing the thumb completely and possibly buying a rotating grab which would require installing a second auxiliary spool, it currently has one and a low pressure return for the case drain on a brush mulcher attachment they have. Either that or if there is enough work for it I'd consider getting a tilt-rotator with a grab and a couple buckets. I'd like to be able to tackle a wide variety of jobs and feel that such an attachment could give me an edge on the competition and enable me to do work I couldn't do before or in a more efficient manner.
I was originally thinking of getting a smaller machine in the 5-8 tonne class as it may be easier for me to transport the machine around either behind my pickup truck or possibly on a tilt tray type truck sorta like Ian's. However with the Hitachi I might be able to rely on Clint and Terry to transport it as they have their own truck and trailer that's good for up to 25 tons. Any thought and opinions is appreciated this is just talk at the moment and drumming up work takes precedence of course.

I post something to make sure you know you post is being read Its a lot of digestion though

[245dlc]

Thanks Muz, much appreciated. Maybe when Stock is available he could voice an opinion.

[Wee Jim]

Nothing ventured nothing gained!

[Stock]

245,
I've read your post and re-read it and thought about it, thought some more. I have to say that placing myself in your boots it appears to me to be too many thing outside your control. You will be very dependant on the other partners for work, and for moving from job to job. How would you feel if your machine was the first off hired and the last to be moved to the next job? Will they pay a descent rate? what the story with fuel? What type of contract will you have? and for how long? will you be able to take on your work or price work in competition to them? it their lowboy is busy can you avail of someone else? and if the new mover is cheaper what happens...

Thread slowly is my advice and just answer this "why are they selling?" if they have work on ..................

[245dlc]

Hi Stock, if there isn't work for the machine I'm not buying it plain and simple. Right now everything is just talk and we are trying to get some contacts in the oilfield in the western part of the province and in eastern Saskatchewan where there has been a large drilling boom the last few years. As for the lowbed they tend to stick with work where the machine will be working for longer periods of time and even then they still occasionally have to hire somebody from outside the company to transport the machine. I have however been thinking about getting a tilt tray type truck like what Ian has and buying a smaller machine like an 8 tonner. But my original post was a little premature we want to see if we can get some work in the oilfields first and then we'll see if any other equipment might need to be procured after...