New(ish) business relying on sub-contract work

[wjotner]

So, as everyone who's started their own arb firm will know, getting enough of your own work to cover 5 days a week takes a lot of time (several years I'm often told) to get to that stage. 

 

How sensible is it as a strategy to grow your new business to try to rent out yourself as a bona-fide subby with truck and chipper to larger firms to fill in the gaps in your own work?

 

Currently, I've a decent tipper van and some saws and basic gear to cover most small to medium jobs. But i really need to buy a chipper to kick on to the next level. But obviously, if I'm gonna fork out several grand for a chipper, I need to be getting enough work in to cover the repayments. How hard have other guys found it to get business going in this way?

 

Any advice appreciated. Thanks

[bigtreedon]

I sub contract to companies with my truck and chipper and a 2nd climber it doesn't fill my diary I use contract climbing and my own jobs to keep the diary as full as possible my advice would be to find a chipper that u can afford to not have working every day at first then when u have established yourself either with enough contracting or your own work upgrade the chipper to suite your needs either just newer or bigger and newer only advice some one els may think totally different

[wjotner]

  On 26/12/2017 at 19:38, bigtreedon said:

I sub contract to companies with my truck and chipper and a 2nd climber it doesn't fill my diary I use contract climbing and my own jobs to keep the diary as full as possible my advice would be to find a chipper that u can afford to not have working every day at first then when u have established yourself either with enough contracting or your own work upgrade the chipper to suite your needs either just newer or bigger and newer only advice some one els may think totally different

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Yeah I agree. But finding a chipper thats affordable (under 6K for me) means delving into the murky territory of knackered unwanted chippers that will be useless. If I could only find an old Timberwolf 150 for around 5K I'd be a happy man.

[Richard 1234]

  On 26/12/2017 at 22:58, wjotner said:

Yeah I agree. But finding a chipper thats affordable (under 6K for me) means delving into the murky territory of knackered unwanted chippers that will be useless. If I could only find an old Timberwolf 150 for around 5K I'd be a happy man.

If you have £6k why not buy/lease a new one? You have a lot of monthly payments there and a new machine that won’t break down much and a very good incentive to make it pay for itself too!
It’s surprising what having payments to make can do for your motivation!

[Mike Hill]

You could use your 6K to advertise to as many people as possible in the area you wish to work in.

 

Then as demand increases,look at buying a new chipper.Untill then you could just hire one as needed.

 

New gear is not problem free,nor does the manufacturer reimburse you for your down time.I have never bought a new machine in the 10 years of running my own business.

[Mick Dempsey]

Get a chipper, second hand or new, just get a chipper.

[jfc]

What mick says!

I bought my own chipper this year, best thing I have bought. I got a tw160 new. The greenmech one is good too. People are also recommending TP, which I believe are cheaper. If you can put down a 6k deposit you only need a loan for about 6.5k.

You might be able to reduce your costs a bit if you find places that want or take chip for free. Therefore no tip fees.

Good luck with it.

Jan.

[wjotner]

  On 27/12/2017 at 00:38, Richard 1234 said:

If you have £6k why not buy/lease a new one? You have a lot of monthly payments there and a new machine that won’t break down much and a very good incentive to make it pay for itself too!
It’s surprising what having payments to make can do for your motivation!

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I've been thinking about doing that. It's just a lot of debt, which I'm trying to minimise. I think if i can't find a used chipper for a reasonable price I might go down the route of leasing.

 

  On 27/12/2017 at 06:54, Mick Dempsey said:

Get a chipper, second hand or new, just get a chipper.

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I agree. I've been limping by just brashing up on back of van for smaller jobs and for large jobs hiring in a chipper or man and chipper until now. But it's gets expensive doing that.

 

  On 27/12/2017 at 07:59, jfc said:

What mick says!

I bought my own chipper this year, best thing I have bought. I got a tw160 new. The greenmech one is good too. People are also recommending TP, which I believe are cheaper. If you can put down a 6k deposit you only need a loan for about 6.5k.

You might be able to reduce your costs a bit if you find places that want or take chip for free. Therefore no tip fees.

Good luck with it.

Jan.

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Yep, chip is much easier to get rid of than brash thats for sure. I've been thinking of getting a small petrol chipper like a 160. How do they perform?

[Mick Dempsey]

Bigger the better obviously, but the GM130 and the TW160 get a lot of love on here.

[jfc]

I am really pleased with the tw160. When I was working for other folk I used bigger tw and Forst ?tr8 and they are quicker, but a lot more expensive. I've had my chipper almost a year and not really felt the need for anything bigger on my jobs. I do domestic stuff, just me and a groundy. If you are doing clearance jobs then a bigger one would make sense, but it is a serious step up in cost.

 

One advantage of the smaller chippers is they are lighter, two of us can push it round a garden if we are leaving chip there.