How I got into the excavation business
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- čas přidán 19. 11. 2021
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A little history on how I got started in the excavation business and tips I learned along the way.
#howitstarted
#lessonslearned
#excavationbusiness
#businesstips
#growth - Zábava
Thanks for having me on. Enjoyed our time together! Congratulations on reaching 100,000 subs!
Glad I found you on this video. That was very helpful.
Welcome any time
Thank you also for BEING on and sharing. NEITHER of you guys had to do what you did by sharing. Hopefully, the combined experience will help MANY others in your path and adjust to the variables! Thanks!
I’m 14 and had 2 old junk mowers that hardly ran I fixed them up and got both of those for free sold them and bought a new zero turn now I am running 2 zeros turns and I want to go into excavation when the money allows👍🏻
What type of exavating? Landscaping or construction?
Sounds like your learning to run a business and very well. Maybe you can find a local company to work for...gain experience knowledge of regulations and operations.
God bless your off to a good start.
Ps. Stanley "Dirt Monkey " has some good videos on how young people started their careers in business, check him out.
Same man I fix them and sell them I’m too cheap to buy a nice mower still use my craftsman that was free but I’ve got a trailer and have been doing mulch jobs but I want to do excavation I’m renting a Massey Ferguson 1429 with a loader a box blade tiller grading rake a brush hog and a snowblower I rent it from my grandfather with a trailer I also have a dump trailer I own bought it from my grandpa I’ve done a couple jobs tilling garden plots and grading driveways how has your business gone so far?
Good advice on starting small. An old African proverb says "only a fool tests the depth of the water with both feet". Work within your means, work with someone in the same line of work in order to learn to operate the machines, to learn to bid jobs, and how to run a business. The most important advice I ever got was that if I was going to miss bid a job, err on the high side. I'd rather bid too high and not get a job than to bid too low and go bankrupt.
Always bid high. I did once, bid 2X's more thinking the job would pass. However, others bid 3X's more and I got the job. 😲 Oh well.
NOTE: If you really don't want the job, DON'T BID!!
One thing I learned over the years. No matter how crappy a job is (I pumped septic tanks at one point) try to learn as much as possible and be the best you can be at it. Because all those "little things" you learn over time add up to make you an asset instead of an "employee".
Wow .... This is Gold . I have watched this a couple of times and learn more and more every time I watch it . The words of wisdom are very much appreciated and applied .
Thanks
I’ve built my business the same way, I still own old paid for equipment and don’t owe the bank anything on my 8 pieces of equipment. I even told people it might not be new but it’s paid for!
Started with a dump truck then a trailer and dozer then a trackhoe then a loader it’s took me 30 years to get it.thanks great video 👍
The ability to maintain repair saves a lot of money. Also makes you money too.
I have been scrapping for 31 years I have the original truck 1975 Scottsdale last year my birthday came around in October my dad passed away and I inherited some money so I bought a 1998 Silverado pickup truck for scrapping I have 45 stops every week to go to I have industrial stops I also been snow plowing for 25 years I'm 63 years old right now I feel great I have no problems I'm single I love my job
Mike, although I'm at a stage in life, were I'm pretty darn sure I won't be venturing into a new career, but I find yours and Tims advice very sound. Nubees listen to the voice of experience. Thanks for sharing👍😺🤗🐺
Don't forget the rock clause! We don't have X-ray vision. If we run into differing site conditions (rock, a spring, anything requiring a soil correction, soil change deeper than anticipated, etc.) Will keep you informed but that work is billed on a time and materials basis and it will more than likely affect the schedule.
Great, great, great video. People just don't think of what's involved. If they know somebody in the business, or like me, watch the video's, " It LOOKS easy! WRONG!!!! You are going to make people think. One thing I might have missed in the video, hourly rate for a repair shop. Sticker shock. If you can't fix it your paying someone to fix it. NOT cheap. You mention warranty, that does not mean it's free. My first experience was with a motorcycle, warranty check up, oil change, valve adjustment. Eighty bucks! 1980. Barley had enough for the bike payment. Great video.
Mike , I enjoyed this more than I thought I would at the beginning . Can you do another one on the people you work with ? How did you meet Jerry , Capt. Kleeman , Aaron and Matt . Did you ever have full time employees ?
I agree that would be very interesting.
Have a podcast on some of that on my other channel a few points form perfect
Working at the Mack dealership was an amazing advantage even just being able to overhear other conversations with customers gave you an appreciation of how to handle different situations. Things happen, being able to explain what happened or needs to be fixed can sure defuse a situation.
True
You WIN some, you LOSE some, and you take a BATH on some. You try your best to keep the BATH's to a minimum, your doing great!!! I'm telling you one and all, you will take a bath on a job, and boy do they sometimes HURT!!!!!!!! But do LEARN from them, and that's what will keep them to a minimum. Good luck to one & all.
first, chris had good placement of his sticker in the 120.
Tim and i are quite similar, i have been programming/developing software since i was a small child really started with my uncle teaching me how to make a computer from scratch. the one thing i have learned in my life is everyone can do what they desire, its all a matter of having the motivation to learn how. i guess my autistic brain obsesses and i just keep doing it until i get it right.
my first time using an excavator was in the middle of winter my septic backed up and was plugged in the tank. i couldnt get anyone to come dig the top.
so i rented a mini from our local center, the guy who delivered it was a friend so he gave me the advice, its a real life video game, i managed to clear the top of the tank with relative ease, the septic guy was like im gonna have to charge extra for all the dirt you got in there. well he pumped the tank there was 0 dirt in it. since that point i have went and cleared a few for other people. i dont want to run an excavator full time because i think i would grow to hate it like i do computers. ill stick to doing it when i can for the enjoyment of doing it. people like you, chris, capn, mr aj works and many others help me learn,
My advice follows yours get with someone to learn from then ease your way in.
I have PRAYED that you or Chris would do this very thing. I had the advantage of Dad and Grandpa. I got so sick of hearing learn to fix it first then you can learn to operate it. This is stuff you can’t teach in a classroom. IF THE TRUCK DON’T GO YOU DON’T GO! Please keep it coming.
Thanks DP for another great video. I'm not an excavator but what your teaching about how to start a business can apply to most construction start ups!!
Two men I respect; two men I admire. A video with invaluable advice. Now retired, I once ran a successful small business. It was far afield from excavating, machinery, etc. But the principles espoused here apply to ANY small biz stat-up. My way in was similar to Mike’s. I followed a similar path and it worked beautifully. Start small,work your way up, capitalize on your strengths, one note: I did well with not-to-exceed bids. I made a practice of coming in underbid until I learn how t estimate a job. No one ever objected to paying less. Thanks guys for a great video and invaluable advice.
The way we do it is by the hour on bigger jobs and we have a set minimum. If it takes a hour we have a 2 hour minimum that’s including moving to the job because fuel isn’t cheap. And on bigger job we require half the money upfront and it work for 35 years
Your advice is spot on. I'm old and still work as an owner of a manufacturing facility. As a business owner there are things that you have to give up if success is your goal. If your main goal is toys and the time to go play with your friends you'll probably fail. The "owners" here on youtube who are always out playing or spending million+ on grainbins fail to mention that the income stream from youtube is what brings in the money. Any content from thier "business" is usually clickbait to keep the youtube money flowing.Start small,grow your skill set,expand your capabilities,limit number of employees,concentrate on being the best at your game. BE HONEST.
Many people don't understand the difference between estimate and quote and my view is to estimate a little higher than the actual goal and have it come in at or below the estimate and as you said it gives confidence to the customer about your honesty. I have seen too many times when an estimate is given low because the business is afraid of loosing the job, then try to explain to the customer why the bill is higher. Years ago I had a customer that got upset because the valve job ran cheaper than the the average price I gave him because he already had a check made out for the estimate price when he came to get his car. After a little back and forth I said "I can remake the bill to match your check if so desired" He wrote another check instead.
You know the one thing one forgot is , little big man you know that’s the backbone of the company. No all jokes aside it’s good to had guys like you have to make it even though they seem kinda of nuts some times they seem to be good guys. Love watching your videos keep it up.
Thank you for the time! (SERIOUSLY!) You know, you didn't have to do this video but being YOU, what else could we expect but "honest help & advice" from someone with a CZcams channel called, "DIRT PERFECT"! I've been here since your start and have enjoyed seeing ALL your work. NOT just the jobsites but WORK on rebuilding your equipment, maintenance, comradery with your CREW/friends that are now our friends and the GREAT TRUST you've put behind everything you do and set out to do. YOU put a lot of hours in your presentations and WE put a lot of hours into viewing your efforts and enjoy you taking us all over the country to VENDORS and the heavy INVOLEMENT & BOND you form with them where we would NEVER get to go! INTEGRITY is KEY and that's YOU - the MAN, Father, Husband, Friend, Mechanic, No Fear of taking on challenge, Building, Talking, Playing in the DIRT and SO MUCH MORE! So YEAH, THANK YOU for SHARING "You"! Regards, buddy! Sonny
thank you!
I play the middle line of both of yall. Mechanically inclined, like older but cheaper for me to buy new due to my area. Difficult to bid as theres many in my area. I bought the equipment for my personal use typically help out neighbors all the time. A lot is free, a lot was just cover fuel. The bidding scares the heck out of me. The equipment i have is easy to transport with my 1 tin and 40ft. Just 2 pieces of equipment doesn't fit out the gate of my land and are challenging at 14ft wide lol. So, they hardly leave. Think here soon my neighbir wants me to level his yard which is 4 acres. That'll be fun after i get it through the gate. But thats a farming area for you. I battle my neigh ir up the road whi does custom baling. I did notice my field came out a lot better than his with me having worse ground.
Great video Mike, thanks for the information
What an awesome side video! Many thanks for taking the time out and actually going ahead and doing this for us. It was a very honest insight. I'm self-employed myself and know the rigors of trying to price a job and yeah.. it's not fun lol. Congrats on your 100k subs! Don't forget to order your Silver Creator Award plaque from CZcams and please please do show us all when you get it through :)
Well done! If anyone has a problem applying this info to their situation, is a person "locked" in a concept and more than likely will never learn to be successful. One must be very flexible to do business with all kinds of characters (a person's inner content of character). Everyone approaches living differently and may even have "limited" moneys. Staying in business is hard work and one must pay attention to all the details. Building something great takes time.
I can't thank you enough for the details of equipment skills and out course our own skills. I can't get enough of your videos. I love the history of people. I honestly look up to you I'm a small excavation and grading owner!! I honestly love your skills you have a real eye for what you do!! You've actually given me a whole different outlook on jobs, bids ponds ex!!! Your really confident in yourself and your business!!!! I could go on and on I dropped all other followers and strictly watch dirt perfect. I can't thank you enough
Your Absolutely right the work doesnt Stop because You came home. When owning a Excavating Business. I seen that from watching my Dad with His Company.... People work and when they have an Emergency they call you up and theres times where I had to go back to work load up a piece of equipment and go back to work . Septic systems stuff like that even a Slides. That stuff happens not from 9 to 5 . During a day. It happens Whenever....Also the STRESS of owning a Excavating business is HIGH... You did a great job explaining it. Its a business if people want to get into they need to know its 24 hours a day 7 days a week. 365 a yr...But its a lot of fun and REWARDING...
Yup
Excellent advice! Thank you Mike and Tim!
Great video DP. I started business 16 years ago and you hit the nail on the head . A happy customer means everything .I got in this business 34 years ago and learn a lot working for someone for 18 years before I started mine.how to run the business and how to bid a job then how to set it all up to keep you moving on up the ladder.(I'm a flooring contractor).I was always tough your only good as your last job .word of mouth can hurt or help you more than you would think 🤔.keep up the great work 😎✌️👍👌🇺🇲
Kinda surprised you didn't go the dump truck and tag a long trailer route instead of the semi early on.
Pricing at a mechanic's shop is the same too. Most of the time you're close. Sometimes you make a killing and feel a little guilty. There's also the ones you lose your button. Well done, thanks for sharing. :-)
Really appreciate this. Great information for anyone looking to start a business of any kind.
Wow Mike, this was a very valuable video! Thank you for sharing. I am in agreement with your strategy about starting small and working up. Know your skill set and keep adding to it. Buy used and fix it up. Be vigilant of your cash flow. Learn from each mistake and vow to not make it again. I have used all these in my business and found some success. Excavating is a seasonal occupation and it is good to have some diversity so you can still make money during the down times. Also, during slow periods, get out in the shop and maintain your equipment. You have to be proud of your accomplishments, and I am proud of you.
Thanks David
Thanks for the insight. Also thanks to Tim for his insight. Good advice from both viewpoints.
I worked for a construction company driving their lowboy for 20 years, It started small (4 people} I didn't own the Truck but what I added to the deal was service, I had customers who told Me they could hire other trucks cheaper but when they hired us I was on time and got their equipment moved in a timely manner, other would take longer and cost them more, As far as hours worked, some morning my wife would say what time do you think you will be home tonight? then We would both laugh and I'd head out the door lol
Great information! Thank you for taking the time to really talk about your journey. And congratulations on 100k!
Thanks
Congrats on 100K!! Been here since before 20k...keep the great videos coming!!
Thanks Greg
Great vid Dp and Tim thanks so much!!!
Thanks
What a great video. I have owned a successful small software development company for over 20 years now. It is now time for a change. I have been in IT for about 40 years. There are no plans to retire. That just does not seem to be an option. Not because of any financial requirements. Idle hands are the devils workshop. I grew up working on the farm. How did I end up in IT? Well that is a story upon itself. The video was real and, in my opinion, was better than a semester at any business school. College is a great choice for those that want to go that route (I did that route) but college does not deal well in reality - IMHO. Tim and you should go into business consulting. You are both successful. My take on you both is that you would both be successful no matter what you did including selling Fudgy Wudgys at the shore. Thank you for all that you do.
thank you
Thanks for the education DP and Tim - continued success
Very good, especially for people who want to start a new adventure
Mike and Tim great video with great content, two different stories with great outcomes! Thanks for sharing! Kevin
Operators are only as good as their desire and interest in operating the piece of equipment they are on and developing the skill set to operate that equipment to maximum potential without abusing it ( ie Jerry). Equipment, no matter the brand, is only as good as the maintenance program they are maintained with and the attention to the machine, as it’s operating, to the tell tale signs of a potential problem, (not a catastrophic breakdown). Above all is the honesty with customers , dealers, and employees ( if you own the business) , that In itself will take you a long ways to the goal one seeks. It takes years to build a relationship with customers and community, it only takes minutes to lose it , one bad decision, one wrong word or bad attitude will damage that relationship, and once it’s lost, you may never get it back. If you run a business, own it all, good and bad, life is life, it’s neither fair nor unfair, it just is , deal with it. You sir seem to do that well, and I am sure we don’t see all that goes on but, from my point of view, I don’t need to, because who you are, and what your company stands for,comes thru in these vids. Best to you and your family and company.
Well said. Especially about the operators desire to develop his skills
Very well done with very good advice. Always remember that ALL big companies started out small. Some started out in the family garage.
Yup
Best Video yet
Awesome perspective!
Congratulations on 100,000 subs. You have great content, the rewards will keep coming.
Thanks
Congratulations on reaching 100,000 subscribers!
Thanks
Great video congratulations on 100 k subscribers
Thanks
Yes It does make sense to me thanks Damon
Thank you for an interesting and informative video, and well done on getting to 100k subs!
Thanks
Thank you> Love the video!!!!
Great information for any situation. People pay for your skill and there time. In my life I've been paid better for my honesty than my ability. I don't have a business or anything. Just a skill that's needed every once in a while.
My story of my excavation business is similar to yours, I had a skid steer and a mini. I had the opportunity to buy my neighbors PC138 excavator it opened up so many opportunities so fast it wasn’t even funny. I’ve been so slammed ever since and shortly after I bought a 953c track loader which gained even more jobs. I’ve figured out you can’t do the job if you don’t have the tool, it’s risky to buy something but every time I do it pays off.
Yep did enjoy bro and congrats on achieving 100k subs. Safe travels up your way
Thanks buddy
Congratulations on 100,000 subscribers!♥️
Thanks
Fantastic video Mike! I’ve been waiting for you to post this. Very valuable information and pointers you mention here. I’m hoping in the next 6 years to be on my own doing excavating and I want to start small and work my way up. All I like to do is dig and move dirt. Congrats on 100k subscribers!
Thanks and hope it helps
You guys are awesome!
Thanks
Very informative video! I managed a clinical laboratory, my brother in law was a home builder and could not get his houses painted. He asked me to help out his regular painter. I really enjoyed it and when I retired it was a natural transition to my “ hobby job”!
Great video. Thanks for sharing.
Yes its been informative, thanks for taking the time to do this, keep them coming when u can.
Thank
Congratulations on the 100k subs. Others are learning what some of us have known for a while and that is awesome, all the best and looking forward to more.
Thanks
..and the rest is history....lol... good one, keep safe and have a great weekend
Great info for customers and contractors !!
Thank you sir!
Thank you !
Thank you! This was good to hear. I’m active duty Navy and coming up on retirement in a few years. I have been watching you along with JPayDirt. I look forward to both of you posting new videos every week. I grew up in excavation, and would have gotten out of the Navy sooner, but life’s not about me and responsibility comes first. But over the years I have continued to hone my skills and have acquired assets. I just need to wade out in the water. Again thank you and God Bless you, your family and friends.
Thanks and appreciate your service very much
Congrats on 100,000 subscribers!
Thanks Alex
This is one of the absolute best videos you've ever done, God bless you and your family brother and thankyou for your detailed advice. Don't see this no where. Best advice ever
Thanks Robert
Great advice to heed
Another great video. I always love hearing you talk about bidding jobs. Personally i like a estamate and do cost based time and materials. Dirt work can be hard, because you don't know what your getting into till you start moving dirt.
Great video, loaded with information that many need! Thanks for sharing!!! J.R.
Thanks
Great info from both of you! Nicely done!
Thanks
I would like to hear your better half, and her take on how this ride was from her point of view. The ups and downs and so forth. Great job young man on your growth.
Have a podcast on my other channel about that a few points from perfect
Congrats on reaching 100 thousand subscribers. You definitely deserve it
Thanks
Mike- Thank you for being such an honest and common sense person. We have enjoyed all of your videos!
Thanks appreciate that
Congratulations on 100k Mike, enjoying each and every video buddy.
Thanks
@@DirtPerfect and you still take the time to reply!!
I enjoyed it very much. Thanks for sharing. Congratulations on 100 thousand subscribers!!
Thanks
You gave such good advice Mike. I called it baby steps when advising someone who asked me how I started. Skills are the key in my opinion. I was fortunate in that I was able to train on the job. I took that very serious and it has payed ten fold throughout my career. You touched on some great points in having a business and you were spot on! Great video Mike!!
Loved this video Mike, it was exactly what start up guys/gals need to hear and take to heart.
This video was spot on from what I experienced working for a landscaper here in Eville, IN for a couple years before going out on my own with my landscaping business. Now 4 years into my business, it’s showed me plenty of lessons and given me lots of knowledge from the school of hard knocks to add to what I learned working for the landscaper for a couple years before starting my own. Spot on starting out small, and I can attest to the fact that it’s scary starting out and growing the company. I’m still going slowly and biding my time as things grow slowly. It’s def hard to be patient and grow slowly but it def pays off over time. My 1025r has been nearly perfect for me starting out and making life much easier.
Thanks buddy
Great, thank you
What a brilliant insight, from someone who started early and has the skill set to fix their own equipment and from someone who started after a career in something else. Really interesting. 👍
This was great to hear your story I'm in the same boat as Tim.
Great Video Mike. There’s a lot to be said about Pride of Ownership along with Customer Satisfaction. A successful business is an extension of reliable follow through you build with your customers and venders while complying to state, county and local regulations. From one job to the next, every customer becomes a calling card for years to come..🇺🇸🇺🇸🇺🇸🇺🇸
Great video and advice. I followed most of the steps you and Tim mentioned when I started my trucking company. I bought a used truck to start. I choose an ex government unit. I was able to get the complete service history when I bought the truck, this helped reassure me that the truck was well maintained. What I didn't take into account was parts availability for international trucks. My local parts stores like napa. Only carried common parts like filters and lights. For most every other part I needed I had to go to the dealer to get. My nearest International dealer was almost 70 miles away. Every time I had to go to the dealer, I drove past Peterbuilt, Kenworth, Frightliner, Mack, and even Volvo. This was an inconvenience for planned repairs. But for the unplanned, the I have to fix this tonight before we work tomorrow repairs this was a killer. The 2.5 hour drive for parts often took more time than the repair did!
Wasn’t boring at all, i find these kind of videos interesting and even a bit educational.
Congrats on your 100000 subscribers 🥳
Thanks
Appreciated this video. I have been working for other people for 19 years. And starting to work on going out on my own.
Good luck
Fantastic set of videos, Tractor Time with Tim and yours. Great insight and different views.
Thanks David!
Thanks
Great video DP. Thanks for sharing
Thanks for watching
Great video. Very informative. I agree with everything you brought up. Start small and work your ass off to get where you want to be. I think the biggest thing is if you are going out alone you have to be honest and a people person. You can be the best operator in the world but if you cant talk to customers and explain everything to them and have a bit of fun with them you wont last long. Personality is in my opinion one of the biggest differences in a successful business compared to a struggling one.
Interesting topic. Enjoyed the video. My company is probably a little smaller than yours but like you I started with nothing but work ethic and a conscientious attitude about my work. However now in year 4 it’s amazing to see the growth. God bless and have a happy thanksgiving.
Your advice is so true not only in this business but in many others as well. If you don't have the time to put into your business then it won't grow and most likely it will not last. Thanks for your insight.
Thanks
Great video and great advice. I'm one year into my own Land Services business and I think this would help anyone looking to get started. I had a L2501 Kubota and a trailer when I started out. I bought a 1976 C65 single axle dump truck and I soon left my job as a Paramedic. Just upgraded to a 1993 tandem axle international and an MX5400. An 8 ton Excavator is on the radar for next year.
Good Tips and technique thank u sir.
Very informative, Good video hopefully someone will learn from it! ✌🏻🇺🇸
I did things a little different, but there was one thing you implied, but didn’t cover specifically. Work HARD,,, smart, but hard!!
I was fortunate and my father had a ranch of about 3500 acres. He was debt free and I made a lot of money as a kid, in wages, 4H, whatever I could make money at, I did. At 17, 2 of my dads friends wanted to buy a Tire shop. They needed a 3rd person and I was that person. They were borrowing $$ but I had cash. After the first year one of them wanted out. I wasn’t friends with him, but was a businessman at this point. I was also working there full time and working on the ranch evenings and weekends. I didn’t have a lot of free time, but was kinda raking it in. I bought him out for what he owed on the place and not a dollar more. I was 18. At this same time I was ready to start to buy the ranch. Dad would not finance me. He said I had to go to the bank. At this time the other partner wanted to sell his 3rd. He had not even set foot in the tire shop other than to buy in on it and drink the coffee for free!!! I paid 60 cents on the dollar of his purchase cost. I owned the entire shop debt free, kind of. I put it up for collateral on 1.5 sections of land and 2 used tractors, a seeder, cultivator and disc. There was some other stuff, but I can’t remember all of it. I was approved and now owed about $500,000 at 18 years of age in 1981 at ludicrous interest rates of the day,,,m 18.5% I think it was,,,,,,. I worked at the tire shop, and ranch. The tire shop was good to me, the first crop was really good to me and the equipment was reliable. I spent some cash upgrading all the equipment at the tire shop, and went brand new, service truck (rebuilt the old deck on the existing one and re-used the deck), tire machines x 3, lifts x 4, and an alignment rack. Then added a bay for oil changes and quick brake jobs. That was into the line of credit and I was tapped out (for my personal comfort). Paid that off with the next year or so’s profits and I was now 20.I was ahead on my land payments and had everything re-appraised and then jumped in with both feet!!! I had hired a good (excellent) manager for the tire shop (he was with me when I sold out at 56 and bought the shop with his son). I went just over a million in debt in 1984 ,,,,,,, ugghhhh. I was barely able to make each land payment annually equipment had grown but was all used and costing me to fix, we did our own work though. I was sinking. I took sonme law enforcement based classes in the evenings and weekends, worked full time on the ranch 14 hours a day, and I was just treading water. At 25 I applied for and became a LEO. I now had a full time 5 on 3 off job, had built a crew of 6 on the ranch, and was going to work a second career. I sniped a foreman/manager from a ranch about 100 Km away and that was very fortunate. I paid him about 20% over the going rate. He was really good. He brought expenses into line, the tire shop was going great actually and was debt free, but the ranch was killing me. The interest rates had fallen a lot by then so that helped as well. For the next 30 years I worked like that, but switched LEO careers to a better paying one and stayed with that for the last 25 years. I did get the land paid off at the 15 year mark, 10 years ahead if plan. At this point I was finally doing very well. I grew to 8800 acres without debt and had as many as 15,000 head of cattle in the feedlot I added. Worked 4 on the law enforcement job and 4 days at the ranch. I managed the $$$, but when I worked on the ranch, the Foreman was my boss!! That was a very great arrangement as he was good! I had a core staff of 7, but would get as high as 25 guys working for me. This 7 guys were paid about 50% over the going rate. They stayed with me from 33 - 15 years depending on each person. It was not a great business strategy in one way, but they were invaluable because it’s rare to have loyal staff in the Ranching industry because they are always jumping from one ranch to the next for an extra 50 cents an hour,,,,,.
I sold out at about 56 years of age, debt free with a collection of 15 personal classic trucks. Auctioned those and had $502,000 more than I put into them so that is my vehicle account and current main hobby. The land had increased significantly in value and I don’t, or won’t, want/need for money again. It’s well invested, a fair amount in land for reclamation to original and those are our camping spots!! Haha.
I didn’t have a heart attack or stroke, I didn’t smoke and was an occasional drinker (sometimes wayy too much, but was in Law Enforcement and respected that job. I also ate well. My doctor was surprised I didn’t have a heart attack from the stress. The stress killed a couple of my buddies and that’s why I sold out at 56!!! That and my back was failing.
Was it worth it???? Most days. Would I change things?? Knowing how much I have now, I might have scaled back to 2/3rds of what I had for land/cattle/assets. I would have retired from Law Enforcement 10 years earlier.
I forgot to mention that once the land was paid off I switched to leasing a lot of my equipment new and under full warranty. It was nice not fixing on the equipment. It was all new and the big green truck would come get the big green machines I had and drop a new big green machine!!! Haha. It was a profitable way to manage things financially as far as expenses go vs dealing with capital cost allowances. It made it much easier come sale time as well. It was a personal choice to lease. I could afford to pay cash for new, but that cash was making money for me elsewhere. Leasing has its place, but I don’t think so when obtaining personal vehicles or personal assets. You never own them. If you can’t afford to buy it, you sure can’t afford to lease it!!
That was me in a nutshell. It’s a very different path than DP or Tractor Time with Tim. I did carry a lot of existing knowledge, obtained more and never shied away from learning. My book keeper was my wife and she could do it all and the CA would sign off each year so even her, the CA’s, bills were “reasonable“.
Oh yeah!!! I paid full market value for all the land and equipment I bought from dad as well!! I did it all on my own. He was willing to do-sign, but I wouldn’t do it as it put everything he ever worked for at risk. Instead, he had a decent retirement as well.
Very true
Great video. Two perspectives with successful outcomes. Congrats on 100,000
Thanks