Read how taxes and equipment works before spending any large amounts... Get a pro bookkeeper/CPA that handles sub contractors in your volume range..
# 1 Tool is yourself, your hourly rate is what you think that tool is worth ...
40 years x 2000 hours x 30.00$ = 2.4 million dollars.....about half stolen by Taxes and Payroll mandates...
Your work Truck, which you can deduct at 58 cents a mile...In a few years tax deductions should pay a large fraction of your fuel and purchase costs... only if you work at the same address for over an year does the trip mileage become non deductible...
Trailer if needed?
Shop, storage space for the tools when not in use....
everything LASTS longer stored indoors, thus allowing you MORE profit or lower bids....
Keep your credit spotless, Borrow PRIOR TO NEED for cheaper rates.
Your Credit rating is a top ten TOOL too.
Rent low usage, or Rent to own high usage machinery.
As you accumulate capital, raise insurance deductibles to lower costs.
Keep learning: Keep putting a sharp edge on the mental cutting edge and skills as you progress to larger crews, and developing a profitable company culture that doesn't depend upon just one or two star workers to make your business model profitable. If another added worker Lowers profits per hour, why hire them?
Keep the tools accessories in good condition too: sharp bits for demo hammers, air hoses, gang boxes, preform require maintenance, have a calendar/hours of use system in place.
reward workers that take care of the "old" stuff with their choice of the New tools, Gently remind them to care for their tools, but remember all tools break and wear over time/use...
Always have a spare tool that is a "work stopper" or a plan to get one in few hours, what to do when the work truck is the shop getting repaired? Again a cash &credit reserve for unplanned repairs/replacements/ rentals.
preplan rentals of possible equipment to find best deals and plan insurance costs and coverage needed at the cheapest rates. and find timely and least cost equipment movement.
Keep your eye open for Income tax auctions of contractors in your trade.... for bargains
Pay your taxes so you can keep your tools.....:thumbsup:
Remember to always price the use of a tool per hour by TODAY'S replacement costs including taxes and accessories, not your cost of ten years ago, or the used cost.
If you find you don't charge enough, you won't have enough $ to replace your equipment as it wears out....."Eating the Seed Corn" stage of going broke.
Rental rate sheets can be used as a starting point of daily use costs of similar tools, I'd start at 50% of the (8 hrs of use) day rate, and lower it as you develop real world numbers.
A tool never used costs you the lost earning power of that amount of Money every day.....Shop Queens...If you don't use your tonsils, sell them...