A large selection of bulldozers for sale is available on the Machineryline marketplace.
You may have decided to buy a bulldozer for your business.
If you apply to a bank for a loan to purchase technological equipment, then most likely you will be asked for a business plan. And there you will write what and how much you will produce on this equipment, as well as where, to whom and how much you will sell all this. It is quite easy to determine the cost per unit of output if you know the consumption of raw materials, the quantity produced per shift, the energy consumption, and so on.
But what about special equipment? Is a similar business plan possible for a bulldozer? How to calculate the payback period? What to take the price of a bulldozer? This is where a business plan should come to the rescue, which will show whether to buy or rent, and if you buy, then what will be the real payback period.
When the bulldozer for sale was designed and manufactured, a certain operating time resource was laid in it, which was supposed to ensure the performance of a certain amount of work. So, the price of these works in different market environments is different.
Another option to buy a bulldozer for a business involves leasing the machine after purchase. Let’s look at this option in more detail. The business of renting special equipment, and in this case a bulldozer for sale, has always been considered profitable. This can be understood just by looking at the average prices in the market. Even taking into account the not very large average monthly load of equipment, the profit looks pretty solid. But not everything is as rosy as it seems at first glance. It is not easy for newcomers to break into this market. This business requires significant capital at the start and the competition in the field is very serious. Many existing firms already have their own established customers, which are not always easy to lure away.
Another common problem is finding an honest and responsible bulldozer driver.
The business of renting special equipment is a business that entirely depends on the situation in the construction market. If the construction is active, then the equipment is in demand, even used bulldozers. Therefore, when planning the opening of such a business, you should carefully study the situation on the market. The other side of the issue is competition. There are more and more companies providing such services every year. There are also many small private traders, entrepreneurs who own one or two new or used bulldozers. In the spring, there is enough work for everyone, as construction comes to life during this period. But at other times of the year, you have to fight for the client.
It is noteworthy that such a business can be opened on a different scale and with different capital. Whether you bought a used bulldozer or 15 new ones, you are a company that provides rental services for special equipment.
You can save money and buy used bulldozers. This option is sometimes worth looking at carefully. In this case, the price of a bulldozer will be lower, the fleet will be larger, but the cost of repairing special equipment and possible malfunctions will increase, which will hit the authority of the lessor. There may be a situation in which you will not be confident in choosing a used bulldozer. Then you should play it safe and buy a bulldozer in the salon of special equipment with a guarantee.
Drawing up a business plan
To begin with, in your business plan, you will consider the expenditure side of your business.
This includes the following items of expenditure:
- bulldozer price;
- rent of a garage;
- payment of utility bills;
- repair costs;
- wages to employees;
- transport costs;;
- insurance of special equipment;
- security alarm;
- GPS devices to control the movement and location of the bulldozer.
You may have additional cost items, you will need to include them in this list when you buy a bulldozer.
The next step is to calculate the expected profit. We recommend not to overestimate the bar in this matter, since not all business conditions are always perfect. So, you should take the average rental price in the market and calculate the approximate demand for the month. At the beginning of your activity, you should expect that the demand for services will be below average, take this into account when drawing up a business plan.
Do not forget that even a used bulldozer can be sold in the future.