Wondering how to start an excavating business? Looking to start an excavating business? Nate Jones Entrepreneur is here to help you with a free excavating business plan below. Starting your excavating business the correct way is important. 

How much does it cost to start an excavating business?

• $80,000 - for a used excavator

• $45,000 - for a used skid steer

• $60,000 - for a used truck and trailer

• $4,000 - for insurance If you need insurance, reach out to Excavating Insurance Partners, they work with a lot of Excavating Businesses. excavatinginsurancepartners.com

• $200 - for Truck DOT Registration

• $200 - for LLC or corporation registration

• $2,000 - for business marketing

• TOTAL COST TO START: $191,400-$200,000

• TOTAL COST USING FINANCING:​

  • TOTAL Down Payment: $40,000

  • Monthly Payment: $3,400 a month on a 10 year loan

​

How much a month does it cost to fuel up an excavator?​

• $1,000-$1,500 a month = 350-400 gallons of diesel fuel a month

​

How much money can you make with an excavating business?

How much can you make Digging Basements? $10K - $30K = Average $20,000 per job

How much can you make Grading Land? $1K - $3K = Average $2,000 per job

How much can you make Preparing Foundations? $3K - $4K = Average $3,500 per job​

​

How much does an excavating company make monthly? 

• 1 Basement = $20,000​

• 2 Land Grading Jobs = $4,000

• 3 Foundation Preparations = $6,000

• Excavating Companies make around $30,000 a month or $360,000 a year

• ​

Are excavating businesses profitable?

• Yes, excavating businesses are profitable, an average excavating company profits around $19,000-$20,000 a month or $188,000-$190,000 a year.

​

Types of Excavating Businesses:

• Land Clearing Business

• Demolition Business

• Mass Excavation

• Septic Tank Installation

• Utility Installation​

​

Positives of an Excavating Business

• This Business is always needed. Land will always need to moved when homes and commercial properties are being built. 

• This business can be scaled. You can continue to add more employees, equipment and bigger jobs.

​

How do you get excavating jobs? 

• Create a website with SEO (Search Engine Optimization) and post on social media apps. 

• Network with local home builders, general contractors, home remodelers, etc. 

• Sign up with Contractor Back Office (contractorbackoffice.com) to get leads for excavating jobs. 

How to Start an Excavating Business 

• ​Save up money for down payments on excavating heavy equipment

• Form your LLC with the Federal Government (Obtain an FEIN here) and Local Government

• Obtain a DOT Number from the FMCSA

• Purchase Insurance Here (Excavating Insurance Partners)

• Make connections with local general contractors, home builders, other excavating companies, and local marketing.

• Run your business!

​