You Bought the Machine—Now What’s the Real Cost to Go Into Business?

Mini excavator with text on top: The cost of starting a business

Driving your new excavator, skid steer, or loader off the lot is an exciting moment. But buying the machine is just one step in a much wider journey. Turning that piece of equipment into a profitable business takes careful planning, reliable partners, and a clear view of all the costs that lie ahead.

Upfront Investment Beyond the Machine

Even before your first job starts, there are expenses that you might not have factored in:

Ongoing Operating Expenses

Once the machine hits the dirt, regular costs begin to flow:

Marketing, Branding, and Sales

Is marketing necessary? No, not always if you’re already booking jobs. But a machine sitting behind your shop won’t book itself on a job, so investing in sales and marketing is helpful, especially in the beginning stages of your business.

Staffing, Training, and Labor Costs

Your machine can’t run itself. Even a solo operator needs support sometimes. This portion can sometimes be your biggest investment, but it’s also where you’ll get the biggest return.

Cost CategoryLow EstimateHigh EstimateNotes
Recruiting & Onboarding (per hire)$4,000$7,500+Includes job ads, background checks, onboarding
Initial Training (per employee)$500$2,000Safety, equipment, industry basics
Hourly Wage (entry-level)$15$25Per hour, varies by region and experience
Annual Labor Cost (per FTE)$30,000$60,000Wages only, add 20-30% for taxes/benefits
Payroll Taxes & Benefits+20-30% of wages-Includes FICA, unemployment, basic benefits
Payroll Processing (monthly)$30$40Plus $4–$6 per employee

Table data sources: Virtual Latinos; Fin Models Lab; Reddit; Fin Models Lab

Financing, Cash Flow, and Risk Management

How you pay for equipment and manage your cash determines your ability to weather slow months or unexpected breakdowns:

Crafting a Solid Business Plan

A written plan keeps you on track and confident in your investment.

  1. Define your niche
    Are you offering landscaping cleanup, light demolition, land clearing for new construction, or a mix? Each specialty has different equipment, attachments, and marketing needs.
  2. Set pricing that covers all costs
    Calculate an all-in hourly or per-day rate that includes fuel, maintenance, labor, overhead, insurance, and profit. Compare this rate to local market benchmarks to stay competitive.
  3. Establish growth milestones
    Plan when you’ll add new attachments, hire a second operator, expand into adjacent services, or purchase a larger machine. Tie these milestones to revenue targets and cash reserves.

This plan is a guide. It’s not a hard-and-fast playbook you need to stick to, but without it, you’re navigating murky waters.

Conclusion

Your new excavator or loader is more than a tool, it’s the cornerstone of a business. Success depends not only on the machine’s capabilities, but on how you plan for every expense that follows. From attachments and office setup to marketing, staffing, and emergency funds, each cost factor shapes your profitability and growth. Partnering with a trusted dealer who understands total cost of ownership (and can advise on financing, warranty, and parts support) helps you focus on what really matters: running jobs safely, efficiently, and profitably.

Ready to map out your real cost to launch or expand? Get in touch with our team and we’ll be happy to help you.

Sources

1. How Much Does an Employee Cost and Can You Afford to Hire?

2. OSHA-Authorized Outreach Training Online


Date: about 13 hours ago
Topics: Construction Management
Tags:

Explore More Media

View All Post


Check out our equipment