Having a side contract business?

[NorthumbrianFarmer]

Hi guys so I currently looking at buying a tractor to rent it out the farm I’m currently fully employed by as during the busy times of year there is always another 2 tractors brought in. I’ve roughly worked out that the amount of work I’d get for the tractor would just about cover the cost of the finance and there would be no chance of the work not being there for at least 5 years. I know it’s not exactly a money making idea but I’m just wondering if anyone would see this as a good way to get my foot in the door with some machinery and get a business started of my own, while still being fully employed. Any advice is greatly appreciated and would love to know if the idea will just end up being the biggest was of time and effort or not.

 

[Lofty1984]

Hi guys so I currently looking at buying a tractor to rent it out the farm I’m currently fully employed by as during the busy times of year there is always another 2 tractors brought in. I’ve roughly worked out that the amount of work I’d get for the tractor would just about cover the cost of the finance and there would be no chance of the work not being there for at least 5 years. I know it’s not exactly a money making idea but I’m just wondering if anyone would see this as a good way to get my foot in the door with some machinery and get a business started of my own, while still being fully employed. Any advice is greatly appreciated and would love to know if the idea will just end up being the biggest was of time and effort or not.

You will get allot of neigh sayers on here but if you can get the work you say for 5 years And your figures stack up go for it I’d say.
You won’t get anywhere without trying at least oh and lots of hard work good luck with it what tractor are you looking at

 

[Derrick Hughes]

How much are you thinking of spending ,I big breakdown you are sunk

 

[NorthumbrianFarmer]

You will get allot of neigh sayers on here but if you can get the work you say for 5 years And your figures stack up go for it I’d say.
You won’t get anywhere without trying at least oh and lots of hard work good luck with it what tractor are you looking at

Ah thanks. I just keep thinking I’m young and I won’t get many chances so I need to go for it. Well I was looking at those new m7 Kubota but after talking to a few people who have recently purchased them I’ve been warned off them. I’ve been wanting to get something nice to sit in reliable and good on fuel and I’m sort of coming to the conclusion of either a valtra or a claas (maybe a fendt if the price was right)

 

[NorthumbrianFarmer]

How much are you thinking of spending ,I big breakdown you are sunk

After talking to a guy who has done this all his life he sort of told me how he would look at it and came to the conclusion of somewhere in the region of 60-70k

 

[Al R]

Ah thanks. I just keep thinking I’m young and I won’t get many chances so I need to go for it. Well I was looking at those new m7 Kubota but after talking to a few people who have recently purchased them I’ve been warned off them. I’ve been wanting to get something nice to sit in reliable and good on fuel and I’m sort of coming to the conclusion of either a valtra or a claas (maybe a fendt if the price was right)

Fastrac.

 

[Derrick Hughes]

Are you going to charge contractor rates or tractor hire rates without man

 

[NorthumbrianFarmer]

Are you going to charge contractor rates or tractor hire rates without man

Well I haven’t been able to find out a hire tractor rate as most prices I have seen only go up to 50 hours a week so wasn’t sure how billing over that amount worked out. So I had worked on billing him hourly based on what other people charge in the area hourly

 

[Derrick Hughes]

Well I haven’t been able to find out a hire tractor rate as most prices I have seen only go up to 50 hours a week so wasn’t sure how billing over that amount worked out. So I had worked on billing him hourly based on what other people charge in the area hourly

We pay £12000 year for 165 hp John D 10,000 hrs new annually. Service , Free, Tyres free unless accidental damage, last one went back after 2 years and he spent £10,000 on the gearbox a week later

 

[ARW]

If you already own a house and are sorted financially then go for it, if it’s between a tractor and a house, house every time
You don’t make money out of tractor hire depending on the rates, it usually just pays enough to cover depreciation, servicing, insurance, punctures and small breakdowns. You need a strong profit margin to pay for big breakdowns and replacing it. It is not a safe place for your money

 

[dairyrow]

I think id buy another house tbh and maybe want the tracot doing more than just covering finance. Anyway good luck with whatever you decide

 

[Mydexta]

You say in you’re original post that what you expect to get would just about cover the finance. How do you expect to make a profit to buy other machinery when the tractor isn’t washing its own face????

If you’ve done you’re sums and that’s what the answer comes up as, then surely it a no.

There will still be insurance to pay, plus there’s no point doing something like that and not actually making any money, which going by the way I read you’re original post, you won’t be doing.

 

[czechmate]

We pay £12000 year for 165 hp John D 10,000 hrs new annually. Service , Free, Tyres free unless accidental damage, last one went back after 2 years and he spent £10,000 on the gearbox a week later

I’m not picking fault Derrick, I am interested in your post - what is the 10,000 hrs?

 

[fgc325j]

Hi guys so I currently looking at buying a tractor to rent it out the farm I’m currently fully employed by as during the busy times of year there is always another 2 tractors brought in. I’ve roughly worked out that the amount of work I’d get for the tractor would just about cover the cost of the finance and there would be no chance of the work not being there for at least 5 years. I know it’s not exactly a money making idea but I’m just wondering if anyone would see this as a good way to get my foot in the door with some machinery and get a business started of my own, while still being fully employed. Any advice is greatly appreciated and would love to know if the idea will just end up being the biggest was of time and effort or not.

In my book tractors, machinery and all vehicles are guaranteed to do 2 things - cost a lot
to run and depreciate in value. It's difficult to make money from a wallet drainer and add
in possible cash flow problems and you could be standing in a deep hole. Sorry to be a
pessimist, but as someone has posted get a house to live in sorted first.

 

[le bon paysan]

I’m not picking fault Derrick, I am interested in your post - what is the 10,000 hrs?

Probably a 0 to many. 1000 hrs a yr.

 

[masseybreaker]

i dont want to pee on your chips but if the hire doesnt cover finance what pays for servicing. repairs and breakdowns ? and tyres and replacing it with a new one after 5 years ? your old one will have halved in value and the new one will have doubled

 

[Bald Rick]

Another bit of pee ... it isn’t always easy to get money out if farmers or at least when you want it. Tread with care

 

[chipchap]

My advice would be to buy something that has a chance of increasing in value.

 

[buffalo_soldier]

Not with a tractor, but I know a lad that has done similar.

Full time employed.
Bought a digger on to hire out.
Renting spits and spots of land as he had gone along for a start up flock.

Built up to 3 diggers, tractor, trailers etc.
Full ground works operations now.
Rents land for a flock of several hundred.
And it became his main job.

Managed to buy a scrap of land a couple of years back by knocking on doors.
He has put up a super looking shed on it this year.

Real grafter he is and impressive to see the results.

So it can be done, might be harder starting with a tractor.

 

[Derrick Hughes]

I’m not picking fault Derrick, I am interested in your post - what is the 10,000 hrs?

Sorry 0 to many .1000 hours .eccess hours are charged