As I prepare to go into business for myself, I need to get a handle on the expenses involved. I think the best way to go is to lease the instruments. But I don't want to call around wasting salesman's time because I'm just curious, not to mention being subjected to sales pitches and follow up calls. I'm just trying to get a feel of some of the predictable expenses.
If you lease, how much are the monthly lease payments for, say, a top of the line GNSS base/rover, robotic total station, and collector? Is there any savings to leasing last year's model? I know there are a million things that determine the price, but I need to narrow it down, and I don't think it's a good idea to buy the equipment. In my mind the lease payments would be in the range of $600 to $2000 a month, but maybe some of you could shed some light on it so I don't have to be on the phone with barkers all day.
A consulting engineering firm I used to work for some 30+ years ago had a holding company. The holding company would purchase equipment they needed through bank loans and then lease the equipment to the engineering company. I think it was for tax purposes, but they sure were successful in business.
Just a thought ...
WHY?
Going into business for yourself is a great idea, but you do not need to start with the newest and latest equipment money can buy. Do you need GPS every day? Do you need it at all to start with? A robot is nice, but maybe a used reflectorless TS will do?
IMHO: Spend some money on a DC that will work on some older equipment, but also with the newer stuff you want someday in the future. Go on ebay and pick up some older equipment.
Don't get me wrong... I don't need the latest and greatest. But something comparable to a Trimble R8-2 would be nice and an S6 robotic. In this area, yes you do need GPS every day.
I could get by with a non-GNSS receiver, but to buy all this stuff would take about 50,000 up front, where a lease might be more manageable.
I shouldn't have said top of the line, I just thought that's all that would be offered on a lease.
Allen
From your recent posts it sounds like you're gearing up to open your own shop.
I wish there were some hard and fast rules for people to follow when it comes to getting started, but sadly there isn't. I started on a shoestring and have done well. I've never purchased any equipment that I didn't need a month before. Be careful with your overhead.
While it's nice to have all the equipment you need at your fingertips, too high a overhead can sink ships. Be frugal. I've known more than a few guys that jumped in with a 70K or 80K note to the bank and wound up being a slave to their field and office equipment and truck.
I've had the luxury of age and good luck, all my equipment is paid for. When I need something new, I write a check. My suggestion is to find a lease program or someone that is willing to deal. They're out there. Hunt 'em up.
> Don't get me wrong... I don't need the latest and greatest. But something comparable to a Trimble R8-2 would be nice and an S6 robotic. In this area, yes you do need GPS every day.
>
> I could get by with a non-GNSS receiver, but to buy all this stuff would take about 50,000 up front, where a lease might be more manageable.
>
> I shouldn't have said top of the line, I just thought that's all that would be offered on a lease.
Nothing wrong with wanting good equipment, if you weigh the economics of going robotics with something like an S6 versus an older non robotic and a full time assistant with benefits. You'll see how much cheaper it'll be in the long run, especially if you are just starting out. Going Robotic/Network rover affords you a great deal of flexibility and mobility.
Everybody's experience is going to vary, but in my opinion it's imperative that you realize as many efficiencies as you can. To me that meant developing a good F2F routine, network RTN and a good robot. I have Carlson Survey and Carlson Civil and I originally started to use it with the Autocad engine, I've since gone to intellicad exclusively and save for the occasional crash; it works just as well for me. The point I'm trying to make is that if you shop around you can find some good stuff that won't break your budget.
You didn't become a Licensed Professional to work like a laborer (at least I didn't).
Also I wouldn't focus exclusively on Surveying software, my purchase of Quickbooks Pro for Contractors was a life saver.
Your technical abilities are not what will lead you to fail.
Ralph
Allen
Yes, shoestring is the key here. I'm trying to get started with the least amount of debt. I know what it takes to do the type of work I'm looking to get into around here and it's equal parts GPS and robotic. I don't mind lots of manual labor. The only things I planned on purchasing outright is a laptop, Carlson data collector, and Carlson survey with AutoCAD, along with all the other misc. supplies (those are my biggest purchases). All the instruments I plan on leasing, and working out of my home until I get up and running. It seems to me like equipment costs are the biggest thing preventing guys like me from starting their own business.
I would never feel comfortable with a 70k loan for my new business.
Get yourself a good CPA.
:good:
Good advice right there, maybe should be the first step in setting up a business!
SHG
I fully agree. I have been on my own for 5 years now and just upgraded to a new total station. The one I have been using is an old Topcon CTS2 made in 1995. It did the job until I could buy a new one. Keep your overhead costs low because your first couple of years are critical.
