Seven common mistakes earthmoving owner operators make

Earthmoving owner operatorsThere’s more to success than just choosing the right excavator attachment. Over our 15 years of dealing with owner operators of earthmoving equipment, we’ve seen some common threads emerge.

Earthmoving owner operators are constantly battling the weather to complete their scheduled work. Combined with unpredictable workloads, this creates a massive cash flow burden on operators.

But it doesn’t always have to be like this. There are some simple steps you can take as an earthmoving and excavation business owner to ease these problems. We’ve put together this list of the top seven mistakes earthmoving owner operators make.

Earthmoving owner operatorsMistake 1: Working ‘IN’ your business and not ‘ON’ your business

Earthmoving owner operators often try to be everything for everybody in their business. This results in owners working very long hours to complete important projects on time, and attending to mundane tasks instead of focusing on the big picture of managing and growing your earthmoving business.

The answer: By appointing the right people to look after project management, plant maintenance, office admin and all the rest, you’ll find you have much more time to source new work and plan for the future growth of your earthmoving business.

Mistake 2: Inadequate management systems

Simply having all the necessary technical skills isn’t enough to successfully operate and manage a construction or plant hire company. A lack of general business management knowledge and the absence of related systems are often the reasons why some owner/operator earthmoving businesses struggle.

The answer: Delegate important tasks to properly trained and qualified employees, to ensure everyone can focus on what they do best.

Mistake 3: Limited financial knowledge

A poor understanding of finance, as well as not knowing the true cost of your operations, will often result in the failure of your earthmoving and excavation business. It’s a sure recipe for disaster.

The answer: It’s important to have monthly financial statements to compare your actual costs with your budget. Without this information, it is very difficult to manage any earthmoving project or business successfully.

Earthmoving owner operatorsMistake 4: Inadequate plant maintenance program

Whether you are running a backhoe, an excavator or any other earthmoving equipment, Plant down time is very costly, resulting in loss of income and missed deadlines. But in the fast moving construction industry, earthmoving owner operators often fall behind on scheduled plant maintenance because meeting deadlines seems more important. It’s a false economy.

The answer: Plant down time should be kept to a minimum with regular maintenance of your earthmoving equipment fleet. Having the right machines on hand, well maintained and ready to go, means your business can get the job done on time and within budget.

Mistake 5: Not having a marketing plan

Many construction or plant hire business owners rely on customers contacting them, instead of going to the marketplace proactively to promote their company and services. But this often means not having enough work for your excavation business, which results in cash flow problems.

The answer: Having a structured marketing plan can assist with growing your earthmoving or excavation business, securing new work on an ongoing basis, and maintaining your cash flow.

Seven Common Mistakes Earthmoving Owner Operators MakeMistake 6: Poor customer service

Retaining good customers is always a challenge – but good customer relations are a big part of any successful business. Without a structured customer service plan, your earthmoving business will eventually lose its customers.

The answer: Putting a customer service system in place will mean that problems are attended to as soon as possible, and your customers are followed up on a regular basis.

Mistake 7: Bad work culture

It’s no surprise that earthmoving businesses with good work cultures are generally more successful than those with bad work cultures.

The answer: Take a genuine interest in your staff. Fair employment terms, good working conditions, and ongoing communication, will result in a positive and motivated workforce.

For expert advice and assistance with quality excavator attachments for your earthmoving business, contact us today or call OZ Excavator Buckets on 1300 246 009 now!