Owner-operator excavating with a mini excavator

Homeowners, general contractors, home builders, plumbers, electricians and landscapers who subcontract their digging.

Hourly machine-and-operator rates or fixed job quotes. Owning equipment improves margins on repeat work, and you can add attachments like a breaker or auger for more jobs.

• Skilled equipment operation
• Estimating and bidding
• Basic machine maintenance
• Scheduling around weather and other trades

• Check state contractor license rules and bonding requirements for your area
• Insurance: general liability, commercial auto, and equipment coverage (often called inland marine)
• Check weight limits for your trailer and truck, and whether any license such as a CDL applies
• Call 811 before digging, and follow OSHA trench safety rules
• Equipment payments and repairs continue in slow winter months, so plan cash flow
• Workers' compensation insurance is usually required once you hire help; check your state

Startup costs are typically around $30,000 to $120,000, depending on the machine, trailer, truck and insurance you need. These are estimates, and equipment payments and repairs continue in slow winter months.

Monthly revenue is typically around $6,000 to $30,000, depending on job volume, pricing and season. The estimate assumes at least about 25 hours a week, and equipment payments continue in slow months, so plan your cash flow.

Check state contractor license and bonding rules, insurance such as general liability, commercial auto and equipment coverage, trailer and truck weight limits and whether a CDL applies, 811 and OSHA trench safety, and workers' compensation once you hire help.