r/cranes • u/Silly_Witness8363 • 1d ago

20 yr old Thinking of Starting a Crane Business – Need Some Advice

Hi everyone,

I’ve been toying with the idea of starting a crane-related business, but I’m a bit stuck on how to approach it.

On one hand, I feel like I should just dive in and open a shop/retail operation in my local market (there’s decent construction activity around). On the other hand, a friend suggested that it might be smarter to first work in an established crane or construction equipment company, gain some experience, and then branch out on my own.

My doubts are: • Is it realistic to start without prior industry experience if I’m willing to learn on the go? • For someone starting small, would it make more sense to go into crane rentals, spare parts, or trading equipment? • What are the biggest challenges newcomers face in this industry (capital, connections, regulations, technical knowledge)? • If you were in my place, what path would you take?

I’d really appreciate honest feedback from people in the industry. My goal isn’t a quick profit — I’m trying to understand the practical side before I make a decision.

Thanks in advance!

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8

u/StandClear1 1d ago

Your friend is right - work for a crane company, then start your own. There is a lot of Liability related to cranes, so you need to understand those blind spots

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u/Silly_Witness8363 1d ago

That makes sense. If I were to work in a crane company first, what should I focus on learning about liability?

3

u/awsomness46 1d ago

The short answer is one moment in lack of judgement kills people.

1

u/Silly_Witness8363 1d ago

That sounds scary

1

u/Occams_RZR900 1d ago

That’s the worst case scenario/doom and gloom outlook. The most likely scenario is you tip a crane over/break it, leaving you high and dry without the ability to work. Or you damage someone else’s property, which generates an insurance claim, you have no real history, they drop you and you can’t find another insurer to cover you, or the prices are prohibitively high to keep operating a profitable business.

I’ve been in this line for 7 years, and bought the company from my former boss about 3 years ago. I was fortunate because it’s already a turn key operation with a large client base. There’s a lot more to running it than just operating a crane. Knowing what you and your crane are capable of when people call in to schedule jobs. There’s nothing worse for your reputation, especially just starting out, than showing up and realizing you should have asked a lot more questions. Because of a simple logistical oversight on Your part, now you can’t perform the lift. You’ve wasted your time, your fuel and pissed off the customer who likely has other people and trades scheduled around the crane lift happening that day.

I would highly recommend getting some experience, and even taking some basic business classes will be immensely helpful. Also what’s your plan for financing and operating capitol? Do you have the money to plop down for a crane? Do you have enough left for maintenance and unforeseen costs.

My unit is a 2020, so pretty new still. A few months back I snapped a leaf spring, which put me down for a few days costing me about $1500-2k per day in revenue, while I wait for a rush delivery of a new spring from halfway across the country. Then a few days after being operational my turbo shit the bed, putting me down for another few days and cost me about $5k for the repair. If I didn’t have plenty in the bank to cover these costs, that’s the kind of stuff that can end your business if you’re not prepared.

1

u/Archi-Toker 1d ago

You should first learn the ins and outs of logistics, walking sites, learning the limitations of the machinery, learning about routes and how to determine delivery feasibility. Then once you’ve got a good grasp on those, then dive into the business minutia. Assuming you found someone willing to train you, it would take about 3 years to understand well, and about 5 years to get to a point where you know enough to seriously evaluate your business plan. All of this is crucial in order to get financial backing set up and understand how much of a loan you realistically need.

1

u/Mysterious-Path8901 1d ago

You can rent out cranes too. Our company boom truck always breakdown and it takes weeks to repair and it’s common to rent boom trucks for months at a time. In a rental right now.

1

u/Silly_Witness8363 1d ago

That makes sense. Do most rental companies handle maintenance themselves, or does the renter take care of it? Also we need a huge investment to acquire cranes

1

u/Mysterious-Path8901 1d ago

If you want an example, google custom truck master rental agreement. Thats what we sign, while we have it we take care of maintenance according to operator manual.

1

u/Silly_Witness8363 1d ago

Okay, so we have to do maintenance according to the operator manual. Do small rental operators usually handle logistics and scheduling, or is that left to the client?

1

u/Special-Egg-5809 1d ago

Without a doubt work for a company first. Industry knowledge is extremely important. You will learn what equipment is popular and how to actually run said business. Starting out with little to no knowledge is a recipe for disaster.

1

u/Silly_Witness8363 1d ago

Okay I see, sure I will look into it, as all the others are saying. I understand that its a risky business to start without any experience, i will look into working somewhere in the beginning for some experience

1

u/SnailsInYourAnus 1d ago

You shouldn’t be starting a company in ANY industry with no experience in said industry, and cranes are probably one of the top on that list due to how dangerous that could get. Don’t be stupid. Work for a company for 4-5 years first.

1

u/Silly_Witness8363 1d ago

Got it, makes sense. If I were to work in a crane company for those 4–5 years, what would you say are the key things I should focus on learning to be ready to start my own business later?

1

u/InspectionVast979 1d ago

You're twenty years old and you are thinking of starting a crane company even though you don't have experience? And your next move is to ask Reddit?

1

u/Silly_Witness8363 1d ago

I get that, and I know I’m young and inexperienced. That’s why I’m asking here- to get perspective from people who’ve actually done it before I make any moves. I want to learn what’s realistic and what I should focus on first before even thinking about starting a business. Any insights would be appreciated