How Much Does It Cost to Start an Excavating Business?
- Nate Jones
- Jun 22
- 2 min read
If you're thinking about launching your own excavating business, one of the first questions you’ll need answered is: “How much does it cost to get started?” The answer depends on your equipment choices, business structure, and whether you plan to finance or pay upfront. In this guide, we’ll break down the typical startup costs and offer tips to help you launch your business the right way.
At Excavating Insurance Partners, we specialize in helping new and growing excavation contractors protect their investment with the right insurance coverage. Let’s dive into the numbers.
Startup Costs for an Excavating Business
Here’s a breakdown of the average costs to start an excavating business:
Item | Estimated Cost |
Used Excavator | $80,000 |
Used Skid Steer | $45,000 |
Used Truck & Trailer | $60,000 |
Excavating Insurance | $4,000 (Get a quote) |
DOT Registration | $200 |
LLC or Corporation Setup | $200 |
Business Marketing | $2,000 |
Total Estimated Cost | $191,400 – $200,000 |
Financing Options
If you don’t have $200,000 in cash, don’t worry—many new business owners finance their equipment.
Down Payment: ~$40,000
Monthly Loan Payment: ~$3,400 (based on a 10-year term)
Financing allows you to get started with less upfront capital, but be sure to factor in interest and monthly payments into your business plan.
Monthly Operating Costs
Once you're up and running, you’ll also need to budget for ongoing expenses:
Fuel: $1,000 – $1,500/month (350–400 gallons of diesel)
Maintenance & Repairs: Varies by equipment age and usage
Insurance Premiums: Get a custom quote at Excavating Insurance Partners
Marketing & Lead Generation: $200–$500/month
Don’t Forget Insurance
Insurance is a critical part of your startup costs. Excavation work involves high-risk activities like trenching, grading, and working near underground utilities. You’ll need:
👉 Learn more in our blog: What Kind of Insurance Do I Need for an Excavating Business?
Helpful Resources for Starting Your Business
OSHA Excavation and Trenching Safety – Learn how to keep your crew safe on the job.
SBA Guide to Starting a Business – Step-by-step help with forming your business.
Contractor Back Office – A lead generation platform to help you find jobs.
Final Thoughts
Starting an excavating business is a significant investment—but it can also be a highly profitable one. With the right equipment, a solid business plan, and proper insurance coverage, you can build a business that’s both sustainable and scalable.
Need help protecting your investment? Contact Excavating Insurance Partners today to get a quote and learn how we help new excavation contractors get started with confidence.
Related FAQs
What kind of insurance do I need for an excavating business?
What types of excavating services are most in demand?
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