A young entrepreneur in a construction vest and helmet, confidently operating a large excavator at a busy construction site with demolished buildings and workers in the background.

Starting a business is no small feat, especially for a teenager. But for one determined young entrepreneur, success came fast in the world of excavation and demolition. From earning $200,000 in his first year to generating over $5 million in his second, his story is a testament to the power of passion, hard work, and smart decision-making. Let’s dive deep into how he built a thriving excavation business and what you can learn from his journey.

From Side Hustles to Heavy Machinery: A Passion for Building.

A teenage entrepreneur using a saw and drill in a small garage, surrounded by wooden planks and DIY projects, showcasing his passion for craftsmanship.

Before getting into excavation, he had tried multiple side hustles. But what made this one stand out? His love for big equipment and construction work. Ever since childhood, he was drawn to heavy machinery, and as soon as he had the financial means, he bought his first excavator. This decision, though risky, turned out to be life-changing.

Early Influences and Support System

Raised in an immigrant family, he grew up in an apartment before moving into a house. From a young age, he enjoyed working with his hands, doing woodwork, and fixing things around the house. His mother, a driven and goal-oriented person, played a significant role in shaping his mindset. While his father was also supportive, it was his mother’s determination that inspired him the most.

Breaking Into the Excavation Industry.

A construction worker using professional surveying equipment on a demolition site, surrounded by debris, construction materials, and a partially demolished structure.

Starting in landscaping and grading, he quickly transitioned into excavation and demolition. His first projects involved small tasks like leveling yards, grading, and laying gravel driveways. Soon, he landed his first major project—demolishing an old house and preparing the foundation for three new homes.

How He Secured His First Clients.

A group of construction professionals, including a young entrepreneur, discussing blueprints and project details at a job site, with heavy machinery and building materials in the background.

Getting clients as a newcomer in the excavation business wasn’t easy. He started with Thumbtack, a platform for local services, to find his first few projects. But soon, he realized that word-of-mouth and networking were more powerful than any paid marketing strategy.

Lessons from His First Year

Start small: His first jobs were minor grading and landscaping tasks.
Use local service platforms: Thumbtack helped him gain initial traction.
Network aggressively: Personal connections turned into long-term business relationships.

Scaling Up: Investments and Business Growth

Success in excavation requires significant upfront investments in heavy machinery. As he took on bigger projects, he needed better equipment. Here’s a breakdown of the costs:

245 Hitachi Excavator: $300,000+ (new)
Used Excavator: $160,000
Smaller Equipment: $30,000 - $60,000

He took out strategic loans and leases, making use of 0% financing offers to minimize financial burden. Instead of buying everything upfront, he expanded gradually, reinvesting profits into the business.

The Power of Relationships: Building a Strong Network

Unlike most businesses today, he doesn’t rely on social media marketing. Instead, he built a powerful network that consistently brings him high-paying projects. His key relationships include:

Vendors & Suppliers: They prioritize him for urgent parts and materials.
Employees: A reliable team that sticks with him.
Subcontractors: Trusted professionals who handle specialized tasks.
Builders & General Contractors: These partnerships provide steady work.
City Officials & Inspectors: Strong relationships help smooth out approvals and project execution.

Revenue Explosion: From $200K to $5M in Two Years.

His revenue growth has been nothing short of phenomenal:

Year 1: $200,000
Year 2: $1.9 million
Year 3 (Projection): $5.5 to $6 million

Biggest Revenue Generating Projects

The excavation business involves projects ranging from $80,000 to $1 million+. One of his largest projects—a 9-house development—had a total excavation budget of $900,000.

Why Utility Work is the Most Profitable Niche.

Some of the most lucrative projects involve utility work in public roads. These projects pay more because:

They involve high-risk operations (sewer lines, storm drains, electrical work).
Many are government-funded, ensuring higher payouts.
Fewer competitors are willing to take on the risks.

Hiring & Managing Employees Effectively

With 22 employees across multiple crews, he learned early that team management is crucial for business success.

Hiring Tips for a Growing Business

Start with a reliable core team.
Train new hires under experienced foremen.
Pay competitively ($25-$27/hour for laborers).
Use a structured onboarding process.
Maintain a positive work culture.

Avoiding Costly Mistakes in Equipment Purchases

When it comes to acquiring machinery, he recommends:

✅ Leasing or renting before buying (to manage cash flow).
✅ Buying brand-new instead of used (to avoid repair costs).
✅ Hiring an in-house mechanic to maintain equipment.

Overcoming Challenges & Business Risks

Starting with $200,000 in debt, he faced financial pressure early on. However, his belief in faith and persistence helped him push through. When work slowed down, he volunteered his services for free at a church project. This led to unexpected job referrals, giving him a sudden influx of high-paying work.

No Marketing, No Problem: How He Gets Clients Without Ads

A successful young entrepreneur shaking hands with a satisfied client at a construction site, with heavy machinery and workers in the background, symbolizing strong business relationships and trust.

In an era where businesses pour thousands into marketing, he built a $5M+ company with ZERO online ads. His strategy? Deliver exceptional work so that clients recommend him.

Keys to His Referral-Based Growth:

✅ Strong reputation in the local community.
✅ Word-of-mouth referrals from happy clients.
✅ Flawless execution that builds trust and credibility.

Final Lessons: What Every Entrepreneur Can Learn

🔹 Take risks, but be smart about them. His bold move to buy an excavator set the foundation for his success.
🔹 Build strong relationships. Networking can replace marketing if done right.
🔹 Invest in high-ticket services. Roadwork and utility jobs provide higher margins.
🔹 Manage cash flow carefully. Equipment and labor costs require smart financial planning.
🔹 Be adaptable and keep learning. Even successful entrepreneurs still seek mentorship and advice.

Where is He Headed Next?

With 120+ excavation units planned this year and ongoing expansions into utility work, his company is poised for even greater success. His goal? To scale up to freeway projects and government contracts in the near future.

Final Thought.

This young entrepreneur’s journey proves that age is just a number when it comes to success. With hard work, smart investments, and strong relationships, anyone can turn their passion into a multi-million-dollar business.

Frequently Asked Questions, FAQS.

How did he start his excavation business?
He began with small landscaping and grading jobs before taking on full-scale excavation and demolition projects.
What was his first major investment?
His first major investment was purchasing an excavator, which allowed him to scale his business.
How did he finance his equipment purchases?
He took advantage of financing options like 0% interest loans and leases to minimize upfront costs.
How much did he make in his first year?
He earned approximately $200,000 in his first year.
How did he grow his revenue so quickly?
By reinvesting profits, expanding his services, and building strong business relationships.
Why did he choose excavation and demolition?
He had a passion for heavy machinery and saw an opportunity in the construction industry.
What was his biggest challenge when starting out?
His biggest challenge was securing work without an established reputation.
How did he get his first customers?
He used Thumbtack, word-of-mouth referrals, and direct networking to land his first jobs.
Does he use marketing to grow his business?
No, his business relies entirely on referrals and strong industry relationships.
What types of projects does he take on?
He works on residential demolitions, foundation prep, roadwork, and utility installations.
What was his biggest project to date?
A nine-house development project worth approximately $900,000 in excavation work.
What is the most profitable service in his business?
Utility and roadwork projects generate the highest revenue due to their complexity and high-risk nature.
How many employees does he have?
He employs around 22 workers across multiple project sites.
How does he find and hire employees?
He recruits through referrals, offers competitive pay, and ensures proper training under experienced foremen.
What are the biggest expenses in his business?
Labor costs and trucking expenses, which can reach up to $200,000 per month.
Does he own or lease his equipment?
He prefers buying new equipment over leasing to reduce long-term maintenance costs.
How does he manage multiple projects at once?
He uses structured teams, assigns foremen to each project, and maintains a clear workflow.
Why doesn’t he rely on social media for business?
His industry is heavily relationship-based, and personal recommendations bring in more reliable clients.
What role does mentorship play in his success?
Experienced business owners guided him through the process of bidding, planning, and managing projects.
What advice does he have for new entrepreneurs?
Start small, build strong relationships, and reinvest earnings into growth rather than excessive spending.
What mistake did he make early on?
Underpricing projects and not having enough operating cash flow to sustain ongoing jobs.
How long does it take to complete a typical project?
Small jobs take a few days, while large developments can take several months.
How does he handle unexpected challenges on a job site?
He plans ahead, maintains strong communication with his team, and adapts to changes as they arise.
What is his long-term goal for the business?
To expand into freeway projects and government contracts for larger-scale infrastructure work.
What sets his business apart from competitors?
His reputation for reliability, high-quality work, and the strong relationships he builds with clients and city officials.