Starting an Excavation Company – Sample Business Plan Template
1. Conduct Your Feasibility Studies
The first and most important step to take before venturing out to launch any business is to first conduct a detailed feasibility studies. The need for a good feasibility studies can not be relegated to the background in the lifecycle of a business. So, in the bid to start your own excavation company, it is important that you go out there to conduct a detailed market survey – feasibility studies so that you will get first hand information of all that would be required to successfully launch this type of business in the location of your choice.
2. Acquire the Required Technical Skills
As a matter of fact, an individual can single handedly start and run his own excavation company from the scratch before employing people along the line to help him when the business is expanding. If you intend starting your excavation company alone, then you should endeavor to learn some technical skills that will be needful. Part of what you need to learn is how to operate heavy duty equipments like tractors, bulldozers, backhoes and forklifts et al.
3. Draw up Your Business Plan
Once you are convinced that starting an excavation company is the right business for you to do, and then you should make plans to draw up a good business plan. You can do it yourself or you can contract it to an expert to help you do it. The bottom line is that it is not a wise decision to operate a business without a business plan especially capital intensive businesses like Excavation Company. The truth is that if your feasibility study is detailed enough, it will make it much easier to draw up a good business plan because all the details that you would need will be available
4. Raise Your Startup Capital
Capital is the lifeline of a business; hence you must make plans to raise your startup capital before launching your business. Before making plans on how to raise startup capital for your business, you should have a clearer idea of how much would be needed to setup the type of business you are about to start from the scratch. One good thing about feasibility studies and business plan is that they will provide you with a clearer picture of the capital you would need to setup the type of business you want to start.
As a matter of fact, you will be able to know the prices of all the equipments and tools you would need and lots more. So once you have an estimate of the money needed to launch your business, the next step is to raise the money via obtaining loans from the bank, from investors or from your family members and friends.
5. Rent a Yard / Office Space
The facility you would need for this type of business is a facility that will be large enough to contain all your heavy duty equipments and also space for maintenance and servicing of the equipments. So ensure that you have a good idea of the space that will be large enough to accommodate your equipments before engaging the services of a realtor. The truth is that it is expensive securing large space in major cities; your best option is to move to the outskirt of town. It is cost effective to do so.
6. Purchase Your Equipments
If you are starting your own excavation company alone, then there will be a limit to the numbers of heavy duty equipments you would need. But if your intention is to launch a standard excavation company from the onset, then you would need to purchase these heavy duty equipments; cranes, bulldozers, backhoes, trucks and forklifts et al. the truth is that these equipments can be very expensive especially if you are purchasing brand new ones.
You can checkup the prices from the manufacturing companies or the nearest dealer of such heavy duty equipments around you. It is important to state that you can still launch this type of business with second hand heavy duty equipments; they are relatively cheaper, but you would have to spend more on maintenance and replacing of worn – out parts.
7. Source for Contracts
If you have successfully setup your excavation business, then the next step to follow is to source for contracts – market your business. Just ensure that you have your business card neatly printed and then prepare a business proposal that you can distribute to construction companies, community leaders, ministry of public works in your state or council and any organization that you know would need your service. You can also launch an official website for your business.
There you have it; the sure fire steps to follow to be able to successfully launch your own excavation company.
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