Mining Your Own Business: How You Can Start Up Your Own Quarry Business
A quarry business, if set up and managed correctly, can be a lucrative venture. However, for it to be a success, just like every other business, it requires a lot of careful planning and preparation.
Not only do you have all of the usual business hurdles to jump over – the financing, the finding a location, the business plan, the recruitment and training of staff, and so on, there are obvious safety and environmental regulations that you have to fall in line with.
In this article, we begin to cover just a few of the things that you need to do to be able to set up a successful and safe quarry and mining business.
Have a plan in place
Like every good business, a solid plan is essential. Without it, you are unlikely to be able to secure funding to start up your venture, and you will lack any sort of focus to enable you to develop, build, and grow your business.
We could dedicate a whole post to what you should include in a business plan, but essentially, you need to put the following things in there:
- Cover page – This should have your contact information on so that any potential investors or interested parties can contact you
- Executive summary – What your business does and the market need it solves
- Company overview – An overall profile of your company
- Industry analysis – Detail and discuss the market that you are hoping to enter
- Customer analysis – Who is your ideal customer?
- Competitive analysis – Who are your main competitors? What are their strengths and weaknesses?
- Marketing plan – How will you promote your company and your products or services?
- Operations plan – This should detail the key operational purposes of your organization.
- Management team – Who are the key personnel, and how are they qualified to make a success of your company?
- Financial plan – Identify the ways in which your company will generate revenue, financial projections, and how much you are seeking from investors.
Once you have got your business plan sorted, you need to determine your legal structure and file for your article of incorporation with the secretary of state for your state to obtain a corporate certificate. You also need to make sure you have filed for all the relevant permits from local authorities.
Find a location
Ideally, you will have this in mind before you do your business plan as your location may have an impact on some of your plans. Finding the right location is essential for any business, but even more so when it comes to setting up a quarry business.
Where you choose depends entirely on what you are hoping to quarry, be it sandstone, gravel, granite, limestone, or something else. It needs to have whatever it is that you want to mine in abundance.
You also want to think about where your primary customers are going to be based and find a location as near to them as possible. Due to the expense of transporting heavy loads of quarried materials, customers don’t want to be importing from the other side of the country.
You may want to consider leasing a site from a landowner and paying rent on it or negotiate a revenue-sharing deal. Before you do anything, carry out a land appraisal and feasibility study to ensure that there is a possibility of running a sustainable business from there.
Purchasing your site means that you own your land, and all the revenue is yours. However, that also means a great deal of capital to find to buy the land. A franchise is a good alternative to this.
Purchase your equipment and machinery
Quarrying and mining involve a great deal of equipment and machinery, which can be expensive. This includes excavators, drills, loaders, and trucks. You may also want UTV’s or even golf carts to get from one side of a large site to another, and as well as the initial cost, these will need maintenance and upgrades to enable them to do the job. Somewhere like https://tcsupfitting.com/atv-utv-golf-carts/ can help with this, but make sure that you factor this into your budget.
If purchasing outright is beyond your budget, to begin with, you could look at leasing your equipment. Of course, this means that you do not own them, but it also makes sure that you have access to the latest models and technology. Another alternative is to buy used, to begin with, and upgrade as when your revenue starts to roll in.
Marketing your quarry business
Just like any other business, you need a solid marketing strategy in place to market your quarry business. Many quarrying companies lag behind when it comes to marketing, thinking that the strategies that work for other companies do not work well for them, and this simply is not true. All businesses need to attract and retain customers.
Some of the most lucrative customers for a quarry business are governments, whether federal, state, or local, and other firms within the construction industry. Making sure you are well versed in the process of tendering for a contract.
Social media has opened up a whole new market for the quarrying industry, especially as there has been an increase in the number of self-home builders, as well as not-for-profit organizations and community groups.
However, one of the most important thing a quarrying business can do is to retain existing customers. To retain loyal clientele, you need to ensure a quality product and excellent service every single time and prove to them that you are the very best in the industry.
Quarries are always needed – without them, it is almost impossible to get hold of the raw materials required for construction. With careful planning and consideration, it holds great potential for further growth. It all starts with a good idea and an excellent business plan!
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