How to Start a Quarry | SkillsAndTechSkillsandTech | July 2, 2022 |
A quarry business requires sufficient planning for it to succeed. You have to deal with numerous environmental laws and business hurdles along the way. It becomes easier if you are familiar with the industry because you understand the basic operational procedures. Without experience, you may need the assistance of people who are acquainted with the business to help you run it effectively and profitably.
Write a plan for your business. Outline all the steps you need to take to start your business. Your business plan also helps you get loans from the bank and woo investors. Remember that how well you plan your business determines its future success.
See Also: How to Start a Warehouse Business
Include a distribution strategy in your business plan. This is important because your revenue comes from distribution. Once you’re finished with your business plan, determine a legal structure suitable for your prospective business before filing your articles of incorporation with the secretary of state in your state to obtain a corporate certificate. Ensure to obtain all the required permits to operate a quarry from local authorities.
Look for a site where you can mine gravel, sandstone, granite or limestone, depending on your business model. You can even lease a quarry from a landowner and pay a lease fee or negotiate a revenue-sharing deal following a feasibility study and appraisal to determine whether you can create a sustainable business at the quarry site you’re considering.
See Also: How to Start a Bowling Alley Business
Purchase an existing quarry, if you don’t want to lease. You might have to pay more for this option because of the resources that an existing quarry already has, but it may be better in the long run because the profit is entirely yours. The problem with a profit-sharing arrangement is your landlord might be expecting gross compensation from all the material coming out of the quarry instead of looking at the net earnings. Also, consider purchasing a franchise. This increases the chances of you succeeding rather than running a small company on your own.
Decide whether you want to lease or purchase your equipment. You need equipment including drills, loaders, excavators and trucks to operate a quarry. Leasing might seem convenient, but it becomes expensive in the long run. Start with used equipment in good condition. When you start making a profit you can upgrade, if possible.