Are you about starting a diamond mining company? If YES, here is a complete sample diamond mining business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a diamond mining business. We also took it further by analyzing and drafting a sample diamond mining marketing plan template backed up by actionable guerrilla marketing ideas for diamond mining businesses. So let’s proceed to the business planning section.
Why Start a Diamond Mining Business?
There are many money spinning businesses that are monopolized by wealthy people and accredited investors and one of such businesses is operating a diamond mine. The diamond and gemstone mining business is indeed very profitable, but you must be ready to scale through very high barriers before launching this type of business.
If you have what it takes to start this type of business after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst others.
The truth is that it is one thing to have a fantastic business plan, and it is entirely another thing for the business plan to translate to money (profits) and that is why it is important to assemble a team of experts to work with if you want to be successful with your diamond mining company.
Below is a sample diamond mining company business plan template that will help you successfully launch your own business;
A Sample Diamond Mining Business Plan Template
1. Industry Overview
Players in the diamond mining industry basically mine and quarry non-metallic minerals such as diamonds, opals, sapphires and other gemstones. Even though millions of carats of diamonds are consumed each year in the united states, very few diamonds are mined and produced in the United States.
The only active diamond mine in the country is the Crater of Diamonds near Murfreesboro, Pike County, Arkansas. Hence we will make use of statistics from Australia because they have active diamond mines.
As a matter of fact, there are a limited number of commercially available diamond mines currently operating in the world, with the 50 largest mines accounting for approximately 90 percent of global supply.
Diamonds are also mined alluvially over disperse areas, where diamonds have been eroded out of the ground, deposited, and concentrated by water or weather action. There is at least one example of a heritage diamond mine (Crater of Diamonds, State Park).
If you are an observer of the Diamond and Gemstone Mining industry, you will notice that the industry mines diamonds, opals, sapphires and other gemstones. As Australia has some of the largest known diamond reserves in the world, diamonds dominate industry production.
The industry’s products are divided based on the proportion of revenue that each segment generates. Unsorted diamonds account for the largest segment of industry revenue. Unsorted diamonds are mostly exported for use in industrial applications and jewelry manufacturing.
Due to the value of unsorted diamonds, diamond miners generally process them overseas, as they are intended for bulk diamond markets where they are treated like commodities.
The Diamond and Gemstone Mining industry is a thriving sector of few countries. For example, in Australia, the industry generates over $523 million annually from more than 10 diamond and gemstone mining companies scattered all around the country.
The industry is responsible for the employment of over 642 people. Experts project the industry to grow at a 0.1 percent annual rate. Rio Tinto is the market leader in this industry; they have the lion market share in the industry.
A recent report published by IBISWorld shows that Diamond mining and exports dominate the Diamond and Gemstone Mining industry. Australia is a major global producer of diamonds. Industry players export cheaper unsorted diamonds and a limited number of rare colored diamonds.
Yellow and pink diamonds from the Kimberley region in Western Australia are Australia’s most notable colored diamonds, and sales of these high-end stones contribute disproportionately to industry revenue.
In addition to diamonds, the industry includes companies that mine opals, sapphires and other gemstones. Industry revenue is expected to grow at an annualized 0.1 percent over the five years through 2017-18, to $523.3 million. Revenue declined significantly in 2013-14 due to weaker export volumes and a significant drop in diamond prices.
If you are considering starting a diamond mining business, you should ensure you obtain all the necessary permits from both the local, state and the federal governments. The truth is that this type of business does pretty well when it is strategically positioned.
In summary, diamond mining business is a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale or large scale with robust distribution networks all across the United States of America and other countries of the world.
2. Executive Summary
Charles Robertson® Diamond Mining Company is a licensed diamond and gemstone mining company that will be based in Murfreesboro, Pike County – Arkansas, USA but we will own and operate a diamond mine in Australia.
Our business goal as a diamond mining company is to become the number one choice for diamond cutting and polishing companies in the United States and other countries of the world where we intend supplying quality diamonds, unsorted diamonds, opals, sapphires and other gemstones et al.
As a business, we are willing to go the extra mile to invest in owning our own environmental friendly diamond mines and also to hire efficient and dedicated employees. We have been able to secure permits and licenses from all relevant departments both at local government level and state level in the United States and in Australia.
Charles Robertson® Diamond Mining Company is set to redefine how the diamond mining business should be run all across the world. This is why we have put plans in place for continuous training of all our staff.
No doubt the demand for gem-quality diamonds, unsorted diamonds, opals, sapphires and other gemstones is not going to plummet any time soon which is why we have put plans in place to continue to explore all available market around the world.
In the nearest future, we will ensure that we create a wide range of distribution channels all across the United States of America and other countries of the world. With that, we know we will be able to 3. Our Products and Services
Charles Robertson® Diamond Mining Company is established with the aim of maximizing profits in the diamond and gemstone mining industry. We want to compete favorably with the leaders in the industry which is why we have put in place a competent team that will ensure that our products are of highest standard.
We will work hard to ensure that Charles Robertson® Diamond Mining Company is not just accepted in the United States of America, but also in other countries of the world where we intend supplying our products. Our products are listed below;
- Diamond mining
- Jade mining
- Opal mining
- Sapphire mining
- Chrysoprase mining
- Kyanite mining
- Other gemstone mining
4. Our Mission and Vision Statement
- Our vision as a diamond and gemstone mining company is to engage in the mining and selling of diamonds and gemstones all across the United States of America and other countries of the world.
- Our mission is to establish a standard environmental friendly diamond mining company that in our own capacity will favorably compete with leaders in the industry on the global stage. We want to build a diamond mining company that will be listed amongst the top 10 diamond mining companies in the world.
Our Business Structure
As part of our plan to build a top flight diamond mining company in Murfreesboro, Pike County – Arkansas that will favorably compete with leaders in the industry, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.
The picture of the kind of diamond mining company we intend building and the business goals we want to achieve is what informed the amount we are ready to spend to ensure that we build a business with dedicated workforce and robust distribution network.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Charles Robertson® Diamond Mining Company;
- Chief Executive Officer (Owner)
- Diamond Mine Manager
- Human Resources and Admin Manager
- Sales and Marketing Officer
- Accountants /Cashiers
- Diamond and Gemstone Mining Casual Workers
- Truck Drivers
- Customer Service Executives
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Rises management’s efficiency by recruiting, selecting, working out, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; scheduling, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Generates, interconnects, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- In authority of signing checks and documents on behalf of the company
- Evaluates the success of the organization
Diamond Mining Site Manager
- Oversees the smooth running of operations in the mine
- Makes sure that quality is maintained at all times
- Maps out strategies that will lead to efficiency amongst workers in the organization
- Responsible for training, evaluation and assessment of the workforce
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that our diamond mining site meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- In control of overseeing the smooth running of HR and administrative tasks for the organization
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Describes job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily business activities.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Diamond Mining Casual Workers
- Responsible for operating excavators and other machines and equipment in the diamond mining site
- Responsible for handling the mining of diamond, jade, opal, sapphir, chrysoprase, kyanite and other gemstone mining
- Assists in loading and offloading of our diamonds and other gemstones into and out of the trucks
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Distribution Truck/Tipper Drivers
- Assists in loading and unloading diamonds and gemstones et al
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Reports defects, accidents or violations
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding our diamonds and gemstones)
6. SWOT Analysis
Because of our drive for excellence when it comes to running a standard diamond mining company, we were able to engage some of the finest business consultants in the United States of America to look through our business concept and together we were able to critically examine the prospect of the business and to assess ourselves to be sure we have what it takes to run a standard diamond mining business that can compete favorably in the diamond and gemstone mining industry in the United States of America.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in the United States of America. Here is a of what we got from the critically conducted SWOT Analysis for Charles Robertson® Diamond Mining Company;
Our strength lies in the fact that we have state of the art diamond and gemstone mining equipment and trucks that has positioned us to meet the demand of our clients even if the demand tripled over night. Another factor that counts to our advantage is the background of our Chief Executive Office.
He has a robust experience in the industry and also a good academic qualification to match the experience acquired which has placed him amongst the top flight players in the diamond and gemstone mining industry. We are not ignoring the fact that our team of highly qualified and dedicated workers will also serve as strength for our organization.
We do not take for granted the fact that we have weaknesses, and the fact that we are setting up a diamond mining company in the United States and operating a diamond mine in Australia might pose a little challenge. In essence our chosen location might be our weakness.
The opportunities available to us are unlimited. There are loads of diamond cutting and polishing companies all across the globe and all what we are going to do to push our products to them is already perfected.
The threat that is likely going to confront us is the fact that we are competing with already established diamond mining companies in Australia and other countries of the world. Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face is unfavorable government policies and economic downturn.
7. MARKET ANALYSIS
- Market Trends
It is a common trend in the diamond and gemstone mining line of business to find diamond mining companies positioning their business in locations and communities where they can easily have access to mines and of course cheap labor.
If you make the mistake of positioning this type of business in a location where you would have to travel a distance before you can access the mines, then you would have to struggle to make profits and maintain your overhead and logistics.
Another trend in this line of business is that most registered and well organized diamond mining companies look beyond the market within their location or state; they ensure that they strike business deals with leading diamond cutting and polishing companies in the United States of America and other countries of the world.
The truth is that if as a diamond and gemstone mining company you are able to become a vendor to one or more diamond cutting and polishing giants in the United States of America or in other country of the world, you will always continue to smile to the bank.
8. Our Target Market
When it comes to supplying product from diamond and gemstone mines, there is indeed a well-defined market In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to engage in supply of diamond, jade, opal, sapphire, chrysoprase, kyanite and other gemstone et al to the following organizations;
- Diamond cutting and polishing companies
- Jewelry production companies
Our Competitive Advantage
Some of our competitive advantages are access to niche market, ability to find new resource deposits, control of distribution arrangements and of course, economies of scale.
So also, as a standard and licensed diamond and gemstone mining company, we know that gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of existing competitors. And even if you are successful at first, new competitors could enter your market at any time to steal your regular customers. Hence we will not hesitate to adopt successful and workable strategies from our competitors.
We are going to be one of the very few diamond mining companies in the United States of America that will also operate a diamond mine in Australia.
Another competitive advantage that we have is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon. Our large and robust distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Charles Robertson® Diamond Mining Company will generate income by simply supplying the following;
- Other gemstone
10. Sales Forecast
One thing is certain when it comes to the diamond mining business, if your business is strategically positioned and you have good relationship with players in the diamond cutting and polishing industry, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in and around the United States of America and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operations and row the business and our clientele base.
We have been able to critically examine the diamond and gemstone mining line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in the United States of America.
Below are the sales projections for Charles Robertson® Diamond Mining Company, it is based on the location of our business and other factors as it relates to small scale and medium scale diamond mining company startups in the United States of America;
- First Fiscal Year: $900,000
- Second Fiscal Year: $2 million
- Third Fiscal Year: $4.5 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same product as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to start Charles Robertson® Diamond Mining Company, we conducted thorough market survey and feasibility studies in order for us to be able to penetrate the available market in the United States of America. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have a good understanding of the diamond and gemstone mining line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market for our products.
In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower our sales and marketing team to deliver our corporate sales goals. In summary, Charles Robertson® Diamond Mining Company will adopt the following sales and marketing approach to sell our diamonds and other gemstones;
- Introduce our business by sending introductory letters to diamond cutting and polishing companies, jewelry production companies and other stakeholders in and around the United States of America
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages’ ads (local directories)
- Leverage on the internet to promote our product cum business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Regardless of the fact that our diamond and gemstone mining company is a standard one that can favorably compete with other leading diamond and gemstone mining companies in the United States of America and other parts of the world, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Charles Robertson® Diamond Mining Company.
Charles Robertson® Diamond Mining Company has a long term plan of exporting our products all across the United States of America and other countries of the world. This is why we will deliberately build our brand to be well accepted in Murfreesboro, Pike County – Arkansas before venturing out to other cities all across the United States of America and other countries of the world.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Charles Robertson® Diamond Mining Company;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, et al to promote our brand
- Install our billboards in strategic locations all around major cities in the United States of America
- Ensure that all our staff members wear our customized clothes, and all our official cars and distribution trucks are customized and well branded.
12. Our Pricing Strategy
At Charles Robertson® Diamond Mining Company we will keep the prices of our products below the average market rate by keeping our overhead low and by collecting payment in advance from well – established diamond cutting and polishing companies that would require constant supply of diamond, jade, opal, sapphire, chrysoprase, kyanite and other gemstones.
- Payment Options
The payment policy adopted by Charles Robertson® Diamond Mining Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.
Here are the payment options that Charles Robertson® Diamond Mining Company will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our diamonds and gemstones without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to pay for our products.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget on how to achieve our aim of establishing a standard diamond company in the United States of America and here are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Charles Robertson® Diamond Mining Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for a diamond and gemstone mine – $500,000 (Per Annum)
- The cost for acquiring diamond mine operating license fee – $500,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $150,000
- The cost for start-up inventory (diamond and gemstone mining equipment, tippers / trucks and other related diamond and gemstone mining devices) – $250,000
- The cost of launching a website – $600
- Miscellaneous – $5,000
We would need an estimate of two million dollars ($2 million) to successfully set up a standard and highly competitive diamond mining company in the United States of America.
Generating Startup Capital for Charles Robertson® Diamond Mining Company
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a diamond and gemstone mining business.
Charles Robertson® Diamond Mining Company is a partnership business that is owned and financed by Mr. Charles Robertson and other partners. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of start up capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $500, 000 (Personal savings $400, 000 and soft loan from family members $100, 000) and we are at the final stages of obtaining a loan facility of $1.5 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers they have, the capacity and competence of their employees, their investment strategy and the business structure. If all these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Charles Robertson® Diamond Mining Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to supply our diamonds and other gemstones a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Charles Robertson® Diamond Mining Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit to operate diamond and gemstone mines in the United Stated of America and Australia: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of a facility and renovating the facility as well: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed diamond and gemstone machines and equipment, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
- Establishing business relationship with diamond cutting and polishing companies. Jewelry production companies and other stakeholders: In Progress
- Purchase of tippers and delivery trucks: Completed