Are you about starting an excavation company? If YES, here is a complete sample excavation company business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting an excavation company
One of the many business opportunities in the value chain of the construction industry is excavation business. If you live in the united states, you will agree that there are a host of excavation companies that are making money from this line of business.
It is important to state that if you want to be actively involved in running an excavation company, then you should ensure that you acquire the relevant working experience and business network. It will be to your advantage to network with contractors in the construction industry. They are your major clients; they are the people that can give excavation contracts that can keep you afloat in your line of business.
If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan. Below is a sample excavation company business plan template that will help you successfully launch your own business;
A Sample Excavation Company Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Establishments in the Excavation Contractors industry mainly excavate land for building construction. They are known to carry out activities such as drilling shafts, foundation digging and drilling and grading et al. The excavation work performed by these companies could be new work, additions, alterations and repairs.
If you are a closer observer of happenings in the Excavation Contractors industry, you will notice that the revenue generated by players in the industry has registered a sharp increase over the last half a decade. This is supported by the increase in demand from downstream construction industries.
So also, improvement in the performance from the industry matched with the rapid expansion in demand for excavation services in the booming housing market and nonresidential building market in the United States.
Moreover, some earthmoving contractors benefited from a boost in United States government funding for road, bridge and other infrastructure construction during this period, bolstering revenue even further for the larger contractors. Going forward, industry revenue is expected to continue growing, albeit at a slower pace.
The Excavation Contractors industry is indeed a large industry and pretty much active in most countries of the world most especially in the United States of America, Nigeria, south africa, Egypt, United Kingdom, Mexico and Canada et al.
Statistics has it that in the United States of America alone, there are about 44,246registered and licensed (big, medium scale and small) excavation companies scattered all across the United States responsible for employing about 281,416 people and the industry rakes in a whooping sum of $47 billion annually.
The industry is projected to enjoy 1.3 percent annual growth within 2011 and 2016. It is important to state that no establishment can boast of having the lion share of the available market in this industry.
A recent report published by IBISWorld shows that the Excavation Contractors has a low level of concentration, as it is mainly composed of small- to medium-size contractors that operate in specific regional markets. The three largest players currently generate less than 3.0 percent of industry revenue.
The report further stated that, operators are increasingly offering services across several states or metropolitan areas in an attempt to lower downturn risks associated with local markets to increase revenue. According to the US Census County Business Patterns data and IBISWorld estimates, 80.6 percent of industry participants employ fewer than 10 people, and 64.2 percent of establishments employ fewer than five people. Only 9.3 percent of establishments employ more than 20 people.
Starting and operating an excavation company can be tasking and challenging, but the truth is that it can be rewarding at the same time. One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with fleet of earthmoving tractors and trucks and aspiring entrepreneurs who may one to start with just one earth moving tractor and truck.
2. Executive Summary
West Coast® Excavation Contractors, LLC is a standard and registered excavation company that will be based in 8009 ND Highway 23 Belle Fourche North Dakota. We will provide essential services such as earthmoving, excavating, ground de-watering, land clearing, leveling and grading, removing overburden, trench digging, foundation drilling, and drilling of shafts.
Our services and operations will center around construction sites and other locations in an around South Dakota, North Dakota, Southern Illinois; St Louis, Missouri; Southeast Missouri; Evansville, IN; Nashville, Tennessee; Memphis, Western Kentucky, Tennessee and Chicago land areas et al.
West Coast® Excavation Contractors, LLC has been able to secure all the relevant license and permits to operate throughout the United States and Canada. We will ensure that we abide by the rules and regulations of the Excavation Contractors industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL).
At West Coast® Excavation Contractors, LLC, our clients’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we put standard structures and processes in place that will enable us meet and surpass our business goals and also stay highly competitive in the industry.
Our customers and potential customers alike can be rest assured that they will get quality services at competitive rates when they hire our services. We will go the extra mile to ensure the safety is at the top burner in all that we do and our customers get value for their money. At West Coast® Excavation Contractors, LLC our goal is to provide excellent excavation service to our customers and we pride ourselves on the integrity and competence of our company and our employees.
West Coast® Excavation Contractors, LLC will at all times demonstrate her commitment to sustainability, both individually and as a pet sitting services business, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
Our overall business goal is to position West Coast® Excavation Contractors, LLC to become one of the leading excavation company brands in the United States of America within the first 5 years of operations. This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that North Dakota is the right place to launch our excavation business.
West Coast® Excavation Contractors, LLC is a family business; it is owned by Allen Newton and his immediate family members. Allen Newton has a BSc in Business Administration and also a Diploma in Transport and Logistics Management with well over 10 years hands on experience in the construction cum excavation contractor industry working for some of the leaders in the industry both in the United States of America and Canada.
3. Our Products and Services
West Coast® Excavation Contractors, LLC is a company that look forward to deliver excellent services in terms of helping our customers carry out excavation jobs in a professional manner from one destination to another destination. We want to be known as the excavation company that truly care for her customers.
Our intention of starting our excavation company is to favorable compete in the industry and of course to make profits from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and business goal.
Our business offerings are listed below;
- Earthmoving, excavation work, land clearing (Residential Building)
- Earthmoving, excavation work, land clearing (Non-Residential Building)
- Foundation Digging
- Trenching contractor
- No building construction excavation
- Ground de-watering
- Land clearing
- Leveling and grading
- Removing overburden
- Trench digging
- Foundation drilling
- Drilling of shafts
4. Our Mission and Vision Statement
- Our Vision is to become one of the preferred choices of players in the construction industry and other relevant industry when it comes to the demand for excavation services in the whole of the United States of America.
- Our mission is to ensure that we build an excavation company that will operate in the whole of the United States of America and Canada; a company that will boast of having some of the best and reliable earthmoving machine operators and truck drivers in the whole of the United States of America.
Our Business Structure
At West Coast® Excavation Contractors, LLC, our business structure will be designed in such a way that it can accommodate but full – time employees and part – time / contract staff; those who just want to take some time off to generate additional incomes.
We intend starting our excavation company with a handful of full time employees (professional truck drivers and back office staff) and some of the available earthmoving machine operators and truck driving roles fill be handled by qualified contract operators and truck drivers. Adequate provision and competitive packages has been prepared for all our full – time employees.
As a means of maximizing operational cost, we will contract the maintenance of all our earth moving machines and trucks to service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grow and stabilize, we will assemble our own professional in – house maintenance team. Below is the business structure and the roles that will be available at West Coast® Excavation Contractors, LLC;
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Business Developer
- Professional Truck Drivers and Earthmoving Machine Operator
- Client Service Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office 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
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Document all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Transport and Logistics Manager
- Responsible for coordinating truck drivers, vehicles, loads and journeys
- Responsible for operating IT systems for the organization
- Responsible for negotiating and agreeing contracts for the organization
- Responsible for developing and confirming schedules
- Responsible for planning for and negotiating technical difficulties
- Responsible for preparing paperwork for regulatory bodies
- Responsible for liaising and managing staff
- Responsible for implementing health and safety standards
- Handles the planning routes and load scheduling for multi-drop deliveries.
- Handles booking in deliveries and liaising with customers.
- In charge of allocating and recording resources and movements on the transport planning system.
- Responsible for ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
- Responsible for communicating effectively with clients and responding to their requirements.
- In charge of directing all transportation activities.
- Responsible for developing transportation relationships.
- Responsible for monitoring transport costs.
- In charge of negotiating and bargaining transportation prices.
- Responsible for dealing with the effects of congestion.
- Responsible for confronting climate change issues by implementing transport strategies and monitoring an organization’s carbon footprint.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managers 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
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
Truck Drivers and Earthmoving Machine Operator
- Responsible for handling core services such as earthmoving, excavating, ground de-watering, land clearing, leveling and grading, removing overburden, trench digging, foundation drilling, and drilling of shafts
- Assists in loading and unloading cargo
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
- Inspect 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
Client Service Executive
- Welcomes / receive clients by greeting them in person or on the telephone; answering or directing inquiries.
- 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 parents and students on the phone, uses every opportunity to build clients’ interest in the organizations’ products and services
- Manages administrative duties assigned by the HR and Admin Manager or Transport & Logistic 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 clients when they make enquiries
- Receives parcels / documents for West Coast® Excavation Contractors, LLC and distribute mails in the organization
- Handles any other duties as assigned by HR and Admin Manager or Transport & Logistic Manager.
6. SWOT Analysis
Our intention of starting West Coast® Excavation Contractors, LLC in North Dakota with operations center around construction sites in an around South Dakota, North Dakota, Southern Illinois; St Louis, Missouri; Southeast Missouri; Evansville, IN; Nashville, Tennessee; Memphis, Western Kentucky, Tennessee and Chicago land areas et al is to test run the business for a period of 2 to 4 years to know if we will invest more money, and expand the business all around in the United States of America and Canada.
We are quite aware that there are several excavation companies scattered all over the United States and Canada and even in the same locations where we intend starting ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well – equipped to confront our threats.
West Coast® Excavation Contractors, LLC employed the services of an expert HR and Business Analyst with bias in start – ups to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for West Coast® Excavation Contractors, LLC;
Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent jobs. We are well positioned and we have standard and reliable earthmoving machines and tippers (trucks). we know we will attract loads of clients from the first day we open our door for business.
Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the construction industry.
The opportunities that are available to us as an excavation company operating both in the United States of America and Canada are online market, new services, new technology, and of course the opening of new markets within our target locations.
Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices. Basically, just like any other business, one of the major threats that we are likely going to face is economic downturn.
It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of an excavation company in same location where ours is located. unfavorable government policies can also pose a major threat to businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
The market trends as it involves the Excavation Contractors industry especially in the United States of America and Canada is indeed dynamic and at the same time highly competitive and challenging. But one thing is certain, once an excavation company can gain credibility, it will be much easier for the company to secure permanent deals / contracts with big time construction companies and government contractors who are always carrying out construction works on a regular basis.
If you are a closer observer of the trends in the Excavation Contractors industry, you will notice that the revenue generated by players in the industry has registered a sharp increase over the last half a decade. This is supported by the increase in demand from downstream construction industries.
So also, improvement in the performance from the industry matched with the rapid expansion in demand for excavation services in the booming housing market and nonresidential building market in the United States. Moreover, some earthmoving contractors benefited from a boost in United States government funding for road, bridge and other infrastructure construction during this period, bolstering revenue even further for the larger contractors. Going forward, industry revenue is expected to continue growing, albeit at a slower pace.
Lastly, another common trend in this industry is that once an excavation company has gained credibility, it is easier for them to go for brand new trucks and earthmoving machines on a long-term leasing contract as against making use of second hand trucks and earthmoving machines which are usually expensive to maintain due to constant wear and tears of essential parts of the truck.
8. Our Target Market
Our target market are basically construction companies and of course the government of United States of America and Canada. We cover both short distance (inter states) and long distance (intra states). We are in business to move stuffs and anyone who has stuffs to move within the United States or from the United States to Canada, can contact us.
In other words, our target market is the whole of the United States of America and Canada and below is a list of the people and organizations that we have plans to do business with;
- Construction companies
- The timber industry
- Oil and gas sector
- Government contractors
We are aware of the competitive nature of the Excavation Contractors industry and we are ready to get into the mix and favorably compete with players in the industry.
Our major competitive advantage is the vast industry experience and solid reputation of our owner, Allen Newton and our management team. West Coast® Excavation Contractors, LLC no doubt is a new excavation company, which is why we took our time to do a thorough market research and feasibility studies before launching the business.
We were able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are trust, honesty, good network and excellent relationship management, well – qualified and experienced management team, robust fleet operations, direct access to construction sites in the United States of America and Canada, our size advantages, cost advantages, supply chain, customer loyalty and strong reputation amongst domestic industry players.
Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both individual clients (contractors) and big construction companies.
Lastly, our employees (earthmoving machine operators and truck drivers and back office staff members) will be well taken care of, and their welfare package will be among the best within our category (startups excavation companies in the United States) 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 business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
West Coast® Excavation Contractors, LLC will ensure that we leverage on our strength and the opportunities available to us in the U.S. and Canada market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available source of income in the excavation industry.
Below are the sources we intend exploring to generate income for West Coast® Excavation Contractors, LLC;
- Earthmoving, excavation work, land clearing (Residential Building)
- Earthmoving, excavation work, land clearing (Non-Residential Building)
- Foundation Digging
- Trenching contractor
- Non-building construction excavation
- Ground de-watering
- Land clearing
- Leveling and grading
- Removing overburden
- Trench digging
- Foundation drilling
- Drilling of shafts
10. Sales Forecast
One thing is certain, there would always be construction companies and other related businesses who would need the services of excavation companies to help them move materials and equipment from one locations to another throughout the United States of America and Canada.
We are well positioned to take on the available market in the United States of America and Canada and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our business and our clientele base.
We have been able to critically examine the Excavation Contractors industry market in the United States of America and 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 similar startups in the United States of America.
Below are the sales projections for West Coast® Excavation Contractors, LLC, it is based on the location of our company and of course the wide range of excavation services that we will be offering;
- First Fiscal Year-: $350,000
- Second Fiscal Year-: $750,000
- Third Fiscal Year-: $1,000,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So also, there won’t be any major competitor (excavation company) offering same additional services as we do within 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
No doubt, networking is an effective way to begin building your client base as a business man or woman and we have plans in place to leverage on all our networks. In view of that, we will look out for gatherings where we can network with captain of industries, construction contractors and government contractors et al. As a matter of fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to get our first major deal from them.
At West Coast® Excavation Contractors, LLC all our employees will be directly or indirectly involved in sales and marketing of our services. We will create provision for our employees to earn commission when they bring in business for the organization. We will also encourage freelancers to work with us; whenever they refer clients to us they will earn a percentage of the deal as agreed by both parties.
Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. We will work hard to ensure that get repeated business from any business deal we execute and also, we will encourage our customers to help us refer their friends to us. Part of our strategy is to reward loyal customers and to leverage on word of mouth marketing from satisfied customers.
Over and above, we have perfected strategies to network with people who are likely to refer business our way on a regular basis. In summary, West Coast® Excavation Contractors, LLC will adopt the following sales and marketing strategies in sourcing for clients for our business;
- Introduce our business by sending introductory letters alongside our brochure to corporate organizations, businesses in the construction industry and related industries in North Dakota and throughout the United States and Canada.
- Print handbills about our excavation company and its locations and drop them in public facilities.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media or those who read blogs can know where to go when they need the services of a dump trucking company
- Creating a basic website for our business, so as to give our business an online presence
- Directly market our dump trucking business.
- Join local excavation contractor associations and chambers of commerce for industry trends and tips
- Provide discount days for our customers
- Advertise our business in community based newspapers, local TV and radio stations
- List our business on yellow pages ads (local directories)
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our excavation company will be well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our business.
West Coast® Excavation Contractors, LLC has a long term plan of covering various locations in major cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in construction sites in an around North Dakota, South Dakota, Southern Illinois; St Louis, Missouri; Southeast Missouri; Evansville, IN; Nashville, Tennessee; Memphis, Western Kentucky, Tennessee and Chicago land areas et al before venturing out to other cities both in the United States of America and Canada.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise West Coast® Excavation Contractors, LLC;
- 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 Bill Boards on strategic locations all around North Dakota
- Engage in road show from time to time
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where our photo booths are located.
- Ensure that all our workers wear our branded shirts and all our earthmoving machines and trucks are well branded with our company’s logo et al.
12. Our Pricing Strategy
West Coast® Excavation Contractors, LLC has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of materials transported. We have perfected our plans to charge competitive rates since we have minimal full – time overhead compared to our competition in the industry.
We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporation organizations means that we will have different price range for different category of clients.
We are aware that government contracts comes with a bidding template, we will ensure that we abide by such bidding templates whenever we have the opportunity to bid for government contracts. As the business grow, we will continue to review our pricing system to accommodate a wide range of clientele.
- Payment Options
The payment policy adopted by West Coast® Excavation Contractors, LLC 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 regulation of the United States of America.
Here are the payment options that West Coast® Excavation Contractors, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered 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 deposit cash or make online transfer for services rendered.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting an excavation company; it might differ in other countries due to the value of their money.
When it comes to starting, an excavation company the major areas that you look towards spending the bulk of your cash is in the purchase of standard earthmoving machines and trucks and of course renting or leasing a well-located facility / yard large enough to accommodate your fleets of trucks. Aside from that, you are not expected to spend much except for paying of your employees, maintaining your trucks and fueling.
This are the key areas where we will spend our start – up capital;
- The total fee for incorporating the Business in the United States of America – $750.
- The budget for liability insurance, permits and license – $2,500
- The amount needed to acquire a suitable office facility with enough parking space for our trucks in South Dakota for 6 months (Re – Construction of the facility inclusive) – $40,000.
- The amount required to finance the purchase of the first set of trucks and earthmoving machines – $800,000
- The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The cost of accounting software, CRM software and Payroll Software – $3,000
- Other start-up expenses including stationery – $1000
- Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost of launching our official website – $600
- The amount needed to pay staff for the first 2 months – $20,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Going by the report from the market research and feasibility studies conducted, we will need about two million and two hundred thousand (1.2 million) U.S. dollars to successfully set – up a medium scale but standard excavation company in the United States of America.
Generating Funds / Startup Capital for West Coast® Excavation Contractors, LLC
West Coast® Excavation Contractors, LLC is a family business that will be owned and managed by Allen Newton and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the private school to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $400,000 (Personal savings $350,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $800,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of any business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting West Coast® Excavation Contractors, LLC 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 engage in affordable, timely, safe and efficient exaction services at all times.
West Coast® Excavation Contractors, LLC 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 re – training 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.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Acquiring of trucks and relevant equipment: In progress
- Leasing of Office Facility / Yard large enough in North Dakota: Completed
- Conducting Feasibility Studies: Completed
- Start – up Capital Generation: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees and drivers: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with key players in the industry (networking and membership of relevant organizations and chambers of commerce): Completed
- Leasing of the first set of earthmoving machines and trucks (tippers): In Progress
Frequently Asked Questions
What Does An Excavation Company Do?
An excavation company mainly excavates land for building construction. They are known to carry out activities such as drilling shafts, foundation digging and drilling and grading et al. The excavation work performed by these companies could be new work, additions, alterations and repairs.
What Is The Process Of Excavation?
The processes used in excavation includes trenching, digging, dredging, and site development.
What Equipment Is Used For Excavation?
Excavator. Excavators are essential construction equipment widely used in the civil construction industry. Their general purpose is excavation, but other than that, they are also used for many purposes like heavy lifting, demolition, river dredging, cutting of trees, etc.
How Do You Mark Excavation?
You can delineate the excavation site on paved surfaces with white spray chalk, water-based UV paint, or an equivalent non-permanent marking medium. Alternatively, white flags, stakes, whiskers, etc.
What Is Another Word For Excavation?
What Are The Types Of Excavation?
- Cut and fill excavation
- Trench excavation
- Basement excavation
- Road excavation
- Bridge excavation
- Over excavation
How Do You Grow An Excavating Business?
- Sending out introductory letters alongside your brochure to businesses in the construction industry
- Advertise on the internet on blogs and forums, and also on social media
- Directly market your business
- Advertise your business in community based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word of mouth marketing (referrals)
How Do You Come Up With Names For An Excavation Service Business?
Follow the trend in the industry, but you must make sure that whatever name you give your excavation business must be accepted by your target market.
How Much Should I Charge For Excavation?
You can actually use your discretion, but note that a typical residential excavation job runs between $1,434 and $5,161 with an average of $3,171. Though most companies charge anywhere from $40 to $150 an hour.
What Is Done After Excavation?
After excavation, layout the foundation and backfill the remaining excavated area around foundation with soil.
What Insurance Coverage Do You Need As An Excavation Contractor?
General liability insurance is essential for excavation contractors because: It protects you and your business. Excavation contractors have the same legal obligations and liability exposures as larger construction firms. They can be sued for damaging client property, causing bodily harm, or advertising injury.
How Much Is Insurance For An Excavation Contractor?
The average cost of general liability insurance for excavation contractors is $29 per month, or $344 per year. When combined with commercial property insurance in a business owner’s policy (BOP), excavation contractors pay an average of $42 per month, or $500 annually.
How Much Does Excavation Work Cost?
A typical residential excavation job runs between $1,434 and $5,161 with an average of $3,171. Though most companies charge anywhere from $40 to $150 an hour, residential jobs receive project bids.
How Much Do Excavator Operators Make A Year?
According to salary.com, the average Excavator Operator salary in the United States is $48,504 as of March 29, 2021, but the salary range typically falls between $42,918 and $55,706.
How Long Does It Take To Learn To Operate An Excavator?
You can learn to operate an excavator in three weeks at an excavator school like HEC. You’ll get to practice on excavators and other equipment like backhoes, skid steers and wheel loaders.
How Do You Calculate Cost Of Excavation?
You calculate based on the number of days the excavation job will last. Likewise, based on the capacity of other equipment, labors etc.
How Much Excavation Can Be Done In A Day?
It depends upon the soil type and machine category. For ordinary gravelly soils with JCB ( around 40HP) will excavate around 30-40 Cum per Hour and in sandy soils it is about 35-45 CUm . In case of Escors Ex 60 it may increase about 20% and more workability.
How Much Does It Cost To Excavate A Hill?
The cost of excavation varies based on a wide range of factors. Most homeowners pay from $1,239 to $4,017, an average of $2,606.
What Are Some Professional Excavating Company Names?
- West Coast® Excavation Contractors, LLC
- Danny Gee® Excavation Company, Inc.
- Moses Cape® Excavation Contractors, LLC
- Larry Posh® Excavation Contractors, Inc.
- Nation Wide® Excavation Experts, Inc.
How Do You Calculate Topsoil Excavation?
To calculate how much topsoil you need, simply measure the dimensions of the area you wish to cover and multiply this by the depth required. Measuring in metres is simplest, as this will give you the volume of topsoil you need in cubic metres.
What Are The Different Types Of Excavating Equipment?
- Backhoe loader
- Crawler loader
- Skid-steer loader
How Much Does A Mini Excavator Cost Per Hour?
The rates for 11,000-12,000lb mini excavators is 70-75 dollars per hour and a smaller mini like the 331 can see around 60-65 dollars.
How Much Does General Liability Insurance For Excavation Contractors Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small excavation contractors ranges from $67 to $99 per month based on location, size, payroll, sales and experience.
What Do You Do With Dirt Excavation?
- Store It for Reuse
- Take It to a Landscape Supplier
- Find a C&D Recycler
Why Do You Need Excavation Contractors Insurance?
To protect you from liability that may arise as a result of carrying out your job.
What Jobs Can You Do With A Mini Excavator?
- Plowing snow
- Digging holes
- Making small trenches
- Demolishing small structures
- Repairing sewer lines
- Landscaping work
- Digging swimming pools or garden ponds
How Do You Start An Earth Moving Business?
- Choose which type of earth moving business to open
- Calculate your expenses and purchase equipment
- Acquire funding, choose a business entity, register your business, and obtain federal and state tax ID numbers
- Obtain the necessary licenses and permits
- Select a location
- Buy insurance coverage
- Market your business
How Much Money Can You Make As A Contractor?
General Contractors (including construction managers) earn an average of $43.93 per hour, or $91,370 per year.
What Is A Construction Manager Vs. General Contractor?
A construction manager is hired by a property owner during the pre-construction phase of a project. In contrast, a general contractor is chosen by the client through a bidding process and becomes involved during the construction phase.
How Do You Expand A Contracting Business?
- Operate with best business practices
- Assess your internal organization
- Make yourself available
- Join an industry association
- Step up your marketing game
- Attract more funding
- Be flexible
- Find a mentor
What Is The Difference Between A Contractor And Self Employed?
Unlike contractors and subcontractors who are brought in by a client to work on a specific project, self-employed people work for their own clients and are their own bosses. In general, the self-employed have a little more freedom than contractors when it comes to setting their schedules.
When Is The Best Time To Hire An Excavator?
The best time is few days before you would actually need them. Paying for a service in advance will help you cut cost.
How Much Does It Cost To Rent A Excavator For A Day?
Depending on the excavator size and power, you should expect to spend between $900 and $1,750 a day to rent one. With monthly excavator rental plans, the cost will be between $2,250 and $4,640 a week.
How Much Does A Small Excavator Cost?
Small excavator prices vary widely based on the size of the machine, the depth it is capable of digging, the horsepower and the features you select. Prices range from $20,000 to $90,000, although most models fall in the $30,000 to $40,000 range.
What Are Common Risks Associated With This Industry?
- Safety hazards that lead to worker accidents and injuries.
- Managing change orders.
- Incomplete drawings and poorly defined scope.
- Unknown site conditions.
- Poorly written contracts.
- Unexpected increases in material costs.
- Labor shortages.
- Damage or theft to equipment and tools.
Can You Make Money With A Mini Excavator?
Yes, you can make money with a mini excavator.
How Many Hours Is Too Many On An Excavator?
A high quality, well-maintained mini excavator (aka, compact excavator) has a maximum lifespan of about 10,000 hours. Heavy use and poor maintenance can quickly reduce that to about 8,000 hours.
How Can You Prevent Excavation Injuries?
- Set spoils and equipment at least 2 feet back from the excavation site.
- Use retaining devices, such as a trench box that will extend above the top of the trench to prevent equipment and spoils from falling back into the excavation.
What Should You Not Do With An Excavator?
Never attempt to operate the excavator unless you are sitting in the seat and in full control. Reduce the excavator’s speed when working on rough terrain or within congested areas. Carry the bucket low to the ground during transport. This will increase visibility and machine stability.
Why Are Mini Excavators So Expensive?
The main factor in the pricing of mini excavators is the size of the unit. Larger units that are designed to move more dirt and debris faster are going to cost considerably more than the units available on the smaller end of the scale. Additional features also cause the price of these units to increase.
41. Who Makes The Most Reliable Excavator?
What Is The Proper Position For Digging With An Excavator?
Most experts recommend setting up for the trucks to come down the left side of the excavator, which is best for loading angle and visibility.
How Much Fuel Does An Excavator Use Per Hour?
It all depends on the excavator. A cat 330 will use between 10 and 14 gallons per hour. And an Hitachi 350 or Komatsu 300 will use between 5 and 8 gallons per hour.
How Do I Calculate Excavator Fuel Consumption?
Fuel consumption figures for excavators are usually expressed as gallons per hour. To calculate the fuel consumption, simply divide the number of gallons of diesel required to fill the excavator’s fuel tank by the number of hours that the machine has worked.
What Is The Best Mini Excavator For The Money?
The hottest mini excavators on the market are;
- Takeuchi TB216H mini excavator
- Kubota U55-4 mini excavator
- Bobcat E50 mini excavator
- Caterpillar 301.8 mini excavator
- Kubota KX040-4 mini excavator
- Sunward SWE18UB mini excavator
- Agrison ME850 mini excavator
Who Makes The Cheapest Mini Excavator?
If you are looking for the cheapest mini excavators, used excavators will come in handy. In such a case, it is advisable to get the cheapest mini excavator models by Bobcat, John Deere, Hitachi, Terex, Case, and CAT or any other tier-4 certified brand.
How Much Does A Mini Excavator Cost Per Hour?
The rates for 11,000-12,000lb mini excavators is 70-75 dollars per hour and a smaller mini like the 331 can see around 60-65 dollars.
Can You Grade With A Mini Excavator?
When space is limited or efficiency is the priority, compact excavators can handle any type of excavation job on a smaller scale, including trenching, grading, material handling, and operating attachments
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