Are you about starting a sand dredging company? If YES, here’s a complete sample sand dredging company business plan template & feasibility report you can use for FREE to get started.

Okay, so we have considered all the requirements for starting a sand dredging company. We have analyzed and drafted a sample sand dredging marketing plan backed up by actionable guerrilla marketing ideas for sand dredging companies. So let’s proceed to the business planning section.

Why Start a Sand Dredging Business in Nigeria?

One of the many business opportunities in the construction industry is the sand dredging business. If you live in Nigeria, you will agree that there are a host of unauthorized and authorized dredging companies that are making money from this business.

If you want to be actively involved in running a sand dredging company, then you should acquire the relevant permits, licenses, working experience and business network. It will be to your advantage to network with contractors in the maritime and construction industry. They are your major clients, and they are the people that can give you sand dredging contracts that can keep you afloat in this business.

If you want to start this type of business, then you should conduct your market research and feasibility studies. The next step to follow is to write a good business plan; a detailed blue print 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.

Below is a sample sand dredging company business plan template that will help you successfully launch your own business.

A Sample Sand Dredging Business Plan Template in Nigeria

  • Industry Overview

Establishments in the Dredging industry engage in dredging services such as moving deep-water sediment to keep waterways open for commerce and replenishing beaches and other maritime and wetland environments. Dredging can be applied in Reclamation, River crossing, Canalization, Shore protection, Sweeping and Stock piling (pump and sale), though the focus of this report is on Stock piling (pump and sale).

The major providers of dredging activities engage in stockpiling for sale. Only very few sand suppliers use manual method to scoop sand from the creeks. The result is that only a small percentage of demand for sharp sand is met.

The Dredging Services industry is an essential service in the Nigeria economy that facilitates port functionality and supports two vital sectors, maritime tourism and international trade. Additionally, dredging services play an important role in restoring and preserving wetlands, coastlines and maritime habitats. As a result, the industry benefits from public and private restoration projects.

While government budget cuts have stemmed growth, rising demand for dredging services is expected to increase industry revenue over the five years to 2016. As ocean freight lines develop and incorporate enormous cargo vessels into their fleets to improve shipping efficiencies and economies of scale, the need for dredging services will increase.

The Dredging industry is indeed a large industry and pretty much active in most countries of the world most especially in Nigeria, South Africa, Egypt, United Kingdom, Mexico and Caribbean countries et al.

A recent report published shows that the Dredging industry is in the growing phase of its life cycle. Regardless of economic conditions or federal funding, ports, harbors and waterways all hold a strong underlying demand for maintenance dredging services. These services are a necessity to maintaining maritime trade and tourism in Nigeria, two vital sectors of Nigerian economy.

Dredging is fast becoming one of the industries in Nigeria used in accomplishing projects belonging to federal, state and local governments, as well as serving the various needs of oil field operating companies. It is also now becoming useful for private sector real estate development through the demand for sand.

The ever increasing deficit in housing supply in Nigeria which is estimated at over sixteen million {16,000,000} units and the need for the construction of other important infrastructure if the country is to meet up with the vision 20:2020 project of becoming amongst the top 20 economies in the world by 2020 continues to drive the need for the use of modern equipment in the dredging of sand, in order to meet with demands.

It is worthy of mentioning that there are several business opportunities around the dredging industry especially as it relates to the leasing of dredgers in Nigeria. The cost of leasing dredgers in Nigeria is dependent on size, manufacturer and pump rate.

In a nutshell, starting and operating a sand dredging 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 to both big time investors who have the capacity to start the business with a fleet of dredgers, earthmoving tractors and trucks and aspiring entrepreneurs who may want to start with just one dredger, earth moving tractor and truck.

Sand Dredging Business Plan – Executive Summary

Deep Waters® Dredging Services, LLC is a registered sand dredging company that will be based in Marina, Lagos – Nigeria and we plan to also cover other coastal states in Nigeria such as Delta, Cross – River, Ondo, Rivers and Akwa Ibom state. We chose to operate in these states because we know that our sand dredging services will be in high demand due to the growing number of private beach owners in these locations.

Deep Waters® Dredging Services, LLC has been able to secure all the relevant license and permits to operate throughout Nigeria. We will ensure that we abide by the rules and regulations of the Dredging industry and we will only hire experienced and qualified dredger operators and drivers with valid commercial driver’s license (CDL).

At Deep Waters® Dredging Services, 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 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.

Deep Waters® Dredging Services, LLC will at all times demonstrate her commitment to sustainability 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.

Our overall business goal is to position Deep Waters® Dredging Services, LLC to become one of the leading dredging companies in Nigeria within the first 5 years of operation. 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 confident that Marina is the right place to launch our business.

Deep Waters® Dredging Services, LLC is a family business. It is owned by Alex Wilson and his immediate family members. Alex Wilson has a Diploma in Transport and Logistics Management and a Degree in Civil Engineering with over 10 years’ hands on experience in the dredging industry in Nigeria.

  • Our Service Offerings

Deep Waters® Dredging Services, LLC will help our customers carry out sand dredging jobs in a professional manner. Our intention of starting our sand dredging company is to favorable compete in the industry and to make profits, and we will do all that is permitted by the law in Nigeria to achieve our aim and business goal.

Our business offerings are listed below;

  • Capital dredging
  • Maintenance dredging
  • Beach nourishment
  • Remediation dredging
  • Reclamation dredging

Our Vision Statement

Our Vision is to become one of the preferred choice for players in the maritime and construction industry when it comes to dredging services in the whole of Nigeria.

  • Our Mission Statement

Our mission is to ensure that we build a dredging company that will operate in all the seashore areas in Nigeria; a company that will boast of having some of the best and reliable dredging machine operators and truck drivers in the whole of Nigeria.

  • Our Business Structure

At Deep Waters® Dredging Services, LLC, our business structure will be designed in such a way that it can accommodate both full – time employees and part – time/contract staff. We intend starting our company with a handful of full time employees (professional dredging truck operators and back office staff). Adequate provision and competitive packages has been prepared for all our employees.

As a means of maximizing operational cost, we will contract the maintenance of all our dredgers, earth moving machines and trucks to a service provider as we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilizes, we will assemble our own professional in-house maintenance team.

Below are the roles that will be available at Deep Waters® Dredging Services, LLC;

  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Operation Manager
  • Business Developer
  • Accountant
  • Professional Dredgers, Truck Drivers and Earthmoving Machine Operator
  • Client Service Executive/Front Desk Officer

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 and developing incentives
  • 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

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.
  • 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
  • Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

  • Models 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
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Operation Manager

  • Coordinates dredgers and dredging operations
  • Develops and confirms schedules
  • Responsible for implementing health and safety standards
  • Handles the planning routes and dredging scheduling for multi – dredging contracts.
  • Handles deliveries and liaising with customers
  • Ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operation
  • In charge of directing all dredging services activities
  • Responsible for monitoring operation costs
  • In charge of negotiating and bargaining dredging contract prices.

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managers with financial analyses, development budgets, and accounting reports
  • 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

Dredgers, Truck Drivers and Earthmoving Machine Operators

  • Responsible for handling core services such as capital dredging, maintenance dredging, beach nourishment, remediation dredging, and reclamation dredging
  • Keeps a record of vehicle inspections and makes sure the dredgers and trucks are equipped with safety equipment
  • Inspects dredgers and 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 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
  • 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 Deep Waters® Dredging Services, LLC and distribute mails in the organization
  • Handles any other duties as assigned by HR and Admin Manager or Transport & Logistic Manager.

Sand Dredging Business Plan – SWOT Analysis

Our intention of starting Deep Waters® Dredging Services, LLC in Marina – Lagos State, 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 Nigeria.

We are quite aware that there are several sand dredging companies scattered all over Nigeria 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 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 equipped to confront our threats.

Deep Waters® Dredging Services, LLC employed the services of an expert HR and Business Analyst with bias in startups 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 Deep Waters® Dredging Services, LLC;

  • Strength:

Our core strength lies in the power of our team; our workforce. We have a team that can 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 dredgers, earthmoving machines and tippers (trucks). We know we will attract loads of clients from the first day we open our door for business.

  • Weakness:

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 dredging industry.

  • Opportunities:

The opportunities that are available to us as a sand dredging company operating in Nigeria are increase in the number of private beach owners, increase activities in the ports and water transportation sector, new services, new technology, and of course the opening of new markets within our target locations.

  • Threat:

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. Another threat that may likely confront us is the arrival of a sand dredging company in same location where ours is located. Unfavorable government policies can also pose a major threat to businesses like ours.

Sand Dredging Business Plan – MARKET ANALYSIS

  • Market Trends

The market trends as it involves the Dredging industry especially in Nigeria is highly competitive and challenging. But one thing is certain, once a dredging 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.

Nigeria ports, harbors and waterways have been insufficiently dredged due to budgeting deadlocks. A lack of dredging hurts the economy, making imports and exports more expensive. To accommodate new ultra-large container ships, ports must be deepened and expanded.

The revenue generated by players in the industry has registered a sharp increase over the last half decade. This is supported by the increase in demand from downstream maritime and construction industries. So also, improvement in the performance from the industry matched with the rapid expansion in demand for dredging services in the booming seaports market and water transportation market in Nigeria.

Moreover, some dredging services contractors benefited from a boost in United States government funding for ports and water transportation sector 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.

Another common trend in this industry is that once a sand dredging company has gained credibility, it is easier for them to go for brand new machines on a long-term leasing contract as against making use of second hand machines which are usually expensive to maintain due to constant wear and tear.

  • Our Target Market

Our target market are basically maritime construction companies and of course the government of Nigeria. In other words, our target market is the whole of the seashore areas in Nigeria and below is a list of the people and organizations that we have plans to do business with;

  • Maritime construction companies
  • Seaport Operators
  • Water transportation sector
  • Oil and gas sector
  • Government contractors

Our Competitive Advantage

We are aware of the competitive nature of the Dredging 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, Alex Wilson and our management team. We can boast of having contacts within key markets, having a good reputation and ability to accommodate environmental requirements.

Deep Waters® Dredging Services, LLC no doubt is a new sand dredging 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, experienced management team, robust fleet operations, direct access to seashores in Nigeria, our size advantages, cost advantage, 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 maritime construction companies/governments at all levels.

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.

Sand Dredging Business Plan – SALES AND MARKETING STRATEGY

Networking is an effective way to begin building your clientele 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, maritime construction contractors and government contractors et al. As a matter of fact, our first port of call will be to connect with the nearest maritime association; we are likely going to get our first major deal from them.

At Deep Waters® Dredging Services, LLC all our employees will be directly or indirectly involved in marketing of our services. We will create provision for our employees to earn commissions 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.

In summary, Deep Waters® Dredging Services, 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 private beach owners, businesses in the maritime and construction industry and related industries in Nigeria
  • Print handbills about the 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
  • Create a basic website for our business so as to give our business an online presence
  • Join local sand dredging services associations and chambers of commerce for industry trends and tips
  • Advertise our business in community based newspapers, local TV and radio stations
  • Encourage the use of word of mouth marketing (referrals).

Sources of Income

Deep Waters® Dredging Services, LLC will ensure that we leverage on our strength and the opportunities available to us in the Nigerian market to generate enough income that will help us drive the business to stability. Below are the sources we intend exploring to generate income for Deep Waters® Dredging Services, LLC;

  • Capital dredging
  • Maintenance dredging
  • Beach nourishment
  • Remediation dredging
  • Reclamation dredging

Sales Forecast

We are well positioned to take on the available market in Nigeria and we are quite optimistic that we will meet our set target of generating enough income from our first six months of operation. We have been able to examine the Dredging industry in Nigeria, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for Deep Waters® Dredging Services, LLC. It is based on the location of our company and of course the wide range of dredging services that we will be offering;

  • First Fiscal Year: N6.5 Million
  • Second Fiscal Year: N 12.5 Million
  • Third Fiscal Year: N 28 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. So also, there won’t be any major competitor offering same 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.

  • Our Pricing Strategy

Deep Waters® Dredging Services, LLC has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of materials dredged and evacuated. We have perfected our plans to charge competitive rates in the industry.

We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. We are aware that government contracts come 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 Deep Waters® Dredging Services, 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 Federal Republic of Nigeria.

Here are the payment options that Deep Waters® Dredging Services, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer

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.

Sand Dredging Business Plan – Publicity and Advertising Strategy

Despite the fact that our sand dredging company will be well located, we will still go ahead to intensify publicity for the business.

Deep Waters® Dredging Services, LLC has a long term plan of covering various locations in major cities in Nigeria which is why we will deliberately build our brand to be well accepted in Marina – Lagos before venturing out to other cities all across the coastal areas in Nigeria.

Here are the platforms we intend leveraging on to promote Deep Waters® Dredging Services, 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 billboards in strategic locations all around Marina – Lagos
  • Position our Flexi Banners at strategic positions in the location where our office facility is located
  • Ensure that all our workers wear our branded shirts and all our dredgers, earthmoving machines and trucks are branded with our company’s logo.

Sand Dredging Business Plan – Financial Projections and Costing

When starting a sand dredging company, the major areas that you should look towards spending the bulk of your cash is in the purchase of standard dredgers, earthmoving machines and trucks and of course renting or leasing a facility/yard that is large enough to accommodate your fleets of trucks. Aside from that, you are not expected to spend much except for paying your employees, maintaining your dredgers, trucks and fueling.

We know that we would be required to fulfill most of the items listed below;

  • The Fee for registering the business (venture) in Nigeria – N15,000
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – N30,000
  • The cost for hiring Business Consultant – N50,000
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – N30,000
  • The cost for acquiring the required work tools et al – N30,000
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – N200,000
  • The cost of hiring distribution dredgers, excavation trucks and tippers et al – N3.2 million
  • The cost of launching a website – N25,000
  • Miscellaneous – N30,000

We would need an estimate of 10 million Naira to successfully set up the business.

Generating Startup Capital for Deep Waters® Dredging Services, LLC

Deep Waters® Dredging Services, LLC is a family business that will be owned and managed by Alex Wilson and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings and sale of his stocks
  • Generate part of the startup capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank.

N.B: We have been able to generate about N1 Million (Personal savings N 750,000 and soft loan from family members N250,000) and we are at the final stages of obtaining a loan facility of N9 Million from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

SAND DREDGING BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of any business lies in the numbers of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Deep Waters® Dredging Services, 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.

Deep Waters® Dredging Services, 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 retraining of our workforce is at the top burner.

We know that if this 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 Nigeria: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Acquiring of trucks and relevant equipment: In progress
  • Leasing of Office Facility / Yard large enough in Marina – Lagos: Completed
  • Conducting Feasibility Studies: Completed
  • Startup 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
  • Printing of 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 dredgers, earthmoving machines and trucks (tippers): In Progress