Are you about starting a sand mining business? If YES, here is a complete sample sand mining business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a sand mining business. We also took it further by analyzing and drafting a sample sand mining business marketing plan template backed up by actionable guerrilla marketing ideas for sand mining businesses. So let’s proceed to the business planning section.
As an aspiring entrepreneur with interest in the construction cum building industry who is looking towards starting a business, one of your best options of entering the industry is to start a sand mining business. This business does pretty well in the united states of America despite the hurdles that you would have to scale through when carrying out your duties.
Part of what you would need to launch this type of business in the United States of America is your mining license, your excavating, stone crushing and selection machines, trucks cum tippers and employees.
In as much as people can start this business on a local level and on a small scale, it will be a wise decision to write a good business plan especially if you choose to start the business on a large scale and as a standard business that can employ more than a handful of people. Below is a sample sand mining company business plan that will help you successfully launch your own business.
A Sample Sand Mining Company Business Plan Template
1. Industry Overview
Players in the sand and gravel mining industry are basically involved in mining and quarrying sand and gravel, along with clay, and ceramic and refractory minerals. Industry activity may include the beneficiation of these minerals by washing, screening and otherwise preparing the mined sand, gravel and clay.
The Sand and Gravel Mining industry predominantly mines and undertakes basic processing of sand and gravel used for construction aggregates and industrial applications such as road building, landscaping, snow and ice control and petroleum extraction.
The industry also undertakes the extraction and primary processing of clay and refractory products for use in downstream manufacturing applications.
Domestic sand and gravel production is expected to rise over the five years to 2017, mirroring industry revenue growth. A sharp rise in hydraulic fracturing activity, to drill for oil and gas also significantly increased demand for industrial sand since it is used to prop open slits in the rock, contributing to the industry’s expansion.
The Sand and Gravel Mining industry is a thriving sector of the economy of the United States and the industry generates over $16 billion annually from more than 2,211 sand and gravel mining companies scattered all around the United States of America.
The industry is responsible for the employment of over 31,042 people. Experts project the industry to grow at a 6.7 percent annual rate. CRH PLC, and Heidelberg Cement are the market leaders in this industry.
A recent report published by IBISWorld shows that the sand and gravel mining industry has a high capital intensity as substantial amount of industry capital is tied up in earthmoving and dredging equipment, along with cartage transport fleets.
High capital intensity arises from the nature of the mining process, which requires considerable investment in large-scale equipment such as electric shovels and conveyors.
The industry also has a high working capital requirement because operators require sufficient capital to survive during periods of low prices, when revenue may temporarily be insufficient to cover costs. The ratio of labor costs (employee compensation) to depreciation charges is indicative of an industry’s relative labor-capital intensity, as this shows the amount of revenue absorbed by labor inputs and capital inputs into production.
Any aspiring entrepreneur that is considering starting a sand and gravel mining business whether on a small scale or in a large scale should ensure that he or she, obtains all the necessary permits from the local government, state government and federal government. He or she should conduct thorough market survey and feasibility studies so as to get it right.
Over and above, sand and gravel 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 on a large scale with robust distribution networks all across major construction sites and cement factories in the United States of America.
2. Executive Summary
Jeff Nelson® Sand & Gravel Mining Company is a licensed sand and gravel mining company that will be based in Northern Virginia – Virginia. Although we intend starting out on a small scale as a cottage company, but that will not in any way stop us from maximizing our potential in the sand and gravel mining industry.
Our business goal as a sand and gravel mining company is to become the number one choice of construction companies in Virginia and other cities in the United States where we intend supplying construction sand and gravel, industrial sand and gravel, common clay and other products.
As a business, we are willing to go the extra mile to invest in owning our own world – class and environmental friendly stone quarry 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 Northern Virginia – Virginia.
Jeff Nelson® Sand & Gravel Mining Company is set to redefine how standard sand and gravel mining business should be run, not just in Northern Virginia, but also in the whole of the United States of America. This is why we have put plans in place for continuous training of all our staff at regular intervals.
No doubt the demand for construction sand and gravel, industrial sand and gravel, common clay and other products is not going to plummet anytime soon which is why we have put plans in place to continue to explore all available market around construction sites where we intend supplying our products.
In the nearest future, we will ensure that we create a wide range of distribution channels all across the United States of America.
Jeff Nelson® Sand & Gravel Mining Company will at all-time demonstrate her commitment to sustainability, both individually and as a firm, 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 customers’ needs precisely and completely.
Jeff Nelson® Sand & Gravel Mining Company is a family business that will be owned by Jeff Nelson and his immediate family members. This Arlington, Virginia native originally attended college to become a Civil Engineer. He has a degree in Civil Engineering from the University of Wisconsin-Milwaukee.
He has over 10 years’ hands on experience in the construction cum building industry prior to starting Jeff Nelson® Sand & Gravel Mining Company.
3. Our Products and Services
Jeff Nelson® Sand & Gravel Mining Company is established with the aim of maximizing profits in the sand and gravel 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 Jeff Nelson® Sand & Gravel Mining Company is not just accepted in Northern Virginia, but also in other states all across the United States of America where we intend supplying our products. Our products are listed below;
- Construction sand mining
- Gravel mining
- Silica or industrial sand mining
- Abrasive-sand mining
- Ball-clay mining
- Bentonite mining
- Common clay mining
- Fuller’s earth mining
- Feldspar mining
4. Our Mission and Vision Statement
- Our vision as a sand and gravel mining company is to engage in the distribution of sand and gravel et al across major construction sites in the United States of America.
- Our mission is to establish an environmental friendly sand and gravel mining company that will favorably compete with leaders in the industry on the global stage. We want to build a sand and gravel company that will be listed amongst the top 5 sand and gravel mining company brands in the United States of America.
Our Business Structure
Ordinarily, we would have succeeded in running a sand and gravel mining business with few employees, but as part of our plan to build a top mining company in Northern Virginia, 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.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Jeff Nelson® Sand & Gravel Mining Company;
- Chief Executive Officer (Owner)
- Quality Assurance Manager
- Human Resources and Admin Manager
- Sales and Marketing Officer
- Sand and Gravel Mining Casual Workers
- Truck/Tipper Drivers
- Customer Service Executives
5. Job Roles and Responsibilities
Chief Baker/Chief Executive Officer – CEO (Owner):
- Upturns management’s effectiveness by recruiting, selecting, orientating, 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.
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- 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 signing checks and documents on behalf of the company
- Evaluates the success of the organization
Sand and Gravel Mining Manager
- Responsible for overseeing the smooth running of the organization
- Makes sure that quality is maintained at all times
- Maps out strategy 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 sand and gravel mining site meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines 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 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
- Helps to increase sales and growth for the company
Sand and Gravel Mining Casual Workers
- Responsible for operating stone crusher, excavators and other machines and equipment in the sand and gravel mining site
- Assists in loading and offloading of products into and out of the tippers /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 Drivers
- Assists in loading and unloading sand and gravel
- Maintain 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
- Supports the transport and logistics manager in planning their route according to a delivery schedule.
- Inspects vehicles for mechanical 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
- Collects and verifies delivery instructions
- 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
- 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
6. SWOT Analysis
Because of our drive for excellence, we were able to engage some of the finest business consultants in Northern Virginia 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 sand and gravel mining business that can compete favorably in the 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 Jeff Nelson® Sand & Gravel Mining Company;
Our strength lies in the fact that we have state of the art mining equipment and trucks that have positioned us to meet the demand of our clients even if the demand tripled over night or if we have a massive order to meet and emergency need.
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 pretty good academic qualification to match the experience which has placed him amongst the top flight players in the sand and gravel 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 facts that we have weaknesses. In fact, the reality is that we are setting up a sand and gravel mining company in a town with other sand and gravel mining businesses and it might pose a challenge for us in breaking into the already saturated market in Northern Virginia. In essence our chosen location might be our weakness. But nevertheless, we have plans to launch out with a big bang.
The opportunities available to us are unlimited. There are loads of construction sites in and around Northern Virginia 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 sand and gravel mining companies in Northern Virginia and also there are other entrepreneurs who are likely going to launch similar businesses within the location of our business, and they will compete with us for 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 sand and gravel mining line of business to find sand and gravel companies positioning their business in locations and communities where they can easily have access to gravel and sand 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 sand and gravel mines in commercial quantities, 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 sand and gravel mining companies look beyond the market within their locations or state; they ensure that they strike business deals with leading construction companies in the United States of America.
The truth is that if you are able to become a vendor to one or more construction giants in the United States of America, you will always continue to smile to the bank.
8. Our Target Market
When it comes to supplying products from sand and gravel mines, there is indeed a wide range of available customers. 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 the supply of construction sand and gravel, industrial sand and gravel, common clay and other products to the following organizations;
- Building and construction companies
- Road construction companies
- Cement production plants
- Blocks molding companies
Our Competitive Advantage
The fact that anybody with interest in the sand and gravel mining business can decide to obtain the required licenses and permits to start the business means that the business is open to all and sundry hence it is expected that there will be high level competition in the industry.
This is so because the technology involved in sand and gravel mining line of business is not complicated. As a standard 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.
Another competitive advantage that we have is the vast experience of our management team, we have people on board who are highly experienced and 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
Jeff Nelson® Sand & Gravel Mining Company is established with the aim of maximizing profits in the construction cum building industry both in Northern Virginia and throughout key cities in the United States of America. We are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers.
Jeff Nelson® Sand & Gravel Mining Company will generate income by simply supplying the following;
- Construction sand mining
- Gravel mining
- Silica or industrial sand mining
- Abrasive-sand mining
- Ball-clay mining
- Bentonite mining
- Common clay mining
- Fuller’s earth mining
- Feldspar mining
10. Sales Forecast
One thing is certain when it comes to sand and gravel mining business, if your business is strategically positioned and you have good relationship with players in the construction 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 Northern Virginia and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.
We have been able to critically examine the sand and gravel 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 Northern Virginia – Virginia.
- First Fiscal Year: $200,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $900,000
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 and customer care 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
Before choosing a location to start Jeff Nelson® Sand & Gravel Mining Company, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in Northern Virginia. 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 and also to compete with other stone quarry companies.
We hired experts who have good understanding of the sand and gravel 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 or sales and marketing team to deliver our corporate sales goals. In summary, Jeff Nelson® Sand & Gravel Mining Company will adopt the following sales and marketing approach to sell our chalks;
- Introduce our business by sending introductory letters to construction cum building companies, building contractors and other stakeholders in and around Northern Virginia
- Open our business with a party so as to capture the attention of residents who are our first targets
- Engage in roadshows in targeted communities from time to time
- 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 sand and gravel mining company is a standard one that can favorably compete with other leading sand and gravel mining companies in Northern Virginia, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Jeff Nelson® Sand & Gravel Mining Company.
Jeff Nelson® Sand & Gravel Mining Company has a long term plan of exporting our product all across the United States of America. This is why we will deliberately build our brand to be well accepted in Northern Virginia – Virginia before venturing out to other cities all across the United States of America.
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 Jeff Nelson® Sand & Gravel 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 communities in Northern Virginia
- Engage in roadshows from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing us
- Ensure that all our staff members wear our customized clothes, and all our official cars and distribution trucks/tippers are customized and well branded.
12. Our Pricing Strategy
At Jeff Nelson® Sand & Gravel Mining Company we will keep the prices of our products below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from construction companies. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off supply contracts especially from government contractors or construction giants which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Joseph Ileaboya & Sons Stone Quarry 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 regulation of the United States of America.
Here are the payment options that Jeff Nelson® Sand & Gravel Mining Company will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via Point of Sale Machines (POS)
- Payment via mobile money platforms
- 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 product 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 and services.
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 and highly competitive sand and gravel mining company in Northern Virginia – Virginia 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 Jeff Nelson® Sand & Gravel 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 12 months at $1.76 per square feet in the total amount of $105,600.
- The cost for facility remodeling – $20,000.
- 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) – $60,000
- The cost for start-up inventory (sand and gravel mining equipment, tippers/trucks and other related sand and gravel mining devices) – $250,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of $450,000 to successfully set up a standard and highly competitive sand and gravel mining company in Northern Virginia – Virginia.
Generating Startup Capital for Jeff Nelson® Sand & Gravel 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. No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Jeff Nelson® Sand & Gravel Mining Company is a family business that is owned and financed by Mr. Jeff Nelson and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup 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 $150, 000 (Personal savings $100, 000 and soft loan from family members $50, 000) and we are at the final stages of obtaining a loan facility of $300,000 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 that they have, the capacity and competence of their employees, their investment strategy and the 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 Jeff Nelson® Sand & Gravel 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 products 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.
Jeff Nelson® Sand & Gravel 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: 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 stone quarry 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 construction companies, contractors and other stakeholders in the construction cum building industry: In Progress
- Purchase of tippers and delivery trucks: Completed