Do you want to start an excavation company from scratch? Or you need a sample excavation business plan template? If YES, then i advice you read on. Starting an excavation company just like starting any other business that requires huge startup capital and a collection of both technical skills and none – technical skills can be challenging and time consuming to setup at the same it is indeed a rewarding business if well managed.

The demand for an excavation company is not just restricted to a community who wants to excavate sand and create a channel or passage some where in the community but also an individual who would also want to excavate a portion of his or her land for the purpose of construction et al.

The bottom line is that an excavation company if well positioned would attract loads of clients including corporate and non corporate clients; individuals and communities. As a matter of fact, sometimes excavation companies get contracts from government and most often these contracts are juicy.

It is important to state that starting an excavation company requires long term planning, training and huge capital base especially for the purchase of heavy duty equipment like; cranes, bulldozers, backhoes, trucks and forklifts et al. Now let us quickly consider 7 sure fire steps to follow to be able to successfully launch your own excavation company from the scratch, and then build it to profitability within record time;

Starting an Excavation Company – Sample Business Plan Template

1. Conduct Your Feasibility Studies

The first and most important step to take before venturing out to launch any business is to first conduct a detailed feasibility studies. The need for a good feasibility studies can not be relegated to the background in the lifecycle of a business.

So, in the bid to start your own excavation company, it is important that you go out there to conduct a detailed market survey – feasibility studies so that you will get first hand information of all that would be required to successfully launch this type of business in the location of your choice.

2. Acquire the Required Technical Skills

As a matter of fact, an individual can single handedly start and run his own excavation company from the scratch before employing people along the line to help him when the business is expanding. If you intend starting your excavation company alone, then you should endeavor to learn some technical skills that will be needful. Part of what you need to learn is how to operate heavy duty equipments like tractors, bulldozers, backhoes and forklifts et al.

3. Draw up Your Business Plan

Once you are convinced that starting an excavation company is the right business for you to do, and then you should make plans to draw up a good excavation company business plan. You can do it yourself or you can contract it to an expert to help you do it.

The bottom line is that it is not a wise decision to operate a business without a business plan especially capital intensive businesses like Excavation Company. The truth is that if your feasibility study is detailed enough, it will make it much easier to draw up a good business plan because all the details that you would need will be available

4. Raise Your Startup Capital

Capital is the lifeline of a business; hence you must make plans to raise your startup capital before launching your business. Before making plans on how to raise startup capital for your business, you should have a clearer idea of how much would be needed to setup the type of business you are about to start from the scratch.

One good thing about feasibility studies and business plan is that they will provide you with a clearer picture of the capital you would need to setup the type of business you want to start.

As a matter of fact, you will be able to know the prices of all the equipments and tools you would need and lots more. So once you have an estimate of the money needed to launch your business, the next step is to raise the money via obtaining loans from the bank, from investors or from your family members and friends.

5. Rent a Yard / Office Space

The facility you would need for this type of business is a facility that will be large enough to contain all your heavy duty equipments and also space for maintenance and servicing of the equipments. So ensure that you have a good idea of the space that will be large enough to accommodate your equipments before engaging the services of a realtor.

The truth is that it is expensive securing large space in major cities; your best option is to move to the outskirt of town. It is cost effective to do so.

6. Purchase Your Equipment

If you are starting your own excavation company alone, then there will be a limit to the numbers of heavy duty equipment you would need. But if your intention is to launch a standard excavation company from the onset, then you would need to purchase these heavy duty equipment; cranes, bulldozers, backhoes, trucks and forklifts et al. the truth is that these equipment can be very expensive especially if you are purchasing brand new ones.

You can checkup the prices from the manufacturing companies or the nearest dealer of such heavy duty equipment around you. It is important to state that you can still launch this type of business with second hand heavy duty equipment; they are relatively cheaper, but you would have to spend more on maintenance and replacing of worn – out parts.

7. Source for Contracts

If you have successfully setup your excavation business, then the next step to follow is to source for contracts – market your business. Just ensure that you have your business card neatly printed and then prepare a business proposal that you can distribute to construction companies, community leaders, ministry of public works in your state or council and any organization that you know would need your service.

You can also launch an official website for your business. There you have it; the sure fire steps to follow to be able to successfully launch your own excavation company.

Frequently Asked Questions

  1. 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.

  1. What Is The Process Of Excavation?

The processes used in excavation includes trenching, digging, dredging, and site development.

  1. 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.

  1. 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.

  1. What Is Another Word For Excavation?


  1. What Are The Types Of Excavation?
  • Cut and fill excavation
  • Trench excavation
  • Basement excavation
  • Road excavation
  • Bridge excavation
  • Over excavation
  1. 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)
  1. 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.

  1. 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.

  1. What Is Done After Excavation?

After excavation, layout the foundation and backfill the remaining excavated area around foundation with soil.

  1. 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.

  1. 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.

  1. 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.

  1. How Much Do Excavator Operators Make A Year?

According to, the average Excavator Operator salary in the United States is $48,504 as of March 29, 2022, but the salary range typically falls between $42,918 and $55,706.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.
  1. 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.

  1. What Are The Different Types Of Excavating Equipment?
  • Excavator
  • Backhoe loader
  • Bulldozer
  • Crawler loader
  • Skid-steer loader
  1. 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.

  1. 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.

  1. What Do You Do With Dirt Excavation?
  • Store It for Reuse
  • Take It to a Landscape Supplier
  • Find a C&D Recycler
  1. Why Do You Need Excavation Contractors Insurance?

To protect you from liability that may arise as a result of carrying out your job.

  1. 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
  1. 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
  1. 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.

  1. 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.

  1. 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
  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.
  1. Can You Make Money With A Mini Excavator?

Yes, you can make money with a mini excavator.

  1. 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.

  1. 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.
  1. 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.

  1. 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?


  1. 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.

  1. 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.

  1. 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.

  1. 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
  1. 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.

  1. 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.

  1. 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