Construction Companies cannot do without granites; they use granite in the construction of buildings, roads, bridges, etc; and depending on how big the contract they are handling, they always need granite supply in very large quantities; and thus they depend on granite quarry owners to handle the supplies.
If you have access to a large start up capital, a granite quarry may be a good business idea for you. You can tap into the granite supply business and make thousands of dollars from supplying granite to construction companies. This article will give you a basic idea of how to start a granite quarry business, and a subtopic on why you should invest in a granite quarry business, and factors to consider before paying for a quarry.
Why You Should Invest in a Granite Quarry Business
- High Demand-: There is always demand for granite in bulk quantities by construction companies and tile manufacturers; and as long as construction is concerned, there will always be a demand for granites. So starting granite quarry means you are investing in a well sort after product.
- High Returns on Investments-: Starting a granite quarry is very capital intensive, whether you are buying an already existing granite quarry or starting your own from scratch; you will need a large capital to get start. The bulk of the capital will go into long term leasing or buying of a quarry and the purchase of heavy machineries that will be used in processing the rocks to smaller bit granites.
- Be Your Own Boss-: Starting your own business makes you a boss; and as a boss, you work at your own time schedule, and no orders from top chain authority. So starting of a granite quarry business will make you your own boss.
For a business as complex as a granite quarry, you need to have a very detailed business plan.
1.The granite quarry business plan should have a detail of all aspects of your business including; the estimated capital you need to get started, how the capital will be sourced, the ideal location for your quarry, equipments you will need, the number of workers that will work on the quarry; the business structure of the quarry.
Whether it will operate as a sole proprietorship business with you as the sole owner, or will it operate a Limited liability business with partners; what will be the duty and contribution of each partner towards the growth of the business and how profit will be shared amongst the partners; will the business go public in the near future.
You need to give a detailed answer to these questions because it will serve as blue print for the business plan. You can work with a business analyst or developer to develop a professional business plan. Your business plan is very important because investors will ask for it, bank will also require your business plan to approve your loan, even partners will require for your business plan before they come on board.
2. Company Registration-: You have to register your business to run as a legal entity. Visit the Company Registration Bureau in your State and go through the registration process; Tax Identification Number (TIN), and Employee Identification Number (EIN) to allow you bid for Federal Government supply contracts.
3. Source for Capital-: I mentioned earlier on that this business is capital intensive to start especially if you are starting out on a large or medium scale; few ways you can access loan to start off the business are;
- Partners-: Your partners can contribute financially to the growth of the company, while you overseer the day to day running of the company
- Angel Investors-: Angel investors are people with assess to large capital that look for promising business ventures to invest in for a timely profit. You can search online on information on any Angel Investor groups in your State. You may have to do a detailed presentation for the angel investors, to give them an idea of your business plans and the goals you wish to accomplish for the company.
- Bank Loan-: This is the next option you have to raise capital to fund your quarry business; as I mentioned in the business plan point, banks will require your business plan before they can issue put a loan for you. Also make sure that your loan repayment condition will not place a financial stress on the company in its early months and years.
4. Quarry Leasing-: If you have the funds, you can out rightly buy off the quarry, but if not, you can make a long term lease deal with the appropriate authority in charge of it. You don’t just buy a quarry because of the volumes of granite rocks in it, there are other factors to consider before making a payment for a quarry; one of which is the proximity to buyers. You have to consider the closeness of the quarry site to your buyers to avoid sending some excess money on transportation to buyer; which will reduce your profits.
5. Buy Equipments-: You will need some massive equipments to convert the rocks to different sizes of granites, and most of these machineries are heavy duty machines. They include: Excavator, Payloader, Crusher, Waybridge, Dumper an Carriage trucks for transportation from the quarry site to the buyer’s location.
6. Start Productions-: You have to start production of granites as soon as your company is ready because you will need to send already processed samples of granites to companies. This will involve hiring the first set of workers for the quarry. You can produce like the first 200 tons of granites to be able to handle at least your first order.
7. Market Your Product-: The finally step is to market samples of your granites to potential buyers. Since you know that your potential clients are Construction Companies; you can make out a list of Construction companies within your location and schedule a business meeting with the top managers to proposal a granite supply deal with your company.