As a whole, excavation industry plummeted along with the strong decline brought on by the global recession. As people begin to again purchase homes in the next few years, it should come back.
Operating the heavy construction equipment required by this type of company is exciting. However, in order to make your company successful, you need a strong business acumen too.
Now may be a good time to consider an excavation business for sale, if you have the capital. This industry took a hard hit with the global economy. Prices are low and the economy should return in the coming years.
Before entering into the industry, decide whether you would like to work in the commercial or residential sector. Commercial excavating requires more capital to start up and higher insurance premiums. You can always start in residential first and then move into commercial.
Next, develop a business plan. Seek out mentors, if you have a strong professional network. Locate online resources if no one you know can help. If you have the capital available, talk with a professional consultant.
After an effective plan is created, it's time to locate startup funding. The more precise your plan, the more likely you are to receive financing.
Start with banks first. Although financing from banks is tough to obtain, they have enough to help you start. Banks often reject individuals with great plans, so be prepared for rejection.
As an alternative, see if you can locate investors. There are also many sites online willing to loan investors good money. Talk to friends, family, and coworkers, but be sure to borrow from these sources last.
Next, make sure you have all the licenses necessary for operation. You will need special licenses for operating the equipment, and possibly licenses for opening your company. Industries related to construction are heavily regulated ? be sure to thoroughly comply with all laws.
Don't purchase the necessary equipment until you have steady work. The equipment is very costly. Rent in the beginning and purchase later on when your company is more established.
If you're looking at selling an excavation business, now may not be the right time. The industry is it a low and is slowly recovering. However, buying an excavation business is a great idea, if you have access to capital.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .