Starting an excavation business can be daunting, even if you have some great excavator business ideas. There are many steps to starting a new earthmoving business, from initial planning stages to the day-to-day operations. But with some well-considered planning and hard work, you will be able to get your new earthmoving business moving in the right direction sooner rather than later.
To help you get going on the right foot, here are seven important steps for starting an earthmoving business.
Step 1: What is the secret sauce for your new excavator business?
You don’t necessarily need a bold business idea to build your excavator business around, but see if you can define your niche or specialty – something that sets you apart from your competitiors. It may be your professionalism and expertise, your peerless customer service, the wide range of earthmoving services you offer, or your unmatched pricing. Think about what you can do that others can’t replicate.
Step 2: What services or products will you sell?
What direction do you want to go with your new excavator business? What will be your core services? Excavation services? Landscaping services? Maybe it’s a combination of both. Defining your services and products will help you determine the type of equipment you will need and the key personnel you will need to hire.
Step 3: Create a business plan
A new business will often sink or swim on the strength of its business plan, so don’t skimp on the details. Your business plan should include your business goals, a marketing strategy, and a financial plan. It’s important that you think long and hard here and include everything you will need to run a successful earthmoving business.
Step 4: Finance your business
All new businesses require an investment of capital upfront to get up and running. And that’s especially true for earthmoving businesses when you factor in the likely need to purchase expensive equipment and heavy machinery. So one of your first key steps in starting your new earthmoving business is talking to your bank about your plans and your borrowing capacity.
Step 5: Obtain your necessary permits and licenses
Before you can launch your earthmoving business and accept jobs, make sure that you have obtained all the necessary licenses and permits required to perform the earthmoving jobs you plan on offering. You may also be required to hold a valid contractor’s licence as well.
Recommended reading: How to get a builder licence in Queensland?
Step 6: Promote your business
As a brand new earthmoving business in a competitive industry, you will benefit from promoting your business at every opportunity. Consider implementing a marketing strategy, perhaps with the help of a marketing agency. Also, promote your new earthmoving business through digital channels such as social media, your company website, and email marketing.
Step 7: Network with key industry stakeholders
The old mantra of ‘it’s not just what you know, but who you know’ certainly applies to starting a new earthmoving business. Putting the time and effort into developing relationships with key industry stakeholders is an important part of running a successful earthmoving business. Make time to network with key suppliers, contractors, industry regulators, and industry veterans, because it can pay dividends over time.
As you prepare to launch your new earthmoving business, it’s important to have a risk management strategy that starts with earthmoving insurance or earthmover equipment insurance in place. BizCover offers business insurance for earthmoving businesses, including Public Liability Insurance. Learn more about earthmover insurance online, or give us a call 1300 920 864 to find out how we can help your business.