Wondering how to start a quarry? I take you step-by-step from start to success.
Some businesses can be launched with a minimal amount of planning and preparation. A quarry isn’t one of them. Quarries are highly specialized operations that are subject to reams of environmental regulations and operational expertise. Before you can begin to seriously consider a quarry startup, you’ll need to gain industry experience.
From there, you’ll need to conduct a feasibility study and appraisal to determine whether your proposed site is capable of delivering the output you need to sustain your business model. It doesn’t matter whether your goal is to extract gravel, sand or stone—the wrong site can quickly bankrupt your operation.
Securing a Quarry Site
You have options when it comes to securing the site for your quarry. The most straightforward solution is to buy the site outright. This is also the most expensive option, especially if the seller knows the scope of the resources that the site contains. For purchases, many quarry owners solicit investors to share the upfront financial burden and eventually, the profits from the site.
A second option is to lease a quarry from the landowner. In a quarry lease arrangement, quarry operators can either pay a flat lease fee or enter into a revenue-sharing arrangement. If revenue-sharing sounds like an attractive avenue, be aware that your landlord’s idea of revenue may be different than yours. While you are focused on profits, your landlord will expect to receive compensation from every pound of material that is removed from the site—regardless of whether you are capable of transforming that material into a net gain.
It takes a lot of heavy equipment to operate a quarry effectively. Drills, loaders, excavators, trucks and other machinery will need to be in place before you pull the first pound of material out of the ground.
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Look Over the Competition
Prior to launching a quarry in your town, it’s worthwhile to determine how strong the competition is. How tough is the competition in the market you are considering? If the competition is too tough, you may need to think about starting the business in a different area or even start a completely different business instead.
Don’t Forget About Franchising As an Option
The odds of being a successful business owner zoom upwards if you buy a franchise instead of doing it all on your own.
If your goal is to start a quarry, you would be wise to investigate whether franchise opportunities in your space might help you avoid common entrepreneurial mistakes.