A Well-Detailed Guidelines On Starting a Granite Quarry Business in Nigeria
There is no way that construction Companies can do without granites. They use granite in the development of buildings, facilities and structures. As such they need granite supply in substantial amounts or large quantity; and thus, they rely on granite business and quarry suppliers to handle the provisions.
If you have a huge start-up capital, then, a granite quarry business may be a decent business for you. You can exploit the granite supply business and make a huge return on investment from supplying granite to construction companies. This article will give you a principal outlay of how to start a granite quarry business, and a subtopic on why you should put resources into a granite quarry business, and also, components to consider before opting in for a granite quarry business.
Why You Should Invest in a Granite Quarry Business
There is a constant interest and demand for granite in large quantities by construction companies and others in the building cum constructing industry. With the considerable increasing demand for housing and other forms of development, there will reliably be a continued increasing interest for granites supply. So, starting granite quarry implies you are putting resources into a well-sort after item.
High Returns on Investments
Starting a granite quarry is extremely capital-intensive, regardless of whether you are buying an effectively existing granite quarry or starting your own business; you will require an expansive level of funding to get started. The weight of the capital will go into renting of equipment or obtaining of a quarry and the purchase of tools and apparatuses that will be utilized in breaking or decomposing the stones into little or smaller fragments or piece of granites.
Be Your Own Boss
Starting your own granite quarry business makes you a the boss or director; and as the boss of the company, you work at your own disposal, and there would be no requests or unnecessary demands from your superiors. So, starting of a granite quarry business will make you your own boss and also give you the time to do other things.
A Sample Business Plan On Starting a Granite Quarry
Get a Business Plan
For a business as unpredictable as a granite quarry, you need an extremely well-designed business plan.
A business plan on granite quarry should have a detail of all parts of your business including; the start-up capital you will have to begin with, how the capital will be sourced, the perfect range or scope of your granite quarry business, types of machines, tools and apparatuses you will require or need on site, the quantity and quality of laborers that will manage the quarry; the business structure of the quarry etc.
This is needed regardless of whether it will work as a sole proprietorship business with you as the sole proprietor, or will it work as a Limited Liability Company (LLC) sort of business with stakeholders and co-founders. So, you need to include in your business plan what will be the commitment and responsibility of each of your co-partners and accomplices towards the advancement of the business and how the profits or returns on investments will be shared among. You would also ascertain when soon the business will kickstart and where.
You can work with a business plan expert to build up an expert granite quarry business plan for you, in the event that you cannot do it by yourself. Your granite quarry business plan is essential since financial specialists will ask for it, the bank will in like manner require your business plan if you should consider obtaining bank loans, even prospective business partners will need to glance through your business plan before they go ahead with business with you or your company.
You need to enrol your business with the Corporate Affairs Commission of Nigeria (CAC) to continue running as a legitimate entity or firm. This will, first of all, enable your business to have a registered name in the industry. Visit the Company Affairs Commission of Nigeria (CAC) office in your State obtain the necessary enlistment procedure such as Tax Identification Number (TIN), and Employee Identification Number (EIN) to allow you equally qualify for Federal Government supply contracts.
Get Your Capital Ready
I said initially when I started this article that granite quarry business is capital intensive to start and run successfully particularly if you are starting out on an extensive or medium scale capacity. However, few ways you can get to advance to start off the business are;
Get help from Partners
Your accomplices in the business (where you are operating as an LLC) can contribute financially to the advancement of the business, while you regulate the regular running of the firm.
Angel speculators are individuals with money who search for promising business ventures to put their resources into for good returns on investment, that is a good profit. Just look in your neighbourhood for these group of individuals who could help fund the initial capital for your granite quarry business. They would, of course, need to have a look at your business plan and your prospects for success even as you wish to satisfy needs of the organization. That is why getting a well-written business plan is very necessary in the first place.
Get Bank Loan
This another option you need to raise funding to help your quarry business. As I equally specified in why you need a business plan, banks will require your business plan before they can issue you a loan. Also, ensure that your loan condition won’t put a strain on the growth and development of your business, especially in its initial months and years.
If you have the necessary resources, you can simply buy off an existing quarry, but in the occasion that you cannot, you can simply go ahead to rent one. You don’t just buy a quarry due to the volumes of granite available in it, there are different segments to consider before making an investment on a quarry. One of this is the region or area in the country to purchase from and sell to. You need to consider the closeness of the quarry site to your clients – present and perspective to go without spending too much money on transportation to buy from your granite quarry; which will lessen your patronage.
You will require some gigantic equipment and machines to break down the stones to various sizes of granites, and most of these machineries are high power, heavy duty machines. They include Excavator, Payloader, Crusher, Weighbridge, Dumper and Carriage trucks for transportation from the quarry site to the seller location.
You need to start generation of granites when your firm is prepared on the grounds that you would have to send officially handled specimens of granites to companies interested in buying granite. This will include enrolling the essential specialists at the quarry. You can produce for a start, say, 200 tons of granites to have the capacity to deal supply and demand at any rate your first request.
Market Your Product
The finally step is to showcase samples of your granites to potential clients and customers. Since you understand that your potential customers are Construction Companies; you can make out a summary of Construction organizations within your vicinity and plan towards having a business meeting with them as per possibilities of their patronage of granite supply managed by your organization.