Excavation Business Plan Template & Guidebook

Writing a business plan is one of the first things an excavating company owner must do when starting a new business or when trying to grow their existing business. An excavating business plan will help you determine the direction your excavation company will go into and how to get there. It's one of the first things the government, bankers, investors and partners will want to see if they decide to give your business a loan or invest in it.

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How to Write a Excavation Business Plan in 7 Steps:

1. describe the purpose of your excavation business..

The first step to writing your business plan is to describe the purpose of your excavation business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a excavation business:

At [Excavation Business Name], our purpose is to provide professional and reliable excavation services to our customers. We strive to offer a wide range of excavation services, from site preparation to grading and drainage, to meet the unique needs of our clients. We are committed to using the latest technology and techniques to ensure the safety and efficiency of our work. Our mission is to consistently deliver exceptional workmanship and customer service, while maintaining a commitment to sustainability and environmental responsibility. We aim to be the leading provider of excavation services in our region.

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2. Products & Services Offered by Your Excavation Business.

The next step is to outline your products and services for your excavation business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

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3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your excavation business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your excavation business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your excavation business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

sample business plan for excavation company

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a excavation business?

To run an excavation business, you will need the following:

  • Excavation equipment, such as excavators, bulldozers, and backhoes
  • Trucks and other vehicles to transport equipment and materials
  • Safety gear and equipment, such as hard hats, gloves, and steel-toed boots
  • Business license (if required)
  • Sales tax license (if required)
  • Insurance (if required)
  • Website or online presence to promote your business and attract customers
  • Marketing materials (e.g. business cards)

In addition to these basic requirements, you may also want to invest in other equipment and supplies to help you provide a wide range of excavation services, such as grading tools, compaction equipment, and drainage systems. You may also need to obtain permits from local authorities before beginning any excavation work.

5. Management & Organization of Your Excavation Business.

The second part of your excavation business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your excavation business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Excavation Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a excavation business varies based on many different variables, but below are a few different types of startup costs for a excavation business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your excavation business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your excavation business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your excavation business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

sample business plan for excavation company

Frequently Asked Questions About Excavation Business Plans:

Why do you need a business plan for a excavation business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your excavation business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your excavation business?)

To build a business plan for your excavation business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written excavation business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a excavation business plan yourself?

Yes, you can write a excavation business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

  • Custom home building/design build
  • Home remodeling and renovation
  • Project Management
  • Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

  • Friendly and knowledgeable contractors who are able to take any project from concept to reality.
  • Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

  • Trucks: $40,000
  • Construction equipment, supplies, and materials: $100,000
  • Advertising agency in charge of promotions: $10,000
  • Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
  • Working capital: $10,000

sample business plan for excavation company

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

  • Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
  • Located a small office space to have a physical address for the company as well as a receptionist.
  • Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
  • Began pricing out costs for trucks and necessary construction equipment.
  • Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

  • Households in search of home remodeling services
  • Landowners who would like to build homes on their lots
  • Architects who have clients that need home building or remodeling services
  • Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

  • Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
  • Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

  • Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
  • Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
  • Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
  • Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
  • Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Initial Monthly Average Contract Amount: $20,000
  • Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement, balance sheet, cash flow statement, construction business plan faqs, what is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs. 

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful construction business:

  • How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

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How to write a business plan for an excavation company?

excavation company business plan

Creating a business plan for an excavation company is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating an excavation company business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for an excavation company?

What information is needed to create a business plan for an excavation company.

  • What goes in the financial forecast for an excavation company?
  • What goes in the written part of an excavation company business plan?
  • What tool can I use to write my excavation company business plan?

Having a clear understanding of why you want to write a business plan for your excavation company will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create an excavation company business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your excavation company is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your excavation company, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your excavation company's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Crafting a comprehensive business plan for your excavation company, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your excavation company has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your excavation company, let's delve into the necessary information needed to craft an effective plan.

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Writing an excavation company business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for an excavation company

Carrying out market research before writing a business plan for an excavation company is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research could reveal that potential customers may be more receptive to excavation services that offer green solutions, such as eco-friendly equipment and materials. Additionally, your research may indicate that customers are increasingly interested in services that are tailored to their specific needs, rather than one-size-fits-all solutions.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your excavation company.

excavation business plan: successful entrepreneur

Developing the sales and marketing plan for an excavation company

Budgeting sales and marketing expenses is essential before creating an excavation company business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of an excavation company

As you embark on starting or expanding your excavation company, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A possible staffing cost that an excavation company might incur is the cost to hire and pay workers who are trained and certified to operate the heavy excavation equipment. The company might also incur the cost of employee benefits such as health insurance. In addition, the company might incur the cost to purchase, maintain, and repair the heavy excavation equipment such as backhoes, excavators, bulldozers, and dump trucks. The company might also need to pay for fuel, lubricants, and other supplies for the equipment.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your excavation company's financial forecast?

The objective of the financial forecast of your excavation company's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for an excavation company are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for an excavation company shows how much revenue and profit your business is expected to make in the future.

example of projected profit and loss statement in a excavation company business plan

A healthy excavation company's P&L statement should show:

  • Sales growing at (minimum) or above (better) inflation
  • Stable (minimum) or expanding (better) profit margins
  • A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established excavation company.

The forecasted balance sheet of your excavation company

The projected balance sheet of your excavation company will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a excavation company business plan example

Analysing your excavation company projected balance sheet provides an understanding of your excavation company's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your excavation company's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your excavation company has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your excavation company business plan.

example of projected cash flow forecast in a excavation company business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

  • Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
  • Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
  • Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your excavation company business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your excavation company as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

excavation company business plan: sources & uses example

Having this table helps show what costs are involved in setting up your excavation company, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your excavation company business plan, let's shift our focus to the written part of the plan.

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The written part of an excavation company business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of an excavation company business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your excavation company's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your excavation company, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your excavation company business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your excavation company, you may want to emphasize the potential for growth. This could include factors such as the proximity to a large population center and the access to highways and other transportation networks that would make it easy to distribute the products and services of the company. You could also emphasize the local business landscape and the potential for a large customer base. Additionally, emphasizing the availability of a skilled labor force in the area could be beneficial. Lastly, you might want to highlight the potential for tax incentives and other support from the local government.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your excavation company could offer land clearing services to prepare a large area for construction or land development. It could also offer demolition services to break down existing structures and to safely remove debris. Finally, it could provide excavation services to dig trenches, dig out pools, and adjust the grading of the landscape. These services are needed to help customers develop their land or to help them safely demolish existing structures.

excavation business plan: products and services section

4. The market analysis

When outlining your market analysis in the excavation company business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your excavation company, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your excavation company targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include residential home-owners who need to do excavation work for a variety of projects. These would include projects such as laying foundations for new homes, digging out driveways, and creating underground parking garages. This target market might also include commercial clients who need excavation work done for their business, such as building construction projects or large-scale landscaping.

In the competition subsection, introduce your main competitors and explain what sets your excavation company apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your excavation company.

5. The strategy section

When you write the strategy section of your excavation company business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your excavation company faces a variety of risks. For example, your employees could be injured on the job, leading to costly medical bills and lost productivity. Additionally, your equipment could be damaged or stolen, leaving you with costly repairs or replacements. Both of these risks could lead to unexpected costs and disruption to your operations, so it's important to take the necessary steps to mitigate them.

6. The operations section

The operations of your excavation company must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your excavation company - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets like heavy machinery and excavation tools that are essential to completing excavation projects. These assets could be expensive to replace and maintain, and may require special training to use. You might also have Intellectual Property (IP) such as proprietary excavation techniques and methods that you have developed over the years. This IP could be a valuable source of competitive advantage in the marketplace.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your excavation company business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my excavation company's business plan?

There are two main ways of creating your excavation company business plan:

  • Using specialized business planning software,
  • Hiring a business plan writer.

Using an online business plan software for your excavation company's business plan

The modern and most efficient way to write an excavation company business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Screenshot from The Business Plan Shop's Financial Forecasting Software

Hiring a business plan writer to write your excavation company's business plan

Outsourcing your excavation company business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your excavation company business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your excavation company's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write an excavation company business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my excavation company business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

  • Word processors don't include instructions and examples for each part of your business plan
  • Word processors don't update your numbers automatically when they change in your forecast
  • Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating an excavation company business plan for some entrepreneurs, it is by far not the best or most efficient solution.

  • A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
  • Having an up-to-date business plan is the only way to keep visibility on your excavation company's future cash flows.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your excavation company. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

  • In-depth business plan structure
  • Key steps to write a business plan?
  • Free business plan template

Know someone who owns or wants to start an excavation company? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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sample business plan for excavation company

Home » Construction & Engineering

A Sample Excavation Business Plan Template

An excavation company is a business that mainly excavates land for building construction. They are known to carry out activities such as earthmoving, excavating, ground de-watering, land clearing, leveling, grading, removing overburden, drilling shafts, foundation digging, drilling and grading et al. Excavation work performed by these companies could be new work, additions, alterations, and repairs.

A report published by IBISWorld shows that the revenue of the Excavation Contractors industry has risen at an annualized 0.7 percent to $79.1 billion over the five years to 2022, including a decrease of 0.6% in 2023 alone as construction markets slacken and as government stimulus wanes.

According to the US Census County Business Patterns data and IBISWorld estimates, 80.6 percent of industry participants employ fewer than 10 people, and 64.2 percent of establishments employ fewer than five people. Only 9.3 percent of establishments employ more than 20 people.

Steps on How to Write an Excavation Company Business Plan

Executive summary.

Rolling Dollars© Excavation Company, Inc. is an American-based and licensed excavation company. Our head office will be located in a standard and centrally located office facility in the heart of San Jose, California. We will provide essential services such as earthmoving, excavating, ground de-watering, land clearing, leveling, and grading, removing overburden, trench digging, foundation drilling, and drilling of shafts.

Our services and operations will center around construction sites and other locations in and around Seattle, Washington; Portland, Oregon; Fresno, California, San Diego, California, and Sacramento, California land areas et al.

Rolling Dollars© Excavation Company, Inc. has been able to secure all the relevant licenses and permits to operate throughout the United States and Canada. We will ensure that we abide by the rules and regulations of the Excavation Contractors industry and we will only hire experienced and qualified drivers with valid commercial driver’s licenses (CDL).

Jack Thomas is the founder and CEO of Rolling Dollars© Excavation Company, Inc.

Company Profile

A. our services.

Rolling Dollars© Excavation Company, Inc. will be involved in;

  • Earthmoving, excavation work, land clearing (Residential Building)
  • Earthmoving, excavation work, land clearing (Non-Residential Building)
  • Foundation Digging
  • Trenching contractor
  • Nonbuilding construction excavation
  • Ground de-watering
  • Land clearing
  • Leveling and grading
  • Removing overburden
  • Trench digging
  • Foundation drilling
  • Drilling of shafts.

b. Nature of the Business

Our excavation company will operate the business-to-consumer and business-to-business model.

c. The Industry

Rolling Dollars© Excavation Company, Inc. will operate under the excavation contractors and construction industry.

d. Mission Statement

Our mission is to ensure that we build an excavation company that will operate in the United States of America and Canada; a company that will boast of having some of the best and most reliable earthmoving machine operators and truck drivers in the United States of America.

e. Vision Statement

Our vision of to be listed among the top ten excavation companies in North America.

f. Our Tagline (Slogan)

Rolling Dollars© Excavation Company, Inc. – The Excavator Company You Can Trust!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Rolling Dollars© Excavation Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business.

h. Our Organizational Structure

  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Transport and Logistics Manager
  • Marketing and Sales Executive (Business Developer)
  • Professional Truck Drivers and Earthmoving Machine Operators
  • Customer Services Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

  • Jack Thomas (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
  • Gerald Lawson (Board Member) 18 Percent Shares
  • Ruben Thomson (Board Member) 10 Percent Shares
  • John Moley (Board Member) 10 Percent Shares
  • Uriel Greene (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

  • Ideal location for an excavation company (thriving construction market)
  • Highly experienced and qualified employees and management
  • Access to referrals from business partners
  • Excellent customer testimonials.
  • Reliable and efficient trucks and excavators.
  • Access to reliable transport and logistics software.

b. Weakness

  • Financial Constraints
  • No structure for maintenance and servicing team (will be contracting the servicing and maintenance of the trucks and excavators for a period of a time)
  • A new business that will be competing with well-established excavation companies
  • Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

  • A rise in construction activities will increase demand for excavation services
  • Online market, new services, new technology, and of course the opening of new markets.

i. How Big is the Industry?

The market size of the excavation contractors and construction industry is put at $79.1 billion in 2023, with 44,246 companies and a workforce of 281,416 hence it will be safe to say that the industry is big.

ii. Is the Industry Growing or Declining?

The excavation contractors and construction industry declined in 2020, including a decrease of 0.6% in 2023 alone as construction markets slacken and as government stimulus wanes. But the industry is currently experiencing growth. Available data shows that steady wage expenses and increasing prices of fuel amid the low demand during the pandemic were responsible for reducing the industry’s profitability.

iii. What are the Future Trends in the Industry

The excavation contractors and construction industry are changing, and players in the industry are improvising. No doubt, technology, and climate change will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there is no existing niche idea when it comes to the excavation business.

v. Can You Sell a Franchise of your Business in the Future?

Rolling Dollars© Excavation Company, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving excavation markets in the United States of America.

  • Safety hazards that lead to work accidents and injuries.
  • Managing change orders.
  • Unknown site conditions.
  • Poorly written contracts.
  • Unexpected increases in material costs.
  • Labor shortages.
  • Damage or theft to equipment and tools
  • Liability problems (Financing of trucks and vans that are bound to depreciate)
  • The transport department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.

i. Who are the Major Competitors?

  • Gable’s Excavating | Utility Contractor Tulsa
  • Mikula Contracting
  • The Beaver Excavating Company
  • Tommy Crowder Excavating
  • Brubacher Excavating Inc.
  • Plateau Excavation
  • Independence Excavating Inc.
  • K & E Excavating
  • McAninch Corporation
  • Ron Meyer & Associates Excavating
  • Weihe Construction Inc.
  • SEH Excavating Contracting
  • Berger Excavating Contractors
  • Brown Bros Grading, Excavation & Utility
  • Diggit Excavating
  • Muschlitz Excavating, Inc.
  • Guins Excavating Service
  • F & P Construction Inc.
  • Edgerton Contractors, Inc.
  • Witech Excavating.

ii. Is There a Franchise for the Excavation business? 

No, there are no franchise opportunities for the excavation business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting the Excavation business?

No, there are no county or state regulations or zoning laws for the excavation business, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.

Please note that trucks used for moving excavated materials are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so. So also, all across the United States, a truck can be rented by someone without a commercial driver’s license if it has a gross vehicle weight rating (GVWR) of 26,000 pounds or less. Any truck or van with a rating of 26,001 pounds or more requires at least a Class B CDL.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years old who have the finance to do business with us or handle their excavation projects.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we will handle their excavation projects.

iii. Income Level

There is no cap on the income level of those we will handle their excavation projects.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we are looking forward to doing business with or handling their excavation projects.

v. Language

There is no restriction when it comes to the language spoken by the people we are looking forward to doing business with or handling their excavation projects.

vi. Geographical Location

Anybody from any geographical location will be welcome to do business with our company.

vii. Lifestyle

Rolling Dollars© Excavation Company, Inc. will not restrict any client from doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

  • Deliberately Brand All Our Excavators and Trucks.
  • Tap Into Text Marketing.
  • Make Use of Bill Boards.
  • Share Your Events in Local Groups and Pages.
  • Turn Your Social Media Channels into a Resource
  • Develop Your Business Directory Profiles
  • Build Relationships with players in the construction industry.

i. Traditional Marketing Strategies

  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.

iii. Social Media Marketing Plan

  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market and potential target market.
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on the relevant social media channels.
  • Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Rolling Dollars© Excavation Company, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and the full package. All our pricing strategies will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the construction industry, and freelancers to help refer clients to us.

Rolling Dollars© Excavation Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need lubricants (brake fluids, engine oil, and transmission oils et al), and trucks and excavator spare parts means that Rolling Dollars© Excavation Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.

We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Rolling Dollars© Excavation Company, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Rolling Dollars© Excavation Company, Inc., we will carry out activities such as earthmoving, excavating, ground de-watering, land clearing, leveling and grading, removing overburden, drilling shafts, foundation digging and drilling and grading et al., hence the nature of our offerings does not accommodate return policy, but we will guarantee our customers of the thoroughness of all excavations and related projects executed by our company.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients and investors. We will work with effective CRM software to be able to achieve this. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable the firm to boost our excavation offerings and support revenue growth.

a. What Happens During a Typical Day at an Excavation Business?

  • The business is open for the day’s work
  • The excavators and trucks are washed, cleaned, and ready for excavations and related projects
  • Customer’s requests are taken and they are scheduled or attended to
  • Schedule maintenance of trucks and vans is carried out
  • Marketing/website upkeep
  • Administrative duties
  • The business is closed for the day.

b. Production Process (If Any)

The processes used in excavation include trenching, digging, dredging, and site development.

c. Service Procedure (If Any)

The service procedure for an excavation company starts with a customer requesting the services of an excavation company. Once the request is gotten, it will be processed and suitable trucks, excavators, and staff are assigned to carry out the job.

d. The Supply Chain

Rolling Dollars© Excavation Company, Inc. will rely on key players in the construction industry to refer business deals to us. So also, we have been able to establish a business relationship with wholesale supplies of lubricants (brake fluids, engine oil, and transmission oils et al), trucks and excavator spare parts et al.

e. Sources of Income

Rolling Dollars© Excavation Company, Inc. will make money from;

Financial Plan

A. amount needed to start your excavation company.

Rolling Dollars© Excavation Company, Inc. would need an estimate of $450,000 to successfully set up our excavation company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $7,300.
  • Marketing, Branding and Promotions – $5,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $5,400.
  • Rent/Lease – $100,000.
  • Other start-up expenses like commercial satellite TV subscriptions, and phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $60,000
  • Start-up Inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $80,000
  • Purchase of Trucks and Excavators: $150,000
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Rolling Dollars© Excavation Company, Inc. will not build a new facility for our excavation company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running an Excavation Company?

  • Gas (fuel), lubricants, and spare parts
  • Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
  • Salaries of employees
  • Trucks and excavator maintenance
  • Marketing costs

e. What is the Average Salary of your Staff?

  • Chief Operating Officer (Owner) – $68,000 Per Year
  • Admin and HR Manager – $48,000 Per Year
  • Transport and Logistics Manager $48,000 Per Year
  • Marketing and Sales Executive (Business Developer) – $42,000 Per Year
  • Accountant $38,000 Per Year
  • Professional Truck Drivers and Earthmoving Machine Operator – $36,800 Per Year
  • Customer Service Officer (Receptionist) – $26,100 Per Year

f. How Do You Get Funding to Start an Excavation Company?

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your service.

You can use your discretion, but note that a typical residential excavation job runs between $1,434 and $5,161 with an average of $3,171. Though most companies charge anywhere from $40 to $150 an hour, residential jobs receive project bids. Project bids reflect cubic yards of dirt moved, anywhere from $50 to $200 per cubic yard.

b. Sales Forecast?

  • First Fiscal Year (FY1): $450,000
  • Second Fiscal Year (FY2): $750,000
  • Third Fiscal Year (FY3): $1.3 million

c. Estimated Profit You Will Make a Year?

  • First Fiscal Year (FY1) (Profit After Tax): $150,000
  • Second Fiscal Year (FY2) (Profit After Tax): $350,000
  • Third Fiscal Year (FY3) (Profit After Tax): $600,000

d. Profit Margin of an Excavation company

The ideal profit margin we hope to make at Rolling Dollars© Excavation Company, Inc. will be between 25 and 45 percent on each job carried out irrespective of the distance covered.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Rolling Dollars© Excavation Company, Inc. will grow our excavation company by first opening other offices in key cities in the United States of America within the first five years of establishing the business, and then we will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Rolling Dollars© Excavation Company, Inc. plans to expand first to New York City – New York, Boise – Idaho, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Montpelier, Vermont.

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest and most thriving construction market in the United States. The Bureau of Labor Statistics (BLS) says the following metropolitan areas have the highest construction activities.

The founder of Rolling Dollars© Excavation Company, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another.

More on Construction & Engineering

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How to Start an Excavation Company

start an excavation company

Starting an excavation company can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful excavation company.

Importantly, a critical step in starting an excavation company is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start an Excavation Company:

  • Choose the Name for Your Excavation Company
  • Develop Your Excavation Company Plan
  • Choose the Legal Structure for Your Excavation Company
  • Secure Startup Funding for Your Excavation Company (If Needed)
  • Secure a Location for Your Business
  • Register Your Excavation Company with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Excavation Company
  • Buy or Lease the Right Excavation Company Equipment
  • Develop Your Excavation Company Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Excavation Company
  • Open for Business

1. Choose the Name for Your Excavation Company

The first step to starting an excavation company is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your excavating business:

  • Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
  • Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
  • Think about marketing . Come up with a name that reflects the desired brand and/or focus of your excavation company.

2. Develop Your Excavation Company Plan

One of the most important steps in starting an excavation company is to develop your excavation business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

  • Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your excavation business.
  • Company Overview – this section tells the reader about the history of your excavation company and what type of excavation company you operate. For example, are you a demolition, utility, or a general excavation company?
  • Industry Analysis – here you will document key information about the excavation industry. Conduct market research and document how big the industry is and what trends are affecting it.
  • Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
  • Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
  • Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
  • Product : Determine and document what products/services you will offer 
  • Prices : Document the prices of your products/services
  • Place : Where will your business be located and how will that location help you increase sales?
  • Promotions : What promotional methods will you use to attract customers to your excavation company? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
  • Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  • Management Team – this section details the background of your company’s management team.
  • Financial Plan – finally, the financial plan answers questions including the following:
  • What startup costs will you incur?
  • How will your excavation company make money?
  • What are your projected sales and expenses for the next five years?
  • Do you need to raise funding to launch your business?

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3. choose the legal structure for your excavation company.

Next you need to choose a legal structure for your excavation company and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the excavation company and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start an excavation company together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an excavation company include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an excavation company is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your excavation company, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Excavation Company (If Needed)

In developing your excavation company plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an excavation company to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an excavation company that they believe has high potential for growth.

5. Secure a Location for Your Business

Here are some steps to follow when finding a location for your excavation company.

  • Look for a city or town that is in need of excavation services.
  • Research the area to make sure it is a viable location for your business.
  • Become familiar with the local zoning laws and regulations.
  • Contact the local government to inquire about permits and licenses you may need to operate your business.
  • Find some suitable sites within the area by reaching out to landlords or property owners.
  • Once you have found a location, be sure to visit the site and assess its suitability for your needs.

If everything checks out, you can proceed with setting up your business in that location.

6. Register Your Excavation Company with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your excavation company’ name. This process is fairly simple and involves the following steps:

  • Identify and contact the bank you want to use
  • Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  • Complete the bank’s application form and provide all relevant information
  • Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your excavation company to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

To start an excavation company, you will need a business license and a residential contractors license. You may also need other permits, depending on the type of excavation work you plan to do. For more information on what licenses and permits you will need, contact your city or county government.

10. Get Business Insurance for Your Excavation Company

The type of insurance you need to operate an excavation company will depend on the type and scope of the business.

Some business insurance policies you should consider for your excavation company include:

  • General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
  • Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Commercial property insurance : This policy covers business property damages caused by fire, theft, or vandalism.
  • Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
  • Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Excavation Company Equipment

To start an excavation company, you will need some heavy equipment. This includes a backhoe, dump truck, and bulldozer. You will also need a few smaller pieces of equipment, such as a shovel, pickaxe, and wheelbarrow. If you plan to do any blasting, you will need a supply of explosives.

12. Develop Your Excavation Company Marketing Materials

Marketing materials will be required to attract and retain customers to your own excavation company.

The key marketing materials you will need are as follows:

  • Logo : Spend some time developing a good logo for your excavation company. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
  • Website : Likewise, a professional excavation company website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
  • Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your excavating company.

13. Purchase and Setup the Software Needed to Run Your Excavation Company

To run an excavation company, you need software to manage your business finances, software to manage your projects, and a computer-aided design (CAD) program to create your excavation designs.

14. Open for Business

You are now ready to open your excavation company. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start an Excavation Company FAQs

Is it hard to start an excavation company.

There is no one-size-fits-all answer to this question, as the ease or difficulty of starting an excavation company will vary depending on your skills, experience, and resources. 

However, if you follow the steps above, you should be able to start your excavation company without too much difficulty.

How can I start an excavation company with no experience?

Starting an excavation company can be a difficult task if you do not have any experience in the field. However, there are a few things to do to increase your chances of success:

  • Speak to other excavation companies in your area and ask for advice.
  • Use social media platforms, such as Facebook and Twitter, to market your company.
  • Attend trade shows and industry events related to excavation.
  • Join professional organizations, such as a local building contractor association to network with other industry professionals.
  • Obtain the necessary traditional business license and permits required to operate an excavation company in your area.

With some hard work and dedication, you can start an excavation company with no experience. However, it is important to remember that the success of your business will ultimately depend on the quality of your services. If you provide a high-quality service, you will be more likely to attract and retain customers.

What type of excavation company is most profitable?

The most profitable type of excavation company is a contracting company. A contracting company wins jobs by bidding on projects and then subcontracts the work to other companies. This type of company requires a lot of experience and up-front capital to win jobs, but it can be very profitable if it's managed well.

How much does it cost to start an excavation company?

Starting an excavation company can be costly. You will need to invest in equipment, such as bulldozers and backhoes, and you may also need to hire employees. Typically, the start-up costs for an excavation company range from $50,000 to $100,000. However, there are a few ways to reduce these costs. For example, you can rent or borrow equipment. You can also team up with other businesses that offer related services, such as demolition or hauling.

What are the ongoing expenses for an excavation company?

The ongoing expenses for an excavation company can vary depending on the size of the company, the equipment needed, and the location of the business. Some common expenses include: employee salaries, equipment rental or purchase, insurance, and marketing.

How does an excavation company make money?

An excavation company makes money by providing services to municipalities for public works projects, the private sector for construction projects, or environmental remediation services. Other ways an excavation company can make money are by renting or selling equipment, providing training or consulting services, or manufacturing products related to excavation. 

Is owning an excavation company profitable?

There are many reasons owning an excavation company can be profitable. First, there is a high demand for excavation services because many construction projects require extensive excavation work. Another reason is that the cost of starting an excavation company is relatively low. Additionally, excavation companies can offer a wide range of services, thus reaching a large pool of customers. Finally, due to the specialization of their services, excavation companies can often charge high rates. 

Why do excavation companies fail?

There are many reasons excavation companies can fail. One of the most common reasons is a lack of financial stability due to not charging enough for services or having too few customers to cover overhead costs. Another reason is that excavation companies can be complex businesses to manage. If the owner does not have a lot of experience or business knowledge, it can lead to failure.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

Business Plan Templates

Excavation Services Business Plan

This free, printable business plan helps companies that provide excavation services to manage, operate and administer the business, as well as organize income and capital.

sample business plan for excavation company

Sample text from Excavation Services Business Plan:

1.0 Executive Summary

Introduction

[Company Name] is an Industrial Building Construction company owned by [OWNER'S NAME], who has worked in the excavation industry for over 20 years.

[Company Name] is headquartered in [CITY], [STATE], which is located in [COUNTY] County.

The Company

[Company Name] began operations in 1992. The Company has served the city of [CITY] and surrounding areas since its inception and during this time has maintained a reputation of quality work and a name that its customers have come to rely on.

Our Services

[Company Name] is in the excavation industry and provides equipment, labor and expertise for various excavation jobs. The Company primarily targets government contracts and commercial customers, and secondarily residential work.

List of services

• Cmp Construction

• Bridge Construction

• Excavation

According to the U.S. Department of Commerce, the U.S. excavation work industry includes more than 18,000 establishments and employs more than 116,000 workers. This industry covers special trade contractors primarily engaged in excavation work and digging foundations. Contractors in this industry may also perform incidental concrete work.

Financial Considerations

The marketing research and tailored marketing strategy described in this business plan will result in sales revenue of $1,500,000 in 2011, increasing to $2,000,000 in 2013.

The cash flow for [Company Name] shows adequate provisions for ongoing expenses to meet the needs of the company as the business expands operations.

The purpose of this plan is to attain grant funding in the amount of $283,000 to upgrade equipment, purchase a new truck, hire a new employee, and expand the advertising/marketing campaign.

The major focus for grant funding is as follows:

1. Small excavation company

2. Hire a new employee; the Company will look to hire veterans, minorities and the unemployed

3. Expand business - service more commercial customers in the community to be awarded more government contracts for environmental work.

4. Upgrade equipment and purchase (1) truck

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sample business plan for excavation company

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how to start an excavation company

How to Start an Excavation Company | Excavation Business Plan

The excavation contractors industry has shown a sharp increase over the past five years,  possibly due to increased demand for excavation services in the housing and nonresidential building market. Wise offers an excavation business plan to small company business owners.

Excavation Business Plan

Starting an excavation business, do you need help in starting a new business.

possibly due to increased demand for excavation services in the housing and nonresidential building market. Wise offers an excavation business plan to small company business owners.

Excavation business owners are now looking to Wise Business Plans to help secure expansion funding and provide the market analysis needed to map future earnings projections.

Excavation contractors and entrepreneurs are experts in their field who must be familiar with everything from government regulations to highly technical equipment and safety procedures.

Said Joseph Ferriolo, Wise Business Plans Director. “We understand the need to acquire as much knowledge and training as possible, and our business writers are highly skilled professionals, adept at crafting a one-of-a-kind excavation business plan for those who depend on our experience and abilities. If you are planning to start your excavation business, Probably you will find helpful these 10-simple steps process to start your excavation business .

Wise Business Plans offers a custom-crafted excavation business plan that is tailor-made to showcase startup or expansion concepts as companies work to acquire funding from investors , look to raise capital through venture capitalists, or from private investors. All plans include market research and custom financials that are developed for each company, and all are offered at an affordable price.

Our professional consultants are available 24/7 who can help you in starting a new business in the USA and Canada. Call us at 1-800-496-1056   or contact us through live chat.

Whether your company is a larger excavation business or you are running your own grader or backhoe, Wise Business Plans can assist you in building a more profitable long-term business future. We strive to meet all our client’s business planning needs in an efficient, courteous, and timely manner,” said Ferriolo. Don’t miss out to look this simple excavation business plan sample .

Wise Business Plans, staffed with professional MBA writers, researchers, and financial experts, is a trusted partner for businesses across a broad spectrum of products and services. Our mission is to empower our clients to make the best possible business decisions, boost company performance and facilitate their funding success by laying the groundwork for strong businesses that excite, inspire and retain talented and exceptional employees.

Starting an excavation company involves several key steps. These include developing a business plan, obtaining necessary licenses and permits, securing appropriate insurance coverage, acquiring the necessary equipment, establishing relationships with suppliers and subcontractors, hiring skilled operators and staff, and implementing effective marketing and business development strategies.

The capital needed to start an excavation company can vary depending on factors such as the scale of operations, equipment costs, location, and initial overhead expenses. Generally, it is recommended to have sufficient funds to cover equipment purchases or leases, insurance costs, licensing fees, employee wages, marketing expenses, and initial project costs.

The licenses and permits required to start an excavation company can vary depending on the location and local regulations. Typically, you may need a general contractor’s license, a business license, permits for excavation and earthmoving activities, and compliance with environmental and safety regulations. It’s important to research and comply with the specific requirements in your area.

To find clients and projects for your excavation company, networking and establishing relationships within the construction industry is essential. Attend industry events, join professional associations, connect with general contractors, architects, and developers, and actively market your services through online platforms, a professional website, and targeted advertising.

The equipment needed for an excavation company depends on the scope of services you plan to offer. Commonly used equipment includes excavators, bulldozers, loaders, backhoes, graders, dump trucks, and compactors. Assess your target market and project requirements to determine the specific equipment needed for your company.

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ProfitableVenture

How to Start an Excavation Company – Sample Business Plan Template

By: Author Tony Martins Ajaero

Home » Business ideas » Construction & Engineering Industry

Do you want to start an excavation company from scratch? Or you need a sample excavation business plan template? If YES, then i advice you read on. Starting an excavation company just like starting any other business that requires huge startup capital and a collection of both technical skills and none – technical skills can be challenging and time consuming to setup at the same it is indeed a rewarding business if well managed.

The demand for an excavation company is not just restricted to a community who wants to excavate sand and create a channel or passage some where in the community but also an individual who would also want to excavate a portion of his or her land for the purpose of construction et al.

The bottom line is that an excavation company if well positioned would attract loads of clients including corporate and non corporate clients; individuals and communities. As a matter of fact, sometimes excavation companies get contracts from government and most often these contracts are juicy.

It is important to state that starting an excavation company requires long term planning, training and huge capital base especially for the purchase of heavy duty equipment like; cranes, bulldozers, backhoes, trucks and forklifts et al. Now let us quickly consider 7 sure fire steps to follow to be able to successfully launch your own excavation company from the scratch, and then build it to profitability within record time;

Starting an Excavation Company – Sample Business Plan Template

1. conduct your feasibility studies.

The first and most important step to take before venturing out to launch any business is to first conduct a detailed feasibility studies. The need for a good feasibility studies can not be relegated to the background in the lifecycle of a business.

So, in the bid to start your own excavation company, it is important that you go out there to conduct a detailed market survey – feasibility studies so that you will get first hand information of all that would be required to successfully launch this type of business in the location of your choice.

2. Acquire the Required Technical Skills

As a matter of fact, an individual can single handedly start and run his own excavation company from the scratch before employing people along the line to help him when the business is expanding. If you intend starting your excavation company alone, then you should endeavor to learn some technical skills that will be needful. Part of what you need to learn is how to operate heavy duty equipments like tractors, bulldozers, backhoes and forklifts et al.

3. Draw up Your Business Plan

Once you are convinced that starting an excavation company is the right business for you to do, and then you should make plans to draw up a good excavation company business plan . You can do it yourself or you can contract it to an expert to help you do it.

The bottom line is that it is not a wise decision to operate a business without a business plan especially capital intensive businesses like Excavation Company. The truth is that if your feasibility study is detailed enough, it will make it much easier to draw up a good business plan because all the details that you would need will be available

4. Raise Your Startup Capital

Capital is the lifeline of a business; hence you must make plans to raise your startup capital before launching your business. Before making plans on how to raise startup capital for your business, you should have a clearer idea of how much would be needed to setup the type of business you are about to start from the scratch.

One good thing about feasibility studies and business plan is that they will provide you with a clearer picture of the capital you would need to setup the type of business you want to start.

As a matter of fact, you will be able to know the prices of all the equipments and tools you would need and lots more. So once you have an estimate of the money needed to launch your business, the next step is to raise the money via obtaining loans from the bank, from investors or from your family members and friends.

5. Rent a Yard / Office Space

The facility you would need for this type of business is a facility that will be large enough to contain all your heavy duty equipments and also space for maintenance and servicing of the equipments. So ensure that you have a good idea of the space that will be large enough to accommodate your equipments before engaging the services of a realtor.

The truth is that it is expensive securing large space in major cities; your best option is to move to the outskirt of town. It is cost effective to do so.

6. Purchase Your Equipment

If you are starting your own excavation company alone, then there will be a limit to the numbers of heavy duty equipment you would need. But if your intention is to launch a standard excavation company from the onset, then you would need to purchase these heavy duty equipment; cranes, bulldozers, backhoes, trucks and forklifts et al. the truth is that these equipment can be very expensive especially if you are purchasing brand new ones.

You can checkup the prices from the manufacturing companies or the nearest dealer of such heavy duty equipment around you. It is important to state that you can still launch this type of business with second hand heavy duty equipment; they are relatively cheaper, but you would have to spend more on maintenance and replacing of worn – out parts.

7. Source for Contracts

If you have successfully setup your excavation business, then the next step to follow is to source for contracts – market your business. Just ensure that you have your business card neatly printed and then prepare a business proposal that you can distribute to construction companies, community leaders, ministry of public works in your state or council and any organization that you know would need your service.

You can also launch an official website for your business. There you have it; the sure fire steps to follow to be able to successfully launch your own excavation company.

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Here is a free business plan sample for a construction company.

construction company profitability

If you're poised to lay the foundation of your own construction company but feel uncertain about the initial steps, this is your blueprint for success.

In the content that follows, we will present to you a comprehensive sample business plan tailored for a construction company.

As any seasoned builder knows, a robust business plan is the cornerstone of a thriving enterprise, providing a clear blueprint for your company's structure, objectives, and growth strategies.

To erect a solid plan with precision and speed, you can utilize our construction company business plan template. Our specialists are also on hand to offer a complimentary review and refinement of your plan.

business plan building contractor

How to draft a great business plan for your construction company?

A good business plan for a construction company must cater to the unique aspects of the construction industry.

Initially, it is crucial to provide a comprehensive overview of the construction market. This includes up-to-date statistics and an analysis of emerging trends within the industry, as illustrated in our construction company business plan template .

Your business plan should articulate your vision clearly, define your target market (such as residential, commercial, or government contracts), and establish your company's distinctive positioning (e.g., specializing in green building, luxury homes, or cost-effective commercial structures).

Market analysis is a vital component. It requires a thorough understanding of the competitive landscape, regional construction demands, and the economic factors influencing the industry.

For a construction company, it is imperative to detail the services you will provide. This could range from design-build services, general contracting, or project management. Explain how these services align with the needs and requirements of your intended client base.

The operational plan is of paramount importance. It should outline the location of your business, the structure of your project management teams, the procurement process for materials, and the approach to managing construction projects.

In construction, it is essential to highlight your commitment to safety standards, quality control measures, and adherence to building codes and regulations.

Address your marketing and sales strategies next. How do you plan to secure contracts and maintain a robust pipeline of projects? Consider your approach to bidding, networking, client relationships, and reputation management.

Embracing digital strategies, such as maintaining an updated website and leveraging construction management software, is also crucial in the modern business environment.

The financial section is a cornerstone of your business plan. It should encompass the initial capital investment, projected cash flow, ongoing operational expenses, and the point at which you expect to break even.

In the construction industry, where project costs can vary significantly, it is vital to have a precise and well-researched financial plan. For assistance, you may refer to our financial forecast for a construction company .

Compared to other business plans, a construction company's plan must pay closer attention to risk management, the acquisition of skilled labor, and the potential for delays due to weather or supply chain disruptions.

A detailed business plan is not only a roadmap for the business owner but also a tool to attract investment or secure loans.

Lenders and investors are looking for comprehensive market analysis, realistic financial projections, and a solid understanding of the operational complexities of a construction business.

By presenting a thorough and substantiated plan, you showcase your professionalism and dedication to the success of your construction company.

To achieve these goals efficiently, consider using our construction company business plan template .

business plan construction company

A free example of business plan for a construction company

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a construction company .

Here, we will follow the same structure as in our business plan template.

business plan construction company

Market Opportunity

Market data and figures.

The construction industry is a cornerstone of the global economy with substantial market size.

Recent estimates place the global construction market at over 10 trillion dollars, and forecasts suggest continued growth driven by urbanization, infrastructure upgrades, and population increases.

In the United States, there are over 700,000 construction companies, contributing to an annual revenue of approximately 1.3 trillion dollars for the construction sector.

These statistics underscore the construction industry's vital role in shaping the built environment and its significant contribution to the national economy.

Emerging trends in the construction industry are indicative of a shift towards innovation, sustainability, and efficiency.

Green building practices are becoming more prevalent, with a focus on energy-efficient materials and sustainable construction methods to minimize environmental impact.

Technological advancements such as Building Information Modeling (BIM), prefabrication, and modular construction are streamlining project workflows and reducing waste.

Smart home technology and automation are increasingly integrated into new construction projects, catering to the demand for connected and intelligent living spaces.

Additionally, the industry is experiencing a surge in the use of drones and robotics for site surveying and monitoring, enhancing safety and precision.

These trends demonstrate the construction industry's commitment to embracing new technologies and sustainable practices to meet the evolving needs of society.

Success Factors

The success of a construction company hinges on several critical factors.

Quality of workmanship is paramount. A construction company that consistently delivers well-constructed, durable projects will build a strong reputation.

Innovation in construction techniques and materials can set a company apart in a crowded market.

Strategic location of operations can influence the ability to secure local projects and tap into regional growth.

Exceptional customer service and project management are essential for client satisfaction and repeat business.

Lastly, effective cost control, adherence to safety standards, and the capacity to adapt to industry trends, such as eco-friendly construction and smart technology integration, are vital for the sustained success of a construction company.

The Project

Project presentation.

Our construction company project is designed to address the increasing need for reliable and high-quality construction services. Situated in a region experiencing growth in residential and commercial development, our company will specialize in constructing modern, energy-efficient, and sustainable buildings. We will offer a comprehensive range of services, from initial design and planning to construction and project management, all tailored to meet the unique requirements of each client.

The emphasis will be on the use of innovative building techniques, materials, and sustainable practices to deliver projects that are not only aesthetically pleasing but also environmentally responsible and cost-effective.

Our construction company aims to set a new standard in the building industry, becoming a trusted partner for clients and a leader in sustainable construction practices.

Value Proposition

The value proposition of our construction company lies in our commitment to delivering high-quality, sustainable, and innovative building solutions. We understand the importance of creating structures that stand the test of time, both in terms of durability and environmental impact.

Our dedication to client satisfaction, attention to detail, and adherence to best practices in sustainable construction sets us apart, ensuring that every project we undertake is completed to the highest standards.

We are committed to fostering long-term relationships with our clients, providing them with peace of mind and confidence in their investment, and contributing to the betterment of our communities through responsible construction practices.

Our construction company is poised to become a cornerstone in the industry, championing the integration of green building techniques and materials to enhance the quality of life for our clients and future generations.

Project Owner

The project owner is a seasoned professional with a wealth of experience in the construction industry.

With a background in civil engineering and a passion for sustainable development, he is dedicated to establishing a construction company that excels in delivering projects that are both innovative and environmentally conscious.

Armed with a strategic vision for growth and a commitment to excellence, he is determined to lead the company to new heights, ensuring that each project not only meets but exceeds client expectations.

His expertise and drive for continuous improvement are the bedrock of the company, inspiring a culture of quality, integrity, and sustainability that will redefine the construction industry.

The Market Study

Market segments.

The market segments for this construction company are diverse and cater to various needs within the construction industry.

Firstly, there are residential clients looking to build or renovate their homes, seeking reliable and quality construction services.

Next, we have commercial clients who require the construction of retail spaces, offices, or other commercial properties, emphasizing timely delivery and adherence to safety standards.

The market also includes real estate developers focused on multi-unit residential or commercial developments, who value scalability and project management expertise.

Lastly, government and institutional clients for public infrastructure projects, such as schools and hospitals, can be a significant segment due to their need for compliance with strict regulations and standards.

SWOT Analysis

A SWOT analysis of this construction company project highlights several factors.

Strengths include a strong track record of completed projects, a skilled workforce, and robust project management capabilities.

Weaknesses might encompass the cyclical nature of the construction industry and the challenges of maintaining a skilled labor force.

Opportunities can be found in the growing demand for sustainable and green construction practices, as well as in technological advancements that can improve efficiency and reduce costs.

Threats may include economic downturns affecting the construction industry, increasing material costs, and the competitive landscape of the construction market.

Competitor Analysis

Competitor analysis in the construction sector indicates a highly competitive environment.

Direct competitors include other local and regional construction firms, as well as national construction companies with a presence in the area.

These competitors vie for projects based on cost, quality, reputation, and the ability to deliver on time.

Potential competitive advantages for our company include a strong reputation for safety, innovative use of technology, and a customer-centric approach to project management.

Understanding the strengths and weaknesses of competitors is crucial for carving out a niche in the market and ensuring client satisfaction.

Competitive Advantages

Our construction company's dedication to safety, quality, and customer satisfaction forms the cornerstone of our competitive edge.

We leverage advanced construction technologies and methodologies to enhance efficiency and deliver projects on schedule and within budget.

Our commitment to sustainability and green building practices not only meets the growing demand for environmentally responsible construction but also provides long-term value to our clients.

Moreover, our transparent communication and personalized service ensure that we understand and meet our clients' specific needs, fostering lasting relationships and repeat business.

You can also read our articles about: - the customer segments of a construction company - the competition study for a construction company

The Strategy

Development plan.

Our three-year development plan for the construction company is designed to establish us as a leader in sustainable and innovative building solutions.

In the first year, we will concentrate on building a strong reputation in the local market by delivering high-quality construction services and exceptional customer service.

The second year will be focused on expanding our services to neighboring regions and investing in advanced construction technologies to enhance efficiency and reduce environmental impact.

In the third year, we aim to diversify our portfolio by entering the commercial construction space and forming strategic alliances with real estate developers and architects to broaden our project scope.

Throughout this period, we will adhere to our core values of sustainability, integrity, and continuous improvement to meet the evolving demands of our clients and stay ahead in the competitive construction industry.

Business Model Canvas

The Business Model Canvas for our construction company targets both residential and commercial clients seeking reliable and eco-friendly construction services.

Our value proposition is centered on delivering sustainable building solutions, timely project completion, and transparent pricing.

We offer our services through direct contracts and partnerships, utilizing our key resources such as skilled labor, modern equipment, and industry expertise.

Key activities include project management, sustainable building practices, and client engagement.

Our revenue streams are generated from construction contracts, while our costs are mainly associated with labor, materials, and equipment maintenance.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on showcasing our commitment to sustainability and innovation in construction.

We aim to educate our target market on the benefits of green building and position ourselves as a thought leader in the industry. Our approach includes participation in industry events, content marketing through blogs and case studies, and leveraging client testimonials.

We will also establish partnerships with suppliers of eco-friendly materials to enhance our brand image.

Additionally, we will utilize social media and digital marketing to increase our visibility and engage with potential clients on a more personal level.

Risk Policy

The risk policy for our construction company is designed to mitigate risks associated with project execution, workplace safety, and financial management.

We comply with all construction regulations and safety standards, ensuring that our work sites are secure and our employees are well-trained.

We conduct thorough project planning and risk assessments to prevent delays and cost overruns. Moreover, we maintain a conservative financial strategy to manage cash flow effectively.

We also carry comprehensive insurance to protect against any unforeseen events that could impact our projects or business operations. Our priority is to deliver safe, high-quality construction services while safeguarding the financial stability of our company.

Why Our Project is Viable

We are committed to establishing a construction company that stands out for its dedication to sustainability and modern building practices.

With a growing demand for eco-friendly construction and our focus on quality and customer satisfaction, we are poised for success in this dynamic industry.

We are enthusiastic about the opportunity to contribute to the development of sustainable communities and look forward to the growth and evolution of our construction company.

We remain adaptable to market changes and are eager to embrace the challenges and opportunities that lie ahead in the construction sector.

You can also read our articles about: - the Business Model Canvas of a construction company - the marketing strategy for a construction company

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a construction company and our financial plan for a construction company .

Initial expenses for our construction company include acquiring construction equipment, vehicles, and tools necessary for various building projects, obtaining licenses and permits, insuring our operations, and investing in safety training for our workforce. Additionally, costs will be allocated for establishing a strong brand presence and executing targeted marketing strategies to attract potential clients in the residential and commercial sectors.

Our revenue assumptions are based on a thorough market analysis of the local construction industry, taking into account the current demand for new construction and renovation services, as well as the competitive landscape.

We expect a gradual increase in contracts, starting conservatively and expanding as our reputation for quality and reliability grows within the community.

The projected income statement outlines expected revenues from our construction services, direct costs (materials, labor, subcontracting), and operating expenses (office rent, marketing, salaries, equipment maintenance, etc.).

This leads to a forecasted net profit that is essential for assessing the long-term profitability of our construction business.

The projected balance sheet presents assets unique to our company, such as construction machinery, vehicles, and material inventories, alongside liabilities including loans and projected operational costs.

It provides a snapshot of the financial standing of our construction company at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial needs at any point in time. This is crucial for maintaining a healthy cash balance and steering clear of liquidity issues.

The projected financing plan identifies the specific sources of funding we intend to tap into to cover our initial outlays.

The working capital requirement for our construction company will be diligently managed to ensure we have sufficient funds to support day-to-day activities, such as procuring materials, managing inventory, and disbursing wages.

The break-even analysis for our venture will calculate the volume of business we need to achieve to cover all our costs, including the initial investments, and to begin generating profits.

It will signal the point at which our company becomes financially sustainable.

Key performance indicators we will monitor include the profit margin on our construction projects, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to gauge the efficiency of the capital we have deployed into the business.

These metrics will assist us in assessing the financial health and overall success of our construction company.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a construction company .

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A sample excavation company business plan template

sample business plan for excavation company

Are you about to start an excavation business? If yes, here is a complete Excavation Company Business Plan Template Feasibility Report Sample that you can use for FREE  .

Okay, so we have considered all the requirements to start an excavation business. We also took it further by analyzing and writing a sample digging company marketing plan template backed by actionable guerilla marketing ideas for digging companies. Let’s move on to the business planning section  .

Table of Contents

Why start an excavation company?

One of the many business opportunities in the construction industry value chain is the excavation business. If you live in the United States, you will accept that there are a lot of excavation companies that are making money from this line of business.

It is important to say that if you want to be actively involved in running an excavation business, then you need to make sure you acquire the relevant work experience and business network. It will be to your advantage to establish contacts with contractors in the construction industry. They are your main customers; they are the people who can award digging contracts that can keep you afloat in your line of business.

If you are sure that this type of business is what you really want to do after you have done your market research and feasibility studies, then the next step to take is to write a good business plan. Below is a sample digging company business plan template to help you successfully launch your own business;

  • Industry overview

Establishments in the Excavation Contractor industry primarily excavate land for the construction of buildings. They are known to carry out activities such as drilling wells, digging foundations, and drilling and sorting et al. Excavation work done by these companies could be new work, additions, alterations, and repairs.

If you are a closer observer of developments in the Excavation Contractors industry, you will notice that the revenue generated by players in the industry has seen a sharp increase in the last half decade. This is supported by increased demand from subsequent construction industries.

Also, the improvement in industry performance coincided with the rapid expansion in demand for excavation services in the burgeoning housing market and the non-residential construction market in the United States. Additionally, some earthmoving contractors benefited from a boost in U.S. government funding for the construction of roads, bridges, and other infrastructure during this period, further increasing revenue for larger contractors. Going forward, industry revenue is expected to continue to grow, albeit at a slower pace.

The Excavation Contractors industry is indeed a large and quite active industry in most countries of the world, especially in the United States of America, Nigeria, South Africa, Egypt, the United Kingdom, Mexico and Canada et al.

Statistics say that in the United States of America alone, there are about 44,246 registered and licensed excavation companies (large, medium and small) spread across the United States responsible for employing about 281,416 people and the industry raises a sum of $ 47 billion annually. The industry is projected to enjoy 1.3 percent annual growth in 2011 and 2016. It is important to note that no establishment can boast of having the majority of the market available in this industry.

A recent report published by IBISWorld shows that Excavation Contractors have a low level of concentration, as they are primarily made up of small to medium-sized contractors operating in specific regional markets. The top three players currently generate less than 3.0 percent of the industry’s revenue.

The report further indicated that operators are increasingly offering services in various states or metropolitan areas in an attempt to reduce the slowdown risks associated with local markets to increase revenue. According to U.S. Census County Business Patterns data and IBISWorld estimates, 80.6 percent of industry participants employ fewer than 10 people, and 64.2 percent of establishments employ less than 10 people. less than five people. Only 9.3 percent of establishments employ more than 20 people.

Starting and operating an excavation business can be a chore and a challenge, but the truth is, it can be rewarding at the same time. One good thing about the industry is that it is open to both large investors who have the ability to start business with a fleet of earthmoving tractors and trucks and aspiring entrepreneurs who can start with a single tractor and truck of Earth movement.

Excavation Company Business Plan Executive Summary

West Coast® Excavation Contractors, LLC is a registered, standard excavation company based at 8009 ND Highway 23 Belle Fourche North Dakota. We will provide essential services such as earthmoving, excavation, dewatering, land clearing, grading and grading, overburden removal, trenching, foundation drilling, and well drilling.

Our services and operations will focus on construction sites and other locations in and around South Dakota, North Dakota, South Illinois; St. Louis, Missouri; Southeastern Missouri; Evansville, IN; Nashville, Tennessee; The land areas of Memphis, Western Kentucky, Tennessee, and Chicago, et al.

West Coast® Excavation Contractors, LLC has been able to obtain all relevant licenses and permits to operate in the United States and Canada, we will ensure that we comply with the rules and regulations of the Excavation Contractors industry and will only hire experienced and qualified licensed drivers Valid Commercial Driver’s License (CDL).

At West Coast® Excavation Contractors, LLC, our clients’ best interest will always come first, and everything we do will be guided by our values ​​and professional ethics. We will ensure that we establish standard structures and processes that allow us to meet and exceed our business objectives and also remain highly competitive in the industry.

Our clients and potential clients can be sure that they will obtain quality services at competitive prices when they hire our services. We will go the extra mile to ensure that safety is paramount in everything we do and our customers get value for their money. At West Coast® Excavation Contractors, LLC, our goal is to provide excellent excavation service to our customers and we pride ourselves on the integrity and competence of our company and our employees.

West Coast® Excavation Contractors, LLC Demonstrate your commitment to sustainability at all times, both individually and as a pet sitting services business, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we are held accountable to the highest standards by meeting our clients’ needs accurately and completely. We will cultivate a work environment that provides a humane and sustainable approach to earning a living and living in our world, for our partners, employees. and our clients.

Our overall business goal is to position West Coast® Excavation Contractors, LLC to become one of the leading brands of excavation companies in the United States of America within the first 5 years of operations. This may seem like an overly high dream, but we are optimistic that this will surely happen because we have done our research and feasibility studies and are excited and confident that North Dakota is the right place to launch our excavation business.

West Coast® Excavation Contractors, LLC is a family business; It is owned by Allen Newton and his immediate family members. Allen Newton holds a Bachelor of Business Administration and also a Diploma in Transportation and Logistics Management with over 10 years of hands-on experience in the excavation and construction contractor industry, working for some of the industry leaders in both the United States. States of America as in Canada.

  • Our service offerings

West Coast® Excavation Contractors, LLC is a company that looks forward to providing excellent services in terms of helping our clients perform excavation work professionally from one destination to another. We want to be known as the excavation company that truly cares about its customers.

Our intention in starting our excavation business is to compete favorably in the industry and of course make a profit from the industry and we will do everything the law allows in the United States of America to achieve our goal. and business objective.

Our commercial offers are listed below;

  • Earthmoving, excavation work, land clearing (Residential Building)
  • Earthmoving, excavation work, land clearing (Non-residential building)
  • Foundation excavation
  • Trenching Contractor
  • No excavation in building construction
  • Floor drain
  • Land cleaning
  • Leveling and leveling
  • Elimination of overload
  • Foundation drilling
  • Shaft drilling

Statement of our vision

Our vision is to become one of the preferred choices of players in the construction industry and other relevant industries when it comes to the demand for frozen excavation services throughout the United States of America.

  • Our mission statement

Our mission is to ensure that we build an excavation company that will operate throughout the United States of America and Canada; a company that will boast some of the best and most trusted earthmoving machine operators and truck drivers in the entire United States of America.

  • Our commercial structure

At West Coast® Excavation Contractors, LLC, our business structure will be designed in such a way that it can accommodate full-time and part-time employees / contract personnel; those who just want to take time off to generate additional income.

We intend to start our excavation business with a handful of full-time employees (professional truck drivers and back office staff) and some of the most available earthmoving machine operators. and the truck driving roles will be handled by qualified operators and truck drivers. Adequate provision and competitive packages have been prepared for all of our full-time employees.

As a means to maximize operating cost, we will contract the maintenance of all our earthmoving machines and trucks to the service provider, we do not ‘They intend to maintain a very large overhead from the start. But as soon as the business grows and stabilizes, we will assemble our own professional in-house maintenance team. Below is the business structure and roles that will be available at West Coast® Excavation Contractors, LLC;

  • Director of Operations (Owner)

Administrator and Human Resources Manager

  • Transport and logistics manager
  • Business developer
  • Professional truck drivers and earthmoving machine operator
  • Customer Service Executive / Front Desk Officer

Roles and responsibilities

  • Increase the effectiveness of management by recruiting, selecting, orienting, training, training, advising and disciplining managers; communicate values, strategies and objectives; assign responsibilities; plan, monitor and evaluate the results of the work; development of incentives; develop a climate to offer information and opinions; providing educational opportunities.
  • Creates, communicates and implements the vision, mission and general direction of the organization, that is, leads the development and implementation of the general strategy of the organization.
  • Responsible for setting prices and signing commercial agreements
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluate the success of the organization
  • Reports to the council
  • Responsible for supervising the proper functioning of administrative and human resources tasks for the organization
  • Maintains office supplies by controlling stocks; place and expedite orders; evaluation of new products.
  • Ensures equipment operation by completing preventive maintenance requirements; asking for repairs.
  • Upgrade job knowledge by participating in educational opportunities; read professional publications; maintenance of personal networks; participate in professional organizations.
  • Improves the reputation of the department and the organization by accepting ownership to fulfill new and different requests; explore opportunities to add value to job achievements.
  • Define jobs to recruit and manage the interview process
  • Conduct staff induction for new team members
  • Responsible for the training, evaluation and assessment of employees
  • Responsible for organizing trips, meetings and appointments
  • Supervise the smooth running of the daily activities of the office.

Sales and Marketing Manager

  • Manage external research and coordinate all internal sources of information to retain the organization’s best customers and attract new ones
  • Model demographic information and analyze transactional data volumes generated by customer purchases
  • Identify, prioritize and reach new partners, and business opportunities and others
  • Identify development opportunities; follows up on contacts and development contacts; participates in the structuring and financing of projects; ensures completion of development projects.
  • Responsible for overseeing implementation, advocating for client needs, and communicating with clients
  • Develop, execute and evaluate new plans to expand sales growth
  • Document all customers contact and information
  • Represents the company in strategic meetings
  • Helps increase sales and business growth

Transport and Logistics Manager

  • Responsible for coordinating truck, vehicle, cargo and travel drivers
  • Responsible for operating IT systems for the organization
  • Responsible for negotiating and agreeing contracts for the organization
  • Responsible for developing and confirming schedules
  • Responsible for planning and negotiating technical difficulties
  • Responsible for preparing documentation for regulatory bodies
  • Responsible for coordinating and managing staff
  • Responsible for implementing health and safety standards

Handles planning routes and cargo scheduling for multiple deliveries.

  • Manages the reservation in deliveries and the liaison with the clients.
  • In charge of assigning and recording resources and movements in the transportation planning system.
  • Responsible for ensuring that all supply chain partners work effectively and efficiently to ensure smooth operation.
  • Responsible for communicating effectively with clients and responding to their requirements.
  • In charge of directing all transportation activities.
  • Responsible for developing transportation relationships.
  • Responsible for monitoring transportation costs.
  • In charge of negotiating and negotiating transport prices.
  • Responsible for dealing with the effects of congestion.
  • Responsible for facing the problems of climate change by implementing transport strategies and monitoring the carbon footprint of an organization.
  • Responsible for preparing financial reports, budgets and financial statements for the organization
  • Provides financial managers with analysis, development budgets, and accounting reports; analyzes financial viability for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasts and risk analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for managing payroll
  • Ensure compliance with tax legislation
  • Handles all financial transactions of the company
  • Serves as internal auditor of the company

Truck Drivers and operators of earthmoving machines

  • Responsible for managing basic services such as earthmoving, excavation, drainage, land clearing, grading and grading, overburden removal, trenching, foundation drilling, and shaft drilling
  • Assists in loading and unloading cargo
  • Maintains a log book of your driving activities to ensure compliance with federal regulations governing rest and work periods for operators.
  • Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous materials placards.
  • Inspect vehicles for mechanical and safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations (size, weight, route designations, parking, rest periods, etc.) as well as company policies and procedures

Customer Service Executive

  • Welcomes / greets customers by greeting them in person or on the phone; answering or directing inquiries.
  • Ensures that all customer contacts (email, call center, SMS or phone) provide the customer with a personalized customer service experience of the highest level
  • Through interaction with parents and students over the phone, they take every opportunity to increase customer interest in the organization’s products and services.
  • Manage the administrative tasks assigned by the Human Resources and Administration Manager or the Transportation Logistics Manager in an effective and timely manner
  • It is constantly kept abreast of any new information about the products of the organizations, promotional campaigns, etc. to ensure that accurate and useful information is provided to customers when inquiring
  • Receive packages / documents for West Coast® Excavation Contractors, LLC and distribute mails in the organization
  • Handles any other task assigned by the Human Resources Manager and Administrator or the Transportation Logistics Manager.

Excavation Company Business Plan SWOT Analysis

Our intention is to start West Coast® Excavation Contractors, LLC in North Dakota with operations centers around construction sites in North Dakota, North Dakota, South Illinois; St. Louis, Missouri; Southeastern Missouri; Evansville, IN; Nashville, Tennessee; Memphis, western Kentucky, Tennessee and Chicago land areas, among others, will test the business for a period of 2-4 years to see if we will invest more money and expand the business in the United States of America and Canada.

We are quite aware that there are several excavation companies scattered throughout the United States and Canada and even in the very places where we intend to start ours, so we are following due process of establishing a business.

We know that by conducting a proper SWOT analysis for our business, we will be able to position our business to maximize our strength, take advantage of the opportunities that will be available to us, mitigate our risks, and be well-equipped to deal with our threats.

West Coast® Excavation Contractors, LLC enlisted the services of an expert HR and business analyst with startup bias to help us conduct a thorough SWOT analysis and help us create a business model that will help us achieve our business goals and objectives. .

This is the summary of the SWOT analysis that was conducted for West Coast® Excavation Contractors, LLC;

Our core strength lies in the power of our team; our workforce We have a team that can do everything possible to give our clients value for money; A team trained and equipped to pay attention to detail and deliver great jobs. We are well positioned and have standard and reliable earthmoving machines and tippers (trucks). We know that we will attract many clients from the first day we open our door for business.

  • Soft spot :

Our weakness could be lack of financing, high debt load, cost structure, lack of scale compared to our peers who have already gained ground in the construction industry.

  • Opportunities:

The opportunities we have available as excavation The company that operates in both the United States of America and Canada is an online marketplace, new services, new technologies and, of course, the opening of new markets within our target locations.

Some of the threats we are likely to face are mature markets, a bad economy (economic downturn), stiff competition, volatile costs, and rising fuel prices. Basically, like any other business, one of the main threats that we are likely to face is the economic downturn.

It is a fact that the economic recession affects purchasing / spending power. Another threat that we probably face is the arrival of an excavation company in the same place where ours is located. Unfavorable government policies can also pose a significant threat to companies like ours.

Excavation Company Business Plan MARKET ANALYSIS

  • Market trends

Market trends, as it involves the Excavation Contractors industry, especially in the United States of America and Canada, are dynamic and at the same time highly competitive and challenging.But one thing is certain, once an excavation company can gain credibility, it will be much easier for the company to secure permanent agreements / contracts with large construction companies and government contractors who always perform construction work on a regular basis.

If you are a closer observer of trends in the Excavation Contractors industry, you will notice that the revenue generated by players in the industry has seen a sharp increase in the last half decade. This is supported by increased demand from subsequent construction industries.

Also, the improvement in industry performance coincided with the rapidly expanding demand for excavation services in the burgeoning housing market and the non-residential construction market in the United States. Additionally, some earthmoving contractors benefited from a boost in U.S. government funding for the construction of roads, bridges, and other infrastructure during this period, further increasing revenue for larger contractors. Going forward, industry revenue is expected to continue to grow, albeit at a slower pace.

Lastly, another common trend in this industry is that once an excavation company has gained credibility, it is easier for them to purchase new trucks and earthmoving machines on a long-term lease rather than use.

  • Our target market

Our target market is basically construction companies and, of course, the government of the United States of America and Canada. We cover both the short distance (between states) and the long distance (intrastates). We are in the business of moving things and anyone who has things to move within the United States or from the United States to Canada can contact us.

In other words, our target market is the entire United States. America and Canada, and below is a list of the people and organizations with whom we plan to do business;

  • Construction companies
  • The timber industry
  • Oil and gas sector
  • Government Contractors

Our competitive advantage

We are aware of the competitive nature of Excavation Contractors and we are ready to enter the mix and compete favorably with players in the industry.

Our main competitive advantage is the vast experience in the industry and the solid reputation of our owner, Allen Newton, and our management team. West Coast® Excavation Contractors, LLC is undoubtedly a new excavation company, so we took our time to do extensive market research and feasibility studies before launching the business.

We were able to highlight some factors that will give us a competitive advantage in the market; Some of the factors are trust, honesty, good network and excellent relationship management, well-qualified and experienced management team, robust fleet operations, direct access to construction sites in the United States of America and Canada, our size advantages, cost advantages, supply chain, customer loyalty and solid reputation among national industry players.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we can comfortably work with both individual clients. (contractors) and large construction companies.

Lastly, our employees (earthmoving machine operators and truck drivers and administrative staff members) will be well looked after, and their wellness package will be among the best within our category (startup digging companies in the United States). ) in the industry, which means they will be more than willing to build the business with us and help us meet our stated goals and achieve all of our business goals and objectives.

Excavation Company Business Plan SALES AND MARKETING STRATEGY

Without a doubt, networking is an effective way to start building your customer base as a business man or woman and we have plans to take advantage of all of our networks. In light of that, we will seek meetings where we can network with the captain of industries, construction contractors, and government contractors, et al. In fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely to get our first major deal with them.

At West Coast® Excavation Contractors, LLC, all of our employees will be directly or indirectly involved in the sale and marketing of our services. We will create provisions for our employees to earn commissions when they bring business to the organization. We will also encourage freelancers to work with us; Each time they refer clients to us, they will earn a percentage of the agreement agreed by both parties.

Finally, we will harness the power of the media by advertising our services using online and offline platforms. We will work hard to ensure we get repeat business from any business deal we execute and we will also encourage our clients to help us refer us to their friends. Part of our strategy is to reward loyal customers and take advantage of word of mouth marketing from satisfied customers.

In addition, we have refined strategies for networking with people who can recommend business on a regular basis. In summary, West Coast® Excavation Contractors, LLC will adopt the following sales and marketing strategies when seeking clients for our business;

  • Introduce our business by sending cover letters along with our brochure to corporate organizations, companies in the construction industry, and related industries in North Dakota and throughout the United States and Canada.
  • Print brochures about our excavation company and their locations and post them in public facilities.
  • Advertise on the internet in blogs and forums, and also on social media such as Twitter, Facebook, LinkedIn to get our message across, so that those on social media or those who read blogs can know where to go when they need the services of a truck of garbage company
  • Creation of a basic website for our business, in order to give our business an online presence
  • Directly market our dump truck business.
  • Join local excavation contractor associations and chambers of commerce for industry trends and tips
  • Provide discount days for our customers
  • Advertise our business in community newspapers Radio and television stations
  • List our business in yellow pages ads (local directories)
  • Encourage the use of word of mouth marketing (referrals)

Sources of income

West Coast® Excavation Contractors, LLC will ensure that we leverage our strength and the opportunities available in the US and Canadian market to generate sufficient revenue to help us drive the business towards stability. We will go all the way to explore all the sources of income available in the excavation industry.

Below are the sources we intend to explore to generate income for West Coast® Excavation Contractors, LLC;

  • Earthmoving, excavation work, land clearing (Residential building)
  • Construction excavation without construction

Sales forecast

One thing is certain, there will always be construction companies and other related businesses that would need the services of excavation companies to help them move materials and equipment from one location to another in the United States of America and Canada.

We are well positioned to take on the available market in the United States of America and Canada and we are quite optimistic that we will achieve our stated goal of generating sufficient revenue / profit during the first six months of operations and growing our business and customer base.

We have been able to critically examine the Excavation Market of the contractor industry in the United States of America and have analyzed our possibilities in the industry and have been able to come up with the following sales forecast. Sales projections are based on information collected in the field and in some cases that are peculiar to similar new companies in the United States of America.

Below are sales projections for West Coast® Excavation Contractors, LLC, based on our business location and of course the wide range of excavation services we will offer;

  • First fiscal year:  $ 350,000
  • Second fiscal year:  $ 750,000
  • Third fiscal year:  $ 1,000,000

NB: This projection is made based on what can be obtained in the industry and with the assumption that there will not be a major economic crisis and natural disasters within the period mentioned above. Also, there will be no major competitor (excavation company) offering the same additional services as us at the same location. Keep in mind that the previous projection could be smaller and at the same time it could be bigger.

  • Our pricing strategy

West Coast® Excavation Contractors, LLC has a lease with multiple companies and the company’s pricing is based on miles per thousands of tons of materials transported. We have refined our plans to charge competitive rates as we have minimal full-time overhead compared to our competition in the industry.

We will make sure to take advantage of the price to win customers; Our prices will be affordable and negotiable. The fact that our commercial door is open to both individuals and corporate organizations means that we will have a different price range for different categories of clients.

We are aware that government contracts come with a bidding template, we will ensure that we comply with such bidding templates whenever we have the opportunity to bid on government contracts. As the business grows, we will continue to revise our pricing system to accommodate a wide range of customers.

  • Payment options

The payment policy adopted by West Coast® Excavation Contractors, LLC is comprehensive because we are aware that different clients prefer different payment options as it suits them, but at the same time, we will ensure that we comply with the financial rules and regulations of the United States. from America.

These are the payment options that West Coast® Excavation Contractors, LLC will make available to its clients;

  • Payment by bank transfer
  • Cash payment
  • Payment by credit card / Point of sale machines (POS)
  • Payment by online bank transfer
  • Payment by check
  • Payment by mobile money transfer
  • Payment by bank draft

In view of the above, we have chosen banking platforms that will allow our client to pay for the services provided without any stress on their part.Our bank account numbers will be available on our website and promotional materials for clients who wish to deposit. cash or make online transfers for the services provided.

Excavation Company Business Plan Advertising and advertising strategy

Although our excavation company will be well located, we will continue to step up publicity for the business. We will explore all available means to promote our business.

West Coast® Excavation Contractors, LLC has a long-term plan to cover various locations in major cities in the United States and Canada, so we will deliberately build our brand to be well accepted on construction sites in a close environment. North Dakota, South Dakota, South Illinois; St. Louis, Missouri; Southeastern Missouri; Evansville, IN; Nashville, Tennessee; Memphis, western Kentucky, Tennessee and the land areas of Chicago and others, before venturing to other cities, both in the United States of America and Canada.

In fact, our advertising and publicity strategy is not only to gain more customers but to effectively communicate our brand. These are the platforms we intend to leverage to promote and advertise West Coast® Excavation Contractors, LLC;

  • Place ads on print platforms (newspapers and community magazines) and in electronic media
  • Sponsor relevant community programs
  • Take advantage of internet and social media platforms such as; Instagram, Facebook, Twitter, and others to promote our brand
  • Install our billboards in strategic locations throughout North Dakota
  • Participate in traveling shows from time to time
  • Distribute our flyers and flyers in the target areas
  • Position our Flexi Banners in strategic positions where our photo booths are located.
  • Make sure all of our workers wear our brand shirts and all of our earthmoving machines and trucks are well marked with our company logo and others.

Financial projections of the excavation company business plan and costs

When setting up any business, the amount or cost will depend on the focus and scale you want to undertake. If you intend to go big by renting a place, you would need a fair amount of capital as you would need to ensure that your employees are well cared for and that your facility is conducive enough for workers to be creative and productive.

This means that start-up can be low or high depending on your goals, vision, and aspirations for your business.

The tools and equipment to be used are almost the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis to start an excavation business; it may differ in other countries due to the value of your money.

When it comes to getting started, a major area excavation company looking to spend most of its cash is buying standard earthmoving machines and trucks and of course renting or leasing a well located facility / yard. large enough to accommodate your truck fleets. Other than that, you are not expected to spend a lot except to pay your employees, maintain your trucks, and refuel.

These are the key areas where we will spend our initial capital;

  • The total fee for incorporating the Business in the United States of America  $ 750.
  • The budget for liability, permit and license insurance  $ 2,500
  • The amount needed to purchase a suitable office facility with sufficient parking space for our trucks in South Dakota for 6 months (Facility rebuild included)  $ 40,000.
  • The amount required to finance the purchase of the first set of trucks and earthmoving machines –  $ 800,000
  • The cost of office equipment (computers, printers, fax machines, furniture, telephones, filing cabinets, electronic and security devices, etc.)  $ 5,000
  • The cost of accounting software, CRM software, and payroll software  $ 3,000
  • Other initial expenses, including stationery  $ 1000
  • Telephone and Uti utility deposits (gas, sewer, water and electricity) (  $ 3,500  ).
  • Operating cost for the first 3 months (employee salaries, bill payments, etc.)  $ 40,000
  • The cost of launching our official website  $ 600
  • The amount needed to pay staff for the first 2 months  $ 20,000
  • Additional expenses (business cards, signage, advertisements and promotions, etc. al)  $ 2,500

Based on the market research report and feasibility studies conducted, we will need around two million and two hundred thousand (  1.2 million  ) US dollars to successfully establish a medium-scale but standard excavation company in the United States of America.

Generation of funds / seed capital for West Coast® Excavation Contractors, LLC

West Coast® Excavation Contractors, LLC is a family business that will be owned and operated by Allen Newton and his immediate family members. They are the sole financier of the business, so they decided to restrict the supply of seed money for the private school to just three main sources.

These are the areas in which we intend to generate our initial capital. ;

  • Generate part of the initial capital from personal savings and the sale of your shares
  • Generate some of the initial capital from friends and other members of the extended family
  • Generate more of the bank’s initial capital (line of credit).

NB:   We have been able to generate around  $ 400,000  (  Personal Savings $ 350,000 and Soft Loan from Family Members $ 50,000  ) and we are in the final stages of obtaining an $ 800,000 loan from our bank. All documents and documents have been duly signed and presented, the loan has been approved and at any time our account will be credited.

BUSINESS EXCAVATION GROWTH: Sustainability and expansion strategy

The future of any business lies in the number of loyal customers they have, the capacity and competence of the employees, their investment strategy and the business structure. If all these factors are missing in a company (company), it won’t be long before the company closes the store.

One of our primary goals in starting West Coast® Excavation Contractors, LLC is to build a business that will outlive its own cash flow without the need to inject financing from outside sources once the business is officially up and running. We know that one of the ways to get approved and win clients is to participate in affordable, timely, safe, and efficient levy services at all times.

West Coast® Excavation Contractors, LLC will ensure that the foundation, structures, and processes are in place to ensure the well-being of our staff is well cared for. Our company’s corporate culture is designed to drive our business to greater heights and Training and retraining of our workforce is the main option.

In fact, the profit sharing agreement will be available to all of our administrative staff and will be based on their performance for a period of three years or more. We know that if that is implemented, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to helping us build the business of our dreams.

Checklist / milestone

  • Business name availability check:  Completed
  • Business Incorporation:  Completed
  • Opening of corporate bank accounts at various banks in the United States:  Completed
  • Opening of online payment platforms:  Completed
  • Request and obtain taxpayer identification:  In progress
  • Business Permit and License Application:  Completed
  • Purchase of all forms of business insurance:  Completed
  • Acquisition of trucks and relevant equipment:  In progress
  • Large Enough Office / Yard Lease in North Dakota:  Completed
  • Conduct of feasibility studies:  Completed
  • Capital generation start-up:  Completed
  • Drafting the business plan:  Completed
  • Drafting the employee handbook:  Completed
  • Drafting of contractual documents:  In progress
  • Company Logo Design:  Completed
  • Graphic designs and printing of promotional / marketing materials of packaging:  Completed
  • Hiring of employees and drivers:  In Progreso
  • Purchase of necessary furniture, office equipment, electronics and cosmetic surgery:  In progress
  • Creation of official website for the company:  In progress
  • Building Awareness for Business (Commercial PR):  In Progress
  • Health and Safety and Fire Safety Agreement:  In Progress
  • Establishment of business relationships with key players in the industry (networking and membership of relevant organizations and chambers of commerce):  Completed
  • Leasing of the first set of earthmoving machines and trucks (dump trucks):  In progress

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Free Clothing Retail Sample Business Plan

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Kateri Kosta

1 min. read

Updated February 25, 2024

If you’re writing a business plan for your clothing retail business, it can be helpful to start by looking at a sample business plan to help you get a sense of what to include in each section. You’re in luck. Download Bplans’ free clothing retail sample business plan Word doc  or PDF to help you create a business plan of your own.

Remember, finding a sample business plan that exactly matches your business isn’t necessary . The details your in your plan will be different based on whether you’re starting a high fashion boutique in a big city, or a neighborhood shop catering to weekend adventurers, for example. But either way, the bones of the plan will be the same, so you can use an example from any type of retail clothing business for inspiration.

Are you writing a business plan for your clothing shop because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company.  Take the time to create your own financial forecasts and do enough market research so you have a solid plan for success. 

  • What should you include in a clothing retail business plan?

Your clothing retail business plan doesn’t need to be hundreds of pages—keep it as short and concise as possible. You’ll probably want to include each of these sections: executive summary, company summary and funding needs, products, market analysis, strategy and implementation plan, management team, financial plan, and appendix. 

Here’s an example of a clothing retail business plan outline .

Clothing Retail Sample Business Plan

Download and edit this free clothing and retail sample business plan PDF  or  Word doc  now, or visit Bplans’ gallery of more than 550 sample business plans if you’re looking for more options.

There are plenty of reasons retailers can benefit from writing a business plan —you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every

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Content Author: Kateri Kosta

Kateri is a leader in innovative brand and content marketing. She’s committed to putting the best words in the right order to deliver high quality, discoverable, and useful tools and resources at scale. She enjoys exploring the intersection of tech, words, and the people to who drive small business culture.

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COMMENTS

  1. Excavation Business Plan Template [Updated 2024]

    Written by Dave Lavinsky Excavation Business Plan Template Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their excavation companies. If you're unfamiliar with creating an excavation business plan, you may think creating one will be a time-consuming and frustrating process.

  2. Excavation Company Business Plan Template (2024)

    to your computer here <- Below is a template to help you create each section of your Excavation Company business plan. Executive Summary Business Overview Precision Excavation is a startup excavation company located in Billings, Montana.

  3. Excavation Company Business Plan [Sample Template]

    Below is a sample excavation company business plan template that will help you successfully launch your own business; A Sample Excavation Company Business Plan Template 1. Industry Overview Establishments in the Excavation Contractors industry mainly excavate land for building construction.

  4. Excavation Business Plan Template & Guidebook

    Here is an example of a purpose mission statement for a excavation business: At [Excavation Business Name], our purpose is to provide professional and reliable excavation services to our customers. We strive to offer a wide range of excavation services, from site preparation to grading and drainage, to meet the unique needs of our clients.

  5. Construction Business Plan Template (2024)

    Sample Construction Business Plan Outline Below is a construction business plan example to help you create each section of your own construction business plan: Executive Summary Business Overview VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin.

  6. Excavation Business Plan Template: A Step-by-Step Guide (2024)

    Use our sample excavation business plan created using upmetrics business plan software to start writing your business plan in no time. Before you start writing your business plan for your new excavation business, spend as much time as you can reading through some examples of services-related business plans.

  7. How to write a business plan for an excavation company?

    Your excavation company business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation. The initial financing plan. The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your ...

  8. Writing an Excavation Business Plan [Sample Template]

    A Sample Excavation Business Plan Template An excavation company is a business that mainly excavates land for building construction.

  9. Free Construction Company Business Plan for Business Owners

    [Sender.Company] A construction company business plan is a document that outlines the goals and strategies of a construction company. Any business needs to have a plan for success, but it is especially critical for construction companies because of the high level of risk involved with this industry.

  10. Construction Company Business Plan Template [Updated 2024]

    Download Template Create a Business Plan Growing a construction company is much more difficult and taxing than completing projects. From acquiring a new project to meeting deadlines, managing the budget, and many more things in between- you will find yourself drowning in responsibilities when you start a construction company.

  11. Sample Construction Business Plan

    The construction business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your construction company as Growthink's Ultimate Construction Company Business Plan Template, but it can help you write an construction company business plan of your own.

  12. Construction Company Business Plan Template

    You can download our Construction Business Plan Template (including a full, customizable financial model) to your computer here. Construction Business Plan Outline: How To Write a Construction Business Plan Below are links to each section of a construction business plan:

  13. How to Start an Excavation Company

    Think about marketing. Come up with a name that reflects the desired brand and/or focus of your excavation company. 2. Develop Your Excavation Company Plan One of the most important steps in starting an excavation company is to develop your excavation business plan.

  14. Excavation Services Business Plan

    Sample text from Excavation Services Business Plan: 1.0 Executive Summary Introduction [Company Name] is an Industrial Building Construction company owned by [OWNER'S NAME], who has worked in the excavation industry for over 20 years. Location [Company Name] is headquartered in [CITY], [STATE], which is located in [COUNTY] County. The Company

  15. How to Write a Business Plan for a Construction Company

    The basic business plan elements you should never skip — including for construction businesses — include: Executive summary: This section outlines the business plan, stating its purpose. The executive summary can also include the mission statement, a single statement that outlines the company's purpose. Company identity: It holds the ...

  16. PDF Excavation Business Plan Example

    200+ Sample business plans Get access to hundreds of sample business plans covering almost all industries to kick start your business plan writing. This helps you to get an idea how the perfect business plan should look like. View Sample Business Plans Step-By-Step Guide

  17. How to Start an Excavation Company

    Wise Business Plans offers a custom-crafted excavation business plan that is tailor-made to showcase startup or expansion concepts as companies work to acquire funding from investors, look to raise capital through venture capitalists, or from private investors.All plans include market research and custom financials that are developed for each company, and all are offered at an affordable price.

  18. Free Construction Business Plan Template + Example

    1 million businesses. Download a free construction business plan template with SBA-approved format. Includes pre-filled examples and step-by-step guides for a successful start.

  19. Construction Business Plan Example

    Executive Summary Opportunity Problem Customers in the Houston area are in need of beautiful office buildings, warehouses, public works etc. The area is expanding rapidly and they need a company that can provide high quality work and materials to build the spaces that were needed. Solution

  20. Starting an Excavation Company

    Acquire the Required Technical Skills As a matter of fact, an individual can single handedly start and run his own excavation company from the scratch before employing people along the line to help him when the business is expanding.

  21. Commercial Contractor Business Plan Example

    Step 1 - Analyzing The Company's Potential: Step through a structured process to help us develop a sales strategy. Step 2 - Strategize Around Strengths: The description of sales activity will be analyzed to produce a report on factors impacting sales potential and ways to strengthen this potential.

  22. Construction Company Business Plan Sample (Free)

    January 29, 2024 If you're poised to lay the foundation of your own construction company but feel uncertain about the initial steps, this is your blueprint for success. In the content that follows, we will present to you a comprehensive sample business plan tailored for a construction company.

  23. A sample excavation company business plan template

    October 8, 2021 0 210 23 minutes read Are you about to start an excavation business? If yes, here is a complete Excavation Company Business Plan Template Feasibility Report Sample that you can use for FREE . Okay, so we have considered all the requirements to start an excavation business.

  24. How to Increase Your Construction Business Revenue

    In the construction industry, there are a number of ways to increase your profit margins, even when you are new to the business. So, if you're interested in maximizing your profits and getting the right amount of profitable jobs, the seven tips in this construction profits guide should give you insight into what you can do to run a highly profitable construction business.

  25. KORE Power could start construction in Buckeye after key vote

    Vertical construction for the long-planned KOREPlex battery cell manufacturing plant could start this year pending approval of the company's site plans.. Coeur d'Alene, Idaho-based KORE Power Inc ...

  26. Free Accounting and Bookkeeping Sample Business Plan PDF

    Download this accounting and bookkeeping sample business plan PDF for free right now, or visit Bplans' gallery of more than 550 sample business plans if you want more options. There are plenty of reasons accounting business owners can benefit from writing a business plan —you'll need one if you're seeking a loan or investment.

  27. Free Clothing Retail Sample Business Plan

    Download and edit this free clothing and retail sample business plan PDF or Word doc now, or visit Bplans' gallery of more than 550 sample business plans if you're looking for more options. There are plenty of reasons retailers can benefit from writing a business plan —you'll need one if you're seeking a loan or investment.