Wondering how to start a land clearing and leveling contractors business? We take you step-by-step from start to success.
Demand for Land Clearing & Leveling Contractors
Land clearing and leveling is a boom or bust business. The problem is that the excavation and land clearing business is extremely dependent on construction and other industries. When the residential and commercial construction industries are booming, business is great. But in a building recession, you may struggle to make ends meet.
For new land clearing and leveling contractors, timing means everything for your startup. In addition to addressing micro-level concerns (e.g. budget forecasting, growth strategies, etc.), your startup planning process will also need to address macro-level topics related to the housing and construction sectors.
Barriers to Entry in the Land Clearing Industry
There are several barriers to entry that emerging land clearing and leveling contractors must overcome before, during and after the startup stage. Right away, you'll need to come to terms with the fact that land clearing businesses are more expensive than many other types of startups. At a minimum, you'll need a commercial quality excavator, a loader and a dump truck -- none of which are cheap.
To pay for your machinery, the repayment financing clock starts ticking from day one. That means you'll either need to have customers lined up right out of the gate or a sufficient capital reserve to buffer your bank account while you ramp up to a full customer load.
Although neither of these barriers is impossible to overcome, they are realistic challenges that cannot be ignored. At Gaebler, we strongly recommend launching a land clearing business based on hard numbers rather than a hope that the business will be able to quickly attract enough business to pay for exorbitant equipment payments.
Capital Acquisition Tips for Land Clearing and Excavation Startups
Most new land clearing and excavation entrepreneurs struggle to meet startup capital requirements. Although there is no way around the fact that you're going to need to come up with a substantial amount of cash to launch your operation, you can reduce upfront capital requirements by exploring equipment leasing options or low-interest loans from family members.
Another effective cost management strategy is to reduce the size of your initial equipment inventory. So for example, instead of buying a 180LC excavator, downgrade your expectations to an 80. It will take longer to complete a job, but the cost savings of starting small could be the determining factor in your startup's survival.
Best Land Clearing & Leveling Contractors Company Business Plans
If you're like most startup business owners, there aren't enough hours in the day to accomplish everything that's on your to-do list. Every task on your list is important, but writing a business plan is one of the things your land clearing and leveling contractors business needs to do ASAP.
To help you navigate the process, there are a number of business plan software solutions on the market. A reliable software solution will increase the accuracy and consistency of your business plan, dramatically improving its value to your land clearing and leveling contractors business.
With robust business plan software in your corner, you'll get a quality business plan and the confidence of knowing that your land clearing and leveling contractors business has a documented business strategy.
Before you open a land clearing and leveling contractors business in your area, it's essential to find out how you will fit in the competitive landscape. Use the link below to generate a list of competitors in your city. Just enter your city, state and zip code to get a list of land clearing and leveling contractors businesses in your community.
Is the established competition doing a good job? It's important to understand their strengths and weaknesses and think through how you'll stake up against those established businesses.
Learn from Others Who Are Already In This Space
If you want to open a land clearing and leveling contractors business be sure to speak with somebody who is already in the business. If you think your local competitors will give you advice, you're being overoptimistic. The last thing they want to do is help you to be a better competitor.
But, a person who owns a land clearing and leveling contractors business in a different city may be willing to share their entrepreneurial wisdom with you, given that you don't compete with them in their area. Many business owners are happy to give advice to new entrepreneurs In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.
So, what can you do to find an entrepreneur who is running a land clearing and leveling contractors business on the other side of the country to talk to?
Simple. Let your fingers do the walking by using the link below.
Competitive Benefits of Buying a Land Clearing & Leveling Contractors Business
By acquiring an existing land clearing and leveling contractors business, you'll put yourself in a better position with lenders and investors than if you tried to fund a startup.
A business acquisition also delivers an established brand - a big advantage in competitive markets. The notion of buying a business to get an established brand can be a savvy business strategy for new land clearing and leveling contractors business owners.
In a competitive market, the right acquisition can be leveraged to catapult your business into a market leadership position, even if you personally lack industry credentials.
Don't Forget About Franchising As an Option
If you want to minimize your chances of failing, you ought to think about going the franchising route.
Before starting a land clearing and leveling contractors business, it's worthwhile to assess whether franchise opportunities in your space might alleviate your startup process.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you currently own a land clearing and leveling contractors business, these resources will come in handy:
If you sell to land clearing and leveling contractors businesses, you're in the wrong place. Try these resources instead:
If you are still exploring all of your options, please browse our directory of guides below.