Wondering how to start an oil field construction business? We take you step-by-step from start to success.
Typical Service Offerings in Oil Field Construction
Oil production provides jobs for countless Americans at home and abroad. Oil field construction companies are major industry employers, delivering a scope of services to crews in the field.
Although services often vary from one oil field construction company to the next, typical service offering include lease site preparation, access road construction, site clearing, fencing, equipment installation and sometimes, environmental remediation.
Emerging oil field construction businesses should assess their core competencies and target market to ensure the flawless delivery of services that are in demand in their territory. In some cases, the best approach may be to enter the marketplace as a subcontractor for larger oil field construction companies.
Tips for Capitalizing an Oil Field Construction Startup
Oil field construction can require substantial capital assets including dozers, excavators and other high price tag pieces of machinery. Adequate capitalization is a fundamental prerequisite for startups; it's almost always better to delay your startup than it is to launch an undercapitalized operation.
Raising sufficient startup funds is challenging for any entrepreneur. Personal savings, friends & family, business partnerships and other investors can be great funding sources for oil field construction startups. To lower upfront costs even further, consider leasing machinery and equipment. The long-term costs of leasing are greater than the total cost of the asset, but monthly payments will allow your business to start earning income now.
Managing Oil Field Construction Workers
Entrepreneurs with limited management experience usually find that managing oil field construction workers is a trial-by-fire experience. Oil field construction is hard work, so you will want to hire individuals who are physically capable of doing the job. Unfortunately, construction capable workers can also be difficult to manage effectively, especially in the rough and tumble world of oil production.
Expect to encounter more than your fair share of confrontations in the workplace. For the sake of your company (and your sanity), develop written guidelines for dealing with quarrels in the workplace, and clearly communicate the proper procedures for conflict resolution in the employee handbook and orientation process.
How to Create Effective Oil Field Construction Company Business Plans
A great business plan will lay a strong foundation for growth in your startup oil field construction business.
Business plans address a wide range of issues, including startup financials. Not surprisingly, lenders immediately turn to the financial section and use the accuracy of your forecasts to gauge the value of other parts of the plan.
Subsequently, a thorough understanding of business plan financial basics is a prerequisite to effective business plan writing for oil field construction businesses.
Prior to opening an oil field construction business in your town, it's a smart move to find out what the competition looks like. Use the link below to find competitors in your city. After clicking on the link, type in your city, state and zip code to get a list of oil field construction businesses near you.
Prior to opening your doors for business, be sure you fully understand the competitive landscape and where your new business will fit in.
Turning Competitors Into Collaborators
Once you've finished assessing the competion, you really ought to have a conversation with someone who is in the business. If you think owners of nearby oil field construction businesses will give you advice, think again. Why would they want to educate a future competitor?
However, an entrepreneur who owns an oil field construction business outside of your community may be more than happy to give you a few tips, given that you don't compete with them in their area. Indeed, many experienced entrepreneurs enjoy offering advice to startup 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.
Where can an aspiring entrepreneur like you find an oil field construction business manager in another city who you can speak with?
It's not that hard. Just use the handy link below and enter in a random city/state or zipcode.
Financial Benefits of Buying an Oil Field Construction Business
Worried about the financial aspects of starting an oil field construction business? Most startup oil field construction business owners are.
Financial risk management requires you to at least consider the possibility of setting your startup plans aside to explore acquisition opportunities. Many entrepreneurs buy an existing business for the sole purpose of tapping into the financial benefits of an established customer base.
An acquired business also has documented assets and earnings - a big advantage with lenders and investors.
Explore Franchising Options
The odds of achieving your primary goal of thriving in your new business immediately improve when you opt to franchise instead of doing it all on your own.
Prior to making the decision to open an oil field construction business, it's worthwhile to investigate whether buying a franchise could help you on your entrepreneurial journey.
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 starting a business may be of interest to you.
If you currently own an oil field construction business, these resources will come in handy:
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