Aug 07, 2015nbsp018332Here is a sample business plan for starting a limestone, marble or granite quarry. Executive Summary. Romboldt Quarries is a quarry business to be located in the mountainous region of Kentucky. We have taken advantage of the Kentuckys booming construction industry. As a result, this has influenced our choice of location.
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Ready to start a quarry Our practical, easy-to-follow advice takes you step by step through the startup journey.
Some businesses can be launched with a minimal amount of planning and preparation. A quarry isnt one of them. Quarries are highly specialized operations that are subject to reams of environmental regulations and operational expertise. Before you can begin to seriously consider a quarry startup, youll need to gain industry experience.
From there, youll need to conduct a feasibility study and appraisal to determine whether your proposed site is capable of delivering the output you need to sustain your business model. It doesnt matter whether your goal is to extract gravel, sand or stone -- the wrong site can quickly bankrupt your operation.
You have options when it comes to securing the site for your quarry. The most straightforward solution is to buy the site outright. This is also the most expensive option, especially if the seller knows the scope of the resources that the site contains. For purchases, many quarry owners solicit investors to share the upfront financial burden and eventually, the profits from the site.
A second option is to lease a quarry from the landowner. In a quarry lease arrangement, quarry operators can either pay a flat lease fee or enter into a revenue-sharing arrangement. If revenue-sharing sounds like an attractive avenue, be aware that your landlords idea of revenue may be different than yours. While you are focused on profits, your landlord will expect to receive compensation from every pound of material that is removed from the site -- regardless of whether you are capable of transforming that material into a net gain.
It takes a lot of heavy equipment to operate a quarry effectively. Drills, loaders, excavators, trucks and other machinery will need to be in place before you pull the first pound of material out of the ground.
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