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 2022 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

  1. 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.

  1. 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)
  • Accountant
  • 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.
  1. 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 2022, 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 2022 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.

d. Threats
  • 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.

  1. 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.
  1. 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.

  1. 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;

  • 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.
  1. 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
  • Insurance
  • 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.
  1. 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.

  1. 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.

  1. Exit Plan

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.