Learning how to start a sand and gravel business requires some thought and plenty of reading so that you know what materials you should keep on hand and what type of covering you would need for each material to protect it from the elements. It can also cost a lot of money, because you might need to purchase bulldozers and other expensive equipment. You need to conduct extensive research on the business to see what the demand is and how it will affect your expenses and profits. Trade magazines are a wealth of information, but there is much more information to read pertaining to the equipment you will need as well.
How to Start a Sand and Gravel Business
Choose materials for your business. See Resources for the National Stone, Sand and Gravel Association, which has a list of materials you could carry. Not all of the materials will be pertinent to your area, but it does give you a list of materials to go through so you can decide which ones you would need to carry to be a competitive business.
Select the type of equipment you will need to conduct your business. On the same web site, there is a listing of heavy equipment used and new. You might need front-end loaders, bulldozers and even a few tractors for moving materials. Look at each piece of equipment and choose what you will need.
Read though Valuation Resources (see Resources) for some publications that can help you further understand running a sand and gravel business. You can read many publications online.
Contact a local engineer to help you choose a property where your business can operate. Some states have guidelines as to what materials can sit on the ground and what materials need special containment. The engineer can help you test your current soil and make sure that the ground is good for holding your materials. For example, proper drainage of the ground is important.
Talk with a banker to see how much funding you might be able to receive for starting the business. Since you will have a great deal of product that cannot be calculated to the penny because of loss due to ground seepage, you might need to have a certain amount of assets or collateral to qualify.