18 Tips to Start Borehole Drilling Business

Tips to Start Borehole Drilling Business

Tips to Start Borehole Drilling Business : If you live in a developing country or perhaps in a place where there is water scarcity, then you should consider starting your own borehole drilling business. Water is an essential commodity and people ensure that they do all it takes to make sure they have supply of water in their homes and offices. Thus, if you are well positioned to start your own borehole drilling business, then you will be in for serious profit making venture.

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Borehole drilling is a bit technical; hence one needs some form of training to be able to effectively run this type of business. As a matter of fact, there are laws in most countries that govern the number of boreholes that can be drilled in an area. This law is put in place to guide against indiscriminate drilling of boreholes which can lead to earthquake / earth tremor of some sort.

A borehole is a narrow shaft bored in the ground; it may be constructed for many different purposes, including the extraction of water, other liquids such as petroleum or gases. We will look at starting your own borehole business aimed at homeowners for the extraction of water, although the same technique can be used for farmers’ depending on the quality of the water and what they needed for.

Getting started
Borehole drilling requires both theoretical (to determine where the water is) and practical (drilling, pumping and piping) knowhow which is beyond the scope of this page. There are companies that offer training. If you cannot afford training offer to work for an existing borehole drilling company either for free or to cover your transport (working for what you can learn and not earn).

1. Carry out a Feasibility Study in Different Areas of Your Choice

You should be aware that borehole drilling business don’t work in every place especially in the urban areas that are usually industrialized. You should first carry out proper feasibility studies to be sure that such business of this nature will thrive in such location. Other factors that would guide you when conducting your feasibility studies are the price of equipment needed, startup capital, and cost of running the borehole drilling business, e.t.c.

2. Learn the Technical Skills Required

As earlier stated, borehole drilling is a technical job and can’t be done by everybody but experts in the field. Aside drilling for water, borehole drilling companies are known to drill for gas and crude oil. So if you want to successfully start your own borehole drilling business, you should apply for training on borehole drilling in any college or university that offers such unless you want to employ experts who will manage the operations of your borehole drilling company.

3. Write Your Business Plan

After acquiring the necessary training and experience, your next step is to write a good business plan for your borehole drilling company. In one of our previous post, we covered how to write a good and professional business plan. The main reason for this plan is to give your business direction as it must cover the important areas. A good business plan helps attract serious investors to any business in Nigeria or even to request for a loan.

4. Register Your Business Name and Choose a Good Location

This is another important step if you are very serious to own a borehole drilling business. Ensure that you register the company business name before you start operations. Nowadays, the procedure in registering a business in Nigeria can even be done online. As long as you meet the necessary requirements, visit the Corporate Affairs Commission and register.

Also, choosing a good business location to establish your business is important. Choose a site that is easily accessible to clients who would need your services. Places nearest to construction sites should be a good place to start from as you might be contacted by various homes that might need to drill boreholes for various reasons.

5. Purchase the Required Equipment Needed

Honestly, the equipment involved in drilling a borehole minus its maintenance is capital intensive. Acquiring the required equipment is very vital if you must succeed. Some of the equipments that you would need to be able to start your own borehole drilling company in Nigeria include: Down Hole Drilling Rig or Boremaster 120 Hydraulic Down Hole Drilling Rig, Drag But Stock, Drill Rods, Drilling Rig Counter Weight, Diesel Engine with Hydraulic Power Pack, Safety Helmet, Safety Boots, Overall, and Hand Gloves and so on.

6. Hiring Employees

As with other capital intensive businesses, borehole drilling business can’t be operated by one person. You would need to hire both skilled and unskilled (laborers) employees. Once you hire your staff, ensure you make provision for their training (safety training inclusive) and insurance cover for them.

7. Advertise, Build Contact and Source for Contracts

Try to build a network of contact especially with construction companies. Although, there are several places you can source for contracts for your borehole drilling business. Places like construction companies, government, private homes, offices are some places you can source for works. Also advertise your companies on newspapers, popular websites, radio and television as you aim to expand your business as you start your own borehole drilling business and make profit from it in Nigeria.

8. Equipment needed
Borehole drilling requires an investment in equipment, the most important being a drilling rig, a hand operated or human operated rig will be cheaper. But there is another way: hiring the rig from tool hire places.

9.Marketing your business
This is a business, that people usually hire close to them, like a garden service. Advertise in your local classifieds such as Gumtree or if you have a community paper take out a small ad in there.

10. Opportunity
With the Western Cape facing water restrictions now is a great time to get into this market in Cape Town and surrounding areas.

Tips to Start Borehole Drilling Business

11. Business model
Starting out, once you have assessed the area. Take a deposit from the client which can be used to hire the drilling rig to complete the job.

12.  Conduct Your Feasibility Studies

Without mincing words, borehole drilling business doesn’t thrive in every place. As a matter of fact, if you live in a highly industrialized city cum country, then you should not border dreaming of making mega bucks from borehole drilling business especially if it involves drilling for water.

It is advisable to first conduct your own feasibility studies to be sure that a business of this nature will succeed in such location. Some factors that you need to look at while conducting your feasibility studies are the laws governing borehole drilling, the various equipments needed, your potential clientele base, startup capital and cost of running a borehole drilling business.

Tips to Start Borehole Drilling Business

13. Acquire the Technical Skills Required

Borehole drilling is a technical job. Hence it can’t be handled by just anybody. Besides drilling for water, borehole drilling companies also drill for gas and crude oil. As a matter of fact, borehole engineering is an all encompassing field of study in the university.

So if you want to successfully start your own borehole drilling business, then you should enroll for training on borehole drilling in any college or university around you. That is indeed the first step you need to take if you are serious about starting this type of business except you are an investor and you don’t want to be truly involve in the core operations of your borehole drilling company.

14. Write Your Business Plan

Once you have acquired the required training and experience, then your next step is to write your business plan. A good business plan is an asset to any business and that is why people pay experts to help them write business plan. Just ensure that your business plan covers key areas of your business including finance cum budgeting, marketing strategies, targets and expansion strategy et al. One good thing about a good business plan is that it will make it easier for you to attract investors and also to obtain loan from the bank.

15. Register Your Business Choose a Good Location to Operate from

If you are serious about starting your own borehole drilling business, then you must ensure that you register the business before you start operations. The process of registering business is no longer difficult, just ensure that you have the requirements and then approach the corporate affairs department of your country to get your company register.

Once you register your company, ensure that you obtain your tax payer’s ID and also open a corporate account for your company. It is also important to choose a good location for your business; a place where it will be easier for you to access construction sites and even private homes and offices that would need to drill boreholes for various reasons.

Tips to Start Borehole Drilling Business

16. Acquire the Required Equipments

One of the key areas where you would need to spend the bulk of your startup capital for this type of business is in acquiring the required equipments. Some of the equipments that you would need to be able to start your own borehole drilling company are; Down Hole Drilling Rig or Boremaster 120 Hydraulic Down Hole Drilling Rig, Drag But Stock, Drill Rods, Drilling Rig Counter Weight, Diesel Engine with Hydraulic Power Pack, Safety Helmet, Safety Boots, Overall, and Hand Gloves et al.

17. Hire Employees

Of course borehole drilling business is not one of the businesses that can be operated by an individual. You would need both skilled (borehole drilling skill) and unskilled (laborers) employees. So ensure that after you have hired your staff, make provision for their trainings (safety training inclusive) and also buy the necessary insurance cover for them.

Tips to Start Borehole Drilling Business

18. Source for Contracts

There are several places you can source for contracts for your borehole drilling business. You can approach constructions companies; they are indeed your major clients. So ensure that you do all it takes to network with construction contractors.

You can work as their business partners. You can also source for drilling contracts from both the government of your country and also from offices and home owners. Another set of people that you can target are those who are into water refill business and car wash business. Once you are able to properly position your borehole drilling business, you are sure going to make huge profits from the business.

There you have it; some of the steps you need to follow to be able to start your own borehole drilling business.