Investing In Borehole Drilling Business

The importance of water in life can never be over-emphasised as man’s existence need water in all form to live. From drinking, cooking, bathing, washing, cleaning, among others, water is the key to survival on earth.

While some homes or regions lack water to do essential things, a way to go about solving this is the digging of a borehole to make water available to homes, businesses, and communities at large.

Investing in a water borehole is seen as a long-term venture that would last for over ten and fifteen years with proper maintenance and minimal running cost.

It is pertinent for anyone willing to invest in the water borehole drilling business for profit-making to have a mapped-out plan that includes the finance, buy or hire equipment, and employ experienced staff before it kickstarts.

According to a hydrologist, Mr. Adeola Peters, “for anyone interested in operating a borehole business, it is important to avail one of the technicalities and expertise to run this type of business. This is very important and if you do not know how things work in the borehole business, it will be hard to make profits and properly function as a business.

Business Requirement

Hence, a prospective investor in the borehole drilling business should take note of the following guidelines in operating a profit-making business.

Feasibility Study:  It is important to have an operational office that can be easily accessible to prospective clients.

For the business to thrive, the location plays a part as well.

Factors that would guide you when conducting your feasibility studies are the rent of the office, equipment needed, startup capital, cost of running the borehole drilling business, and so on

Technical Skills: Borehole drilling involves a technical process that can not be done by everybody but experts in the field.

Experts in the field of hydrology and geology aid a smooth running of a borehole drilling business as they are learned and can offer the right advice on the decision to take at every operation sight. You need to employ an expert to manage the operations of the borehole drilling business, while an investor can as well undergo training in the borehole drilling business.

Business Plan:  Having a business plan guides the business on ways of operation and offers direction on how to go about the operation at all times. A comprehensive business plan can attract investors and as well be used to request a loan facility.

Business Registration &Location: When all requirements are put in place, the business should be registered with the Corporate Affairs Commission(CAC) as it is important to operate as a tax-paying business entity.

The location should be easily accessible as places nearest to construction sites would be a good place to start as the business might be contacted by various homes that might need to drill boreholes for various reasons.

Equipment Procurement: This is a capital-intensive venture that requires millions to kick start as having the right equipment will aid the success of the business and increase job opportunities for the company.

Some of the equipment includes: 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;  Gloves among others.

Business Capital: An estimation of  N10 to N15 million is needed to start a drilling business with the equipment taking the larger chunk, though, some of the equipment can be sourced at the second-hand rate which is cheaper.

Staff Recruitment: This line of business involves having experienced personnel to undertake as it is not a business that can be done all by one man.

It requires skilled and unskilled employees to have a smooth line of operation at all times. They need to undergo safety training to be fully equipped with the right approach to take in case of hazards at work.

Marketing: For a business to thrive, advertisements should not be de-emphasised. The use of social media, contacts, or networks of friends and relatives, construction companies, and referrals by clients could rake in more job opportunities and contracts for the business.

Profitability: Annually, it is expected that borehole drilling business would bring a minimum income of over N1.5million to N2million while it can be as high as N10 million or more per annum depending on the location, quality of services offered and the volume and value of businesses secured.