An oil field service company is not usually responsible for the production of petroleum, but offers various services to companies that do search for, and produce, the valuable substance. A new business within this industry is a golden opportunity for those who have experience with the technicalities of the required operations, and who is able to offer services at affordable prices. The opportunity is also challenging, because a business must keep up with the constantly changing requirements, that include different methods of drilling and new gas and oil discoveries.
A good feasibility study and plan is one of the important factors in setting up a business like this. The knowledge of the industry and certain contacts together with a high start-up capital are other factors to be considered before deciding to jump in the business. It is wise that you get the services of a lawyer who specializes in this field of business. Your lawyer can help you with documentary requirements like EIN. The lawyer will be one of your staff who can assist in contract negotiations from the drafting of one to the signing and implementation.
To ensure your business grows, you need to constantly research. Find out what your competitors are up to. You may want to check their annual reports and information to get to know more about them. Do not forget to spend time on due diligence so that you discover what will guide you best when pricing your services and also finding the right customers for your business. You also need to design your website well and you may want to check what your competitors have done.
Your feasibility study may include a business plan. Make use of it. It should show details of your products and services. You can use a business plan application software to help you do project modelling. It should have 2 pages for its executive summary with 20 slide in power point. These documents are supposed to be a come on for your prospective investors. And the business plan is your guide in the operation of the business.
An investor will want to know when he will see adequate returns, and therefore you must develop financial projections. A three to five-year plan is adequate, providing that it includes statements for profits and losses, cash flow and income. A balance sheet should also be present. A business' finances should include annual expenses, the cost of goods sold, taxes, fund usage and working capital.
Next, put together your industry contact list. For your business to grow, you need to be keen on using any resources available. Get service letters and sign contracts with customers as these can help you raise capital. Strike deals with suppliers and seal prices with them.
Search for other source of funds. There could always be someone out there to trust you with their money. Avoid using the "shotgun method" in sourcing capital especially with your prospective investors. Present all your ideas in a way that the investors would listen.
As soon as you have the capital, your next step is to get insurance and workers. You may also consider acquiring a company than starting a sole proprietorship. Bottom line, never start an oil field service company alone. The reason is clear, as a sole proprietor you will be responsible for debts and expenses alone as well as legal issues and your personal assets are also at risk.
A good feasibility study and plan is one of the important factors in setting up a business like this. The knowledge of the industry and certain contacts together with a high start-up capital are other factors to be considered before deciding to jump in the business. It is wise that you get the services of a lawyer who specializes in this field of business. Your lawyer can help you with documentary requirements like EIN. The lawyer will be one of your staff who can assist in contract negotiations from the drafting of one to the signing and implementation.
To ensure your business grows, you need to constantly research. Find out what your competitors are up to. You may want to check their annual reports and information to get to know more about them. Do not forget to spend time on due diligence so that you discover what will guide you best when pricing your services and also finding the right customers for your business. You also need to design your website well and you may want to check what your competitors have done.
Your feasibility study may include a business plan. Make use of it. It should show details of your products and services. You can use a business plan application software to help you do project modelling. It should have 2 pages for its executive summary with 20 slide in power point. These documents are supposed to be a come on for your prospective investors. And the business plan is your guide in the operation of the business.
An investor will want to know when he will see adequate returns, and therefore you must develop financial projections. A three to five-year plan is adequate, providing that it includes statements for profits and losses, cash flow and income. A balance sheet should also be present. A business' finances should include annual expenses, the cost of goods sold, taxes, fund usage and working capital.
Next, put together your industry contact list. For your business to grow, you need to be keen on using any resources available. Get service letters and sign contracts with customers as these can help you raise capital. Strike deals with suppliers and seal prices with them.
Search for other source of funds. There could always be someone out there to trust you with their money. Avoid using the "shotgun method" in sourcing capital especially with your prospective investors. Present all your ideas in a way that the investors would listen.
As soon as you have the capital, your next step is to get insurance and workers. You may also consider acquiring a company than starting a sole proprietorship. Bottom line, never start an oil field service company alone. The reason is clear, as a sole proprietor you will be responsible for debts and expenses alone as well as legal issues and your personal assets are also at risk.
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