Are you about starting a coal mining business? If YES, here is a complete sample coal mining business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a coal mining business. We also took it further by analyzing and drafting a sample coal mining business marketing plan template backed up by actionable guerrilla marketing ideas for coal mining businesses. So let’s proceed to the business planning section.
Business ideas are all around us but one of the challenges that aspiring entrepreneurs are confronted with is how to know a business that can become profitable and successful.
The rule of thumb in choosing a business to launch is to look out for a business whose products or services are needed in our everyday life; a business whose products can be purchased by the rich as well as the poor and a business that is less competitive in your location. Starting a coal mining company can come in handy if you have the business exposure and financial requirements.
If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan.
The truth is that it is one thing to have a fantastic idea cum business plan, but another thing for the business plan to translate to money (profits), that is why it is important to assemble a team of experts to work with if you want to be successful with your coal mining company as you can hardly run this type of business alone. Below is a sample coal mining company business plan template that will help you successfully launch your own.
A Sample Coal Mining Company Business Plan Template
1. Industry Overview
Players in the coal mining industry are basically involved in mining various types of coal. This often occurs either underground or in surface pits.
Most coal mines consist of bituminous coal or anthracite, but companies might also excavate lignite (brown coal). Players in this industry also develop coal mine sites and prepare the coal for sale by washing, screening and sizing the material.
The coal industry has been volatile in recent years, and revenue has declined over the five years to 2017 as a result. IBISWorld indicated that the prices of thermal and metallurgical coal surged just prior to the five-year period, and have continually dropped since, inhibiting industry growth.
Furthermore, the emergence of natural gas as a substitute for coal in electricity generation, a slowing Chinese economy and relatively mild winters in the united states have reduced demand for coal and contributed to price volatility over the past five years.
IBISWorld also shows that over the next five years, however, the industry is expected to return to slow growth, as slowing economic growth in major global markets (e.g. China) places downward pressure on product prices.
The Coal Mining industry is a thriving sector of the economy of loads of countries all across the globe and in the United States, and the industry generates over $28 billion annually from more than 1,538 coal mining companies scattered all around the United States of America.
The industry is responsible for the employment of over 60,877 people. Experts project the industry to grow at a -7.8 percent annual rate. Alpha, Arch Coal, CONSOL Energy and Peabody Energy are the market leaders in this industry.
A recent report published by IBISWorld shows that Coal Mining industry is highly capital intensive, with most of its assets held in the form of land holdings, stocks and equipment. Establishing a new mine or expanding an existing one requires a large amount of capital.
For example, capital is required for mine site development and specialized equipment, including items such as draglines (used to remove overburden at open-cut operations), longwalls (shearers and accompanying hydraulic supports and coal extraction conveyors) and coal washing plants.
Ongoing investment requirements largely depend on coal prices. If coal prices are too low, then an operator might reduce production; it might not be economical to extract coal from the mine at a cost that might surpass the expected market price.
Any aspiring entrepreneur that is considering starting a coal mining business whether on a small scale or in a large scale should ensure that he or she obtains all the necessary permits from both the local government, state government and federal government. He or she should conduct thorough market survey and feasibility studies so as to get it right. The truth is that this type of business does pretty well when it is strategically positioned.
In summary, coal mining is a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business.
2. Executive Summary
Gabby Pascal® Coal Mining Company is a licensed coal mining company that will be based in Juneau – Alaska. Although we intend starting out on a small scale as a cottage company, but that will not in any way stop us from maximizing our potential in the coal mining industry.
Our business goal as a coal mining company is to become the number one choice of road construction companies cum construction sites in Alaska and other cities in the United States where we intend supplying bituminous coal, sub-bituminous coal, lignite and anthracite et al.
As a business, we are willing to go the extra mile to invest in owning our own world – class and environmental friendly coal mines and also to hire efficient and dedicated employees. We have been able to secure permits and licenses from all relevant departments both at local government and state level in Juneau – Alaska.
Gabby Pascal® Coal Mining Company is set to redefine how coal mining business should be run, not just in Juneau – Alaska, but also in the whole of the United States of America. This is why we have put plans in place for continuous training of all our staff at regular intervals.
No doubt the demand for bituminous coal, sub-bituminous coal, lignite and anthracite et al is not going to plummet any time soon which is why we have put plans in place to continue to explore all available market around construction sites where we intend supplying our products.
In the nearest future, we will ensure that we create a wide range of distribution channels all across the United States of America. With that, we know we will be able to maximize profits in our business.
Gabby Pascal® Coal Mining Company will at all-time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely.
Gabby Pascal® Coal Mining Company is a partnership business that will be jointly owned by Gabby Jose and Pascal Bob. Gabby Jose who is the Chief Executive Officer of the Company has a Degree in Mining Technology and over 10 years of experience working in related industry as a senior manage cum mining engineer prior to starting Gabby Pascal® Coal Mining Company. He will be working with a team of professionals to build the business and grow it to enviable height.
3. Our Products and Services
Gabby Pascal® Coal Mining Company is established with the aim of maximizing profits in the coal mining industry. We want to compete favorably with the leaders in the industry which is why we have but in place a competent team that will ensure that our products are of high standard.
We will work hard to ensure that Gabby Pascal® Coal Mining Company is not just accepted in Juneau – Alaska, but also in other states all across the United States of America where we intend supplying our products. Our products are listed below;
- Bituminous coal and lignite surface mining
- Bituminous coal and lignite underground mining
- Anthracite mining
4. Our Mission and Vision Statement
- Our vision as a coal mining company is to engage in national distribution of coal all across the United States of America.
- Our mission is to establish a standard and world class, environmental friendly coal mining company that in our own capacity will favorably compete with leaders in the industry on the global stage. We want to build a coal mining company that will be listed amongst the top 10 coal mining company brands in the United States of America.
Our Business Structure
As part of our plans to build a top flight coal mining company in Juneau – Alaska that will favorably compete with leaders in the industry, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.
The picture of the kind of coal mining company we intend building and the business goals we want to achieve is what informed the amount we are ready to spend to ensure that we build a business with dedicated workforce and robust distribution network.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Gabby Pascal® Coal Mining Company;
- Chief Executive Officer (Owner)
- Quality Assurance Manager
- Human Resources and Admin Manager
- Sales and Marketing Officer
- Accountants/Cashiers
- Coal Mining Casual Workers
- Truck/Tipper Drivers
- Customer Service Executives
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Coal Mining Site Manager
- Maps out strategy that will lead to efficiency amongst workers in the organization
- Ensures that our coal mining site meets the expected safety and health standard at all times.
- Assess the mines to ensure they are safe
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily business activities
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
- Develops, executes and evaluates new plans for increasing sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Coal Mining Casual Workers
- Responsible for operating excavators and other machines and equipment in the coal mining site
- Responsible for handling the mining of bituminous coal and lignite surface mining, bituminous coal and lignite underground mining and anthracite mining
- Assists in loading and offloading of coals into and out of the trucks
Accountant/Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Distribution Truck/Tipper Drivers
- Assists in loading and unloading bituminous coal and lignite surface mining, bituminous coal and lignite underground mining and anthracite mining et al
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a delivery schedule.
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verifies delivery instructions
- Reports defects, accidents or violations
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
- Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- make suggestions and encourage purchase of products
6. SWOT Analysis
Because of our drive for excellence, we were able to engage some of the finest business consultants in Juneau – Alaska to look through our business concept and together we were able to critically examine the business and ourselves to be sure that we have what it takes to run a standard coal mining business.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in the United States of America. Here is a of what we got from the critically conducted SWOT Analysis Gabby Pascal® Coal Mining Company;
- Strength:
Our strength lies in the fact that we have state of the art coal mining equipment and trucks that will position us to meet the demand of our clients even if the demand tripled over night or if we have a massive order to meet and emergency need.
Another factor that counts to our advantage is the background of our Chief Executive Officers; they have robust experience in the industry and also pretty good academic qualifications to match the experience acquired. We are not ignoring the fact that our team of highly qualified and dedicated workers will also serve as strength for our organization.
- Weakness:
We do not take for granted the facts that we have weaknesses. In fact, the reality that we are setting up a coal mining company in a town with other coal mining businesses might likely pose a challenge for us in breaking into the already saturated market in Juneau – Alaska. In essence our chosen location might be our weakness. But never the less, we have plans to launch out with a big bang.
- Opportunities:
The opportunities available to us are unlimited. There are loads of road construction sites and road repair projects in and around Juneau – Alaska and all what we are going to do to push our products to them is already perfected.
- Threat:
The threat that is likely going to confront us is the fact that we are competing with already established coal mining companies in Juneau – Alaska and also there are other entrepreneurs who are likely going to launch similar business within the location of our business. Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face is unfavorable government policies and economic downturn.
7. MARKET ANALYSIS
- Market Trends
A slowing Chinese economy and relatively mild winters in the United States have reduced demand for coal, so also natural gas is increasingly challenging coal’s role in power generation and the Coal Mining industry is anticipated to bounce back slightly in the next five years
It is common trend in the coal mining line of business to find coal companies positioning their business in locations and communities where they can easily have access to coal mines and of course cheap labor. If you make the mistake of positioning this type of business in a location where you would have to travel a distance before you can access coal mines in commercial quantities, then you would have to struggle to make profits and maintain your overhead and logistics.
Another trend in this line of business is that most registered and well organized coal mining companies look beyond the market within their locations or state; they ensure that they strike business deals with leading road construction companies in the United States of America.
The truth is that if as a coal mining company you are able to become a vendor to one or more road construction giants in the United States of America, you will always continue to smile to the bank.
8. Our Target Market
When it comes to supplying product from a coal mines, there is indeed a wide range of available customers. This goes to show that the target market for products from a coal mining companies are far reaching, you can create your own make niche yourself to serve a specific purpose.
We are in business to engage in supply of bituminous coal and lignite surface mining, bituminous coal and lignite underground mining and anthracite mining et al to the following organizations;
- Building and construction companies
- Road construction companies
- For export
Our Competitive Advantage
Some of our competitive advantage are availability of resource, ability to find new resource deposits and of course, economies of scale.
So also, as a standard coal mining company, we know that gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of existing competitors. And even if you are successful at first, new competitors could enter your market at any time to steal your regular customers. Hence we will not hesitate to adopt successful and workable strategies from our competitors.
Another competitive advantage that we have is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow business from the scratch to becoming a national phenomenon. Our large and robust distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Gabby Pascal® Coal Mining Company is established with the aim of maximizing profits in the road construction cum building industry both in Juneau – Alaska and throughout key cities in the United States of America. We are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers.
Gabby Pascal® Coal Mining Company will generate income by simply supplying the following;
- Bituminous coal and lignite surface mining
- Bituminous coal and lignite underground mining
- Anthracite mining
10. Sales Forecast
One thing is certain when it comes to coal mining business, if your business is strategically positioned and you have good relationship with players in the road construction industry, you will always attract customers.
We are well positioned to take on the available market in and around Juneau – Alaska and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.
We have been able to critically examine the coal mining line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Juneau – Alaska.
- First Fiscal Year: $400,000
- Second Fiscal Year: $950,000
- Third Fiscal Year: $1.5 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same product and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to start Gabby Pascal® Coal Mining Company, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in Juneau -Alaska. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also to compete with other coal mining companies.
We hired experts who have good understanding of the coal mining line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market for our products.
In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower our sales and marketing team to deliver our corporate sales goals. In summary, Gabby Pascal® Coal Mining Company will adopt the following sales and marketing approach to sell our coals;
- Introduce our business by sending introductory letters to road construction cum building companies, road construction contractors and other stakeholders in and around Juneau – Alaska
- Open our business with a party so as to capture the attention of residents who are our first targets
- Engage in roadshows in targeted communities from time to time
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our product cum business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Regardless of the fact that our coal mining company is a standard one that can favorably compete with other leading coal mining companies in Juneau – Alaska and in any part of the world, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Gabby Pascal® Coal Mining Company.
Gabby Pascal® Coal Mining Company has a long term plan of exporting our product all across the United States of America. This is why we will deliberately build our brand to be well accepted in Juneau – Alaska before venturing out to other cities all across the United States of America.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Gabby Pascal® Coal Mining Company;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, et al to promote our brand
- Install our billboards in strategic locations all around major communities in Juneau – Alaska
- Engage in roadshows from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing us
- Ensure that all our staff members wear our customized clothes, and all our official cars and distribution trucks are customized and well branded
12. Our Pricing Strategy
At Gabby Pascal® Coal Mining Company, we will keep the prices of our products below the average market rate by keeping our overhead low and by collecting payment in advance from well – established road construction companies that would require constant supply of our products. In addition, we will also offer special discounted rates to all our customers at regular intervals.
- Payment Options
The payment policy adopted by Gabby Pascal® Coal Mining Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Gabby Pascal® Coal Mining Company will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via Point of Sale Machines (POS)
- Payment via mobile money platforms
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our coals without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget on how to achieve our aim of establishing a standard and highly competitive coal mining company in Juneau – Alaska and here are the key areas where we will spend our startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Gabby Pascal® Coal Mining Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring business consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- The cost for facility remodeling – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for start-up inventory (coal mining equipment, tippers / trucks and other related coal mining devices) – $250,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase and installation of CCTVs – $5,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of $450,000 to successfully set up a standard and highly competitive coal mining company in Juneau – Alaska.
Generating Startup Capital for Gabby Pascal® Coal Mining Company
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business.
Gabby Pascal® Coal Mining Company is a partnership business that is owned and financed by Mr. Gabby Jose and Pascal Bob. They do not intend to welcome any external business partner which is why they have decided to restrict the sourcing of startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the Bank
N.B: We have been able to generate about $150, 000 (Personal savings $100, 000 and soft loan from family members $50, 000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and their business structure.
One of our major goals of starting Gabby Pascal® Coal Mining Company is to build a business that will survive off its own cash flow without needing to inject finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to supply our coals a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Gabby Pascal® Coal Mining Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit to operate coal mines in Juneau – Alaska: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of a facility and renovating the facility as well: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed stone quarry machines and equipment, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
- Establishing business relationship with road construction companies, contractors and other stakeholders in the road construction cum building industry: In Progress
- Purchase of tippers and delivery trucks: Completed