Drilling water wells - “clean water” profit! Well Drilling Business

Water is needed everywhere. But, unfortunately, not everywhere it is possible to provide a centralized water supply. And even where it exists, there are often interruptions.

That is why today a very promising business is drilling water wells (read about the technology of the process:), because having your own well makes it possible to always use water, regardless of accidents or “preventive repair work” on the line. In addition, it allows you to save a lot on payments. But today there is a steady trend of city residents moving to their summer cottages!

Of course, over time, the demand for driller services will subside - when it is mostly satisfied, but today well drilling as a business is very promising, and even despite the fact that this service is seasonal, provided from the end of March to mid-September , or even later - until frost hits.

What will be needed to implement the idea?

To implement your plan for creating a water well drilling business, you will need to purchase equipment and hire competent specialists.

The required equipment is:

• + the truck on which it will be installed. Most often ZIL-131 is used for these purposes. This installation will allow you to drill deep wells in almost any soil.
• : designed for drilling wells up to 50 meters deep. It is lighter than a rotary drill and can be transported in a car trailer or in a Gazelle. It is cheaper to operate, but has a limited drilling depth and cannot be used for all types of soil.
• Sets of drill rods: the length of pipes depends on the depth of future wells (the cost of a two-meter pipe is about 3-4 thousand rubles).
• Drill kits are somewhat of a consumable item as drills fail from time to time. Different drills are used for different types of soil, and depending on their type and quality, they can cost from 25 thousand to 100 thousand rubles or more. To begin with, you need to purchase several sets, and then you will replenish their supply as needed.
• Motor pumps that are used for pumping water.
• Drilling hoses for supplying water under pressure, they are also different (depending on the tasks), their cost is from 8 to 35 thousand.
• Casing strings are a consumable material. Such a column forms a well and remains with the owner. You need to have a small supply, and then simply replenish it.
• Another “consumable” is a filter for a well; you also need to buy them with a reserve for the first time.

Employees

To drill a well up to 100 meters deep, two employees are enough: an experienced driller and a qualified hydrologist.

You should not save on wages, since in this case it will take less time for each well (which means you will be able to complete more orders) and the equipment will not fail longer. The presence of highly qualified specialists will allow you to create an appropriate reputation for your company, and the number of customers will increase over time.

For deeper holes, you will need handymen. In addition, a driver is needed for the vehicle transporting the rotary unit.

Where to advertise?

First of all, it makes sense to carry out outdoor advertising in those places where drilling services may be required: in holiday villages and cooperatives, in villages where there is no centralized water supply.

Nuances of a business plan

A business plan for drilling water wells will help, if necessary, obtain a loan to purchase equipment.

It must indicate the cost of the equipment (by the way, you can first purchase used equipment, especially for a rotary unit - it will work for some time, and its cost can be 40-60 percent lower than new), all the necessary components, advertising costs, as well as the drilling prices you set (they should be set taking into account the prices of competing organizations), expected income and payback period.

It should be noted that drilling one meter currently costs 2-3 thousand rubles for different soils, and that your business can pay off in both 2 years and 2-3 months: depending on how correctly you approach it implementation.

Among other things, you will need to contact a competent lawyer.

A useful video on the topic is below.

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The price of water in our water pipes increases every year. Even now, its use for growing crops in dachas is very unprofitable. Today, it is more profitable to purchase vegetables and fruits at the market or in stores. However, water at the dacha is necessary both for watering plants and for domestic needs. In addition, it has become very fashionable to have at least a small swimming pool on a personal plot. Just five years ago it was believed that a country house simply had to be equipped with running water, but today every self-respecting owner has an individual well on his property. The cost of drilling and equipping a well is quite high, but this does not stop the owners of cottages and country houses. The cost of drilling per 1 m on average varies between 1-3 thousand rubles and depends on the region, terrain, type of drilling and tools used.

The country's economy is slowly recovering from the crisis, and construction projects are beginning to unfreeze. This means that in order to make money from drilling wells, you need to search for customers and carefully monitor information about the construction of private houses and cottages. It might be worth visiting the holiday villages in person and offering residents your well-drilling services. Simple outdoor advertising in such villages is also very effective. Advertisements in newspapers work well.

To start a business you will need approximately 2 million rubles. But this is subject to the purchase of serious drilling equipment. In general, starting a business can cost less. You can recoup this investment in 2 - 3 years of work.

Experienced drillers and hydrogeology specialists achieve good success in the business of drilling individual wells. Usually these people work in pairs, complementing each other with their knowledge and skills. Do not forget that you must have the necessary documentation and have a license that allows you to engage in this type of business. Everything is much simpler if you manage an already existing construction company. As a rule, such companies already have the necessary package of documents, equipment and qualified workers, which will save a lot of money. In this case, well drilling will be an additional type of service provided by your construction company.

The well drilling team must include a hydrogeologist who knows the soil structure and the presence of groundwater layers in a given region. The driller's experience is also very important. This person should literally be able to determine the approach to the aquifer by the smell and appearance of the soil. This layer can be only 2 m thick, so it is easy to miss. The assistant driller performs auxiliary functions. We also need general workers and a driver to deliver equipment and the entire crew to the well drilling site. If you have no experience at all in drilling, you should first read special literature about soils and groundwater, learn from experienced drillers, and only then, with the support of specialists, begin mastering this complex type of business. If you do not want to personally engage in drilling, you can hire competent specialists and take on the responsibility of finding customers. But remember that the work of a driller is very hard and workers will not work for low wages. In addition, if finding a theoretical geologist is not difficult (for example, you can take a graduate of the geological faculty), then finding an experienced driller is quite problematic.

Features of the drilling business

In general, success in the drilling business greatly depends on knowledge of geodesy. Special cards can come to the rescue. After all, the necessary equipment and the depth of the wells depend on the depth of groundwater in a given area. The composition of the soil is also important, since drilling through limestone rock will take only one day, and drilling through granite will take more than a week. It happens that they started drilling and came across a clay layer. Professionals argue that it makes no sense to continue drilling further. You can limit yourself to a depth of 10 - 15 m, but the water from this well will not be suitable for human consumption. The customer must be warned about this, since water from septic tanks, ditches, car washes, industrial and rainwater gets into surface water. In order to obtain water suitable for drinking, sometimes it is necessary to drill a well at a depth of 50 m. In some areas, the water from the well will flow like a fountain, and in others it will be necessary to install a powerful pump. Often, the customer wants to know in advance how much money you will charge for the work, and what quality the water from the well will be. To do this, you must know in advance how deep the well will be drilled, through what soils, how long it will take, and whether the water will be suitable for drinking. Only the science of geodesy can answer all these questions. You should never drill blindly. If you are unsure of local soils, it is better to pay an experienced surveyor to provide the necessary data.

Drilling equipment

For drilling wells, you can use different equipment, depending on the soil, depth and, of course, your financial capabilities. One of the most common methods is rotary. For this you will need: a drilling rig, a ZIL-131 truck, drill pipes, clamps, centralizers, a set of bits of different diameters. You also need a room for workers and a parking space. Among the manufacturers of drilling equipment, Russian companies such as ZAO Mashinostroitelny Zavod im. Vorovsky OJSC or Mobile Drilling Systems, or Geomash OJSC.

If you do not have large financial resources, you can save 40 - 60% of the cost by purchasing used equipment or a compact drilling rig. Sometimes it is simply impossible to use a large drilling rig due to the close development of the garden area. Not every owner will agree to turn over half of his yard so that you can drive there in your ZIL with a huge drilling rig and drill a well there.

Small-sized drilling rigs with a motor pump are capable of drilling a well to a maximum depth of 50 m. Moreover, their dimensions are only 1.5x1.5 m. Such a Russian-made machine will cost from 90,000 to 250,000 rubles. The mobile drilling rig runs on electricity, the motor pump runs on gasoline, and is easily disassembled due to the modularity of the entire structure. The heaviest element of the entire installation weighs only 70 kg. To work with such an installation, a three-blade drill with different tips for different soil types is used. The drills will have to be purchased separately from the drilling rig. Simultaneously with the clogging of the well, the rock is eroded by strong water pressure. Instead of a motor pump, you can use an electric mud pump with a capacity of at least 700 l/min. More modern models of mini drilling rigs drill using hydrostatic water pressure. They erode the soil and lift it up. The only requirement is that there is a water source nearby. This installation can be used to drill a well even in a basement or garage. This mobility and low price are undeniable advantages over a bulky truck-based rotary drilling rig. The main disadvantage of a small-sized machine is the inability to drill deep wells over 50 m.

You can save money by making some of the equipment yourself. Thus, a tank with a total volume of 3 cubic meters installed on a truck can easily supply the rotary drilling process with water. Buy a pipe threading machine and thread the casing yourself.

Business profitability

Let's talk about the profitability of the well drilling business. On average, the cost of an order for drilling one well is 80,000 rubles. It follows that you need to drill at least 60 wells to make your investment worthwhile (assuming you purchased a serious rotary drilling rig and not a small rig). The average profitability of this business is 25 - 30%. To break even (just recoup costs) you will have to work for 2 - 3 years.

Such a long payback period is justified by the fact that the drilling business is seasonal. As a rule, work begins in March or April, depending on the territory of location and the weather prevailing at that time. And by November, or even earlier, the season ends, as the air temperature drops and it starts to rain. Drillers work outdoors in the open air. Most often, drilling one well takes more than one day. Not every strong and healthy man wants to get wet and freeze outside all day. How much money you earn will depend on how many customers you find, how complex the wells will have to be drilled, and how many hours and days you can physically work hard. After all, even if you have a lot of orders, you simply will not be able to complete more work than you can.

The drilling business is not for weaklings. This is a business for strong men who are ready for hard physical work. We have to work during the summer season - a time when everyone relaxes and basks on the sunny beaches. Nevertheless, such a well drilling business is quite profitable. So, having worked well in the summer, you can relax all winter and even afford to travel to hot countries.

Prepared by the editors: "Business GiD" based on market analysis.
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Research demand in your region. You should analyze the number of private houses and dachas, plots under development and plans for development in the near future, the owners of which may need your services. For an entrepreneur working in this area, in-depth knowledge and experience are not required - you can hire specialists, look for clients and deal with organizational issues. But at least basic knowledge about drilling is required. You can take an express drilling course. It lasts 3 months and costs about 60,000 rubles.

Competition in this area is not yet high. But there are nuances depending on the region. When planning profits and profitability, you should learn everything about your competitors - their advantages and disadvantages.

Main risks

The water well drilling business is highly dependent on the season. Activation begins in April, demand peaks in May-June, and by October it dies out completely. If you wish, have special equipment and deep knowledge of technology, you can work in winter. But for a beginner, it is important to guess the start time of work - by April you should have all the permits in hand and be fully ready to fulfill orders. Also, before this moment it is necessary to at least partially advertise your company.

There is a risk of losing customers due to non-compliance with technology and poor quality of services. It is important to find qualified and experienced specialists and offer them decent wages.

Location

All activities are carried out at the customer’s site. All you need is a spacious and inexpensive space to store equipment and supplies. It is important to have security - you should not skimp on precautions. Warehouses and car depot buildings are suitable; industrial buildings that are not used for their intended purpose can also be considered as an option. Convenient transport interchange is important.

At the start, work with clients can be carried out over the telephone. To assess the scope of work and geological exploration, you will travel to the customer’s site. If you have the means, you can rent a small office in the center or business district. An accountant, a customer service manager and a lawyer will work there if you decide to immediately invite this specialist to your staff.

Technology

First, geological surveys are carried out to determine the presence and quality of groundwater. Based on the data obtained, a technical specification is drawn up to clarify the drilling parameters. Next, an estimate of the work is drawn up. You must take upon yourself the preparation of all permits and licenses for the operation of the well, or at least propose the candidacy of a specialist who will help the client go through all the stages. This will be a powerful advantage over your competitors.

Holes are drilled at a selected location on the site and a pipe is driven into them. The joints are welded and treated with sealant. A pump is installed at the top of the pipe.

Equipment

The barrier to entry into this industry is quite high. To organize a business, you should have 2,000,000 rubles at your disposal. A significant portion of the capital will be used to purchase equipment. Manufacturers offer a variety of drilling rigs with different parameters. About 70% of orders are for drilling water wells. Therefore, first of all, it is worth purchasing a unit for this type of work. For beginners, we can recommend the RB-50/220 drilling rig. Its cost is 80,000 rubles. Specifications:

• Drilling depth – 50 m.
• Weight – 150 kg.
• Assembly height – 2.2…3.0 m.
• Power supply – 220 V.

Drill rods can have a length from 1 to 1.8 m.

Other equipment required for operation:

1. DC generator. Its cost is about 20,000 rubles.
2. A high-quality pico-drill and a high-performance pump – 25,000 rubles.
3. Welding machine – 7,000 rubles.
4. ZIL truck – 150,000-200,000 rubles.

Also, it is necessary to provide funds for the purchase of consumables:

• Drill pipes. 1 m – 1,500 rubles.
• Well filter – 4,000 rubles.

There will be other costs. There are a lot of nuances in this direction. If you are not a drilling professional, a business plan should be developed with a qualified driller.

Personnel

In addition to a lawyer, you should have an experienced hydrogeologist on your staff. A qualified driller supervises the work at the site. Many beginning entrepreneurs are limited to 2-3 workers. But the size of the team depends on the number of orders and the timing of their completion.

A driver is needed to operate a truck. If the form of registration of your business and the volume of financial documentation suggest the possibility of hiring a part-time accountant, you can choose this option at the start. But under no circumstances should you save on the salary of a customer service and advertising manager. Your profits depend on the number of customers. Considering that drilling wells is not an everyday and expensive undertaking, the search for clients must be very active.

Documents and licenses

Registration of a company specializing in well drilling requires a special approach. According to the law, only legal entities that have all registration documents and approvals can work with subsoil. You will also need permits from municipal authorities. There are serious fines for unauthorized drilling.

This type of activity is subject to mandatory licensing. You cannot do without the help of an experienced lawyer. In addition, additional approvals must be obtained for each project:

• In RCGSEN and Geocenter.
• Permits to work on a specific site.
• License to operate a well.

Many drilling companies have a lawyer on staff. The second option is to draw up an agreement with a law firm and outsource all concerns related to obtaining approvals. Both methods have their advantages, the decisive factor being financial feasibility.

Marketing

The constant availability of orders is a very important factor for success in this direction. Given that the drilling season is short, every effort should be made to find clients. Use any advertising methods available to you in terms of cost.

Advertisements work great at bus stops in the private sector and in suburban areas, at suburban train stations and bus stations. For success, literally one high-quality and quickly completed order may be enough. A satisfied client will recommend your company to friends and neighbors - word of mouth will start. Advertisements in local media should also not be discounted. This campaign should be launched in the month of March.

It also makes sense to enter into contracts with construction teams. Offer them commissions for referring clients. Create a business card website and spare no expense on its promotion. Many clients are looking for services on the Internet.

It is not worth fighting with competitors by reducing the price for drilling. In this direction, such things are perceived as unprofessionalism. Impeccable service and timely execution of orders work great.

Profitability

The cost of drilling a standard well 21 meters deep is about 15,000 rubles (including transportation costs, wages and materials). The commercial cost of 1 m of well ranges from 2,500-6,000 rubles, depending on the characteristics of the soil and the complexity of the work, and average prices in the region. The minimum revenue from drilling one well 21 m deep will be 52,500 rubles, after deducting the cost, your profit is 37,500 rubles.

If, given the demand, you can drill at least 2 wells per week, your monthly income will be at least 300,000 rubles. After deducting taxes and other current income, net profit is at least 200,000 rubles. This is the most pessimistic forecast, since orders for wells 100 m deep are possible, and the price could be much higher. Many entrepreneurs recoup their start-up costs within 3-4 months of work during periods of high demand.

Summary

Well drilling is a very promising and profitable area. Relatively small start-up capital, fast payback periods and the absence of fierce competition make it very attractive.

Another free but promising niche is well drilling as a business. We will describe its advantages and disadvantages in order to objectively assess whether it is worth doing such a thing and how to organize the entire process in such a way as to return your investment in a short time.

By purchasing relatively inexpensive equipment, you can recoup your investment in one summer season, achieve a net profit, and at the same time satisfy the socially important needs of the population in newly built cottage villages.

Business Features

By drilling wells, water resources are most often extracted from the ground. This issue becomes relevant mainly in suburban areas, in dachas, where there is no centralized water supply. After all, a natural source of water in the form of ground streams is everywhere, only located at different depths.

The promise of the idea lies in the fact that today rarely anyone can offer well drilling services to solve everyday problems of the population. This segment is relatively free, there is almost no competition, although its presence depends on the specific region. But the demand for the creation of individual wells is increasing.

Almost every region of our country has its own plans for the development of cottage villages, summer cottages, and suburban areas. And clean natural water is required everywhere.

An attractive factor for a novice entrepreneur is the prices for this type of service. So, depending on the specific area, the cost per 1 meter of a well ranges from 1900-3250 rubles. And to create a full-fledged well, an average of 20 meters is required.

True, this type of business also has its drawbacks. For example, well drilling activities are carried out only in the summer, when it is dry and warm. This seasonality forces us to look for additional ways to earn money at other times of the year.

In order for the project to begin to bring stable and high profits, you need to first study the market. To do this, analyze the following factors:

1. Development and volumes of private construction in the district.
2. Are there any developed state programs of local importance that promote development?
3. How important are well drilling services for water extraction to the population?
4. Are there any competing companies nearby offering the same services, what are their working conditions, quality, prices.

Documentation

A well drilling business requires careful preparation and proper registration. It may make sense to hire a specialist who will go through the bureaucratic step for you. Although this will require additional payment, it saves a lot of nerves and time. Be prepared for the fact that the process of registering and collecting documents will take a lot of time, so it’s worth starting early so that all the papers are ready for the season.

According to the legislation of the Russian Federation, only legal entities can engage in such work. This means you will have to apply to create an LLC (limited liability company). To do this, you need authorized capital, internal documentation of the company, a bank account and payment of state duty.

Next comes the stage of collecting permits. Drilling wells and working with subsoil requires licensing. In order to pass this stage the first time and not pay for it twice, it is better to use the help of an experienced lawyer.

Please note that some documents will have to be completed before completing each order. And although in some cases clients can independently obtain permits for drilling and operating wells, it is still better to provide such a service from a company performing this type of work. This way, you will attract more clients.

For each project you need to receive:

• approval by the RCGSEN and the Geological Center of regional significance;
• permission to drill in a specific location;
• license for the creation and operation of a new well.

And although all the documentation is associated with difficulties, this part of the work quickly pays for itself.

Do you need a room?

One of the advantages of this business is that the owner does not need to rent or build any building for the operation of the enterprise. After all, all activities are carried out at the customer’s site, and preliminary communication can also take place over the phone.

You just need to find a suitable place to store the equipment and transport itself. A warehouse, garage, car depot building, or any part of an unused industrial complex will do for this. It is only important that there is a convenient transport interchange nearby.

But there is also an option for organizing a business when you rent premises somewhere in the central or business districts of the city. When opening a reputable company that works with many clients, it makes sense to accept orders in your own office. Then the office of an accountant, lawyer and manager is set up here.

Specialized equipment

But what you can’t do without is professional equipment. It is advisable to purchase it together with a person who is well versed in all the nuances of the work.

For maximum efficiency, you will need the following elements:

1. Drilling rig.
2. DC generator.
3. Consumables – special pipes, casings and filters for wells.
4. Picobur.
5. Motor pump.
6. Sleeves.
7. Welding machine.
8. A truck for transporting all equipment.

Cost and quality vary greatly depending on the model and manufacturer. It is not always necessary to overpay for individual elements, but this should not affect the work itself. Only thanks to fast and high-quality service can you count on good profits and constant growth of your customer base.

Water well drilling technology

If you do not have experience in performing this process, then you should hire a qualified driller for a permanent position. It is very important to carry out work according to all the rules. Typically the following stages occur:

• They examine a certain area of ​​land for the presence of groundwater. You need to find out their depth, quality and calculate a better place for drilling.
• After assessing the geological data, you can draw up a detailed work plan, write out an estimate, and clarify all the details. Also at this stage, permitting documentation is collected.
• Create a hole of the required size and install the pipe.
• The joints of the structure should be connected using a welding machine or coupling.
• All parts are treated with sealant and the pump is installed on the top.

Experienced drillers first deepen only 50-60 cm and determine the desired direction. Every half meter the drill is cleaned of extracted rocks. When the natural moisture of the soil is noticed, they understand that they have reached the aquifer. But in order to achieve a good influx of clean water, you will have to go deeper even to the impermeable layer.

If, when pumping out the liquid, dirt continues to flow through 30-40 liters, then a decision is made to additionally drill another 1-2 meters. And only when a clean source is received, a well or other system is installed to constantly supply the house or site.

Of course, in order to save money, you can do without expensive professional equipment and perform the procedure manually using a plugged filter and a spigot. But then all the work will take much longer. And the main disadvantage of such work is the limitation on the well depth of 15 meters. And since a deeper hole is most often required, customers will not be satisfied with this.

Staff

For full-fledged activities, you will need to hire personnel:

1. Hydrogeologist - responsible for the first stage.
2. An experienced driller manages the entire process and monitors the equipment.
3. 2-3 workers with low qualifications; it will not be possible to get by with fewer people, since the drilling rig weighs at least 200 kg.
4. Truck driver.
5. Accountant.
6. Customer service manager - the number of orders, and therefore the profit of the entire enterprise, depends on him, so you cannot save on this staffing unit.

To reduce wage costs, you can perform any of the functions yourself. It depends on your skills, experience and knowledge. It makes sense to outsource accounting.

Earnings from drilling wells turn out to be quite high. But to achieve stable profits you need to constantly look for clients. After all, this procedure is performed only once during the construction and arrangement of a country house. There are practically no regular customers here.

In order to attract as many people as possible, it is worth using all available means:

• Place advertisements in regional print media.
• Leave noticeable advertising on billboards near new buildings and future cottage or holiday villages.
• Create a website and promote it online. Here you can describe your activities, the advantages of cooperation with you, leave phone numbers and address of the company. When doing quality work, it makes sense to create a page with reviews from satisfied clients.
• Distribute business cards to everyone you know, leave them at related businesses.
• It makes sense to cooperate with construction teams and other companies. They will recommend you to their clients and vice versa.

Today this market segment is poorly covered, there is no competition as such. But this does not mean that you can do the job haphazardly. If you create a good reputation and take a responsible approach to each order, then soon good word of mouth will quickly spread throughout the region. Thanks to word of mouth, new clients will constantly contact you, without any additional effort on your part.

You can download it here for free as a sample.

Project profitability

To assess how profitable it is to open a well drilling company, you should take into account all the numbers. For this purpose, a business plan is drawn up.

Even if you complete two orders a week costing 20 thousand rubles each, you can get at least 160,000 in a month. Thus, the initial costs will be fully recouped over the course of the season, taking into account all expense items. If you achieve more frequent and voluminous orders, then profitability will even increase to 50%.

But remember, in order to be able to complete the work in the desired quantity during the peak season, you should worry about the preparatory stages in advance. That is, complete the documentation, obtain permits and licenses in the winter, and launch the advertising campaign in March.

Video: ready-made business – drilling water wells.

Well drilling in the domestic sector is mainly intended for water production. This service is exclusively seasonal in nature and its provision can be used as an additional way to generate income.

As a rule, water wells are drilled in areas where there is no centralized water supply. In such situations, drilling remains the only opportunity to install water supply and sewerage systems in houses. It is recommended to begin preparing for the provision of services in the winter, so that when the season begins, you will be fully ready for work and ensure the greatest profitability for your enterprise.

As practice shows, the peak of orders for drilling wells occurs in the month of March. It is at this time that consumers turn to entrepreneurs with preliminary applications. Then work is in full swing almost all summer, because builders of individual houses join the summer residents.

Our business plan for drilling water wells with calculations contains all the necessary recommendations on how to organize effective activities to provide services to the population, what activities need to be carried out to promote them, what equipment to purchase to carry out the work.

The main advantage of this business project is that there is no need to incur costs for the construction or rental of industrial premises, acquire ownership of land and expensive equipment and hire highly qualified employees. As already mentioned, this business can become a profitable seasonal addition to making a profit to the main activity of the entrepreneur.

The overall costs of organizing well drilling work are low and do not require finding an investor. Our example assumes that the project is financed from the own funds of the founder, who operates in the organizational and legal regime as an individual entrepreneur (IP). The cost of the project is 500 thousand rubles. This is the starting capital that will be required to buy the necessary drilling equipment, pay for the work of assistants and operating expenses. Investments in this volume are quite affordable for entrepreneurs and even allow them to hire a hired foreman for the work if the founder does not intend to independently manage this line of business.

Business technical equipment

To equip a well drilling business, the main production resource is high-performance drilling equipment. For the initial stage of a project, the most preferable option for acquiring it is leasing. This option can also be used if there is a lack of own funds to acquire ownership of equipment with full payment. There are many companies on the domestic market that provide favorable leasing conditions for the purchase of drilling equipment. The choice of a contractor in our case is justified by a wide range of drilling equipment and attractive conditions for purchasing it on lease:

• Advance payment – ​​from 10% of the total cost of the entire order.
• Leasing term: 1 – 5 years.
• The buyer is given the opportunity to purchase the equipment early.
• The company sells functional used drilling equipment in proper technical condition at discounted prices.

Subject to the expansion of the range of services provided in this company, you can profitably purchase a variety of drilling tools, vibratory hammers, pumping equipment, mixers, etc.

Registration and obtaining permits

Activities to open a business providing water drilling services are carried out in accordance with the following calendar plan:

To register and launch this business, you must collect the following documents:

• License for the right to use the subsoil of the earth (the document is issued by the territorial department for the use of natural resources).
• License for the right to operate drilling equipment.
• Contract for drilling work.

The founder should keep in mind that the provision of services is permitted only for those consumers who have:

• Registration documents for ownership (lease) of land.
• Well project.
• Coordination of the well drilling location with the SES authorities and the local geological service office.

Depending on the region in which services are expected to be provided, the package of documents may vary.

After the project reaches the breakeven point, it is possible to provide services to consumers in obtaining the specified permits and carrying out approvals for an additional fee.

For this purpose, a specialist working under a contract will be involved.

Preparatory work and organization of the production process

To provide water well drilling services, you need professional equipment that will ensure compliance with all standards for this technological process. Their strict implementation will make it possible to obtain high quality water without impurities and sediments.

The set of preparatory measures for drilling includes:

• Conducting geological surveys to determine the location, depth and power of an underground water source.
• Soil research, which will allow you to choose the right drilling equipment.
• Drawing up a technical specification, which accurately indicates all drilling parameters, contains a drawing of the internal structure of the well, lists the equipment and tools with which the drilling will be carried out, and indicates the boundaries of 2 zones of the sanitary zone.
• Drawing up estimates for the provision of services.

The production process of drilling water wells, taking into account the parameters of this business plan (using a small-sized drilling rig), includes the following stages:

1. Digging a pit with a volume of 1.5 m3 in the ground and strengthening its walls.
2. Assembling a tripod from pipes 4-5 meters long.
3. Installation of a winch equipped with a cylinder block with a cable.
4. Securing the drill to the cable. After completing such operations, you can begin drilling the well. The tower can only be used in cases where work is carried out on deep water intakes.
5. Digging a hole to a depth of 50-60 cm to determine the direction of movement of the drill. Its progress can be facilitated by moistening the soil. When performing work, the drill must be removed every 0.5 meters to clean the tool from the rock. The appearance of wet soil on the bore indicates that it has reached the aquifer. To ensure maximum water flow, the drill must be brought to the waterproof layer.
6. Pumping out water using pumping equipment. As a rule, clean water begins to appear after removing 30-40 liters of dirty water. If this does not happen, drilling must be continued another 1-2 meters deep.

A small-sized drilling rig is serviced by 1-2 specialists. The equipment is compact, disassembled and lightweight, so it can be transported by car.

Purchase of equipment

Based on the described drilling technology, the following equipment is purchased for this project:

• Motor pumps.
• Drill rods.
• Drills (at least two: working and spare).
• Sleeves.
• Filter (at the rate of 1 new filter for each well opened).
• Casing string (as a consumable material).

Such equipment will be quite sufficient for drilling wells in dacha and garden plots and providing drinking water to small households. Considering that premises for such a business are not required, its profitability in the most successful seasons can be up to 50%.

Search for clients

The water well drilling business plan under consideration provides for the following ways to find clients:

• Direct appeal to household owners living in a given locality (directly or through the dissemination of information through friends (“word of mouth”).
• Placing advertisements in local media.
• Informing potential consumers through social networks.
• Publishing advertising leaflets and distributing them in public gathering places.

The most effective marketing resource is the high quality of services provided and the dissemination of information about this.

Financial plan

The total costs of starting a well drilling business will be:

The forecasted revenue was calculated based on the average prices for these services for the Central Federal District:

Based on the condition that the cost of drilling a well 100 meters deep will be 200,000 rubles, we will calculate the main business indicators for expenses and income for 1 month of work:

Risks

The main risks for this type of activity are:

• High level of competition in the region.
• Application of dumping prices for services by new players in the services market.
• Technical malfunctions of drilling equipment.
• Low qualifications of employees involved in the provision of services.

As mentioned above, this business project is designed for entrepreneurs who will engage in well drilling as an additional activity. Consequently, the main way to minimize risks is a competent marketing policy throughout the entire business and the possibility of its diversification.

Eventually

As calculations show, in order to reach the breakeven point, an entrepreneur needs to conclude 10–15 contracts for drilling wells with a depth of 15–20 meters. The average profitability of services will be 20–30 percent. Thus, drilling water wells is a highly profitable and low-cost seasonal business that can be implemented as an addition to the founder’s main business.