The mining industry is presently worth millions, so despite reports that it’s dropping in value, it is still a lucrative sector to venture into. If you’ve worked in the industry before, you may be thinking about starting up your own business. On the other hand, perhaps you’re new to the industry and want to try something new. Seeing as the number of businesses that succeed isn’t as high as entrepreneurs would hope, you may want to think carefully and do enough research before diving in. Nevertheless, starting a business in the mining sector could set you on the path for future success.
The mining industry in Australia dates as far back as the 1850s which means it’s one of the country’s most well-established sectors. It typically contributes to around 7% GDP which is a noticeable amount.
It is often assumed that starting a business in the mining industry will be capital intensive. However, this isn’t always the case as there are non-capital intensive areas that can be focused on. Aside from digging for minerals, you could decide to go into consultancy if you have the right expertise or knowledge.
Other aspects of mining that could be lucrative are transportation brokerage, machine sales, risk assessment sales or equipment leasing.
As mentioned above, there are numerous opportunities in the mining industry if you look out for them. As the fourth largest mining country in the world, they will likely have an ongoing demand for high-tech equipment. Perhaps think about seeing if there are any business opportunities for you to pursue in that respect.
You could supply equipment to suppliers all over the world, especially if you decide to include international ecommerce in your business plan. Heavy construction equipment and drilling equipment are also leading sub sectors as well. Just note that there are endless opportunities when it comes to tech and equipment, as they’re needed to operate in the mining sphere.
The reality is that success in the mining industry requires lots of research as well as mining industry knowledge. If you have this as well as skilled employees, you should increase your chances of business success. For the most part, if your business is successful, you stand a chance of making worthwhile profits, and there are opportunities to diversify.
As with any business venture, there are both positive and negatives. For this reason, you should do a risk assessment as well as weigh out the pros and cons. One of the cons or challenges you may face starting a business in the mining industry is the legalities involved and financial backing that you’re going to need. Also, changes in government policy can affect your business, so you’d need to be up-to-date with how these things are working.
Starting a business in the mining industry is something that could be worthwhile seeing as more than $216 billion is currently being invested in new projects. This shows that although the industry boom may not be on the rise as it once was, it is still one that is thriving in its own right and making its mark in the economy.