Starting Your Own Concrete Business in Saudi Arabia (10 Steps)
Do you want to have your own ready-mixed concrete business in Saudi Arabia? But if you do not know where to start the ready mix concrete business process, you do not have to worry at all because you can fulfill your dreams by following this guide that will help you to learn the basics of starting your own ready-mix concrete company in Saudi Arabia.
If you are planning to start up a small concrete business in Saudi Arabia, this guide will surely help you to fulfill your dream successfully.
Step#1: Proactive Business Planning
First of all, it is extremely important to make a proactive planning where to start your own concrete business venture in Saudi Arabia. A creative business planning will allow the entrepreneurs understand all of the facts about the modern business scenario. More importantly, an effective planning will help businessmen to see the possible problems that may be occurred in the future. After evaluating all the possible drawbacks, an entrepreneur will be able to make the proper solution. While drafting your ready mix concrete business plan, it is vital to include the startup cost for your ready-mix concrete company.
In addition, you must mention the place to launch your own concrete business in KSA. There are many famous places in Saudi Arabia where you can start your own concrete company, including Jeddah, Riyadh, Makkah, Madina, Jubail, Yanbu, Al-Qassim, Tabuk, Taif, Jezzan, Najran, Hofuf and much more. Also you should include the total number of employees that you will hire from anywhere else in Saudi Arabia for your own business purposes. You should also include the source of materials which you will use during the concrete manufacturing process. Lastly you should elaborate your marketing strategy which explains that how you will market your products in the Kingdom.
Step#2: Competitive Market Research
If you have been in the field of construction for a long time, then you must know your market. A good market research helps the entrepreneurs or contractors to make money providing a specific product or service. One of the most important factors that you need to know is if there is any healthy competition in the ready-mixed concrete industry in Saudi Arabia? If yes, then you will need to determine how much are they selling concrete products or services for their customers across the Kingdom? Many potential concrete manufacturers deem as the local ready-mix concrete plants will be their competition.
Nearly all ready mix companies in Saudi Arabia are very willing to sell their ready-mixed concrete products and services at a cut-price. You will also need to determine the minimum concrete loads and the short load fees they charge from their clients. This will help you to set your own concrete pricing. How do you decide the local demographics? You will need to select the success indicators in your in-depth demographic study in Saudi Arabia that will help you with your concrete business plans. Virtually, Jeddah is a booming marketplace for ready-mixed concrete industry these days. Yet there are many other indicators to the ready-mixed concrete research which are included in our Market Analysis on concrete batching and placing in your area.
Step3#: Excellent Product Knowledge
It is absolutely necessary for you to have a complete product knowledge whether it is a ready-mixed concrete or a cement product. A lot of trends are prevailing in the Saudi concrete market these days. From standard concrete to architectural and decorative concretes, rapid-setting concrete to fiber reinforced concrete, from roller compacted concrete to fluid-fill concrete, from pervious concrete to precast concrete and from Jersey concrete to insulated concrete form, you can find all other kinds of trends in the Saudi concrete market. It is now up to you how you will improve your knowledge about ready-mix concrete.
Step#4: Careful Material Selection
One of the most important steps of your successful concrete business in Saudi Arabia is the careful selection of the materials that you will use for concrete mixing in a ready-mix concrete factory. Therefore, it is highly recommended for you to conduct a survey of the best companies that ensure the deliveries of the various types of materials within your budget. You should pick a material supplier that provides you the best quality materials, but at a reasonably affordable price. Generally, concrete suppliers use sand, gravel, cement, water, aggregates and some other types of materials for making concrete products in a ready mix concrete factory.
Step#5: Usage of Best Quality Vehicles & Tools
There is an utmost importance of using vehicles and equipment in a ready-mix concrete factory as they are used for residential and commercial structures. There are several types of vehicles which can be used for concrete mixing such as rough terrain concrete truck, standard transit concrete, volumetric concrete truck, self-loading concrete truck mixers, etc. In addition, other machines can be used for heavy construction projects in the Kingdom, involving wheel loader, crane, bucket, backhoe loader, excavator, roller compactor, grader (G 14), bulldozer, forklifts, wheelbarrows, buggies, belt conveyor, concrete pumps, screw spreaders and truck mounted conveyors. Some other tools include belts, chutes, filer bags, air pads, cartridges. All these vehicles and tools are used to produce best quality concrete in Saudi Arabia. You can buy these vehicles either on lease or direct cash payments.
Step#6: Apply for Concrete Business Insurance and License
When you are going to launch your concrete company in Saudi Arabia, it is important to get your business registered as LLC. To secure a concrete business license, it is necessary to make a good paperwork before you start to operate your company in Saudi Arabia. It may be an irritating task but it is absolutely necessary for your business commencement. It is highly recommended for you to visit the local authorities or administrative bodies in order to fulfill these requirements as quickly as possible.
This is also very important to protect your personal assets in case you get liabilities. Therefore it is better to buy an insurance policy from a reliable insurance company in Saudi Arabia. You will have several insurance policy options such as auto insurance, worker’s indemnity and general liability. Obtaining an auto insurance policy has become easy for the concrete companies in Saudi Arabia.
Step#7: Where to Launch Concrete Business
Remember that accessibility is most important factor in exploring the best site for your concrete business venture. You should set up the concrete business venture where it is more convenient and comfortable for your clients. Ensure the delivery of ready-mixed materials in and out of your company’s warehouse. You must store the concrete materials simultaneously as it serves as a workplace for your factory workers. You should never forget the presence of your competitors in the place to determine the productivity of your business. Jeddah, Riyadh, Dammam, Jubail, Khobar, Yanbu, Mecca and Medina are the special places for construction industries.
Step#8: Finding the Best Workforce
There are two important types of employees that you will need to find in this field of business. They are comprised of administrative staffs and the skilled labors. You should immediately hire administrative workers as they are very hardworking, competent and knowledgeable in handling each administrative task. Next you will have to hire the skilled workers for operating your business efficiently. You can them either directly or contact with a human resource management company to assist you in finding the right personnel for your business venture.
Step#9: Community Requirements
This is a very important area where I have seen that nobody focuses on it. Therefore it is necessary for concrete mixing company to look into community requirements. Does the community need a conditional use permit? What are the property downsides and height limits? Does the local community need air quality permit? It all requires a long term business planning and contemplation and good thing is that contractors will help you all the way through the process.
Step#10: Effective Sales and Marketing Strategy
Last, but not the least, you must make an effective business sales and marketing strategy to reap the maximum benefits. Although it is a continuing process, but professional internet marketing experts will help you started your online business venture in Saudi Arabia successfully. There are many proactive marketing strategies to let the local and international community know about your new concrete products and services that you provide. With search engine optimization (SEO), it has become easy for contractors to increase your brand awareness throughout the Kingdom of Saudi Arabia. Plus social media marketing has become the fastest marketing tool for all concrete companies and suppliers in KSA today. You can advertise your concrete company logo through Facebook, Instagram, LinkedIn, Twitter, Youtube and many other social media marketing channels across Saudi Arabia. Concrete company business branding has become easy with Facebook covers in KSA.
