Starting an oil field business is a great endeavor. With the high oil prices today, there are many opportunities to make money here. This article will be discussing some tips for starting your own oil field business. So, keep on reading if you want to learn about this.
1. You have to think about the legalities
You have to think about the legalities before you start your business. First, local laws and regulations on a state level will determine what oil field businesses are allowed in a particular area. So, check out the licenses that have been issued by your state for this type of work. You can check with your state’s department of labor or office of workforce development. This is where you can get information about any permits required for operating an oil field business. Also, find out if there are any zoning restrictions on where these types of businesses can operate in your area. There are many cases of common oil field accidents, so you have to find out what to do in case of one. You can purchase supplier catalogs that offer personal protective equipment (PPE). There are several suppliers that showcase products like oil field gloves, firefighting clothing, hard hats, safety glasses, ear plugs and other important items.
2. Think about what type of oil field services do you want
Next, you have to think about what type of oil field services you want to offer. There are many types like drilling and well servicing, tank and disposal rentals, pressure pumping (crude oil), cementing and acidizing (producing wells). You can start this business with a single service or expand later on. Think about what your target customers would be. Also, consider whether you want to work with other companies or independently. If you choose the second one, then there is no need for infrastructure such as offices and receptionists. However, if you decide to work with other companies, then you have to consider the costs of hiring experienced staff. Also, find out what equipment will be needed for your services. There are many types of oil field equipment, so there is a lot to decide from. You can buy new or used tools and machinery depending on your budget and preference.
3. Draw out your business plan
This document will hold all your important information about your business. It can include financial information, descriptions of services you provide, and a detailed explanation about the company’s mission and vision. It should also include a marketing strategy that includes advertising plans, ways to lower operating costs and how much money is needed for start-up expenses. You can hire an experienced oil field accountant for this job as they have great skills in creating necessary documents. Also, always keep checking capital requirements as they can change from time to time, so it would be better to have more funds at first rather than less later on. It is also significant to write your business plan realistically so potential investors are not discouraged.
4. Advertise your business
After you have everything set up, then it is time to advertise. You can create a website about your company. Make sure it is clear, easily navigable, and simple to use. You have to remember that customers are not willing to go through complicated websites, so keep this in mind at all times. Also, you can advertise on social media platforms like Facebook, which can bring potential clients if done right. For creating links with other companies, consider LinkedIn, as it has a lot of business professionals using the platform daily. Do some research about what advertising methods work best for oil field businesses and go with them. It can be a great idea to hire a professional marketing company because they have experience with this type of work.
5. You need proper training
If you want to become successful in the oil field industry, then you need proper training. A good place to start is with safety training because it can be crucial for both your personal life and health. All companies in every area of business offer safety training courses, so consider this option when looking for education. There are many free online resources that can help with this task, like YouTube videos or e-books on safety precautions. Then, there are also specialized schools that provide certification programs for oil field workers. These types of places can give you an extra edge when searching for a job in the industry, or even having certain credentials that can help you start your own business.
If you want to become a successful owner of an oil field service company, then it is important that you learn as much as possible about the industry and its history. So, read as much as you can and make sure to follow all industry regulations. Good luck with your business!