Pipeline Contractor Business Plan and SWOT Analysis

Pipeline Contractor Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Pipeline Contractor Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Pipeline Contractor business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

People now use of greater amounts of energy, pipeline contractors have become one of the most important aspects to the energy production industry. These businesses are able to produce structures that allow for the easy transmission of oil and gas to remote areas. These businesses enjoy extremely high barriers to entry given the fact that they are able to render service that requires millions if not tens of millions of dollars of fees. The start of cost associated with the new pipeline contracting business typically are in the $1 million to $3 million range depending on how much equipment is going to be purchased rather than leased. These businesses are typically able to generate very high gross margins from their services which includes not only the sale of labor but also the sale of pipeline as well. These businesses do have a substantial number of regulatory issues which need to be complied with on an ongoing basis. This is one of the other reasons why these businesses enjoy very high barriers to entry. There are licenses required by both federal and state agencies in order to operate a pipeline contracting capacity. With more and more specialization in the contracting field, more oil and gas businesses are frequently taking the hiring pipeline contractors rather than laying down the pipe themselves.

Given that these businesses are completely immune from negative changes in the economy coupled with a very large tangible asset base, almost all financial institutions as well as private investors are willing to provide the needed capital to launch a new pipeline contracting business. Most importantly, a pipeline contractor business plan is going to need to be developed. This business plan should feature a three year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to the industry research, there are approximately 3,000 companies that are actively engaged in pipeline contracting. Each year these businesses generate about $60 billion in revenue and provide jobs to about 200,000 people. This industry is expected to grow at around 4% per year. Within this business plan there’s really no need for major demographic analysis given the fact that almost all the clients are going to either be oil and gas companies or water related businesses. A competitive analysis should also be drawn up, but they should focus substantially on the multinational corporations that render the service to oil and gas companies.

A pipeline contractor SWOT analysis should be produced as well. As it relates to strengths, pipeline contractors are always in demand among oil and gas companies and they are always able to produce ongoing streams of revenue not only from installation but also for maintenance as well. These companies have extremely high barriers to entry and very strong abilities to acquire additional capital as needed.

For weaknesses, it is no secret that there is going to be an overhaul of the energy grid at some point in order to accommodate alternative energy sources. As such, many pipeline contractors will have to do primarily work relating to excavation as well as water pipe installation. However, this will not become an issue for at least another 10 years.

For opportunities, pipeline contractors can simply expand their operational base by hiring additional employees, acquiring additional vehicles, and bidding on large-scale contracts from federal and state agencies. These business can continue to develop ongoing contractual relationships with oil and gas companies as well.

For threats, as stated in the weaknesses – the biggest threat that is going to be faced by these businesses is the rapid change in which energy is produced on a worldwide basis. As such, it is imperative that the pipeline contractor have a number of scenarios on hand that will allow them to remain profitable and cash flow positive in any economic climate and despite changes in how energy is transmitted.

A pipeline contractor marketing plan is also going to need to be developed in order to be able to target federal agencies, state agencies, as well as oil and gas companies that will contract with the business. Most pipeline contractors to maintain a modest website that allows them to showcase their operations to the general and business public. However, the vast majority of relationships are formed in this field by individuals have already been involved with the oil and gas and construction industries. This is very much a face-to-face business when it comes to soliciting new contracts. As such, a majority focus of the pipeline contractors might marketing campaign she should be on developing the ability to bid on large-scale contracts while developing very strong relationships with oil and gas executives.

Pipeline contracting is can continue to be a very large industry for at least another 10 years. The gross margins generated from the sales of labor are very high and there are substantial opportunities in this field to render an host of other services. An entrepreneur that has extensive experience in the oil and gas industries, water distribution industry, or related discipline can develop this into a highly lucrative business opportunity.