Wind Farm Business: Startup Considerations
If you have a desire to start a technical business and you have the necessary capital and technical capacity, you might consider wind farming. The power generated from renewable sources isn’t harmful to our environment and governments around the world, from the US to Australia have recognised the importance of going green so there are many incentives offered for green energy startups.
Once you decide that wind farming is for you, it’s important to research wind farms in and outside your area to check the competition and learn their strengths and weaknesses. This will help you get a better picture of the field you’re getting in so you might prepare better.
Also, the following tips offer advice on what to have in mind when you start your wind farming business.
Why wind farming
To begin with, a wind farm is a group of wind turbines located in the same area used for generating electricity that can range from tens to hundreds of turbines depending on the scale of the business. Large wind farms can have wind turbines spreading over a vast area with the land in between used for other purposes and it can also be located offshore.
The revenue is generated from owning and operating a wind farm and selling the produced electricity to customers. It’s become a thriving business with immense government support and relevant international donors.
Competition considerations
The competition in this field of business goes beyond just wind farming companies and includes every producer in the electrical power industry, especially those that generate it from renewable sources. Rightfully so, it’s safe to say it’s a tough competition out there.
However, if you have done your fair share of building your brand and promoting your business and services properly, you will be able to make headway in the industry. Your main concern is to ensure there are no fluctuations in your electrical power production and that you have a sound plan on how to attract your target market.
Economic analysis
When thinking in the direction of successful business launch and ways of maximizing your profit, you need to get a cost and economic analysis right and strive to adopt the best practices in the industry. Make sure you carry out an in-depth market survey and find out the amount necessary to build a standard multi-purpose wind farm, purchase all the tools and equipment and successfully run the business.
One way to offset your initial costs especially during the building phase is to rent equipment and services rather than buying it all. For instance, the guys behind Bayside Scaffolding offer a wide range of scaffolds and accessories for hire with the most qualified people on board for your project so the work can be done efficiently and to the highest standard.
In addition, don’t limit your costs only to registering your business, licences, leasing and equipment – you’ll also need to invest in branding and building your customer base. These are the two ingredients that will help you maximize your profits.
What to expect
One of the major challenges you can expect is the fierce competition of other well-established wind farm companies who also specialize in generating power from renewable sources. The only way to survive and thrive is to create your own market.
Other challenges include natural disasters, maintenance and repair costs and the economic downturn. Also, certain unfavourable government policies can hinder the growth of your business so make sure you’re well-informed before you start.
From a legal standpoint, you will also have to opt for either a general partnership, limited liability company or a sole proprietorship for your business. Moreover, you can’t run a business without having a basic type of insurance policy required by the industry. Therefore, make room in your budget for this and possibly consult an insurance broker to guide you in choosing the most suitable insurance policies for your wind farm business.
Securing the location and finances
Even if you choose to start on a small scale, opening a wind farm business is a capital investment. To get things going, secure suitable land, licences, equipment and a handful of full-time employees, you should provide a considerable budget. For this reason, it’s advisable to have a good business plan. With that and all documentation in order, you may not have to labour yourself before you can convince your investors and the bank to help you get started.
Devising a marketing plan
Running any kind of successful business requires you to be proactive regarding the marketing of your goods and services. Having a good marketing plan and strategies in advance will help you avoid the initial struggle with the business since you will be dealing with fierce competition from well-established brands in the market.
Have your marketing strategy focus on reliability, safety, pricing and excellent customer service and you won’t be fighting to retain your old customers or attract new ones.
Starting your own business is all about putting in the extra effort, being resourceful, determined, driven and persistent. It’s a process of constant learning and development so you must recognise the need to ask for help and guidance and learn from those you have been there before. Just stay focused and follow the key steps listed here and your dreams, you’ll be enjoying in the fruits of your labour.