Starting an oil company is no picnic. You will need a lot of capital and will need to obtain permits and licenses from various government entities. But the oil industry is a billion dollar industry with high risk and good return on investment. It is a sector with huge opportunities like oil drilling, oil distribution, oil processing and ocean oil spill cleanup.

The Independent Petroleum Association of America believes that independent oil companies contribute 4.1% of the gross domestic product (GDP) of the United States. These companies provide jobs for about four million people. Looking to start an oil company? Here are five great tips for starting an oil company.

Determine what you are going to focus on

The oil and natural gas industry offers vast opportunities in oil drilling, processing, distribution, oil drilling equipment sales, consulting and supply. You need to figure out what you want to focus on because a blanket approach is illogical. Consider your experience, qualifications, and skills when choosing your business niche.

Assess the target market

What sets a company apart is knowing what their target market needs and delivering it. Find out what you can do better than your competitors and how to solve big challenges. If you want to start a scalable oil company, you need to do a thorough study market analysis of the particular sector. Identify your competitors, know your strengths, the successes and failures of other businesses, and the value your business brings.

Develop a business plan

Once you’re ready to bring your business idea to fruition, it’s time to write a business plan. A business plan is a blueprint for why, where, and how you want to start a business. It should highlight the location of your startup, the services you will offer, the summary, the funding, and the value proposition.

To start an oil company, you need a large capital investment. Identify your funding sources early on: crowdfunding, small business loans, bank loans, savings, or short-term loans. You can even start small with a title loan. It is easy to apply and you will quickly get money to start your business. Look for auto title loan online and explore the options available.

Register your company and get the relevant documents

Just like starting any other business, starting an oil company involves many lengthy processes. You will need certifications, permits and licenses from several governments regulatory bodies such as the Environmental Protection Agency (EPA) and the Internal Revenue Service (IRS). It is advisable to hire a lawyer or oil and gas company registration expert to guide you through the application process.

Start your business

After registering your business and getting the green light from regulators, it’s time to launch your startup and serve customers. Invest in the right equipment to deliver great services and products. Hiring a team with prior experience will also help you scale your business quickly, so you get only the best talent. Hire experts in administration, oil industry (for sound advice), sales, marketing, engineering and public relations.