Getting into the tower business does NOT happen accidentally. Unless you have a team who does the work for you, a lot of hustle on your part will be required to initially get your business started. But once you get the ball rolling, your chances of succeeding will go way up.
Are you violating the law?
The most tedious aspect of the business is the research phase. Looking into local laws and city codes will be paramount to avoiding legal troubles for yourself in the future. We’ve written a previous article about how to avoid legal trouble here. Be sure to read it.
We’ve seen numerous instances where novices tried to build a tower only to find themselves in conflict with the law. Don’t let this happen to you. Do the necessary research and stay out of trouble.
Skipping this step could stop your business before it even begins.
Who’s going to do the work?
This is a serious question you need to answer before the building process can even begin. Whether or not you decide to build a tower yourself or hire someone else to will have a huge impact on your bottom line as an investor.
Most contractors are usually honest about what they’re qualified or capable of building. But even so, be sure to check with a contractor about the specifics of the tower before proceeding. As with most building projects – you get what you pay for. Sometimes the cheapest option will cause more problems than simply hiring a qualified professional.
Who’s going to pay for it?
The financial backing required for setting up a tower is by no means small. Many towers – even the smallest ones – cost between $5000 – $35,000 to initially set up. Cell towers are the most expensive, usually costing anywhere from $100,000.00 to $350,000.00 – but they can be very lucrative, as more and more cellular companies are expanding their operations.
Unless you have the required money to pay for it in cash, you’re going to need to come up with money somehow. Unless you have the money yourself, you generally have two options to pay for it:
- Get investors.
- Take out a loan.
The latter option is probably the most difficult. Banks are very weary of giving money to tower developers. It’s likely that they will refuse to give you a loan – or they might charge insane interest.
It might be a safer option to reach out to local businesses to see if they would be willing to help fund your project. And depending on the type of tower you have, you might even offer them a free tower service in exchange for financial help – or perhaps even a share of your profits.
As with most building projects, the question as to whether building a tower is easy or not – depends. The size of the tower, the person building it, and people paying for it are all questions that need to be answered before arriving to a definite conclusion.
Without the required information, everything is variable.