Do you find demolition very interesting? If you do, you might want to go all the way to launch your own demolition business.
This is a great business idea that offers loads of opportunities for persons willing to put in the work. Speaking of the work or effort required for successful takeoff, you will need a ton of it.
So, what’s a demolition business? Exactly what the name suggests! Demolition companies perform a variety of dismantling or demolition involving jobs that range from simple to complex.
The job consists of skilled contractors handling various aspects of the job they’re proficient in.
Launch a Successful Demolition Business
Demolition businesses aren’t established overnight. In other words, these companies aren’t started on a whim as they need a great deal of preparation and planning.
Here, specific considerations need to be made, such as the market potential, assessing competitors, and understanding the workings of the industry.
These are some critical areas you need to know before launching your operations thoroughly. Also, it would be best if you had the guidance of professionals to show you how it’s done.
There’s also the financing aspect of the business. Every business needs adequate financing to see the light of day.
About Demolition Business
Demolition businesses deal with all kinds of structures ranging from residential and commercial. These companies handle all sorts of demolition equipment ranging from basic to complex or heavy machines.
Explosives are also handled by demolition services which make the job quite delicate.
Of course, you’ll have to be licensed to own and operate specific machinery and handle explosives.
Apart from being licensed, you must ensure critical areas like financing, equipment, and the general plan of action are in place.
Starting Your Own Demolition Business
To start a demolition business, you’ll have to first learn about the industry. This is meant to gather both knowledge and experience. There are also franchising options you might find interesting.
Other aspects of the business you need to be sorted out include the business plan, insurance, and funding.
There are other requirements like licensing, permits, and certification. Do you wish to hire or purchase your demolition equipment?
There’s also the need to identify your competition in addition to marketing your demolition business. Buying an existing demolition business is another way to start your operation.
Your new business will require hiring a demolition crew. With all of these areas adequately covered, you should have a smooth sail with your business idea.
Let’s look at each of the preparatory actions necessary for starting a demolition business.
i. Learning about the Industry
Every business venture requires having an understanding of the industry. The demolition industry isn’t different. As a newbie, there are lots of things you’re oblivious to.
To make up for this knowledge deficit, you’ll have to establish valuable relationships with owners of demolition companies.
While this may sound easy, it is not! A lot of times, owners of demolition companies may see you as competition.
No business owner wants to take actions that directly promote further competition, which could mean fewer opportunities for them. However, there’s still a way out.
There are online resources where you can find entrepreneurs willing to discuss the industry with you.
Another option you can adopt is to contact demolition business owners in other towns outside of yours. That way, there are fewer worries about being a potential competitor.
ii. Franchising is an Option to Explore
Starting a demolition business from scratch is possible. However, there’s a lot of stress involved. Plus, a majority of such enterprises fail during the first five years.
This isn’t in any way to discourage interested persons, as there are still successful demolition businesses that started from scratch.
Investing in a demolition franchise allows you to own part of a successful company for a set term. During this time, you get to use its business model and brand and benefit from its reputation.
This gives you the edge over lots of struggling demolition businesses.
For a demolition franchise to be worth your investment, you must research it well. In other words, you must find out all about the company and what it stands for.
More important is the need to determine what you stand to gain as its franchisee. Is it a reputable brand? These and many other questions need to be asked.
iii. Preparing a Business Plan
Your business plan is a vital part of starting a demolition business. To write one, a lot of work is involved. Through your plan, you want to set a clear direction your business will take.
This covers the plan of action down to its implementation stages. In a nutshell, your goal should say where your demolition company is headed.
Any reader will also want to know how you intend to reach your desired goal. You should include all of that and more. Not everyone knows how to write a business plan for their demolition company.
To provide a guide on preparing this important document, we’ve mentioned the different sections to cover.
They include the executive summary, a description of your demolition company, the types of demolition services offered, as well as the market analysis.
Other sections to discuss include the strategy & implementation, organization & management team, as well as the financial plan & projections.
iv. Sorting out Insurance
Every serious demolition company will need to have its insurance sorted out. Due to the many risks involved, you want to protect your company from liability.
Such liabilities could arise from injury, permanent disability, damage, and death. The worker’s compensation plan covers these.
Insurance works best with certain types of business structures. As a sole proprietor, you’re primarily exposed to the above incidences.
That is because your assets aren’t distinguished from those of your business. Other types of companies, such as corporations, have a personality.
Insurance also has a part to play when it comes to patronage. Not many clients will be comfortable hiring a demolition contractor without insurance.
This could adversely affect your operations hence the need to ensure that everything is sorted out. Consult an insurance expert to learn all there is to know.
v. Funding for the Business
What are financing options available to new entrepreneurs seeking to establish their demolition companies? How many monies do you have set aside for this endeavor?
It’s important to know that a demolition business is capital intensive. A lot of equipment and tools need to be purchased.
Working out your funding requirements involves carefully assessing what needs to be bought that will help your business operation.
Having identified all possible expenses, you’ll have to find out what types of financing are available. You might want to discuss with a demolition business owner for tips.
Another option is to do your independent online research. There are lots of options you’ll find. However, each option will require meeting specific minimum requirements.
Know what these requirements are and fulfill them.
vi. Licensing & Permits
Licensing and permits are required for all demolition businesses. These may differ from state to state. It’s also necessary to state that every demolition business will have its basic requirements.
Carefully research the different types of licensing and permits applicable for your operations as a demolition company.
vii. Obtaining Certification
To successfully establish your demolition business, your company needs to be certified.
There are minimum certification guidelines and requirements you must adhere to. Such certifications may vary from state to state.
Find out what these requirements are for your state and fulfill same.
viii. Demolition Equipment: Hire or Purchase?
When getting your demolition equipment, you have to decide whether to hire these or purchase them outright. A clear benefit of hiring such equipment is that your overhead costs are significantly reduced.
You may decide to hire such machinery at the beginning before eventually buying yours.
Demolition equipment is categorized into small and heavy types. Trim kit includes wire strippers, jackhammers, and shovels. Others include wheelbarrows, concrete cutters, and sledgehammers.
There are also cutting torches, grapples, and grinders.
For heavy equipment, they include dozers, feller bunchers, compact track loaders, excavators, wheel loaders, backhoe loaders, and skid loaders.
These and several other heavy pieces of equipment need to be obtained.
ix. Identify your Competition
One of the basic requirements for starting a successful demolition company is to identify your competition.
This knowledge gives you an idea of how to launch your operations. You also get to identify areas of weakness you can exploit. Overall, knowing your competition helps you stay longer in the business.
x. Marketing your Business
Marketing is a crucial part of doing business that applies to demolition. Here, it would help if you used all reliable avenues while also knowing who to target with your marketing campaign.
Marketing channels include online, industry networking, and lobbying for government contracts.
xi. Buying an Existing Business
Not everyone is prepared to start a demolition business from scratch.
If this describes you, you might find buying an existing demolition company interesting. Business ownership changes quite often. Simple research will reveal demolition businesses on sale.
xii. Hiring a Demolition Crew
Of course, you’ll have to hire a competent workforce for your demolition company.
This includes an experienced crew to handle all your demolition contracts. You’ll need competent hands for the hiring process.
These are the steps to starting a demolition business. All you have to do is follow the guidelines and do your independent research. You’ll need some professional advice on the process.
This is best given by business consultants and owners of demolition businesses.