The American workforce is undergoing a considerable shift. Roughly 50% of workers today are considering changing careers, and of those, 33% want to pursue a career in an entirely new industry. If you fall into these categories, you may consider starting an asphalt repair business.
Asphalt repair may not be the most glamorous sector or the first that comes to mind, but it can be a rewarding, profitable field. Here’s a closer look.
Why Start an Asphalt Repair Business?
Asphalt repair businesses are in high demand. According to a recent study, 43% of public roadways in the U.S. are in poor or mediocre condition. Considering there’s also a $786 billion backlog for road and bridge repair, the nation needs private businesses that address this issue.
Public infrastructure isn’t the only market in need of asphalt repair services, either. Property owners may be liable for vehicle damage due to potholes in their parking lots and driveways. Businesses wanting to avoid potential lawsuits and retain customers will reach out to asphalt repair companies for support.
With such high demand, you could make a considerable amount of money working in this industry. Since asphalt will always degrade over time, there will always be demand, too.
If you want to start an asphalt repair business, here’s what you’ll need to do.
1. Gain Industry Experience
The first step to starting an asphalt repair business is to learn the ropes of the industry. You can’t expect to provide competitive services if you don’t have an intimate understanding of the work and what it requires. Clients will also look to hire companies with more industry experience, as it communicates that you know what you’re doing.
Coming from a background in similar sectors like construction can help, as you’ll already know many essential skills and concepts. If possible, it’s best to have at least a year working in asphalt repair before advertising your services, too. If you don’t have much experience, you can make up for it by hiring experienced employees.
2. Perform Market Research
Next, you should look into the local market to get a better understanding of your area’s demand, competition, and expenses. This data will inform crucial business decisions down the road, like what niche to serve, where to set up shop, how to advertise, and more. It’s especially important to look into what your competitors offer.
Getting quotes from competitors can help you see if you can offer lower prices to attract more customers. You should also look into their customer service, as one in four customers will spend 10% more for excellent customer service in almost every industry. Looking through reviews can reveal if people want something more from competitors than you can offer.
3. File All Necessary Paperwork
As with any company, starting an asphalt repair business requires filing some paperwork. At the very least, you’ll need to file as an LLC or C-Corp, the requirements for which vary between states. Depending on the structure of your business and your area, you may need additional registration and licensing as well.
For example, 24 states require licensure for paving contractors to work on commercial properties. In 10 states, achieving this license requires years of experience under a licensed contractor, and states require $365 in fees on average. Be sure to check with local regulations to know what you’ll need to work legally.
4. Get Insurance
After you set up your asphalt repair business with the local government, you should consider insurance. Federal regulators require every business with employees to have Workers’ Compensation, unemployment, and disability insurance. In some areas, you may also need other types of coverage.
Even if some types of insurance are optional in your area, you may want them to protect yourself and your employees. In the asphalt repair industry, that could include professional liability, business income, and general liability insurance. Your previous market research should highlight high-risk areas where you may need coverage.
5. Gather the Right Equipment
Once you have all of that registration and paperwork settled, it’s time to acquire equipment. Asphalt repair is highly specialized work, and as such, it requires specialized tools. A paver is the most obvious piece of equipment, and these provide some compaction, but not enough to make asphalt flat, so you’ll also need a tamper.
Other equipment you may need includes:
- Asphalt shovels
- Sweepers
- Graders
- Measuring tools
- Sealcoating systems
- Personal protective equipment (PPE)
At first, you may consider renting equipment, which will keep maintenance and upfront ownership costs down. However, as your company picks up steam, it may be cheaper in the long run to buy your equipment outright.
6. Advertise
At this point, you can start to get your asphalt repair business off the ground. During your market research, you should have found some local areas or businesses that could use your services. Create buyer personas based on this information and create some advertising campaigns targeting them.
You may want to hand out flyers, contact local businesses in person, post billboards, or create online ads. Often, a mixture of a few different approaches is the most effective. Whatever you do, be sure to advertise what sets you apart from your competition, which you should have learned during market research.
7. Create a Growth Strategy
As your business starts to take off, it’s important to look to the future. Write a formal growth strategy, including annual and long-term goals, steps to achieve them, and backup plans for various eventualities.
Roughly 45% of new businesses fail within their first five years, and 65% fail within 10. Having a formal strategy to give you clear goals and directions to navigate your future can help avoid that fate. Remember to periodically review and revise this strategy as your business evolves or you encounter unexpected scenarios.
Start Your Asphalt Repair Business Today
Running an asphalt repair business can be a rewarding and profitable experience, but it takes work. If you go into it knowing what to do, you can get your business on its feet quickly and start generating revenue. If you go in without a plan, it may not end well.
These steps provide a general overview of the process for starting a successful asphalt repair business. Follow these and tailor them according to your specific situation to start your business today.
Emily Newton is the Editor-in-Chief of Revolutionized, an online magazine showing how technology is disrupting many industries.
