Launching a new business in any industry can be a daunting and complex process; however, the construction sector can be more than a little complicated. While you don’t need to possess extensive experience in the field to kickstart a venture, you will need a rock-solid business plan to ensure your success. If you have a talent for creating driveways, paths, and more, you should read the following advice on how to start your own paving business.
Gain Experience
While you might have spotted a gap in the market for a local paving business in your neighborhood, you must aim to gain as much experience as possible in the industry. As mentioned, you don’t need to possess many years of experience to enjoy success in the industry, but you should work in the field for at least one year before you advertise your services.
Write an In-depth Business Plan
Don’t make the huge mistake of building a paving business without writing a business plan. It will serve as a blueprint to your company’s success, as it will outline your initial financing, marketing tactics, sales strategies, and monthly and annual revenue and profit projections.
Form Either an LLC or C-Corp
Once you have created an informative business plan, your next step must be to form either an LLC or C-Corp business, and you will need to file the appropriate paperwork with your chosen state. While it is not a prerequisite for launching a paving company, doing so could protect your assets during a lawsuit.
Purchase Contractor Insurance
Every paving contractor would be wise to invest in contractor insurance. If something should go wrong on-site, the policy will ensure you are financially covered, which can prevent the obstacle from impacting your bottom-line. You can, therefore, enjoy greater confidence when working on a big or small residential or commercial project.
Consider Hiring Employees
While many contractors might choose to go it alone when kickstarting a paving business, it might help to hire a few helping hands to tackle multiple projects and boost your revenue. It is, however, imperative to familiarize yourself with employment and labor laws before you recruit members of staff. You also might need to provide your team with training to successfully execute every project.
Buy or Lease Equipment
The next step you will need to take is to either buy or lease paving equipment, such as:
- A paving machine
- Mixing machine
- Rollers
- Safety Equipment
It might also be a wise move to source used equipment over new, which could minimize your initial overheads. If, however, you don’t want to commit to such a large expense, leasing can be a smart financial decision for scaling your operations.
Find an Affordable Supplier
Once you have secured insurance and purchased the necessary equipment, you must then turn your attention to finding an affordable supplier for your aggregate and binding agents. Browse the market to discover the best pricing and payment terms, which could help to maximize your company’s profit margin.
