If you’re looking to create a steady stream of income that can one day replace your day job and achieve the coveted goal of financial freedom, creating a concrete business is a venture worth considering, particularly if you are interested in construction.
The concrete industry is a thriving sub-category of the construction sector. It has been growing consistently as real estate projects and construction needs continue to expand rapidly.
Concrete businesses provide various services, ranging from mixing ingredients to foundation laying and excavation.
Establishing a concrete company is potentially lucrative. It can be started with relatively small amounts of capital, and once proof of concept is established, it can take a quick turn into becoming a larger company. Not only that, but concrete businesses are sustainable and long-term as construction services are always in demand, and you won’t be experiencing the dreaded feast and famine found within other industries.
If your curiosity sparked and you’re wondering what it takes to start and maintain a successful concrete business, then keep on reading!
Starting any business can feel overwhelming if you don’t have the relevant information to start taking action. If you’re at the point where you’re wondering how to start a concrete business, that shows the determination and motivation required that is a prerequisite to the following actions. When it comes to launching your concrete businesses, you need to take a few significant steps to get started.
The first step in most countries is to register your business as an entity with the government and get contractor liability insurance. The best precautions involve releasing yourself from any possible legal liability. In any business, there is always some risk, no matter how meticulous and cautious you are.
Contractor liability insurance will reassure you that in the worst-case scenario. If one of your services ends up causing damage to a property, or if down the line you hire employees and one of them happens to get injured while doing their work, you are protected. This insurance is a must-have as it will cover your costs should you end up in a situation needing to pay for any damages.
Depending on your country and state, you may also need a contractor or concrete license before you begin performing projects for clients. To confirm this, do a quick Google search on concrete business licenses required in your area and cross-check to make sure you don’t miss any necessary paperwork.
Lastly, some locations also require more specific certifications for performing concrete services, such as holding a contractor permit, testing fees, and renewal standards.
Once you’ve done all the necessary paperwork, it’s time to choose what services you will be offering. Some concrete businesses focus on one specific aspect of the process, but for the highest chance at success, it’s best to offer as many services as the clients may need.
Start with projects that you can perform yourself, and once your business expands and has a higher demand, you can hire employees to perform specialized services that you may not be able to do yourself.
Options to choose from include concrete paving, sidewalks, foundations & slabs, decorative concrete, and more!
After completing the necessary paperwork and choosing what services you’d like to offer, you need to set yourself up for success with a business plan. Your business plan will be your blueprint and guiding compass.
Your business plan should include the critical steps involved in building your business, from purchasing equipment to negotiating with suppliers for contracts, deciding whether you want to hire an employee if your budget allows, and ultimately the marketing plan. An essential aspect of designing your business is doing thorough research on the best equipment to deliver the best possible work to clients.
You should consider these materials as the basis of your toolkit from which you will continue to build. In the future, you can invest in more specialty tools once you have a client base. It is worth looking into creating partnerships with local hardware and construction supply shops to see if you can purchase items in bulk at a discounted price; this will be more applicable once you hire employees and need duplicates of tools.
The startup costs for a concrete business depend on what services you choose to offer. If you choose to offer the basic services, your costs will be equipment expenses, labor (if you outsource), paperwork, and advertising expenses. You can get away with starting a concrete business for a couple of thousand dollars or even less; if you can borrow the equipment on an hourly basis to start with until you have sufficient funds to reinvest in your equipment.
To figure out a reasonable price range for your service, a good rule of thumb is to take a look at competitors in your area and charge slightly less. Once you acquire a client base and gather testimonials, you can raise your prices to match your competition. After all, it's all about getting the biggest return on your investment.
If you’re lucky enough to have worked in construction and have connections within the industry, the best starting point is to leverage your existing network. Whether you decide to offer discounted prices in exchange for positive testimonials on your website or a referral commission to anyone who successfully sends a client your way, being resourceful and strategic in this early stage is key.
Once you have a few solid reviews and are confident in the quality of work you’re delivering, utilizing Google Ads to target potential local customers is one of the top ways to get a steady pipeline of clients. Google allows you to target your advertising to people within your service area and show up in the Google search results when they search for a particular term, such as “concrete services near me.”
If you’ve made it till the end, you’re likely a determined and motivated individual who has the willpower to make their concrete business a success. With diligent preparation and following your business plan, you will inevitably succeed.
The path to becoming a business owner is challenging but ever-rewarding. Best of luck!