Are you about starting a demolition company? If YES, here’s a complete sample demolition business plan template & feasibility report you can use for FREE to raise money.

Okay, so we have considered all the requirements for starting a demolition company. We also took it further by analyzing and drafting a sample demolition service marketing plan template backed up by actionable guerrilla marketing ideas for demolition companies. So let’s proceed to the business planning section.

Why Start a Demolition Company?

One of the many business opportunities under the construction industry is demolition business. If you live in the United States, you will agree that there are a host of demolition and wrecking companies around.

If you decide to start a business in the demolition and wrecking industry, you are sure of making huge returns from your investment because reliable statistics shows that the industry in the United States of America rakes in around $5 billion dollars annually.

Although there are competitions at various levels in the industry, but if you are able to come up with a good business strategy, then you are sure of getting your own fair share of the available market in the industry. If you want to partake in this thriving industry, then you need to obtain a license.

The next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services. Below is a sample demolition and wrecking company business plan template that will help you to successfully launch your own business.

A Sample Demolition Company Business Plan Template

  • Industry Overview

Companies in the demolition and wrecking industry demolish buildings and structures and sometimes sell salvaged materials. Other services rendered by players in this industry include the clearing and recycling of debris, interior strip outs, handling of asbestos and hazardous materials, site remediation (decontamination and waste disposal), concrete cutting and explosive demolition. Excavation and land-clearing work is not part of the demolition and wrecking industry.

If you are closer watcher of happenings in the Demolition and Wrecking industry, you will agree that the industry has been recovering from the effects of the recession, which drastically reduced demand for construction services. Nevertheless, business has begun to experience little growth, and the industry is projected to grow past its pre – recession magnitude.

As the value of residential and nonresidential construction increases, the need for demolition to make way for new structures increases as well. So also, land development and construction markets are projected to grow rapidly as economic growth encourages the construction of new facilities.

The company with the leading market share in the industry is in the United States is Northstar Group Holdings, LLC. Statistics has it that in the United States of America alone, there are about 4,505 licensed and registered Demolition and Wrecking companies scattered all across the country and they are responsible for employing about 23,252 employees. The industry rakes in a whooping sum of $5 billion annually with an annual growth rate projected at 2.1 percent within 2011 and 2016.

A recent report published by IBISWORLD shows that establishments in the Demolition and Wrecking industry are distributed roughly in line with population density, though regional variations in industrialization and urbanization create a larger industry presence in some areas.

The report also estimates that the Southeast, Great Lakes and Mid-Atlantic regions hold the largest share of industry locations. While the Southeast region has the largest share of establishments in the industry, this 22.7 percent share is somewhat lower than its share of the total US population, 25.4 percent. The report further stated that the discrepancy reflects a less densely concentrated population and fewer major cities that lack sufficient space to expand, as is the case in regions with less unoccupied land.

Some of the factors that encourage entrepreneurs to start their own demolition and wrecking company business is that the business is profitable can easily get support from the government.

The fact that demolition and wrecking business involves both government establishment (Public works department) and private sector, does not in any way make the industry to be over saturated. The spate of construction works and renovation of buildings means that there is always a ready market for demolition and wrecking companies.

Over and above, starting a demolition and wrecking company can be challenging, but the truth is that it can be rewarding at the same time. One good thing about the industry is that it is open for both big time investors and aspiring entrepreneurs.

Demolition Company Business Plan – Executive Summary

Bernard Parker® Demolition and Wrecking Company is a registered demolition and wrecking company that will be based in La Crosse – Wisconsin. We will provide essential services that revolves around demolitions. Our services will center around construction sites and other locations in an around La Crosse – Wisconsin.

Bernard Parker® Demolition and Wrecking Company has been able to secure all the relevant license and permits to operate throughout the United States. We will ensure that we abide by the rules and regulations of the industry and we will only hire experienced and qualified drivers with valid commercial driver’s license (CDL).

At Bernard Parker® Demolition and Wrecking Company, our clients’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we put standard structures and processes in place that will enable us meet and surpass our business goals and also stay highly competitive in the industry.

Our customers and potential customers alike can be rest assured that they will get quality services at competitive rates when they hire our services. We will go the extra mile to ensure that safety is at the top burner in all that we do and our customers get value for their money. At Bernard Parker® Demolition and Wrecking Company our goal is to provide excellent demolition and wrecking services to our customers and we pride ourselves on the integrity and competence of our employees.

Bernard Parker® Demolition and Wrecking Company will at all times demonstrate her commitment to sustainability by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely.

Our overall business goal is to position Bernard Parker® Demolition and Wrecking Company to become one of the leading demolition companies in the United States of America within the first 5 years of operation. This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are confident that Wisconsin is the right place to launch our business.

Bernard Parker® Demolition and Wrecking Company is a family business; it is owned by Bernard Parker and his immediate family members. Bernard Parker has a BSc in Business Administration and also a Diploma in Transport and Logistics Management with over 15 years’ hands on experience in the demolition and wrecking industry.

  • Our Service Offerings

Bernard Parker® Demolition and Wrecking Company will deliver excellent services while helping our customers carry out demolition and wrecking jobs. We want to be known as the company that truly cares for her customers.

Our intention of starting our demolition and wrecking company is to favorable compete in the industry and of course to make profits from the industry, and we will do all that is permitted by the law in the United States of America to achieve our business goal. Our business offerings are listed below;

  • Pre – demolition planning and analysis
  • Total or selective demolition of buildings (e.g. offices, warehouses and apartments)
  • Total or selective demolition of structures (e.g. sport stadiums and oil rigs)
  • Demolition and rehabilitation of sites following fire or industrial explosion
  • Environmental cleanup
  • Asbestos removal
  • Selective dismantling and facade preservation of historic buildings
  • Implosion demolition of buildings and structures
  • Removal, disposal and sale of materials from demolition sites, including recycling

Our Vision Statement

Our Vision is to become one of the preferred choice in the construction industry and other relevant industry when it comes to the demand for demolition and wrecking services in the whole of the United States of America.

  • Our Mission Statement

Our mission is to ensure that we build a demolition and wrecking company that will operate in the whole of the United States of America; a company that will boast of having some of the best demolition and wrecking machine operators and truck drivers in the whole of the United States of America.

  • Our Business Structure

At Bernard Parker® Demolition and Wrecking Company, our business structure will be designed in such a way that it can accommodate but full-time and part-time/contract staff; those who just want to take some time off to generate additional incomes.

We intend starting our company with a handful of full-time employees. Adequate provision and competitive packages have been prepared for them.

As a means of maximizing operational cost, we will contract the maintenance of all our heavy duty machines and trucks to a service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilizes, we will assemble our own in-house maintenance team.

Below is the business structure and the roles that will be available at Bernard Parker® Demolition and Wrecking Company;

  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Transport and Logistics Manager
  • Business Developer
  • Accountant
  • Professional Truck Drivers and Demolition and Wrecking Operators
  • Client Service Executive/Front Desk Officer

Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Sales and Marketing Manager

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Transport and Logistics Manager

  • Responsible for coordinating truck drivers, vehicles and journeys
  • Accountable for developing and confirming schedules
  • Responsible for implementing health and safety standards
  • In charge of directing all transportation activities
  • Responsible for monitoring the organization’s carbon footprint.

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managers with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Truck Drivers and Earthmoving Machine Operator

  • Responsible for handling core services such as total or selective demolition of buildings (e.g. offices, warehouses and apartments), total or selective demolition of structures (e.g. sport stadiums and oil rigs), demolition and rehabilitation of sites following fire or industrial explosion, environmental cleanup, asbestos removal, selective dismantling  and implosion demolition of buildings and structures
  • Removal, disposal and sale of materials from demolition sites, including recycling
  • Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment, such as hazardous material placards.
  • Inspects vehicles for safety issues and perform preventative maintenance
  • Complies with truck driving rules and regulations as well as with company policies and procedures

Client Service Executive

  • Welcomes/receive clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Consistently stays abreast of any new information on the organizations’ services, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Receives parcels/documents for Bernard Parker® Demolition and Wrecking Company and distribute mails in the organization
  • Handles any other duties as assigned by HR and Admin Manager or Transport & Logistic Manager.

Demolition Company Business Plan – SWOT Analysis

Our intention of starting Bernard Parker® Demolition and Wrecking Company in Wisconsin is to test run the business for a period of 2 to 4 years to know if we will invest more money, and expand the business all around the United States of America.

We are quite aware that there are several demolition and wrecking companies scattered all over the United States and even in the same locations where we intend starting ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Bernard Parker® Demolition and Wrecking Company employed the services of an expert HR and Business Analyst with bias in startups to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals.

This is the summary of the SWOT analysis that was conducted for Bernard Parker® Demolition and Wrecking Company;

  • Strength:

Our main strength lies in the power of our workforce. We have a team that can give our clients value for their money; a team that are trained and equipped to deliver excellent jobs especially as it relates to environmental approaches. We have reliable demolition and wrecking machines and trucks. We know we will attract loads of clients from the first day we open our door for business.

  • Weakness:

Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to our peers who have already gained ground in the construction industry.

  • Opportunities:

The opportunities that are available to us as a demolition and wrecking company operating in the United States of America are online market, new services, new technology, and of course the opening of new markets within our target locations.

  • Threat:

Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, volatile costs, and rising fuel prices. Another threat that may likely confront us is the arrival of a demolition and wrecking company in same location where ours is located. Unfavorable government policies can also pose a major threat to businesses such as ours.

Demolition Company Business Plan – MARKET ANALYSIS

  • Market Trends

The Demolition and Wrecking industry especially in the United States of America is indeed dynamic and at the same time highly competitive and challenging. But one thing is certain, once a demolition and wrecking company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with big time construction companies and government contractors who are always carrying out construction works.

If you are an observer of the trends in the Demolition and Wrecking industry, you will notice that the revenue generated by players in the industry has registered a sharp increase over the last half a decade. This is supported by the increase in demand from downstream construction industries.

Some demolition and wrecking contractors benefited from a boost in United States government funding for road, bridge and other infrastructure construction during this period, bolstering revenue even further for the larger contractors. Going forward, industry revenue is expected to continue growing, albeit at a slower pace.

Another common trend in this industry is that once a company has gained credibility, it is easier for them to go for brand new trucks and machines on a long-term leasing contract as against making use of second hand trucks and machines which are usually expensive to maintain due to constant wear and tear of essential parts.

  • Our Target Market

Our target market are basically construction companies and of course the government of United States of America. We are in business to handle demolition and wrecking services for clients in the United States of America. Below is a list of the people and organizations that we have plans to do business with;

  • Construction companies
  • Property management companies
  • Property development companies
  • Players in the real estate industry
  • Government contractors

Our Competitive Advantage

Our major competitive advantage is the vast industry experience and solid reputation of our owner, Bernard Parker and our management team. Bernard Parker® Demolition and Wrecking Company no doubt is a new company, which is why we took our time to do a thorough market research and feasibility studies before launching the business.

We were able to highlight some factors that will give us competitive advantage in the marketplace and they include; honesty, good network and excellent relationship management, qualified and experienced management team, robust fleet operation, direct access to construction sites in the United States of America, our size and cost advantage, supply chain, customer loyalty and strong reputation amongst domestic industry players.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

Demolition Company Business Plan – SALES AND MARKETING STRATEGY

No doubt, networking is an effective way to begin building your client base as a business, and so we will look out for gatherings where we can network with captain of industries, construction and government contractors et al. As a matter of fact, our first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to get our first major deal from them.

At Bernard Parker® Demolition and Wrecking Company, all our employees will be directly or indirectly involved in sales and marketing of our services. We will create provision for our employees to earn a commission when they bring in business for the organization. We will also encourage freelancers to work with us; whenever they refer clients to us they will earn a percentage of the deal as agreed by both parties.

Lastly, we will leverage on the power of the media by advertising our services using both online and offline platforms. We will work hard to ensure that get repeat business from any business deal we execute and also, we will encourage our customers to help us refer their friends to us.

In summary, Bernard Parker® Demolition and Wrecking Company will adopt the following sales and marketing strategies in sourcing for clients for our business;

  • Introduce our business by sending introductory letters alongside our brochure to corporate organizations, businesses in the construction industry and related industries in Wisconsin and throughout the United States.
  • Print handbills about our demolition and wrecking company and its locations and drop them in public facilities.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media or those who read blogs can know where to go when they need the services of a demolition and wrecking company
  • Creating a basic website for our business so as to give our business an online presence
  • Join local demolition and wrecking contractor associations and chambers of commerce for industry trends and tips
  • Advertise our business in community based newspapers, local TV and radio stations
  • List our business on yellow pages’ ads (local directories)
  • Encourage the use of word of mouth marketing (referrals)

Sources of Income

Bernard Parker® Demolition and Wrecking Company will ensure that we leverage on our strengths and the opportunities available to us in the U.S. to generate enough income that will help us drive the business to stability. We will go all the way to explore every available source of income in the demolition and wrecking industry.

Below are the sources we intend exploring to generate income for Bernard Parker® Demolition and Wrecking Company;

  • Pre – demolition planning and analysis
  • Total or selective demolition of buildings (e.g. offices, warehouses and apartments)
  • Total or selective demolition of structures (e.g. sport stadiums and oil rigs)
  • Demolition and rehabilitation of sites following fire or industrial explosion
  • Environmental cleanup
  • Asbestos removal
  • Selective dismantling and facade preservation of historic buildings
  • Implosion demolition of buildings and structures
  • Removal, disposal and sale of materials from demolition sites, including recycling

Sales Forecast

One thing is certain, there would always be construction companies and other related businesses who would need the services of demolition and wrecking companies to help them carry out demolition and wrecking services throughout the United States of America.

We are well positioned to take on the available market and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow our business and our clientele base. We have been able to examine the Demolition and Wrecking industry market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for Bernard Parker® Demolition and Wrecking Company. It is based on the location of our company and of course the wide range of demolition and wrecking services that we will be offering;

  • First Fiscal Year: $350,000
  • Second Fiscal Year: $750,000
  • Third Fiscal Year: $1 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. So also, there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Our Pricing Strategy

Bernard Parker® Demolition and Wrecking Company has a lease arrangement with various companies and the company’s pricing is based on miles per thousands of tons of materials transported. We have perfected our plans to charge competitive rates since we have minimal full – time overhead compared to our competition in the industry.

We will ensure that we leverage on price to win over customers as our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporation organizations means that we will have different price range for different categories of clients.

We are aware that government contracts come with a bidding template, we will ensure that we abide by such bidding templates whenever we have the opportunity to bid for government contracts. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.

  • Payment Options

The payment policy adopted by Bernard Parker® Demolition and Wrecking Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Bernard Parker® Demolition and Wrecking Company will make available to her clients;

  • Payment via bank transfer
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for demolition and wrecking services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

Demolition Company Business Plan – Publicity and Advertising Strategy

Bernard Parker® Demolition and Wrecking Company has a long term plan of covering various locations in major cities in the United States which is why we will build our brand to be well accepted in and around La Crosse – Wisconsin before venturing out to other cities.

Here are the platforms we intend leveraging on to promote and advertise Bernard Parker® Demolition and Wrecking Company;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, et al to promote our brand
  • Install our billboards in strategic locations all around Wisconsin
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where our photo booths are located.
  • Ensure that all our workers wear our branded shirts and all our earthmoving machines and trucks are well branded with our company’s logo.

Demolition Company Business Plan – Financial Projections and Costing

When it comes to starting a demolition and wrecking company, the major areas that you look towards spending the bulk of your cash is in the purchase of standard machines and trucks and of course renting or leasing a well-located yard large enough to accommodate your trucks. Aside from that, you are expected to pay your employees and maintain your trucks.

These are the key areas where we will spend our startup capital;

  • The total fee for incorporating the Business in the United States of America – $750.
  • The budget for liability insurance, permits and license – $2,500
  • The amount needed to acquire a suitable office facility with enough parking space for our trucks in La Crosse, Wisconsin for 6 months (Re – Construction of the facility inclusive) – $40,000.
  • The amount required to purchase the first set of trucks and earthmoving machines – $800,000
  • The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
  • The cost of accounting software, CRM software and Payroll Software – $3,000
  • Other start-up expenses including stationery – $1000
  • Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost of launching our official website – $600
  • The amount needed to pay staff for the first 2 months – $20,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500

Going by the report from the market research and feasibility studies conducted, we will need about two million and two hundred thousand (1.2 million) U.S. dollars to successfully set up a medium scale but standard demolition and wrecking company in the United States of America.

Generating Startup Capital for Bernard Parker® Demolition and Wrecking Company

Bernard Parker® Demolition and Wrecking Company is a family business that will be owned and managed by Allen Newton and his immediate family members. They decided to restrict the sourcing of startup capital to just three major sources. These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings and sale of his stocks
  • Generate part of the startup capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank.

N.B: We have been able to generate about $400,000 (Personal savings $350,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $800,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

DEMOLITION BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of any business lies in the number of loyal customers they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Bernard Parker® Demolition and Wrecking Company is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to engage in affordable, timely, safe and efficient demolition and wrecking services at all times.

Bernard Parker® Demolition and Wrecking Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Acquiring of trucks and relevant equipment: In progress
  • Leasing of Office Facility large enough in Wisconsin: Completed
  • Conducting Feasibility Studies: Completed
  • Startup Capital Generation: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees and drivers: In Progress
  • Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry: Completed
  • Leasing of the first set of demolition and wrecking machines and trucks: In Progress