Do you want to start a drywall contracting business? If YES, here is a complete guide to starting a drywall contracting business with NO money and no experience.
Okay, so we have provided you an in-depth sample drywall contracting business plan template. We also took it further by analyzing and drafting a sample drywall contracting business marketing plan backed up by actionable guerrilla marketing ideas for drywall contracting businesses. In this article, we will be considering all the requirements for starting a drywall contracting business. So put on your entrepreneurial hat and let’s proceed.
Why Start a Drywall Contracting Business?
If you have hands-on experience in the construction industry, and you desire to start your own business, one of the businesses you can start that can guarantee you good returns on your investment is a drywall business. As a drywall business owner or contractor, your responsibility is to help your clients lay out and install gypsum wall boards and also gypsum wall board assemblies.
In order to operate this type of business, you are required to first apply and obtain your own drywall contractor license and permit. You need to register your business and then acquire the right training before you can be issued a drywall contractor license and permit, and each state in the US has their own requirements.
Irrespective of the type of business you choose to start, it is important to state that before launching the business, you should carry out your due diligence as it relates to market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your drywall contracting business, it will not take you long before you secure enough corporate clients and start smiling to the bank.
If indeed you have the desire to start your own drywall contracting business, all you need do is to read this article and you will be well informed and equipped. You can start your drywall contracting business from a small town in the United States and if you are consistent and creative, it won’t be too long before your brand becomes a nationally recognized brand and you start working for clients all across the United States of America.
Starting a Drywall Contracting Business – A Complete Guide
- Industry Overview
The drywall contracting line of business is under the real estate cum construction industry and a drywall contractor is a manager, and perhaps a tradesman, employed by the client on the advice of the architect, engineer or the architectural technologist or the client him/herself if acting as the manager.
As a drywall business owner or contractor, your responsibility is to help your clients lay out and install gypsum wall board and also gypsum wall board assemblies. This includes non – structural metal framing members, tapping, and the required texturing operations.
If it is a renovation project, a site visit is required to get a better understanding of the project to be carried out. Depending on the project delivery method, the drywall contracting company will submit a fixed price proposal or bid, cost plus price or an estimate. The drywall contracting company considers the cost of home office overhead, general conditions, materials and equipment and logistics as it relates to transporting equipment and manpower to site as well as the cost of labor to provide the owner with a price for the project.
A drywall contracting company submits some essential documents while bidding for a project/contract and such documents include drawings, project manual (including general, supplementary and/or special conditions and specifications), addendum or modifications issued prior to proposal/ bidding and prepared by a design professional such as an architect.
The construction industry (drywall contracting inclusive) can comfortably boast to be responsible for the infrastructural development of the world; the development of any country or city is the handiwork of construction companies and other stake holders.
In other words, all the edifices, bridges, dams, roads, estates, campuses, shopping malls, office complexes, skyscrapers and massive structures that you see around are all products of the construction industry cum drywall contracting line of business.
Starting a drywall contracting business is not capital intensive because you don’t need heavy duty equipment that are required to carry out a construction project except for the cost of managing a large workforce. Drywall contracting business is highly profitable especially if you have the expertise and capacity to deliver quality jobs.
Some of the factors that encourage entrepreneurs to start their own drywall contracting company could be that the business is highly profitable and it is a business that can be started with minimal capital and of course, minimal workforce.
The success of a drywall contracting company to a large extent depends on their relationship with the biggest clients in the industry; the government of any country. There is always enough drywall contracts to go around, and as long as a drywall contracting company is competent and well positioned, they won’t lack contracts from both the government and the private sector.
Starting a Drywall Contracting Business – Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who hire the services of drywall contracting companies cut across all construction companies and players in the real estate industry hence the demographic composition of a drywall contracting company business is all encompassing.
The truth is that when it comes to drywall contracting business, there is indeed a wide range of available customers. In essence, your target market can’t be restricted to just government agencies (public work department) within your location, but to all players in the real estate industry and even households around the city where you have your business presence.
If you are thinking of starting your own drywall contracting business, then you should make your target demographics all encompassing. It should include everyone who wants to install gypsum wall board and also gypsum wall board assemblies et al within and outside your business location.
List of Niche ideas Within the Drywall Contracting Business That You Can Specialize in
It is safe to say that there is no niche area in the drywall contracting line of business, every player in the industry primarily engages in helping their clients lay out and install gypsum wall boards and gypsum wall board assemblies. So, if you are looking towards starting your own drywall contracting business, then you should clearly define your market so that you will be able to know how to get to them.
The Level of Competition in the Drywall Contracting Business
The competition that exists in the drywall contracting line of business goes beyond competition amongst drywall contracting companies in your location; you are expected to compete with other businesses in the construction industry that are also into laying out and installing gypsum wall board and gypsum wall board assemblies et al.
The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your services or business properly, you will always make headway in the industry. Just ensure your workforce can carry out thorough jobs, you can deliver excellent customer care services and you know how to attract and reach out to your target market.
But over and above, there are several drywall contracting companies and other businesses in the construction industry that are also into laying out and installing gypsum wall board and also gypsum wall board assemblies, non – structural metal framing members, tapping, and the required texturing operations scattered all around the United States.
So, if you choose to start your own drywall contracting business in the United States of America, you will definitely meet stiffer competitions amongst drywall contracting companies and other players in the construction industry. Besides, there are larger home drywall contracting companies that determine the trends in the industry and you should be ready to compete with them for customers.
List of Well – Known Brands in the Drywall Contracting Industry
In every industry, there are always brands that perform better or are better regarded by customers and the general public than the others. Some of these brands are those that have been in the industry for a long time, while others are best known for how they conduct their businesses and the results they have achieved over the years.
These are some of the leading drywall contracting companies in the United States of America and in the globe;
- American Drywall Contractors Inc
- Drywall America, Inc.
- Kenpat USA
- Commercial Plastering USA, LLC
- USA Universal Remodeling Paint & Drywall Company
- USA Interiors LLC
- Sky Builders USA
- Interior Finishing Systems
- E Contractors USA, LLC
- Baker Drywall Fort Worth Ltd
- California Dry Wall Co
- USA Plastering Inc.
- Asona USA LLC
- M. Construction USA Inc.
- High and Lofty Services USA ll
- Marel Contractors
- USA Drywall & Painting
- Roswell Drywall
- Wallcon Texas Ltd
If you are planning towards successfully launching a business and maximizing profits, then you need to ensure that you get your economic and cost analysis right and try as much as possible to adopt best practices in the industry you choose to build a business in.
Drywall contracting business is not a green business, as a matter of fact, you will come across several drywall contracting companies and other players in the construction industry that also carry out same services rendered by drywall contracting companies when you drive through town, search through directories and browse through the internet.
So, if you are mapping out your economic and cost analysis, you should carry out thorough market survey and costing of what is required to rent a space where you are expected to open your drywall contracting business, the amount required in purchasing working tools such as ladders, sanders, scaffolding, hawks, stilts, trowels and other safety wares (overall, safety boots, safety hand gloves et al), working capital and also the running cost to successfully run the business.
In the real sense of it, if you are considering starting a drywall contracting company, then your concern should not be limited to the cost of renting an office space, securing your license, purchasing the needed machines, tools and equipment and working capital et al but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base and business partnership, you are sure going to maximize profits in the business.
Starting Your Drywall Contracting Business from Scratch vs Buying a Franchise
If you are looking towards starting a drywall contracting company, you would have to start from the very scratch because you can hardly get a franchise of a drywall contracting company to buy. It is a business that is open to all and sundry.
Besides starting a drywall contracting company from the scratch is less stressful when compared to other businesses in the construction industry. With a drywall contracting company, you should just try as much as possible to get the right employees, build business relationship with key stakeholders and then leverage on every marketing tool within your disposal especially the internet to market your services.
Please note that most of the big and successful drywall contracting companies around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success and of course you can build your own drywall contracting company brand to become a successful brand with corporate and individual customers in your city and from all across the length and breadth of the United States of America.
Possible Threats and Challenges You Will Face When Starting a Drywall Contracting Business
If you decide to start your own drywall contracting business today, one of the major challenges you are likely going to face is the presence of well – established drywall contracting companies and other players in the construction industry that also carry out same services as drywall contracting companies. The only way to avoid this challenge is to create your own market.
Some other challenges and threats that you are likely going to face is economic downturn; if the economy is in bad shape, business such as drywall contracting companies and other players in the construction industry usually struggle to maintain their old customers or even welcome new customers. Also, unfavorable government policies can hamper the growth of your drywall contracting business. There is nothing you can do as regards these threats and challenges other than to stay positive that things will work well for you.
Starting a Drywall Contracting Business – Legal Matters
- Best legal entity to use for this type of business
Generally, you have the option of either choosing a general partnership, limited liability company which is commonly called an LLC, or even a sole proprietorship for a drywall contracting business. Ordinarily, sole proprietorship should have been the ideal business structure for a small – scale drywall contracting business especially if you are just starting out with a moderate start – up capital in a small neighborhood and handle small selected construction projects.
But if your intention is to grow the business and handle big drywall installation projects all across key cities in the United States of America and other countries of the world, then choosing sole proprietorship is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.
Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholders meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your drywall contracting business; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.
If you take your time to critically study the various legal entities to use for your drywall contracting business with the ability to handle giant drywall installation projects all across the United States of America, you will agree that limited liability company; an LLC is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.
Catchy Business Name Ideas Suitable for a Drywall Contacting Company
When it comes to choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
If you are considering starting your own drywall contracting business, here are some catchy names that you can choose from;
- Tint Details® Drywall Contracting Company
- Zone Connect® Drywall Contractors, LLC
- Emerald Contractors© Drywall Contracting Company, Inc.
- Hughes Temple® Drywall Contracting Company, Inc.
- Roll On™ Drywall Contracting Company, Inc.
- Perfect Finish™ Drywall Contracting Company, Inc.
- Peter Jones & Sons© Drywall Contracting Company, Inc.
- Red Tapestry® Drywall Contracting Company, LLC
- Vintage Group© Drywall Contracting Company, Inc.
- Frank Theodora & Sons© Drywall Contracting Company, Inc.
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your drywall contracting company.
Here are some of the basic insurance covers that you should consider purchasing if you want to start your own drywall contracting business in the United States of America;
- General insurance
- Health / Medical insurance
- Liability insurance
- Workers compensation
- Property/Building Insurance
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
Intellectual Property Protection / Trademark
If you are considering starting your own drywall contracting business, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Is Professional Certification Needed to Run a Drywall Contracting Business?
In the United States of America and in most countries of the world, licensing requirements to work legally on construction projects vary from locale to locale. In the United States, it is the states’ responsibility to define these requirements.
For example, in the state of California, all businesses or individuals who work on any building, highway, road, parking facility, railroad, excavation, or other structures in California must be licensed by the California Contractors State License Board (CSLB) if the total cost of one or more contracts on the project is $500 or more.
The truth is that asides from the results you produce as it relates to handling drywall installation projects, professional certification is one of the main reasons why some drywall contractors stand out. If you want to make an impact in the construction industry, you should work towards acquiring all the needed certifications in your area of specialization.
You are strongly encouraged to pursue professional certifications; it will go a long way to show your commitment towards the business. Certification validates your competency and shows that you are highly skilled, committed to your career, and up-to-date in the business.
These are some of the certifications you can work towards achieving if you want to run your own drywall contracting company;
- Universal Design Certified Professional (UDCP)
- Certified Graduate Remodeler (CGR)
- Professional Home Builder Certifications
- Any construction and civil engineering related certification, Diploma or Degree
Please note that you can successfully run a drywall contracting company in the United States and in most countries of the world without necessarily acquiring professional certifications as long as you have adequate experience cum background in the drywall contracting cum construction industry.
List of Legal Documents You Need to Run a Drywall Contracting Business
The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long hand of the law catches up with you.
These are some of the basic legal documents that you are expected to have in place if you want to legally run your own drywall contracting business in the United States of America;
- Certificate of Incorporation
- Business License/Drywall Contractor License and Permits
- Tax Payer’s ID / Tax Identification Number
- Business Plan
- Contract Document
- Non – disclosure Agreement
- Employee Handbook
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
- Building License
- Franchise or Trademark License (optional)
Financing Your Drywall Contracting Business
Starting a drywall contracting business is not capital intensive if you choose to start on a small scale. Securing a standard office space in a business district, purchasing working tools and equipment and raising working capital et al are part of what will consume a large chunk of your start – up capital. If you choose to start the business on a large scale, you would need to source for fund to finance the business because it is expensive to start a standard large – scale drywall contracting business.
When it comes to financing a business, one of the first things you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for start – up capital for your drywall contracting business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell of shares to interested investors
- Applying for loan from your bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends
Choosing a Suitable Location for your Drywall Contracting Business
Generally, in business, it cannot be overemphasized that the location you chose to start your business is key to the success of the business; hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where there are high construction and real estate activities.
It is important to note that a business facility in good location does not come cheap hence you should be able to allocate enough fund for leasing / renting in your budget. If you are new to the dynamics of choosing a location for your drywall contracting business, then you should feel free to talk to a business consultant or a realtor who has a full grasp of the city and perhaps country you intend starting your drywall contracting business.
These are some of the key factors that you should consider before choosing a location for your drywall contracting business;
- The demography of the location
- The demand for drywall contractor services, construction and real estate activities in the location
- The purchasing power of residents of the location
- Accessibility of the location
- The number of drywall contracting companies and other players in the construction industry that also carry out drywall contracting works in the location
- The local laws and regulations in the community
- Traffic, parking and security
Starting a Drywall Contracting Business – Technical and Manpower Details
If you decide to start a standard drywall contracting company, then you should be ready to purchase some of the heavy-duty equipment and machines needed in the construction field. You would need to purchase working tools such as ladders, sanders, scaffolding, hawks, stilts, trowels and other safety wares (overall, safety boots, safety hand gloves et al. In setting up a small functional office, you will definitely need computers, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.
When it comes to manpower, of course you are not expected to kick – start a drywall contracting company without having some key roles occupied by trained and qualified personnel. If you are looking towards starting a standard drywall contracting company, then you should make provision for the following roles in your organization; Chief Executive Officer (President), Project Manager, Laborers, Admin and HR Manager, Business Developer, Accountant, and Front Desk Officer. It is the practice for drywall contracting companies to hire contract staff as laborers in construction sites.
When it comes to choosing between renting or leasing a facility for your office, then you should be guided by your business plan and long term and short – term business goals. If you have enough cash, then you should consider leasing a facility but if not, renting a facility is not a bad deal to start your drywall contracting company.
On the average, you would need about a dozen full time employees to start a drywall contracting company, not ignoring the fact that you should make provision for casual workers.
The Business Services Process Involved in a Drywall Contracting Business
The way drywall contracting companies work vary from one company to another, but ideally, a drywall contracting company is expected to first and foremost build a robust company’s profile before biding for contracts from top clients/corporate organizations; it will give them edge amongst their competitors.
The services process involved in the drywall contracting industry depends on the project to be handled. On the average, the process starts with biding or submitting proposal for a contract, once the contract is won, then all the contract documents have to be signed and advance payment made as required.
Once the payment has been sorted out, the next step is for the drywall contracting company to deploy workers and equipment and building supplies as required to execute the job.
Ideally, a property owner or real estate developer develops a program of their needs and inform his/her architect. The architect assembles a design team of consulting engineers and other experts to design the building and specify the building systems.
It is the norm for drywall contractors to be part of the design team and they assist in providing pre-design services such as providing estimations of the budget and scheduling requirements to improve the economy of the project; while in some instances, the drywall contractor is hired at the close of the design phase. The owner, architect, and drywall contractor work closely together to meet deadlines and budget. The drywall contractor works with subcontractors to ensure quality standards.
It is the practice for drywall contracting companies to first access the risk involved and the nature of job they are to do before billing the organization that requested for their services. Most often than not, if the contract involves high – rise building, the bills would usually increase because of the high risk involved in climbing and also the equipment such as gathers et al that would be used in executing the job.
It is important to state that a drywall contracting company may decide to improvise or adopt any business process and structure that will guarantee them efficiency and flexibility; the above stated drywall contracting business process is not cast on stone.
Starting a Drywall Contracting Business – The Marketing Plan
- Marketing ideas and strategies
The drywall contracting and construction related business is one of the businesses that cannot be over hyped beyond what you can deliver. As a matter of fact, you can spend loads of money marketing your drywall contracting business, but if you don’t have standard construction jobs to show for it, you can hardly attract big – time clients.
Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a drywall contracting business, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands that determine the market direction for drywall contracting cum construction industry.
As a matter of fact, your marketing strategy will center on attention to details, reliability, swiftness, safety, pricing, thoroughness, and above all excellent customer service. You should ensure that whenever your customers hire your services, they will get excellent service. The truth is that if you are able to put the above stated in place, you won’t struggle to retain your old customers and at the same time win over new customers.
Businesses these days are aware of the power of the internet and they will do all they can to maximize the internet to market their services. In other words, a larger percentage of your marketing effort will be directed to internet users. These are some of the marketing ideas and strategies that you can adopt for your drywall contracting business;
- Introduce your drywall contracting company by sending introductory letters alongside your brochure to architects, construction companies, government agencies, households, estate managers, corporate organizations, small scale businesses, medium scale businesses and other key stake holders throughout the city where your drywall contracting company is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business so as to give your business an online presence
- Directly market your services
- Engage in road shows in targeted business communities from time to time to promote your drywall contracting business
- Join local drywall contracting business associations for industry trends and tips
- Join local chambers of commerce and industry with the aim of marketing your services
- Advertise your business in community based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word of mouth marketing (referrals)
Strategies to Boost Your Drywall Contracting Business Brand Awareness and Create Your Corporate Identity
If your intention of starting a drywall contracting business is to grow the business beyond the city where you are going to be operating from to become a national and international brand by handling construction projects all across key cities in the United States and other parts of the world, then you must be ready to spend money on promotion and advertisement of your brand.
No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and brand boosting cum promotion to continue to appeal to your target market. Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your drywall contracting business;
- Place adverts on both print (newspapers and real estate magazines) and electronic media platforms
- Sponsor relevant community based events
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google + et al to promote your drywall contracting business
- Install your billboards in strategic locations all around your city or state
- Engage in roadshows from time to time in targeted residential communities to create awareness of your drywall contracting business
- Distribute your fliers and handbills in target areas
- Contact architects, construction companies, government agencies, households, estate managers, corporate organizations, small scale businesses, medium scale businesses and other key stake holders throughout the city where your drywall contracting company is located informing them about your drywall contracting company and the services you offer
- List your drywall contracting company in local directories
- Advertise your drywall contracting company in your official website and employ strategies that will help you pull traffic to the site
- Position our Flexi Banners at strategic positions in the location where your drywall contracting company is located
- Ensure that all your staff members wear your branded shirts and all your vehicles, trucks and vans are well branded with your company logo et al.