Do you want to start a demolition company from scratch? Or you need a sample demolition business plan template? If YES, then i advice you read on.
Most construction and renovation companies prefer to sublet their demolition jobs or contracts to demolition companies; you can tap into the multi million dollars demolition industry and make a good income for yourself by starting a demolition company.
As a demolition company firm, your job line is to bring down unwanted structure or fixture both in the interior and exterior part of the building. A demolition business is much easier to start than it naturally seems, and depending on the number of construction and renovation companies around and also the competition in the area, you can start and grow your demolition services to a big business venture.
In this article, I will start by mentioning reasons why you should start a demolition business, and also steps to starting your own demolition business.
3 Reasons Why You Should Start a Demolition Company
- Availability of Jobs-: There are always jobs available for a demolition company all year around. If you take a work around you city, you will notice several construction jobs going on simultaneously, because people are always demolishing and setting up new structures and major renovation works are going on like every other week. So you can be sure of constant work all year round; it all depends on how well you advertise your business.
- Not Capital Intensive-: This business is not capital intensive; apart from the money you will need to get your business registered, purchase equipments and lease an office space, you won’t need much money to run the business. So if you are looking for a lucrative business that is not too cash intensive that you can grow into something big, then you can start up a demolition business.
- No Technical Knowledge Required-: Anybody can successfully start and run this type of business because you don’t need to get special training or even a College degree to run a demolition business. A simple knowledge of how to operate machineries and equipments you need to carry out the jobs, and basic experience of demolition process, is all you need to run the business.
If you have worked in a demolition firm prior to starting your own business, it will be a very good advantage to your business; or if your employees have prior knowledge of how to go about the demolition process, you may not need to get the basic knowledge altogether.
Starting a Demolition Company – Sample Business Plan Template
1. Develop a Business Plan-: This is the first vital step to take when starting a demolition business. What will your business look like? How much capital do you have to get started?
Which State will the business be situated? Will there be other investors and Partners along the line or will you be the sole owner of the business? Where do you see your business in the next two to four years? What steps will you and your employees take daily to ensure that your business goals are achieved?
Answers to these questions will form the basics of your business plan. If other partners will be involved in the business, you have to state their duties and responsibilities in the business plan and let the Partner know his or her duties and responsibilities from the beginning to avoid misunderstanding later on.
2. Acquire the Necessary Licenses-: You need to acquire your business license, Tax identification License and also a Contractors License to successfully run this business. You can hasten up the process by using the services of a Lawyer.
As you go about getting the required license to run a demolition business in your State, endeavour to do a business registration along site, to allow your business run as a legal entity. There a lot of benefits of running your business as a legal entity other than a private set up.
3. Get Business Insurance-: In most States, it is mandatory to get business insurance before you can run a demolition business; so make arrangement with your insurance company to get a license for your business. Also, you may require a demolishing insurance to run this business.
4. Purchase Equipments You Need-: There are some vital equipment you need to successfully run a demolition business including; hammers, chisels, nail pullers, dynamites, bulldozer, etc.
5. Hire and Train Your Team of Workers-: You need a team of dedicated workers to successfully run your business. After the employment process is done, you may need to conduct regular Work Safety trainings for them to minimise the risk of accident as they go about their line of duty. The Safety Training is actually necessary because, you as the employer will be help liable for any injury caused by your employees as they go about their work.
6. Source for Clients-: After putting everything in place for your business to kick off, you need to source for clients or actually create awareness of your business to get clients. We mentioned earlier that it is mostly construction and renovation companies often require the services of a demolition business.
The best way to get to them is to make a list of all the construction and renovation companies in your area; get their contacts and mail them a proposal and a copy of your company’s fliers. The proposal should include details of the services you offer; whether exterior or interior demolition services, state it in the proposal, and also mention qualities that make your company outstanding from other demolition companies around.
Also, you can offer them a slight discount to get them use your company the next time they have a demolition contract to sublet. Secondly, if you offer interior demolition services or residential demolition, you can contact interior designers in your area, because they required the services of residential demolishing companies to work on the interiors of a house before they work on it.
In conclusion, demolition business is not hard to start and not capital intensive; you can start up small as a residential demolishing company and expand from their. Remember that there may be little competition out there for your business for starters, but with good networking and advertisement strategy, you can breakthrough and create a name for yourself in the industry.