Business ideas
8 min read

How to Start a Profitable Concrete Contracting Business [11 Steps]

Learn how to start a successful concrete contracting business in 11+ easy steps. From equipment to marketing, we've got you covered. Start your business today! #concretecontracting #smallbusiness #entrepreneurship
Nick

By Nick Cotter
Updated Feb 05, 2024

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This page may feature products from our affiliate partners, which could influence the products we discuss due to potential compensation. Despite this, our evaluations are impartial, based solely on our independent analysis. The content here is intended for informational purposes and should not be seen as legal advice. For professional guidance, consulting with a legal expert is recommended.
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1. Perform market analysis.

Starting a concrete contracting business requires an understanding of the current market to identify potential opportunities and challenges. A thorough market analysis will provide insights into the industry, competition, and customer demand. Here's how you can perform a market analysis:

  • Research the construction industry trends to grasp the demand for concrete services and predict future market developments.
  • Analyze local and regional competitors to understand their service offerings, pricing strategies, and market share.
  • Identify your target customer base, whether residential, commercial, or industrial, and assess their specific needs and preferences.
  • Examine the regulatory environment to ensure compliance with building codes, environmental regulations, and licensing requirements.
  • Look into the availability and cost of materials and labor in your area to estimate operational expenses.
  • Assess the potential for partnerships with local builders, contractors, and suppliers to expand your reach and resources.
  • Use surveys or interviews to gather feedback from potential customers about their expectations and willingness to pay for your services.
concrete contracting business image

Are Concrete Contracting businesses profitable?

Yes, Concrete Contracting businesses can be highly profitable depending on the size of the business, the quality of the services offered, and the demand for concrete services in the local area. Factors such as the cost of materials, labor, and overhead expenses will also have an impact on the profitability of the business.

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2. Draft a concrete contracting business plan.

When venturing into the concrete contracting business, a well-thought-out business plan is essential for a strong foundation. This plan will serve as a blueprint for your business's structure, strategies, and future growth. Here are some key components to include in your concrete contracting business plan:

  • Executive Summary: Provide a brief overview of your business goals, mission statement, and the basic details about your company's structure and leadership.
  • Market Analysis: Research your local market, identify potential clients, analyze competitors, and understand industry trends to position your business effectively.
  • Services Offered: Clearly define the types of concrete services you will offer, such as residential or commercial projects, and any specialty services.
  • Marketing Plan: Outline how you will attract and retain customers, including branding, advertising strategies, and your online presence.
  • Operational Plan: Describe your day-to-day operations, the equipment you'll need, your staffing plan, and any processes or technology you will use.
  • Financial Plan: Detail your startup costs, projected income, pricing strategy, and long-term financial projections to ensure profitability.
  • Risk Management: Identify potential risks and outline strategies to mitigate them, including insurance and safety protocols.
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How does a Concrete Contracting business make money?

A concrete contracting business can make money by charging customers for the labor, materials, and equipment needed to complete concrete projects. This can include laying, pouring, and finishing concrete, as well as providing related services such as cleaning and sealing. Depending on the size and complexity of the project, the contractor may also charge for project management services, such as overseeing the entire project from start to finish. Additionally, contractors may charge for services such as providing estimates, consulting with clients, and obtaining necessary permits.

3. Develop a concrete contracting brand.

Creating a strong, memorable brand is crucial to standing out in the concrete contracting industry. Your brand is what sets you apart from competitors and can attract customers to choose your services. Here are some steps to develop a concrete contracting brand:

  • Choose a Name: Select a business name that is unique, easy to remember, and reflects the strength and reliability of your services.
  • Design a Logo: Develop a professional logo that represents your business. It should be versatile for use on business cards, vehicles, and marketing materials.
  • Define Your Brand Message: Craft a clear and concise brand message that conveys the value you bring to your clients. This message should be consistently communicated across all marketing channels.
  • Uniform Branding: Ensure all your materials, like business cards, brochures, and your website, feature consistent branding elements such as colors, fonts, and your logo.
  • Online Presence: Establish a professional online presence with a website and social media profiles that showcase your work, customer testimonials, and contact information.
  • Customer Experience: Align your customer service with your brand promise to build trust and encourage word-of-mouth referrals.

How to come up with a name for your Concrete Contracting business?

When coming up with a name for your Concrete Contracting business, it is important to consider the message you want to communicate. Think of words that capture the essence of your business, such as strength, durability, and reliability. Consider incorporating your name or the name of your location into the name, to make it more personal. Finally, be sure to register the name as a business entity and trademark it so that it is legally protected.

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4. Formalize your business registration.

Once you've laid the groundwork for your concrete contracting business, the next essential step is to formalize your business registration. This legal step is crucial as it will legitimize your business, allowing you to operate within the framework of the law, and often provides certain protections and benefits. Here's a guide to help you navigate the registration process:

  • Choose a Business Structure: Decide whether your business will be a Sole Proprietorship, Partnership, Limited Liability Company (LLC), or Corporation. Each structure has different tax, liability, and record-keeping requirements.
  • Register Your Business Name: If your business name is different from your own name, you may need to register it with your state or local government. This is often referred to as filing for a DBA (Doing Business As).
  • Obtain Necessary Licenses and Permits: Depending on your location and the scope of services you provide, various licenses and permits may be required to operate legally. These can include a general business license, contractor's license, and zoning permits.
  • Get an Employer Identification Number (EIN): If you plan to hire employees, you'll need an EIN from the IRS for tax purposes. This is also often necessary to open a business bank account.
  • Register for State Taxes: You may need to register with your state tax department for sales tax, payroll tax, and other state taxes.
  • Understand Ongoing Compliance: After registering, stay informed about ongoing compliance requirements including annual filings, renewals, and record-keeping to maintain good standing.

Resources to help get you started:

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5. Acquire necessary licenses and permits for concrete contracting.

Starting a concrete contracting business involves a crucial step of obtaining the necessary licenses and permits to operate legally and safely. This process varies depending on your location and the scope of work you plan to undertake. Here's a guide to help you ensure you're compliant with all regulatory requirements.

  • Check with your local city or county government to determine the specific licenses required for concrete contractors in your area. This could include a general business license and a contractor's license.
  • Apply for a contractor's license through your state's licensing board. This may involve passing an exam that covers business practices, law, and trade-specific knowledge.
  • Obtain an Employer Identification Number (EIN) from the IRS if you plan to hire employees, which is also beneficial for tax purposes even if you don't.
  • Research and secure any additional permits that may be necessary for specific projects, such as building or land-use permits.
  • Ensure you have the necessary insurance, including general liability and workers' compensation, as these may be prerequisites for obtaining licenses.
  • Stay informed about renewals and continuing education requirements to maintain your licenses and permits over time.

What licenses and permits are needed to run a concrete contracting business?

The exact licenses and permits needed to run a concrete contracting business will vary depending on the state and local regulations. Generally, it is necessary to acquire a general contractor license, municipal or city permits, liability insurance, worker’s compensation insurance and possible additional permits related to zoning or hazardous materials. In some states, it is also required to have a license or certificate of competence in concrete construction.

6. Open a business bank account and secure funding as needed.

When starting a concrete contracting business, it is essential to keep your finances organized and secure the necessary capital for operation. Opening a business bank account will help you manage cash flow, expenses, and revenue effectively. Additionally, exploring various funding options can provide the financial support needed to cover startup costs and maintain liquidity. Consider the following steps:

  • Research different banks and their business account offerings, looking for low fees, high transaction limits, and accessibility.
  • Gather required documents such as your business license, EIN (Employer Identification Number), and ownership agreements to open a business bank account.
  • Apply for a business credit card to help track business expenses and build your company's credit history.
  • Explore funding sources such as small business loans, lines of credit, equipment financing, or investors to provide the necessary startup and operational capital.
  • Consider government grants and local small business programs that may offer financial support to new construction-related businesses.
  • Create a detailed business plan to present to potential lenders or investors, showcasing your business strategy, projections, and financial needs.

7. Set pricing for concrete contracting services.

Setting the right prices for your concrete contracting services is vital to your business's success. It balances being competitive with maintaining profitability. Here's a step-by-step guide on how to approach pricing:

  • Analyze Costs: Calculate all your expenses, including materials, labor, equipment, insurance, and overhead. Ensure your pricing covers these costs plus a margin for profit.
  • Market Research: Research what competitors in your area are charging for similar services. This will give you a ballpark figure to work with and ensure your prices are competitive.
  • Value-Based Pricing: Consider the value you bring to your clients, such as expertise, specialty services, or a strong reputation. Price higher for services that offer more value.
  • Job Complexity: Adjust prices based on the complexity and scale of the project. Larger or more complex jobs should be priced higher to account for increased risk and resource commitment.
  • Geographic Location: Take into account the cost of living and the going rates in the area where you operate. Urban areas may support higher prices than rural locations.
  • Flexible Pricing Strategy: Be prepared to negotiate with clients and offer discounts for bulk work or for loyal customers, but always keep your minimum acceptable price in mind.

What does it cost to start a Concrete Contracting business?

Initiating a concrete contracting business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $130000 for launching such an business. Please note, not all of these costs may be necessary to start up your concrete contracting business.

8. Acquire concrete contracting equipment and supplies.

Embarking on a concrete contracting business requires not only skill and expertise but also the right set of tools and equipment. Acquiring high-quality concrete contracting equipment and supplies is crucial for delivering exceptional work that stands the test of time. Here's a guide to help you get started:

  • Concrete Mixer: Invest in a reliable concrete mixer that suits the volume of work you expect to handle. Portable mixers for small jobs or stationary mixers for larger projects are essential.
  • Power Tools: Purchase power tools like concrete saws, power trowels, and angle grinders. Cordless models can offer convenience on job sites without ready access to power.
  • Hand Tools: Stock up on shovels, trowels, edgers, and floats for shaping and finishing concrete surfaces.
  • Protective Gear: Ensure safety with hard hats, gloves, safety glasses, and steel-toed boots for you and your crew.
  • Formwork Materials: Obtain various formwork materials like plywood, stakes, and hardware for shaping poured concrete.
  • Reinforcement Supplies: Purchase rebar, wire mesh, and fiber reinforcements to strengthen concrete structures.
  • Measurement and Leveling Tools: Acquire accurate measuring tapes, laser levels, and chalk lines for precise work.
  • Concrete Curing Compounds: Stock curing compounds to ensure proper setting and hardening of concrete.
  • Transportation: Consider a heavy-duty truck for transporting materials to and from your job sites.

List of Software, Tools and Supplies Needed to Start a Concrete Contracting Business:

  • General Contractor Software
  • Financial Software
  • Construction Estimating Software
  • Contract Management Software
  • Accounting Software
  • Safety Equipment
  • Personal Protective Gear
  • Concrete Mixers
  • Concrete Cutters
  • Concrete Hand Tools
  • Concrete Drills
  • Concrete Trowels
  • Concrete Vibrators
  • Concrete Finishing Tools
  • Concrete Formwork
  • Tape Measures
  • Levels
  • Wheelbarrows
  • Cement
  • Sand
  • Gravel
  • Reinforcing Steel
  • Building Materials
  • Worker's Compensation Insurance
  • General Liability Insurance

9. Obtain business insurance for concrete contracting, if required.

As a concrete contractor, obtaining the right business insurance is crucial to protect your operations, employees, and assets. It offers a safety net against unforeseen events that could otherwise jeopardize your business. Here's how to go about it:

  • Assess your risks: Consider the specific risks associated with concrete contracting, such as on-site accidents, equipment damage, and liability issues.
  • Research insurance options: Look into different types of insurance, including general liability, workers' compensation, commercial auto, and equipment insurance.
  • Consult with professionals: Speak with an insurance agent or broker who specializes in construction or contracting businesses to get tailored advice.
  • Compare quotes: Obtain quotes from multiple insurance providers to compare coverage options and premiums.
  • Review policy details: Carefully read the terms and conditions of each policy to ensure it meets your business needs.
  • Stay compliant: Ensure that your insurance policy satisfies any legal requirements in your jurisdiction and keep it up to date with your business growth.
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10. Begin marketing your concrete contracting services.

Once you've laid the groundwork for your concrete contracting business, it's time to attract customers by marketing your services effectively. Here are key strategies to promote your business and start building a strong client base:

  • Develop a professional website that showcases your services, past projects, and customer testimonials. Ensure it's optimized for search engines (SEO) to increase visibility.
  • Utilize social media platforms to connect with potential customers, share your work, and engage with the community. Regular updates and before-and-after photos of projects can highlight your expertise.
  • Create business cards, brochures, and flyers to distribute in local hardware stores, construction sites, and community boards to reach a local audience.
  • Network with local builders, architects, and landscapers to establish referral partnerships that can lead to new projects.
  • Offer introductory promotions or discounts to first-time customers to encourage them to try your services.
  • Invest in targeted online advertising through platforms like Google Ads or Facebook Ads to reach potential clients actively searching for concrete contractors.
  • Encourage satisfied customers to leave positive reviews on platforms like Yelp, Google My Business, and Angie's List to build your reputation.

What licenses and permits are needed to run a concrete contracting business?

  • General Contractor Software
  • Financial Software
  • Construction Estimating Software
  • Contract Management Software
  • Accounting Software
  • Safety Equipment
  • Personal Protective Gear
  • Concrete Mixers
  • Concrete Cutters
  • Concrete Hand Tools
  • Concrete Drills
  • Concrete Trowels
  • Concrete Vibrators
  • Concrete Finishing Tools
  • Concrete Formwork
  • Tape Measures
  • Levels
  • Wheelbarrows
  • Cement
  • Sand
  • Gravel
  • Reinforcing Steel
  • Building Materials
  • Worker's Compensation Insurance
  • General Liability Insurance

11. Expand your concrete contracting business.

Once your concrete contracting business is established and running smoothly, it's time to think about expansion. Whether you're looking at increasing your service offerings, broadening your market reach, or scaling up your operations, careful planning and strategic execution are key to successful growth. Here are some steps to consider:

  • Invest in Marketing: Enhance your online presence, attend trade shows, or invest in advertising to attract new customers.
  • Diversify Services: Offer additional services such as decorative concrete or specialized finishes to meet more client needs.
  • Geographic Expansion: Explore opportunities in neighboring areas or regions that may have a demand for your services.
  • Hire Additional Staff: Recruit skilled laborers and professionals to handle the increased workload and to bring in new expertise.
  • Upgrade Equipment: Invest in the latest technology and machinery to increase efficiency and capacity for larger projects.
  • Form Strategic Partnerships: Align with other construction professionals or companies to offer comprehensive packages to clients.
  • Financial Planning: Ensure you have a solid financial plan to manage the costs of expansion and the potential increase in revenue.