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How To Start a Concrete Business | Tradify™

Written by Team Tradify | May 24, 2023 2:58:52 PM

Almost every construction project requires concrete. This fact alone, combined with the global shortage of skilled workers and a fast-recovering construction industry, and you’ve got all the makings of a lucrative business opportunity. If you’re considering going out independently as a contractor or small business owner, these five key steps will help you lay solid foundations for a thriving concrete venture. 

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1. Setting goals for your concrete business

Aside from the possible financial perks of becoming a business owner, you must ask yourself why you want to start your own concrete business.

Perhaps you’re ready to work for yourself, want more flexible working hours, or are passionate about building a reputable business. Whatever your reason, keep it in mind when making any future business decisions. That motivation will help you stay focused when the going inevitably gets tough.

2. Put together a concrete business plan

Creating a business plan can take time and effort for first-time owners. Where do you start? But completing this step will help you build a sustainable, long-term business versus a one-year wonder. 

Your plan doesn’t need to be long, but it should cover the following:

  • Financial projections
  • Growth opportunities
  • Marketing strategies
  • Financing
  • Short and long-term goals

What concrete services will you offer?

Before planning, decide what type of concrete work you’ll offer. This will depend on your skill level, experience and team size.

  • Residential concrete work often involves smaller projects and less liability, meaning fewer permits or licenses. 
  • Commercial concrete work includes larger-scale projects using concrete to build or enhance business facilities such as industrial buildings, warehouses, retail stores, and restaurants.
  • Do you want to be known as a specialist in a particular area? Driveways, home slabs, garage floors, patios, sidewalks, porches, concrete repairs or decorative concrete?
  • What types of concrete do you work with? Normal strength, prestressed, reinforced or ready-mix?

3. Training and qualifications for concreters

You don’t need specific training or formal qualifications to work with concrete, particularly entry-level jobs. However, completing a tertiary-level course or an apprenticeship will help you sharpen your skills and reassure potential customers that you know what you’re doing and can deliver top-quality work. 

Check out these links to find out more about training courses:

4. How much should you charge?

When starting a business, doing work for free or dropping your prices can be tempting. But there’s a fine line between being competitive and selling yourself short. So, when calculating your charge-out rate, you’ll want to factor in all your expenses and operating costs, plus the profit you want to make.  

5. Finances — how much does it cost to start a concrete business?

It might seem counterintuitive to get your finances in order before you’ve made any money. But, we know that the most common goals for tradespeople are to turn a profit, operate efficiently, and have a good work-life balance. To do all that, you need to consider those all-important financial aspects of running a business, sooner rather than later. 

Funding your business

How are you going to fund the launch of your concrete business? If you plan to approach a lender, here are some documents you’ll need:

  • A break-even analysis — be sure your business can at least break even before it makes a profit.
  • A cash-flow forecast — how much money will move in and out of your business, and when?
  • A sales forecast — estimate future revenue by predicting weekly, monthly or yearly sales. This isn’t easy when you’re starting, but there are ways to determine whether your business idea is financially viable.

You may also want to research whether you’re eligible for local government funding. Here are some links to get you started:

  • 🇺🇸 USA - SBA provides limited grant funding to eligible businesses.
  • 🇬🇧 UK -  Start-Up Loans of £500 to £25,000 are available to start or grow your business.
  • 🇦🇺 AU -  Check if you’re eligible for a range of grants that vary between states.
  • 🇳🇿 NZ - Government grants, advice and mentoring are available, depending on your business.

Insurance

There are many parts to running a business that you can improve on over time, but insurance is something you should have right from the start.

  • You’ll want your work vehicle and equipment covered should they get stolen or damaged. 
  • If you have staff, you might consider worker’s compensation.
  • As the boss, you’ll want general business owners’ and income protection insurance.

What policies you take out will depend on the structure of your business and the type of work you do. Here's our article on business insurance for tradespeople.

Register your business 

If you’re planning on hiring staff or operating under a business name (now or in the future), it’s essential to get your business registered through the proper channels:

Invest in good-quality tools

Every concrete contractor or business owner needs a complete set of tools. The right tools will mean a successful pour rather than a potential disaster. The good news is that most essential tools, like shovels, buckets, groove cutters and floats, don’t require a significant investment. However, a work vehicle will likely be the highest cost of setting up your concrete business.  

Depending on the type of concrete work you offer, you may also need the following:

  • Speciality or protective gear 
  • Larger equipment like portable mixers 

However initially, it may be more cost-effective to rent these items. 

Remember, you can claim back tax on most of your business expenses, particularly assets like your work vehicle and equipment. 

Accounting and taxes

Your business can have the best reputation in the world, but if you don’t stay on top of your finances, late loan payments and overdue tax fines will keep you on the back foot. If you can’t afford to work with an accountant straight away, you might consider accounting software — and all of these popular options integrate with Tradify:

6. Pave your way to a successful concrete business

And just like that, you have what you need to share your new concrete business with the world. You’ll be shaking hands with happy customers in no time. But, as the workload increases, so will the amount of admin. That’s when specialised concrete job management software like Tradify is an all-in-one fix that’ll put your day-to-day estimating, quoting, schedulingjob management and invoicing processes into one streamlined system.

If you’re looking for concrete software to run your business — try Tradify for free!