Starting a concrete coatings company requires careful planning. You need to know not only how to install and maintain concrete coatings but also how to reach your potential customers. It’s also important to be able to plan for business growth.
According to Construction Coverage, the construction industry makes up around 4.4% of America’s GDP. There are over 3.7 billion construction companies in operation today.
Concrete coatings are an underrated but important part of this industry, especially strong epoxy coatings. They can strengthen a garage or bring new life to a driveway. This makes a concrete coating company a viable business opportunity for those willing to put in the effort to set it up properly.
How Profitable Is a Concrete Coatings Business?
According to reports from Financial Models Lab, the average earnings for a concrete and masonry business start at approximately $303,000 in the first year. That can rise to $963,000 by the third year of operation.
How Much Money Do You Need to Start a Concrete Coating Company?
The amount of capital required to open a business depends largely on factors such as the services you’ll provide and the epoxy flooring equipment you use. However, Financial Models Lab says the average required capital for a concrete and masonry business is approximately $295,000.
How Can I Start a Floor Coating Business?
Careful planning is often the difference between a business failing and succeeding. Starting a floor coating business starts with creating a successful business plan and then taking the steps to achieve it, such as getting the right employees and a trustworthy supplier. You’ll also have to leave room in your plan for growth.
Understand Local Demand
Demand in the concrete coating industry is high. It’s necessary in a variety of different types of buildings, from residential to commercial. It’s also a specialized service that only professionals can provide. However, that demand isn’t the same everywhere.
Do thorough market research on the local area and your competitors before you start your business. See how profitable other concrete coating companies in the area are.
Choose Services and a Target Market
Choose a few specific services to offer and focus on. Options include but aren’t limited to:
- Driveways
- Home slabs
- Patios
- Repairs
You should also consider filling gaps in the industry that other companies in your area won’t touch, such as decorative masonry. It’ll help you stand out in a crowded market.
It’s also important to know who your target customer is. You’ll most often be serving homeowners, but go deeper than that. Who are they? What kind of work do they need? Answering these questions can help you reach them better.
Hire Employees and Make Connections
Laying concrete coatings can be a difficult job that requires a team. Find the most experienced, high-quality employees you can get for a reasonable rate.
Once you’ve found them, start concrete coatings training. They need to know how to provide all the services your business advertises.
Your floor coating supplier is one of the most important connections you can make. Ensure they’re reliable enough to keep your concrete coatings supply from running out.
You should also make connections with other professionals. You can learn from them and work together.
Make a Detailed Business Plan
Having a business plan is the most essential step in starting a concrete coatings company. It needs to be as detailed and effective as possible.
The plan needs to be punctuated by a perfect business name. It needs to be short but memorable. It should also include keywords such as “concrete” to help with SEO or search engine optimization.
An executive summary, operations plan, and business overview cover the broadest aspects of your business. They provide a general idea of what you do and why.
Include product and service descriptions. That includes all the floor coating techniques and materials you plan to use.
Don’t forget team information about who’s working with you. That includes your workers and epoxy floor supplier.
You should also include the sales and marketing strategies you plan to use. Financial projections keep you on track to your goals. A market and competitive analysis helps you remain competitive.
Get Financing
One of the best business setup tips is to calculate all costs before you begin. For a concrete coatings company, this could include:
- Specialized equipment
- Staff salaries
- Marketing
There are also several options to get financing to cover these costs. Personal savings can help get you started. Taking out a loan is also an option.
If you show your business plan to investors, pitch your business as well as you can. Emphasize the potential profitability of concrete coatings. They may be willing to get you the rest of the way in terms of funding.
Get Licenses and Permits
You’ll need to register your business with the Illinois Department of Revenue before you can work. You may also need various licenses.
A mason contractor’s license is required for all professionals who work with concrete. A general contractor’s license covers most building alterations, but there are several classes, so determine which one you need based on the size of the project. A home repair license covers any home improvements or alterations to residential homes.
Check for any required permits before doing each job. Working without them or without the right license can result in severe financial or even criminal penalties.
Start Marketing
Marketing is essential to get the word out about your business. A website and social media presence are two of the best places to start because they’re where most potential customers look first.
Technology isn’t your only option. Put out an ad in a newspaper or construction publication. Go around to trade shows and community events.
Positive word of mouth can also be the most effective form of marketing in the world. Offer rewards for customers who refer you to their friends and family. Ask for reviews after each job. It helps establish trust and encourages future customers to sign on with you.
Focus on Long-Term Management
Businesses need a strong foundation to succeed, but you also have to continually build on it if you want to grow.
Regularly review your business plan. Consider making a change if you feel that any part of it is holding you back.
Start simple with a small list of services and easy-to-use starter kits for coatings. It keeps you from ever being overwhelmed. However, it’s important to be willing to grow from there. Keep ahead of the latest trends and be willing to try new technologies or tools.
Maintain positive relationships with your customers and suppliers. You’ll develop strong trust that makes them want to return to you.
You and your employees should all attend classes at an epoxy training school on a regular basis.They can refresh your skills and teach you the latest techniques and trends.
Frequently Asked Questions
What Should You Avoid When Starting a Business?
Don’t burn through your money too quickly. On the other hand, don’t be afraid to invest in valuable opportunities for growth, either. Create a detailed budget that outlines what you’ll spend and when.
Lacking a team is a surefire way to fail, but don’t rush to hire new employees. Do it when you need them, and be sure to properly delegate tasks.
Be careful with your contracts. Having everything laid out in black and white prevents issues later.
Think about how you price your services. Do market research to see how much demand there is for them and what other companies in the area are charging. Use the averages in the area to help you pick a fair price.
What’s the Enemy of Concrete?
Water is the enemy of concrete. It’s a problem in areas with high rainfall, such as Chicago. Water damage can cause issues such as:
- Erosion
- Surface scaling
- Expansion
- Mold growth
That’s why it’s so important to cover the concrete. A properly installed and maintained epoxy layer can prevent water damage. That’s because epoxy is essentially waterproof. It bonds with the concrete and creates a dense, non-porous structure. There’s no room for water to get in or mold to grow.
How Long Do Concrete Coatings Last?
A properly installed epoxy coating can last three to five years or more. There are also ways to enhance its lifespan. Homeowners and professionals must not forget about proper maintenance, such as cleaning and resealing. It’s also important to get prompt repairs.
How Training Turns Your Concrete Coatings Company From a Dream Into a Reality
A concrete coatings company can be a profitable venture. The key is to create a carefully laid-out business plan and use it to guide all your other decisions towards long-term growth.
Epoxy Depot Chicago is more than a reliable concrete materials supplier. We have years of experience in the floor coatings industry, and we’re ready to pass that knowledge on to you. Our classes can teach you everything you need to know to create concrete designs that impress your customers.
Take the first step towards starting your business. Register for our epoxy training classes today.
