If there is one industry that will always have a need, it’s road construction. At least that is until we end up with flying cars. There are almost a hundred billion dollars spent every year on our roadways, whether it be for repairs or building new roads. You can take your part out of that market by starting a commercial paving company. All roads need concrete, and you can be the one to provide it.
However, you can’t just decide one day that you will run a paving company and start getting contracts. You will need to take some necessary steps to get your business up and running and prepared to be in it for the long haul. Here is everything you need to start a commercial paving company.
You will need some kind of experience before you open a paving company. It’s always a good idea to work in the industry for at least a year or two to get the lay of the land and understand how the industry works. Patience is important since you don’t want to find yourself owning a business and not knowing how to do the work. You’ll need to understand the day-to-day operations of a commercial paving company, how to bid for contracts, and how to operate machinery. Get your certifications and get some experience, and then you can think about getting started on your own.
Develop a Business Plan
Once you have an idea of what it takes to run a commercial paving company, you can start to plan your business. You will need to project out your potential expenses for at least a year, as well as project your revenues. If you are being realistic with your calculations, it will give you a good idea of what you can expect going forward. Your business plan should include everything about the operation of your business, from your staffing to location, to bidding strategy, to marketing. It will keep you pointed in the right direction at all times and prevent you from getting overexcited or too despondent when things are going great or poorly. A business plan is also necessary to secure funding from other parties.
Unless you are already wealthy, you will need some funding to get through your initial phase before you start bringing in revenues. Being a commercial paving company in Vallejo, CA, involves high startup costs. You will need to get some certifications and licenses, and the equipment you need is very expensive. On top of that, you will need a location to store that equipment and any vehicles you have for your company. You will also need to pay for staff and utilities. Do not assume you will have the revenues to cover those costs early on. To get funding, you can approach private investors to see if they would like to partner with you. You can also seek government grants or commercial business loans. You will be more successful if you have a strong business plan in place.
Choose a Business Entity
The kind of funding you get will have a bearing on the type of business entity you choose. It is always a good idea to create a business entity that is separate from your personal finances so that you can protect yourself as an individual. For example, you can have a limited liability company, which involves investors sharing the risk. You may also want to form a corporation, which involves providing documentation to register as a corporation and have a board of directors. Whatever you choose, you can always change it as your business evolves.
To run a paving company, you will need a lot of heavy machinery, tools, equipment, and vehicles. You can’t wait to get these things, because you will need them for your first job. If you don’t want to purchase certain items, then contact a distributor to see about renting per job or leasing. You can’t afford to be without specific equipment when you have taken a contract. You will be delayed and potentially have to pay penalties because of it.
Having the right materials is crucial for a commercial paving company. You need the roads you cover with regular maintenance to last a long time. You will need asphalt products as well as binding agents. It’s not practical to store these materials yourself, so you will have to find a supplier you can count on when you have jobs. You will need acceptable terms for payment, convenient pickup or delivery options, and fair prices.
The final step is to get work. Networking is a powerful tool for a commercial paving company. You can contact all of the contractors that do the work and ask them to be on their bidding list for the next project. You will have to have a strategy for your bidding since you want to balance the great service you can offer with needing to make a profit and having a price that’s not too high for contractors. Once you start working, you will meet others in the industry and make more connections. The better work you do, the more clients and projects you will have. That is what will make you money.
Owning a commercial paving company can be incredibly lucrative. However, you need to make the right moves and set your business up for success. If you start without all of our ducks in a row, you will find yourself floundering very quickly. If you love to build things and work on a variety of different projects, then paving could be the perfect way for you to have meaningful work and find success.