The concrete industry is growing, and analysts expect the growth to continue over the coming years. Starting a concrete business in the near future can be a profitable decision under the right circumstances. Here are a few tips to help get your concrete company off the ground:
- Analyze the costs: Before starting a business, you should crunch the numbers to estimate how much it will cost to keep your company afloat. With an accurate idea of costs in mind, you can better understand how many projects you need to take and how much you can charge. For reference, a 2021 industry report claims U.S. concrete contractors spend roughly 26.7% of their budget on wages, 46.9% on purchases and 2% on rent and utilities.
- Solidify a plan: With your estimated costs in mind, it's time to develop a plan to cover them and make you some profit. A solid business plan will detail the work you plan to do and the customers you plan to target while also summarizing what makes your business distinct from others in the industry. A business plan will help you conceptualize a company identity and bring it to life.
- Set reachable goals: Starting a new business can be daunting, but you can make it easier by setting a few easy-to-reach goals. Thinking small in your business's early days will help you gain confidence and build momentum to carry as you approach larger milestones. Examples of small goals for new concrete businesses could be hiring your first employee, securing a business license, selecting your equipment or nailing down your first client.
- Set lofty goals: As you start to knock out some of the smaller items on your to-do list, be sure to reach high toward goals that will take your business to the next level. Successful businesses set their sights high in terms of targeting annual profits, signing large clients and improving efficiency.
- Polish your bidding skills: Securing high-paying contracts in the concrete industry involves bidding for the job against other contractors. It's important to balance your bids so the client accepts your offer but you still take home enough earnings to cover your expenses and make some profit.
- Prioritize safety: Your employees and equipment are the most important assets to your concrete business. New companies make every effort to ensure the people and machines under their watch are safe during every job to avoid injury, damage expenses or costly OSHA violation fees.
- Build connections: Growing a strong network of clients is essential for any concrete business. If you complete every job with the same attention to detail as the last while also forming relationships with your clients, you'll develop a positive reputation that will make your services more attractive to newer, larger clients or investors. Any lead could be a life-changer, so remember that every connection counts.
Get Started With Rental Equipment
Choosing the right equipment is a vital part of starting a new concrete business. In many cases, renting is the best option for new companies that want to keep expenses and risks low. For great deals on rugged, reliable concrete equipment, supplement your fleet with machines from The Cat® Rental Store.
To learn more about our dealer network's rental equipment, or to secure a quick quote on a machine, browse our inventory online or call 1-800-RENT-CAT to rent the tools you need to help your business thrive. You can also reach out to the Cat dealer near you for personal assistance.
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