How To Start a Concreting Business in 5 Steps

By Indeed Editorial Team

Published April 8, 2022

Running your own construction business can offer benefits like making your own schedule, controlling your own salary and choosing your clients. Starting a concreting business is a popular option in the construction field because basic concrete work can take just a few months to learn. Understanding the concrete business and how it works might help you better understand the prerequisites for starting a career path with your own company. In this article, we define a concrete business and show you five steps to start your own organization.

What is a concreting business?

A concreting business is a construction company that focuses primarily on concrete work. This might include mixing, pouring and shaping concrete into shapes or residential and commercial structures. Concrete business owners typically start as concrete laborers and learn the primary skills of how to mix, pour and shape the concrete and how the material works. To start a concrete business, you typically need at least some experience in the concrete or construction industry and some business acumen to help you organize your company appropriately and manage daily operations.

Related: 64 Construction Terms and Definitions

Why start a concreting business?

Starting a concreting business can offer an opportunity to explore self-employment and self-management. Here are some reasons to start a concreting business:

You can determine your own salary, schedule and clients

One of the most compelling reasons to start your own concreting business is to determine your own salary, schedule and which clients you serve. This level of flexibility can help you create a schedule at your desired level of work and home life balance and determine your own salary. Additionally, you can choose your own clients, possibly giving you access to more unique projects and the ability to decline costly, dangerous or otherwise unfavorable projects.

Related: The 5 Most Common Construction Contracts

You can learn unique concreting skills

By choosing your own jobs and clients and hiring your own staff, you might have opportunities to learn unique skills through different projects and professional connections. You can learn skills from the foremen and laborers you hire for job sites and master your current skills by applying them in unique situations. This flexibility may help you grow professionally and help you become a more competitive business in the concrete industry.

You can make professional construction connections

By creating your own business, you can begin forming important professional connections that you might not have access to as an employee. For example, you can create professional relationships with other business owners or leaders in the industry and make professional connections with your own clients. Creating a larger, more robust professional network can help you grow your business and your reputation, possibly offering opportunities to work on unique or profitable projects and showcase your skills for a larger group of people.

How to start a concreting business

To start a concreting business, try following these five steps:

1. Determine what kind of concrete work you want to do

Determine what kind of concrete work you want to do before you start making your business plan and hiring contractors. Residential and commercial concrete construction share many similarities, but also differ in a few key areas. Residential concrete work often involves smaller projects and less liability, which can mean fewer permits or licensure. Depending on your skill level and comfort working with concrete, residential work might be a good starting point. Research each option to determine startup costs, what kind of labor needs each kind of concrete work requires and what materials and equipment you might need.

Related: How To Get a Construction Job

2. Create a business plan

Once you identify your niche or market, start creating your business plan. A business plan is a document that outlines the business's structure, function and other details about its operations. This document can serve as the primary plan for your business and also helps banks, investors and potential partners better understand your goals for the company. A well-organized and professional business plan might help you get the funding to get started through loans or investments. If you've never made a business plan before, you can hire a business attorney to help you craft a good plan.

3. Obtain licensure and permits

Most construction companies carry certain licensure, permits or insurance to help protect both the company and the customer. Determine what licenses you might need for a concreting business and apply for or acquire each one. Most construction companies need general liability insurance, commercial auto insurance for vehicles, worker's compensation insurance and property insurance. Building certain structures also requires permits from local governments or building authorities, but these can vary by project. Include the cost of insurance and licenses in your original business plan to account for all of your primary costs.

4. Hire a talented staff and purchase equipment

Once you create a business plan, form your business and obtain the correct licenses, permits and insurance, you can begin hiring talented staff and purchasing equipment. Hiring contractors allows you to personally choose who works for your company. You can create job listings, work with staffing agencies or use your professional connections to find the right staff. The skill of your contractors can help influence the success of the business. At this stage, you can also purchase the necessary equipment for your company. This might require funding from banks or investors, since construction equipment can be costly.

5. Start bidding on work and building connections

With equipment, staff and licensure, you can begin bidding on construction projects and building your professional network. The bidding process involves providing estimates for each potential job to compete with other construction or concrete companies. Learning to master bidding is important because finding the balance between high and low bids can help you find the right price for your work. Bidding too low on jobs might allow you to gain contracts but earn minimal profits. Learn to bid at a level that outperforms your competitors and still generates profit.

Related: How To Become a Construction Consultant

Residential vs. commercial concrete construction

Residential and commercial concrete construction share many similarities but also have many differences. Here are some key differences between the two:

  • Personalized projects: Working on residential concrete projects can allow you to work on more personalized projects, like homes, driveways and yards.

  • Liability: While both commercial and residential construction can create liability, often there is greater liability in commercial construction because the projects are larger and require more materials, labor and equipment.

  • Price negotiation: Residential concrete construction can allow for greater price negotiation with the customer since there are typically fewer competitors for the job.

  • Team size: Residential construction projects typically utilize a much smaller labor force, whereas larger projects in commercial construction can require hundreds of contractors.

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