Every successful business requires planning, especially those wanting to launch an asphalt business. To create a paving company, you’ll need more than capital and drive. Familiarity with the industry, accounting, and marketing knowledge is also key to keeping your enterprise growing.
If you’re unsure how to begin the planning phase of your new asphalt company, this article shares a few steps to help you get started.
Essential Steps for Creating an Asphalt Business
Research Your Market and Industry
Before applying for credit or buying equipment and supplies, investigate current market trends for asphalt in your service area. This can heavily affect what tools you need or the level of business you can expect to earn. To do this, you can go online and look at the following insights:
- Search Google Maps for other asphalt and paving companies in your area
- Pull up demographical information about not just the cities you’ll serve, but specific neighborhood statistics
- Use online quote generators to get a ballpark idea of what other companies are charging for asphalt services
- Review your local Chamber of Commerce’s business directory for competitor companies
- Evaluate your competitors’ online reviews to get an idea of the demand they have and the services most often provided
Market research can help you spend money wisely when first starting your business. This prevents wasteful spending on ads, ensures you only invest in the equipment you truly need in the beginning stages of your operations, and not overstock your supply inventory.
Create a Business Plan
Business plans are road maps for companies to follow to achieve their goals. It’s the backbone of your operations and is essential when applying for loans or convincing investors to fund your venture. If you aren’t comfortable with business planning, fear not! There are countless consultants and business planning professionals available who can assist you in creating this important document. You can also go online and take a free short course on various websites or go step by step with a tutorial. Regardless of how you get it done, try not to procrastinate and get a plan written up early on.
Research and Obtain Necessary Licensing
With your business plan out of the way and your target market figured out, it’s time to find out what regulatory and government licensing you’ll need to operate. This can vary widely from state to state, so it’s essential to do your research and ask your local municipality what licensing you’ll need. Remember that you may also need additional permits from time to time when performing certain types of projects. However, taking the time to do your research now can save you and future clients a lot of legal headaches later. Also, if you think it won’t matter if you have a license or not, think again. Many agencies that demand compliance with permit and licensing rules for paving companies will force you to stop operations until you comply.
Know Your Products and Find a Supplier
Before you get to work, you must be familiar with the products and equipment. New asphalt paving technologies are discovered every year, so being aware of how they work and whether they’re a good option for your business to use should be a priority. This effort can give you an advantage over your competition, who may not be using these products or techniques yet. After you’ve finished researching, you’ll need to find a supplier. Be prepared to negotiate better pricing for bulk materials you’ll use regularly.
Determine Climate Impacts on Your Business
Like other outdoor jobs, asphalt companies are directly impacted by climate conditions. For instance, if you serve communities in northern Chicago, you’ll likely lose work opportunities when winter gets into full swing. Therefore, planning for how you can continue to land contracts during this time is essential, especially if you have a crew of workers to support. Many paving companies in this predicament have diversified service areas that aren’t impacted as severely by the weather, allowing them to continue earning revenue.
Speak with Other Industry Pros
One of the best ways to prepare your asphalt business for success is to network with other paving professionals. Believe it or not, you can attend conferences, read blogs, or consider joining a franchise paving operation to understand better what it takes to create a profitable asphalt company. You can also reach out locally and speak with a commercial paving company in Roseville, CA, or other nearby communities around your service area, for insights and advice. Also, try speaking with a commercial paving company in Roseville, CA, about their experiences and advice.
Asphalt companies are a reliable income generator for thousands of business owners throughout California and the rest of the U.S. However, to maximize your odds of success, you need to keep the above factors in mind. Planning is crucial to help you navigate the initial phase of your new business, as is spending your capital wisely.