A demolition business can be a good venture because it is a lucrative industry that sees continuous demand as it grows in scale. Seldom do contractors go out of business as this industry is relatively resilient to market changes, even prevailing during this time of the pandemic. This kind of business can be started small, steadily scaling up as the company takes on more demolition assignments. A small startup demolition business can first go the manual demolition route where handheld tools and heavy equipment are used. This would entail smaller demolition tasks, usually for residential areas and local businesses, with only a few people and a few days of work.
Once the business starts to take off, scaling up is possible by purchasing heavy machinery for the bigger jobs that require more people and more time to complete the task.
What are the opportunities?
Demolition businesses contribute to soil erosion and pollution to the environment, making it a controversial but necessary job in this modern age. As such, some demolition companies take a step towards more sustainability in their operations. This can be a good edge over the competition, where being eco-friendly might not be a top priority. But going green as a demolition company may mean a slower process to keep the pollution at a minimum. This can also mean taking more steps for greener disposal processes and even more for recycling the produced wastes.
How much will the startup cost?
The costs will significantly depend on the many factors affecting your business early in the startup. For one, the location of your business may affect the costs for transportation of equipment, the permit costs, and the other regulations that can vary per state. The scale of the business will also matter depending on how many employees you will hire, how big are the jobs you will be accepting, how wide is the area of your reach, and the quality of the equipment you will be using. Typically, a startup can use as much as $2,000 up to $10,000 so having enough capital is essential to sustain the business while still gaining ground.
What are the necessary tools and equipment?
Manual demolition jobs will require simple hand tools and small portable machines. These kinds of equipment like jackhammers, sledgehammers, and shovels will be used even when the business grows to be a big name in the industry. The quality is essential for long-term use, so investing in the good ones can cost you a bit more. You can opt to buy excavators, bulldozers, and track loaders for sale or choose to rent these heavy pieces of machinery for the time being until your business is earning enough to buy them for yourself. The budget for these tools and equipment must include the maintenance and repairs for each machine.
What about the safety of the people involved?
Safety gear is essential in any kind of construction or demolition business. Aside from the usual protective wear like helmets and work gloves, safety training and procedures are mandatory due to the nature of the job that may require employees to deal with some dangerous materials like asbestos, lead, and mercury. Well-trained workers will be equipped with handling these materials for proper removal and disposal operations from the worksite.
What about insurance and security bonds?
Different kinds of insurance are required in this kind of business. Demolition assignments will always have a risk of accidents and injuries for both the workers and the clients in the demolition site. When these unwanted events do happen, having the right insurance can save you from liability cases and minimize the costs for medical bills and damage repairs.
Some clients will also require security bonds to ensure that you finish the task within the agreed-upon time and budget. Your contract will dictate these agreements that guarantee efficiency for the sake of your customers.
The Bottom Line
A demolition business can be an excellent business for those looking for a steadily growing venture in a resilient industry. Significant funds and resources are necessary for a startup due to equipment costs, repair and maintenance, hiring of workers, and disposal of produced wastes. But most of it will ultimately be recovered in a few months with proper management and marketing. Be mindful of your target market, whether they are home residents or business corporations, to gauge the scope of your assignments early in the startup. Lastly, extensive safety measures and insurance are musts as this is an industry that continuously puts people in various physical dangers.