Who doesn’t have fun breaking stuff or tearing it down? When you know how to start a demolition company, then destroying stuff becomes your full-time job. To get started, you’re going to need enough capital on hand to secure the equipment you will need. Demolition can be internal or external in nature, so choose the structure of your business as well so that you can comply with existing local and national regulations.
Demolishing the interior of a home is a very different business model for a demolition company than one that uses explosives and heavy equipment to remove fortified structures. After choosing your structure, you’ll be ready to continue building up your business by following these additional steps.
1. Get to Know the World of Licenses and Permits.
Each location has different regulations in place that govern demolition companies. You may be required to have a specific business license that covers your demolition work. Some businesses may even be required to apply for and obtain specific licenses for each job that is signed. Other jurisdictions may only require a general business license. Know what your requirements will be and then secure the necessary paperwork.
2. It’s Time to Get Dangerous.
Although you may not intend to be demolishing hazardous materials, most demolition companies today must be certified to handle HAZMAT items. This is because there is no guarantee that there won’t be these materials at a demolition site. From asbestos to bleach, you’ll need to have the appropriate certifications in place before you start working to avoid fines and other potential problems.
3. Prove Your Bond.
Sometimes a demolition job is going to require a certain level of performance to be guaranteed. If this happens, you will need to be able to obtain what is called a “performance bond.” Unlike a surety bond that guarantees work against error, the performance bond will guarantee a high quality of work being completed by a certain deadline. Many performance bonds will also cover management of the job site and include protections for surrounding structures.
You may also be required to provide a letter of credit. This proves that your demolition is in good standing and has the ability to secure credit if needed to complete a job should trouble arise.
4. Get Your Insurance Sorted.
You will need to protect your demolition company against loss. Because of the nature of your work, there is a higher than normal risk that someone could be killed on your work site. If death doesn’t occur, there may be the need for long-term disability benefits to be provided. Make sure that your worker’s compensation package covers your needs completely so that you won’t go out of business if an accident occurs.
Because of this, being a sole proprietor as a demolition company is not a good idea, even if you plan on operating a one-person show. Your personal assets are at stake when operating as a sole proprietor. If you incorporate your business, then only your business assets would be at risk should something unfortunately occur.
5. Secure Your Equipment.
The biggest capital investment you’ll be making with a demolition business is with the equipment that you’re going to need. This is true whether you’re tearing down bridges or tearing down drywall. Make sure that you’ve got enough equipment to manage a contract that comes in for your company, but also make sure that you set some capital aside in case you need specialized equipment for work you’ve agreed to do as well.
6. Focus On Marketing And Training.
At this point, you’ll be ready to begin finding people to help you demolish stuff if you plan on hiring. Even if it will just be yourself, however, there must be an ongoing focus on safety training and marketing your business. People are going to come to you when they consider you to be the local experts of demolition. They won’t be able to find you unless you put your name out there.
How can you do that? Safety comes from conferences, seminars, and other in-person events that teach specific skills. Having a website and a consistent community presence an create brand awareness for your agency. Having a safety director appointed for each job that you take on will add that final touch that is needed.
Knowing how to start a demolition company can be just as complex as taking down certain structures. If you’re ready to follow your passion of destruction, then consider this entrepreneurial opportunity today to find financial success.