The asphalt industry continues to grow, offering new entrepreneurs the opportunity to break in. According to Skill Hero in an article discussing the need for more tradesmen, “these jobs cannot be outsourced overseas and are essential for our daily lives.” Like any business, however, there are several key issues to keep in mind beyond learning the trade itself.
Preparing for Business
Before getting into the asphalt industry, it is important to narrow down what sort of business you want to start. Some businesses have higher overhead and require a higher level of skill. They also offer higher returns, however. Common asphalt related businesses to consider include:
- Asphalt paving
- Asphalt crack repairs
- Pothole repairs
- Sealcoating
- Line painting
Each type of business will require its own expertise and equipment. Next steps for getting an asphalt business off the ground are similar to any other trades business. These can include:
Read: How to Start a Personalized Gift Business with a Laser Cutter
Licensing
You will need to obtain business licensing from your local government. This may include licensing to start a business and any additional licensing to operate machinery or work in your chosen trade. This may vary based on location. Talk to your department of licensing and regulation to find out what permits and licensures you will need.
Insurance
To work in any trade, you should have general liability insurance. You may need additional coverage depending on the scope of work you will perform and whether you have employees. Other types of insurance you may need include:
- Worker’s compensation
- Commercial auto insurance
- Equipment insurance
- Commercial property insurance
- Surety bonds
- Pollution liability
- Professional liability
Financing
You will need money to invest in your business in order to buy equipment, pay for marketing supplies or services, and some materials to begin your first jobs. The amount you need will depend on what type of services you plan to offer and what equipment is required. Some businesses may need an investment as low as $5,000 while others may need $30,000 or more.
Finding Customers for Your Business
Once you have everything you need to get started, you’re ready to find customers who need your services. This is the most challenging part of any business, and nothing happens overnight. There are a few strategies that may help you land those first crucial clients faster, however.
Develop an Online Presence
You will want to set up a website and social media profiles on sites where your potential clients frequent. If you have the budget, using a combination of organic and paid search tools may help you find more clients in less time. If your budget allows, hiring a digital marketing team can help in this process.
Visit Local Contractors
One way to get your name out there is to stop by and introduce yourself to local contractors who may hire you on their jobs. Be friendly, but not pushy. Leave a business card. Follow up after a couple of weeks and at set intervals after. Familiarity will keep you mind when they need an asphalt professional. Joining your city’s Chamber of Commerce is another way to mingle with other local business owners.
Connect Online
Social networks don’t take the place of making an in-person connection, but it can be another way to keep your name in the forefront. Find other local tradesmen and contractors on sites like LinkedIn, Facebook, and even Instagram. You can also share helpful information to establish yourself as an expert and build relationships with local property owners.
Send Direct Mail
Direct mail is still a valid tool for prospecting, especially postcards and other full-color mailers. Studies have shown that when customers have something tangible to keep, they are more likely to recall the business at a later time. Even if you cannot afford a high-gloss mailer in the beginning, a brochure or flyer printed on your own is a good starting point. Leave them with local homeowners, contractors, and other businesses.
Use Lead Generation Services
Signing your business up for sites like Bluebook (for commercial clients) and HomeAdvisor (for residential clients) can be a great way to get inbound leads. You can also sign up to become a government contractor at sites like Fed Biz Opps. Keep in mind that government contractors are hired based on price almost exclusively.
Do Good Work
Referrals and word of mouth are excellent ways to get more business. Successful entrepreneurs do their best on every job, no matter how small. If there are any issues that crop up, deal with them promptly so that every customer comes away happy. When their friends need to hire a new asphalt guy, your name will be the first one they recommend.
Other Factors to Keep in Mind
As you gain traction and begin working with your first clients, there are a few other factors to keep in mind that can help you get off to a good start:
Don’t Underbid
It can be tempting to lower your prices as much as possible to land work faster, but don’t underbid yourself. While keeping prices fair is important, you need to make sure you can cover business expenses and turn a profit. If your prices are dramatically lower than other local contractors in the area, you might consider raising your rates.
Prepare to Scale
As your business grows, it’s a good idea to establish systems that will allow you to continue to scale. Don’t wait until you need them and save yourself a lot of stress. These can include implementing cloud based customer relationship management, financial management assistance, and project management systems.
Hire the Right People
Employees are the backbone of any operation, and the people you hire can make or break your business. Do your due diligence to find people who not only do good work, but are also good people who will represent you well. This can include scouting their socials, having a multi-interview process, and making sure to check up on references.
Putting it All Together
Starting an asphalt business for road paving, crack repair, or asphalt sealcoating can be a great way to have a profitable and rewarding career. By taking the necessary steps to get off to a good start, you will help to ensure your success now, and as your business continues to grow.