If you’ve always liked knocking down things in childhood, you must have thought about starting a demolition business. Especially if you start from scratch and small, it will be an achievable goal. However, you need the right equipment at your disposal. Plus, check with the local regulations to know about requirements. Here, we will discuss what you need to start this business:
Of course! What’s any business without a crew? It’s impossible to navigate this business as a one-man or one woman. Even the smallest hiring will assist you in the process. You’ll have to hire construction laborers for the heavy-duty work. This is better than hiring a skilled workforce demanding very high salaries. However, adding trained staff with experience in removing hazardous material is a good idea too.
The only elephant in the room is the demolition equipment. It will cost you a fortune. Even if you buy second-hand machinery, it will still be a significant investment. As a startup, you can use rental equipment to begin operations. You need a truck, grapples, hammers and shovels.
The mobile screening plant and heavy-duty equipment can be bought later. Make a cash flow forecast of the business so you can decide on the budget initially.
Any company working as a sole proprietorship has to acquire the EIN. You cannot hire employees without the EIN. Your company will also have to provide a list of the worker’s compensation benefits. Since physical work is involved, employees need to be protected.
In case of a serious injury, a worker will be obliged to thorough medical care. Moreover, In case of death, the worker’s family will be compensated. Getting an insurance plan for employees is pivotal for this business.
- Licenses and Permits
Depending on the location, your company will obtain a license to work as a demolition contractor. For individual jobs, the licenses and permits will be provided too. If your company is willing to take over sites affected by asbestos, strict licenses will be required.
The removal of hazardous material entails acquiring permits from the state. Very often, removing hazardous material can be dangerous, so your company needs the right equipment to do it.
- Lots of Money
As explained earlier, starting a demolition business is expensive. It’s like spending a fortune or using all your savings at once. You have to identify your model of finance while writing the business plan. Experts believe that starting this business costs between $2000 to $10000.
So it’s best to make the arrangements well before employees are hired. Renting the equipment is a good idea. You can even work on a profit-sharing basis with the rentals.
- Confidence and Strength
Unless you aren’t confident enough, it will be hard to focus on your work. The market is highly competitive. You’ll find tons of demolition businesses online. As a startup, it will face many challenges. But they shouldn’t push you away from your main goal.
It’s best to wear patience on your sleeves and see what the future unfolds. Demolition work is in high demand, so its a good time to start this business.