6 Tips for Starting Your Own Metal Contracting Business
The metal fabrication industry creates $33 billion in annual revenue, making this one of the best industries to be involved in. Metal contracting businesses are vital to this industry, providing custom metalwork for residential and commercial clients. If you’re an entrepreneur and you have experience in metalworking and are thinking about starting your own business, here are a few tips to get you on the right track.
1. Develop a Niche
When it comes to metal contracting, there are a lot of different directions you can go in. You could focus on ornamental ironwork, metal roofs, or even stainless steel kitchen appliances. By developing a niche, you’ll be able to market your business better and attract the right clients. In addition, you can put your metalworking skills to better use when you specialize in a particular area.
2. Create a Business Plan
As with any business, it’s crucial to have a solid business plan before you start. Your business plan should outline your goals, strategies, and financial projections. Creating a business plan will not only help you get funding for your business, but it will also keep you on track as you grow your business. To create a business plan, consider envisioning your business five or ten years down the road. Create goals for each year and map out a plan to achieve those goals.
3. Get Licensed and Insured
To protect yourself, your employees, and your clients, it’s important to have the right insurance in place. You’ll need to obtain the proper licenses and insurance for your business to operate legally. Insurance needs will vary depending on your location, but you’ll need a business license and liability insurance. You may also need to obtain a contractor’s license if you plan on doing any work on commercial properties. As a metal contractor, you’ll be working with dangerous tools and materials. In addition to general liability insurance, you may also want to consider workers’ compensation and product liability insurance.
4. Build a Strong Team
To be successful, you’ll need to build a strong team of employees who are experts in their field. In addition to metalworkers, you may need to hire welders, fabricators, and even engineers. By putting together a strong team, you’ll be able to take on larger projects and grow your business. You can post job listings online or reach out to local trade schools to find qualified workers. You can also offer incentives, such as paying for additional training or offering bonuses for completed projects.
5. Talk to Investors
If you’re looking for funding to start your business, you may want to talk to potential investors as an entrepreneur. Describe your business plans and show them how you intend to make money. You may also want to offer equity in your company in exchange for their investment. It’s a good idea to create detailed reports since all FDIC-insured institutions must disclose extensive financial information in quarterly reports called Call Reports.
6. Invest in the Right Equipment
To succeed as a metal contracting business entrepreneur, you’ll need the right equipment. Equipment includes everything from welding machines to power tools. In addition, it’s a good idea to invest in software to help your business. A survey found that 43% of construction firms spend 1-2% of their revenue on software. The software can include everything from project management software to accounting software. Investing in the right equipment and software will enable you to manage your projects better and grow your business.
By following these tips, you’ll be well on your way to starting a successful metal contracting business. With a solid business plan and the right team in place, you can grow your business and achieve success in this booming industry.