There are a few businesses that are pretty much recession proof. Though the construction business can slow down considerably during a financial downturn, the paving business is usually still going strong even in the worst situations.
Roads need to be paved to keep traffic moving. Not only that, but generally cities and towns have their paving projects budgeted from the year before so the money is already there even if there is a crisis happening.
If you’re trying to decide on a business with lots of upside then read on for the tips on how to start your own paving business.
1 – Have your equipment ready
Your biggest expense is going to be your machinery to do the work. From the trucks to bring the machines to the site, to the pavers themselves. It is a huge expense to buy them and also to maintain them.
You can buy some of these at auction to get you started if you are on a budget, but make sure that you have a plan to replace them once the jobs are coming in regularly. After all, older equipment will cost you more in the long run through maintenance and also in terms of lost work if they don’t perform well.
You’ll need to shop around for the best insurance plans to save money and look for the best red diesel suppliers that will give you the best price on your fuel for the machines.
2 – Create a business plan
Whether you plan to open a paving business or a lemonade stand, a business plan is essential. A business plan not only will help you secure loans from a bank but it serves as your roadmap to success.
It will provide you with a step by step guide on running your business. Each section is essentially a milestone that lets you know what to do after having surpassed each one.
Without a business plan, you are simply flying by the seat of your pants and taking things as they come.
3 – Start small
Your ultimate prize should be getting contracts for city and state projects that pay a lot of money and usually last for years. This is the ideal situation, but don’t expect these huge contracts off the bat.
First, you’ll need to start out doing smaller jobs like driveways and patios for residential projects. Then, you can gain a reputation and start going for bigger commercial jobs like a restaurant or store parking lot. Then, later on you can start bidding on larger projects.
4 – Be insured
Construction is a dangerous job for you, your staff and even the general public. And you need to cover yourself against any injury claims.
Have good liability insurance that covers an injury and even damage to property. There is always the possibility that your equipment or workers damage somebody’s lawn or home and you don’t want to pay out of pocket for that.
