STEP 1: Make a business plan.
A well-thought-out plan is essential for achieving success as an entrepreneur. It will assist you in mapping out the specifics of your business and uncovering some unknowns. Here are a few important topics to think about:
- What are the initial and ongoing expenses?
- Who is your intended audience?
- How much money can you charge your customers?
- What will you call your company?
Fortunately, we've already done a lot of the legwork for you.
A business and tax license, a contractor's license, and liability insurance are among the initial costs. Insurance is required to safeguard your company in the event of an accident or injury. It's also a good idea to get a surety bond. Many are priced between $6000 and $12000, but coverage of up to $50,000 can be purchased for larger projects. Annual premiums for a small business range between $500 and $900. To deliver materials, you'll need at least a full-size truck with an extended bed. A forklift can also be useful for quickly and easily loading fencing materials. Post drivers, fence stretchers, saws, drills, air compressors, hydraulic augers, and a concrete mixer are among the tools required for fence construction. A new purchase of that equipment will require a minimum investment of around $10,000. Finally, you'll need a location to store all of your equipment, as well as office space to store files and contracts. Fortunately, depending on your local zoning laws, your house may be able to serve multiple functions.
What are the ongoing costs of a fencing company?
Ongoing costs for a fence installation company may include:
- Vehicle and equipment upkeep
- Materials for fencing
- Storage fees
- Shipping costs
- Fees for credit card processing
- Website upkeep and office supplies
- Payroll for employees
- Who is the intended audience?
Customers who are preferred include homeowners, business owners, real estate developers, farmers, ranchers, and government agencies.
What is the business model of a fence company?
A fence installation company makes money by purchasing fencing supplies wholesale and charging for the labor and expertise required to design and install fences.
What kind of profit can a fence company make?
A fence installation worker's annual salary ranges from $21,160 to $51,800, with an average of $32,450, depending on level of training and experience. A large, well-established fence installation company can generate up to 1.4 million dollars in annual revenue.
How can you increase the profitability of your company?
Creating a display for potential customers that showcases all of the different types of fencing your company offers is one way to increase the profitability of your business. By erecting a number of small sections of each type, using various materials and decorative elements, you can provide your customers with a visual representation of the finished product. Another important step you can take to increase the profitability of your business is to collaborate with other fencing contractors who specialize in different types of fences than those that your company normally builds. Cooperation and competition among industry professionals benefit all parties involved. It can boost your company's brand recognition while also increasing the number of satisfied customers.
What will you call your company?
Choosing the right name is both important and difficult. If you don't already have a name in mind, check out our How to Name a Business guide or use our Fence Company Name Generator to help you come up with one.
If you run a sole proprietorship, you may want to use a business name other than your own. Getting a DBA (Doing Business As) is a great start.
When registering a business name, we recommend doing the following research:
- The business records of your state
- Federal and state trademark registrations
- Platforms for social media
Availability of web domains - SUPER IMPORTANT
It is critical to register your domain name before someone else does. Not to say you have to base your company name off the domain, but you kinda do. Search online before you register your name.
STEP 2: Establish a legal entity
Sole proprietorships, partnerships, limited liability companies (LLCs), and corporations are the most common types of business structures.
If your fence company is sued, forming a legal business entity, such as an LLC or corporation, protects you from being held personally liable.
You can form an LLC on your own and pay only the minimal state LLC fees, or you can hire one of the Best LLC Services for a small fee.
It is strongly advised that you choose a registered agent for your LLC. A free year of registered agent services is usually included in LLC formation packages. You have the option of hiring a registered agent or acting on your own.
Start your own LLC by clicking
here.
STEP 3: File your taxes.
Before you can open for business, you must register for a number of state and federal taxes.
In order to register for taxes, you must first obtain an EIN. It's very simple and completely free!
You can obtain your EIN for free by visiting the IRS website, faxing it, or mailing it to them. Read our article What is an EIN? to learn more about EINs and how they can benefit your LLC.
Taxes on Small Businesses
Depending on the business structure you select, you may have different options for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S corporation (S corp).
STEP 4: Establish a business bank account and credit card
Personal asset protection requires the use of dedicated business banking and credit accounts.
When you mix your personal and business accounts, your personal assets (your home, car, and other valuables) are at risk if your company is sued. This is referred to as piercing your corporate veil in business law.
Furthermore, learning how to build business credit can help you obtain credit cards and other financing in your company's name (rather than your own), better interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
This separates your personal assets from the assets of your company, which is required for personal asset protection.
It also simplifies accounting and tax filing.
Set up net-30 accounts.
When it comes to establishing your business credit, net-30 vendors are thought to be the best option. The popular vendor term "net-30" refers to a business credit arrangement in which the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are frequently used by businesses that require inventory quickly but do not have the cash on hand.
Net-30 credit accounts are reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit) in addition to establishing business relationships with vendors. This is how businesses establish business credit in order to be approved for credit cards and other lines of credit.
Apply for a business credit card.
This allows you to separate personal and business expenses by consolidating all of your business's expenses in one place.
It also establishes your company's credit history, which can be used to raise funds and attract investment in the future.
Read our guide to finding the best small business credit cards.
STEP 5: Establish business accounting.
Recording your various expenses and sources of income is critical to understanding your company's financial performance. Keeping accurate and detailed accounts also makes annual tax filing much easier.
STEP 6: Obtain all required permits and licenses.
Failure to obtain necessary permits and licenses can result in hefty fines or even the closure of your business.
Requirements for State and Local Business Licensing
To operate a fence company, certain state permits and licenses may be required. Visit the SBA's reference to state licenses and permits to learn more about licensing requirements in your state.
Most businesses must collect sales tax on the goods or services they offer. Read our article, Sales Tax for Small Businesses, to learn more about how sales tax will affect your business.
Fence companies may also want to consider applying for a resale certificate, which allows retailers to buy goods for resale without paying sales tax.
Furthermore, certain local licensing or regulatory requirements may be applicable. For more information on local licenses and permits, please visit:
Check with the clerk's office in your town, city, or county.
Contact one of the local associations listed in the US Small Business Associations directory of local business resources for assistance.
Before beginning a new project, fence companies should require clients to sign a services agreement (e.g., MSA). By defining payment terms and conditions as well as service level expectations, this agreement should clarify client expectations and reduce the risk of legal disputes. Here's an example of a service agreement.
When you sign up for Rocket Lawyer's premium membership, you can easily create a professional service agreement for your fencing business. Members pay $39.95 per month and have access to hundreds of legal agreements as well as on-call attorneys who provide free legal advice.
STEP 7: Obtain commercial insurance.
Insurance, like licenses and permits, is required for your business to operate safely and legally. In the event of a covered loss, business insurance protects your company's financial well-being.
There are various types of insurance policies designed for various types of businesses with varying risks. If you are unsure of the risks that your company may face, start with General Liability Insurance. This is the most common type of coverage required by small businesses, so it's a good place to start for yours.
Need more information on General Liability Insurance? Contact us directly for our recommended source.
Workers' Compensation Insurance is another important insurance policy that many businesses require. If your company will have employees, it is likely that your state will require you to carry Workers' Compensation insurance.
Learn how much business insurance will cost your Fence Company.
STEP 8: Establish your brand
Your company's brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
If you are unsure about designing your small business logo, please contact us directly for design assistance!
How to Promote and Market a Fencing Business
Joining your local Chamber of Commerce can provide you with valuable information about future planned real estate development as well as the opportunity to network with other members of your community. Realtors and homeowner's associations are also excellent places to leave your business card with a link to your website. Fence repair is frequently required by members of farming and ranching cooperatives.
How to Keep Customers Returning
Because it provides an inexpensive way to track consumer response to special offers, social media is an excellent place to advertise for new customers. Donating your time and materials to local charities is an excellent way to showcase your best work while also demonstrating your commitment to the betterment of your community. Building a good reputation is critical for success in this type of business because it requires a high level of consumer trust. One satisfied customer can lead to numerous referrals to friends and neighbors. Because this industry can be weather-dependent, it is critical to cultivate long-term client relationships all year.
STEP 9: Create your company's website.
After you've defined your brand and designed your logo, the next step is to build a website for your company.
While creating a website is an important step, some may be concerned that it is out of their reach due to a lack of website-building experience. While this was a reasonable concern in 2015, web technology has made significant advances in recent years, making the lives of small business owners much easier.
The following are the main reasons why you should not put off building your website:
Every legitimate business has a website, period. When it comes to getting your business online, it doesn't matter what size or industry it is.
Social media accounts, such as Facebook pages or LinkedIn business profiles, are not a replacement for your own business website.
Website builder tools, such as the SquareSpace Website Builder, have made it extremely simple to create a basic website. You don't need to hire a web developer or designer to make a website you're proud of.
The process will be simple and painless if you follow our website building guides, and it should take you no more than 2-3 hours to complete.
Get started today with our recommended website builder or read our review of the Best Website Builders.
WordPress, WIX, Weebly, Squarespace, and Shopify are some other popular website builders.
STEP TEN: Get a business phone system.
Getting a phone for your business is one of the best ways to keep your personal and professional lives separate and private. That isn't the only advantage; it also helps you automate your business, gives it legitimacy, and makes it easier for potential customers to find and contact you.
Is this the right business for you?
This business is ideal for those who enjoy working outside and assisting others in improving the security, beauty, and functionality of their property.
What happens on an average day at a fence company?
Typical daily activities may include:
- Prospective client meetings
- surveying and measuring fenced-in areas
- Performing utility safety inspections
- Obtaining construction permits
- Creating estimates and bids
- Prices are being negotiated, and supplies are being purchased.
- Using augers and spades as tools and equipment
- Putting up and repairing fences
- Recruiting, hiring, and training support personnel
- Marketing
What are some of the skills and experiences that will assist you in establishing a successful fence company?
Some of the skills required in this industry are as follows:
- Physical power and dexterity
- Building and construction knowledge
- Understanding of client needs and ability to give clear and logical presentations
- Ability to accurately estimate job costs, time, and materials required Knowledge of tools and materials required
- Time management abilities Knowledge of how to repair tools and machinery
- Math abilities for measuring distance and area, as well as ensuring structural integrity
Certification in the design of fences and gates is highly desirable. There are a number of helpful books available in addition to formal education courses.
What is the potential for a fence company to grow?
This industry is expected to generate more than $9 billion in revenue by 2018. Many fencing companies have grown large enough to offer franchise opportunities to those looking to learn from seasoned professionals.
Take the Following Step
Look for a business mentor.
Quality mentorship is one of the most valuable resources an entrepreneur can have. As you begin to plan your business, connect with a free business resource near you to get the assistance you require.
Having a support network in place to turn to during difficult times is a critical success factor for new business owners.
What are some insider tips for getting a fence company off to a good start?
Joining the American Fence Association can help your company. They offer discounts to the industry as well as educational opportunities and valuable network connections. Their prestigious Blue Ribbon designation denotes a company that has met the highest professional and ethical industry standards.
When and how to form a team
While running a small, one-person operation is possible, assembling a team of reliable suppliers and skilled workers from the start is critical for your company's long-term success. Hiring independent contractors may be more cost effective when starting a business, but hiring permanent employees allows you to maintain a consistent level of quality and dependability.
To learn more abou
t starting a fence company
visit our main page! Simply reading a blog article is not enough. Our turn-key franchise program will provide an entire lesson plan on how to build a successful fence contracting business from the ground up, with no experience required.