How Profitable Is a Fence Business? How Much Does a Fence Company Make?

Do you want to establish your own fencing business ? If you answered YES, here's a 20-step approach to starting a profitable fence company with no money and no experience. The fencing industry is a subset of the construction sector. This is a company that specializes in the construction of fences for a variety of purposes. There are various varieties of fences, each with its own characteristics based on the materials used, the level of complexity in building it, and the quantity of workers required. Fencing Types Examples include wooden fences, concrete fences, barbed wire fences, chain link wired fences, and so on. Others, such as picket fences and hedge fences, are used for decoration or to keep pets contained within the compound. A typical day in fence installation will consist of erecting fences, fixing fences, conducting laborer interviews, marketing, acquiring licenses and permits, and creating bids and estimates. Farmers, home owners, companies, and others will all require fences. To manage a successful fencing business, physical strength is required first and foremost, unless you intend to undertake the direct labor yourself. However, if you wish to do the work yourself, even with the assistance of others, you must be skilled in manual labor, as it entails the carrying of heavy equipment and working long hours, even in inclement weather. To run this type of business successfully, you must have understanding of building and construction. This is why it is recommended that you join the American Fence Association ; they provide numerous incentives to individuals who want to start a fencing business. One of those things is a fencing class. While it is possible to run this type of business on your own, when it comes to expanding your firm, you will need to employ a team. The optimum sort of company entity for this type of business is a Limited Liability Company, or LLC, which allows for development while shielding you from personal liability if there are complaints about your work. You could contract out some of your work, but hiring permanent personnel and crew will provide greater consistency in quality. As a result, your brand as a fence installation company could benefit. When you're just starting out, subcontracting is usually the best way to go. It's less overhead and more maneuverable for a start-up business. The typical cost of a fence is more than $8,500, and you can charge a fee of $17-$100 per linear foot, which will add up and be counted as the total area of fence erected. The various materials you intend to utilize to build the fence will also have an impact on how much you charge. Fence materials, whether vinyl, wood, wrought iron, or another material, will effect the overall price for the project as well as the rate you will charge the clients. 20 Steps to Starting a Fencing Business 1. Research the Industry Fence installation is a subset of the building and construction sector; nevertheless, the focus of this article is on the fence installation business. We are experiencing a surge in demand for fence installation as a result of the growth in the housing industry. From 2012 to 2017, the fence installation market grew at a rate greater than 6%, and evidence indicate that this will continue due to increased service demand. This business has expanded as a result of the robust recovery in both the residential and non-residential building markets, which has been aided by the rise in home improvement expenses. The rise in income and housing values has had a favorable impact on this industry, not to mention home improvement and remodeling. All of these aspects contribute to the industry's continuous expansion. The revenue in this industry has been estimated to be more than $7.5 billion, and the number of people working in this section of the construction industry has been estimated to be more than 77,600, with more than 48,000 enterprises focusing on this activity in the United States alone. It is safe to say that this is a highly promising industry to enter into, but it will undoubtedly take a lot of effort to rise above your competition, and in order to do so, you will need a fencing company business plan. In a firm like mine, where clients have extremely specific expectations, it is critical to assure customer happiness at all times. There is a lot of rivalry in the field, but the American Fence Association can help new fence installation specialists get into it. The myriad legal concerns involving fence installation are another element affecting the sector. These laws may change over time, making a fence built during the time of a certain law illegal when a new one is approved. The legal aspect of fencing is important because different jurisdictions require different permits to be able to execute your fence installation work there. So, if you want to operate your fence installation business properly, you should check with the state government for any licenses that are required. Industry involvement has declined in recent years as a result of a variety of variables, and low borrowing costs, falling unemployment, and rising income stand to be very powerful industry determiners for both positive and negative consequences. Homeowners and developers are expected to boost their need for fence installation, which bodes well for individuals looking to start a business in this field. Anyone who want to pursue a career in fence installation must first become a member of the American Fence Association. They conduct training and provide numerous avenues for persons interested in doing business to be fully prepared and equipped for service. 2. Carry out market research and feasibility studies. Psychographics and Demographics Fences will be needed as long as people are building structures, especially in this day and age when crime is on the rise. When considering entering the fence installation business, one must first identify those who will require the services he wishes to offer. The construction company is the first group of people who will seek the services of fence installers. One might look for a full-service construction business to handle all of their fence installation needs. This will allow the construction business to concentrate on other components of the structure. It saves them time, effort, and personnel, as every firm is seeking for ways to reduce their workload. Real estate developers are another group of persons who require this type of service. It might be a good idea to approach these companies about contracting their fence installation to your company. Corporate organizations in need of more secure fences will want the services of a fencing company. Of course, the amount of security provided by the fence varies depending on the value of the valuables in the building or property. Some of the fences you construct for these groups may be quite secure, requiring a key card or even facial recognition to get entry outside the gate. Homeowners intending to increase their security may require the services of a fence installer, or they may only require a hedge fence or a picket fence for the purpose of beautifying or keeping pets within the complex. Landowners who want to show the boundaries of their property may want to construct a fence for that purpose. Another strategy to find people who could need your fence installation service is to hunt for regions with a low level of security. Building fences in these locations will undoubtedly instill a sense of security and peace in individuals who live there. Farms require fences to keep animals separated or to keep intruders from breaking into the property to steal farm animals or produce. Fences are also required at zoos since there may be hazardous animals that are not friendly with people. To keep humans who come to see them safe, these animals would have to be kept in fenced-in enclosures. 3. Determine Your Niche There are countless types of fences, far too many to describe here; however, you may select a few and specialize in those types as your niche. That manner, anytime someone in the industry is hunting for those who are dependable in compiling a list of the types of fences you specialize in, your name will undoubtedly come up. While we don't control the market, there's a bit of trial and error to figure out what your local market demands. Don't settle on material types until you figure this out. On the other side, you might limit your fencing services to a specific group of customers. It could be high-security fences or residential fences for homeowners. Whichever path you take, you will become known in your field as the go-to guy for fence installation. Another strategy to carve yourself a niche in this market is to specialize in fencing materials. So you'd be the go-to guy for fencing firms in need of materials. Regardless of how intriguing these unique ideas are, the best way to distinguish yourself in this sector is to be renowned for production. Those in the construction business are notorious for failing to complete projects on time. The installation of a fence is no exception. However, if you are known for sticking to your deadlines, your clients will continue to refer you with trust. However, being so eager to meet your completion deadline that you sacrifice quality will not go over well with clients; always under promise but over deliver. The Industry's Level of Competition The level of competition in this type of business is great, but if you establish a reputation for quality in service delivery, you will stand out from the throng. Knowing about new industry standards will help you separate out from the crowd. Every firm will face competition, but this should not be a source of discouragement. If anything, it should energize you to put your work out there. Because there are so many people conducting this industry in the United States, there is a lot of money to be earned, and one way to get in on the action is to be ahead of new trends and innovation. 4. Understand the Industry's Major Competitors When it comes to well-known brands in the fencing industry, it is impossible to declare that these are the top brands in the entire country. Every state in the United States has its own proclamation of the finest fencing company, and you might be surprised to learn that every state in the United States has its own list of fencing firms. The following are some well-known fencing companies in the United States: Long Fence Co., Inc. Beta Fence NV Bekaert Ply Gem Holdings, Inc Associated Material LLC Bekaert Ameristar Fence Products Inc Allied Tube Conduit Jerith Manufacturing Company, Inc Gregory Industries, Inc Poly Vinyl Designs Economic Evaluation Starting a fencing firm will cost you anywhere between $2,500 and $9,800, and there are a few factors to consider before embarking on this venture. The first items you'll need to apply for are the standard registrations and licenses. You should, however, consider joining the American Fence Association, which also provides instruction if you have never received such training previously. They provide accreditation for the training they provide, so you can add that to your list of things that make you appear more reputable. However, the courses are not free and must be factored into your budget. In addition, you'd need to buy a vehicle or hire one to transport your equipment and employees to and from work. It would also be beneficial to obtain an office with adequate space for your equipment. We recommend taking our course to start, as it will give you the base knowledge you need for the foundation. 5. Determine whether you want to buy a franchise or start from scratch. There are several companies in this field eager to give franchise rights to individuals who are interested. This is an excellent opportunity to profit from someone else's hard work and sweat. Fence construction necessitates more than simply knowing how to accomplish it; it also necessitates prior expertise in this sector. Purchasing a franchise allows you to capitalize on the knowledge and experiences of others. You also get direct access to mentors who will consult with you for free because their brand is on the line. It will be much easier for them to purchase a franchise and expand on the name they have already established for themselves. You would not have to go through the arduous process of trying to break into the market this way. However, if you want to start the business from scratch, you will have to learn a lot on the job. Even if you have had some prior training, nothing beats on-the-job experience. If you are offered a contract that you believe is a little over what you can do as a fledgling firm, you do not have to turn it down. You can employ a consultant to help you fine-tune your project understanding so that you can deliver. Establishing this type of business from scratch is equally as difficult as starting any other type of business from scratch. So conduct your own study to determine which is ideal for you. 6. Understand the Potential Threats and Challenges You Will Face One of the greatest risks to this type of business is the rise of do-it-yourself culture in America. There are numerous alternatives for how homeowners or businesses might create their own fences. With the proliferation of self-help concepts these days, some potential clients may opt to simply build their own fences. Another obstacle is simply going up against the competition and figuring out a niche for yourself. Looking for your own client base and creating something resembling a portfolio of jobs you've completed, not simply through images but also by having samples of the fences displayed in front of your office. 7. Select the Most Appropriate Legal Entity (LLC, C Corp, S Corp) A Limited Liability Company is always the greatest option for a firm like this, where the chance of things going wrong is significant. At the very least, if there are any legal concerns, the damages will be paid by the assets owned by the company. The only thing the founder would lose is the money he put into the business in the first place. It is usually a good idea to keep your business activities distinct from your person, so that if something bad happens and you are sued, you do not have to use your personal property to pay off the losses. 8. From the list of suggestions, select a catchy business name. Essentially, you want to choose a business name that is easy to find on the internet. When something is difficult to say or spell, it becomes tough to remember. So consider something that people would readily speak and that would be easy to find after you put it in front of a ".com." Secure the “.net” and “.biz” domains as well, so that your competitors do not mislead your clients. Another technique to come up with a memorable name for your company is to put a creative twist on what you're doing and then come up with a name that expresses it imaginatively. Listed below are a few examples: Stideswall VinylWorld, Inc. PicketValley Built LLC Security Ventures Barriers Solutions SkyVeil, Inc. (SkyVeil, Inc.) Consult with an agent to choose the best insurance policies for you. Insurance protects you and all of your company operations in the event of an unforeseen issue that may occur during or after the construction of the fences. Although some insurance is required for you to have as a fence installation company. The following are some of these insurance policies: Insurance in general Insurance for Fence Contractors Insurance for Fence Installers Insurance for the Fence Installation Business Disability due to overhead expenses Insurance Insurance for Liability Health Coverage Compensation for Employees Group insurance for business owners 10. Trademarks, copyrights, and patents can all be used to protect your intellectual property. Because of the importance of brand identity, it is critical to ensure that your trademark is registered and that you are the sole owner of it. Clients identify your brand through your trademark logo, and your brand talks louder than a name. It speaks of your exceptional service, the high quality products you employ, and your excellent client relations, among other things. These are the thoughts that people have when they view your trademark logo. As a result, it would be prudent to have that registered and protected for usage. 11. Obtain the Required Professional Certification For people interested in getting into the fencing business, the American Fence Association offers fencing classes. It is critical to have training for a business like this because it involves making and working with your hands for the security or enjoyment of others. You will not produce excellence if you do not know what you are doing or do not grasp the value you are providing to people's lives through your venture. Although this training is not required, it will assist you in securing a progressing career in fence installation. 12. Obtain the Legal Documents Required to Operate Businesses cannot function unless they follow the laws of their respective countries or states. When it comes to obtaining legal paperwork for fence installation, in addition to the standard documents to apply for, one would need to go to the state's regulatory agency to receive the necessary permissions and documents. In the United States, a single permit may not be able to offer approval in all states. One would need to research the laws of the state from which they wish to operate and obtain the necessary documentation and permits. Some of the required documents are listed below; Operating Agreements Certificates of Incorporation Employer Identification Number Business License and Certification Business Plan Insurance Policy Employment Agreement Operating Agreement for LLCs (EIN) Contract documents should be reviewed. Terms and Conditions for Online Use Documents Concerning Online Privacy Policies Bylaws of the Company Memorandum of Agreement 13. Raise the Startup Capital Required You must have a clear plan for financing your company. Every firm requires that initial funding to get off the ground. When considering starting a fence installation business, you should consider where the initial funds will come from. Finding unique ways to raise money for a business is a skill in and of itself, but if one thinks about it or even talks to a consultant, they may receive some great ideas on how to raise money for their business. Here are a few suggestions: Hopefully, you have an excellent saving and investing habit, and you should have some money in the bank or in stocks to start the firm. Personal property such as cars, large appliances, land, and equipment from other enterprises may come in helpful at times. Where you sell them to make a profit on your capital investment. Investors are always seeking for new methods to put their money to work; you may sell a few shares of your company to a few people. Family and friends are the first individuals who will support your goal; you may be able to secure small loans from them. Another option is to apply for a loan directly at a bank. This time, the investors or partners may not own a piece of the firm with you, but they can put money aside to receive a one-time payment when you start producing money. There are numerous organizations that attempt to assist aspiring entrepreneurs; you can apply to a number of these groups for grants or seed money. 14. Select an Appropriate Location for Your Business You should seek for a location where the majority of your potential clients go on occasion. You might choose to put up an office near a residential area where most of the residents will want to contact you for your services. You might also want to place yourself near a real estate company so that customers who come to do business with the realtor can see that you create outstanding fences and decide whether or not to do business with you. Those who wish to enquire about your office should be able to do so effortlessly. Those interested in doing business with you can quickly visit your office to examine examples of your work. 15. Hire Employees to Meet Your Technical and Manpower Requirements There are numerous technical considerations to keep in mind when constructing specific types of fences. If it is a security wired fence, you must be certain of the sort of metal used to construct it. You must consider a variety of factors that could lead to a breach. The skill of erecting a fence is a craft with many technicalities to consider; one cannot simply create a fence with common sense. This type of company also necessitates specialized equipment. So, what do you think? When considering starting a fence installation business, one must consider the numerous tools and equipment required. When it comes to labor, you'll need all the aid you can get; you can hire your staff on a permanent basis or as contractors who show up dependent on the jobs you get. Fence technicians, installers, masons, and other professionals may be required. Of course, this has to do with the actual construction of the fence. Other personnel will be required to manage the administrative aspect of the firm in order for the overall operation to be entirely efficient. The Company's Service Delivery Process Potential customers learn about your company through any of the advertising outlets you've chosen to reach out to a network of people who need your services. Once they establish contact, they either place an order digitally or visit to your office to examine examples of what you already have, discuss what they want, and agree on the cost of putting the fence together. Once this is accomplished, a timetable for when the project will begin and when it will be completed is established. This is the stage at which all project-based enterprises must improve their performance. Businesses like this should learn to complete their projects on schedule. 16. Create a marketing plan that is jam-packed with ideas and strategies. It is impossible to start a business without considering numerous methods of promoting the business. In fact, when creating a business plan, one must include a marketing budget as well as a marketing strategy. Most people enter business thinking just on what it takes to set up and manage the firm, but after the business is up and going, they often have no idea how to begin reaching out to the market around them. A list of various marketing methods for your fence installation business is provided below; Despite the rise of digital marketing, traditional methods of marketing and promotion remain powerful. Get your advertisements on TV, radio, and magazines. You could send introductory letters and/or brochures to major corporations, SMEs, startups, and individuals. You may go old school and have your business listed in local directories. Alternatively, you might go old school by enrolling in the yellow pages. Attending seminars and events to network is a terrific method to spread the word about your fencing company. Marketers and business developers should be hired. Make use of digital marketing. 17. Create unbreakable competitive strategies that help you win. Concentrate on your niche and outperform the competition. This is a great method to get people talking about what you do. It might be delivering fence materials, or you could be known for providing the highest quality supplies to those in need. When it comes to creating fences, most people aren't aiming to save money; instead, they're more concerned with the quality that's available. Contractors and developers who know you are the greatest source for high-quality materials will always seek you out. On the other hand, you may be a big authority in the construction of security fences or other types of fences such as farm fences, house fences, and so on. Simply said, if you are perceived as an authority in your industry, you will stand out from the crowd and get an advantage over your competition. 18. Create a list of possible ways to keep clients and customers. One strategy to ensure customer retention is to ensure that your clients are completely satisfied with the assignments you complete for them. Customer satisfaction may be a rare commodity in this type of business if the person executing the service is experienced. However, if you are known for building solid fences that last for years without deterioration or damage, you would be the go-to guy for fence installation. Another method for retaining clients is to provide discounts for fence upkeep or repairs. Who doesn't like a good deal? If any problems arise after the fence is installed, your provider may offer to repair the damage at a reduced charge. 19. Create a Corporate Identity and Develop Strategies to Increase Brand Awareness There would be no customers coming in or leaving out if no one knew about your fencing company. Every business owner should devise a strategy for increasing awareness of what they are doing. People need to see you out there making a scene about your company. To build marketing plans, one can use the thinking minds of professional marketers. However, this section of the business plan is critical because it deals with producing clients for your company. Here are a few suggestions for how to go about it: By advertising on billboards and banners around the city, you may target a specific clientele. The entire fleet of vehicles used for fencing and marketing can be fully branded with company logos or promotional artwork. Ensure that all employees and personnel, including those who put up the fences, wear your branded clothing. You should have a website and promote it on it. This should provide a lot of visitors to your website. Use telemarketing to communicate directly with individuals, businesses, startups, SME's, and even real estate developers. The usage of fliers and handbills has not been forgotten; employ this method in the neighborhood where you intend to meet potential clients. Encourage word-of-mouth marketing. Make use of the internet to market your company. Step 20: GET STARTED The biggest issue most have is they read entire articles like this and never take action! Plan and execute. You will make mistakes, don't be afraid of that, it's part of the process. Questions and Answers What Are the Tools Required to Start a Fence Company? Post drivers, fence stretchers, saws, drills, air compressors, hydraulic augers, and a concrete mixer are among the fundamental tools needed to construct a fence. What Is the Lowest-Cost Fencing? A wire fence costs $2 per foot on average, whereas a 6-foot high wood privacy fence costs $13 to $25 per linear foot and vinyl fencing costs $15 to $30 per foot. What Are the Requirements for Running a Fence Company? You would require; Permits and a business license Insurance coverage for equipment and tool boxes Contractual agreement Drivers of utility trucks What Is the Prospective Growth of a Fence Company? The growth potential for a fence firm is intriguing; in fact, the US fencing market was valued at USD 8.3 billion in 2019 and is expected to increase at a CAGR of 4.9 percent from 2020 to 2027. What Are the Costs of Starting a Fence Company ? The expense of obtaining your company's licenses and licenses The cost of registering the company The cost of obtaining insurance The expense of renting and outfitting an office space The price of fencing equipment The expense of paying your personnel The cost of placing a signpost and marketing the company. The cost of dealing with miscellaneous et cetera What Does It Take To Start A Fencing Business? Starting a fencing business will cost you between $2,500 and $9,800. Who Are the Fencing Industry's Leaders? The fence industry's leaders are as follows: Ameristar Fence Products Incorporated Allan Block Corporation Associated Materials LLC How Much Does Fence Installation Cost at Home Depot? In 2020, the average order value for fence installation at The Home Depot was $4,600. That translates to a monthly payment of as little as $195 over 24 months with no interest if you use The Home Depot Credit Card, or $62 per month if you use our 120 Month Financing Plan. What Exactly Is A Fencing Contractor? Fencing contractors supply, install, and repair fences and gates made of various materials such as larchlap panels, timber, wire mesh, electrified wires, steel links, palisades, and concrete. Contractors are often hired by a diverse variety of residential and business clients. How Are You Going to Market Your Fence Company? Make use of social media channels aimed at homeowners and the building sector. To advertise your fence firm, join local chambers of commerce and industry. Join a landlord organization. Advertise in construction-related magazines. Inform your relatives, friends, and customers that you are looking for clients. How Much Do Fencing Professionals Make? Fencing pay varies according to talent and experience. Entry-level fencers are typically paid the minimum wage. Fencing professionals typically earn between minimum wage and $30 per hour. Fencing contractors can earn anything from $45 to $62 per hour. What Kind of Profit Can a Fence Company Make? A fence installation worker's yearly income ranges from $21,160 to $51,800, with an average of $32,450, depending on amount of training and experience. A large, well-established fence installation company can generate up to 1.4 million dollars in annual income. What are some of the skills and experiences that will assist you in establishing a successful fence company? Endurance and physical strength Hand-Eye Coordination and Dexterity Construction and engineering knowledge. Excellent reading and math skills. Communication abilities Knowledge of technology. Plan reading based on your willingness to learn. Developing abilities (carpentry, tiling, etc.). Time management is essential. Personnel administration. Communication abilities. Design sense. Detail-oriented. Budget-managing. What Exactly Is the Fence Rule? The statute compels a landowner who wishes to rebuild, repair, or install a fence along a property boundary with another landowner to provide that neighbor a 30-day notice of intent, along with a cost-sharing proposal. What Is the Best Material to Use When Building a Fence? Because of their durability and longevity, cedar, teak, and redwood are popular fencing materials. Because bamboo grows so quickly, it has become an eco-friendly option. You can also consider pressure-treated timbers to improve durability and resistance against rot and insects. How Do Fencing Businesses Make Money? Fence installation companies earn money by purchasing fencing supplies at wholesale costs and then billing you for labor. Designating different sections for different clients is an excellent approach to increase sales. What Is the Meaning of a C-13 Fencing Contractor License? The C-13 License is the formal designation. In the state of California, all bidders on residential, commercial, or industrial Fencing projects where the cost of labor and materials exceeds $500 must be classified. What Is the Size of the Fencing Industry? The US fence market was worth USD 8.3 billion in 2019 and is expected to grow at a CAGR of 4.9 percent from 2020 to 2027. Increased spending on building construction in the country can be ascribed to market expansion. How Do You Obtain A California Fence License? To earn your fencing contractor's license, you must pass both the Trade and the Law & Business examinations. Despite the fact that you can apply for a fencing contractor's license at the age of 18, it is suggested that you be at least 23 years old due to the experience required. What Is the Most Expensive Fencing Style? Metal, whether aluminum or wrought iron, is typically a more expensive up-front fencing material. In reality, wrought iron is arguably the most expensive fence material, with aluminum a somewhat less expensive alternative. What Is the Longest-Lasting Fence Material? The most enduring fence material is masonry wall fencing. This comprises materials such as brick, concrete, stone, block, and even stucco. It is well-known for its durability and can persist for more than 100 years without deterioration. What Is the Longest-Lasting Fence Material? Vinyl fencing can last for 30 years or more with little upkeep. Vinyl is solid and sturdy, unlike wood, which can bend, rot, or shrink over time. It is resistant to pests, rain, snow, temperature fluctuations, and other environmental factors. As a result, vinyl fencing is the most durable fence material. Aluminum is also a solid choice with a lifetime warranty from most manufacturers. It is powdercoated and will never rust due to its composition. In Texas, or any other state, do you need a contractor's license? Interestingly, the state of Texas does not need you to obtain a contractor license if you want to work as a general contractor, handyman, or any other form of builder. Unlike in other jurisdictions, there is no need to take a test or fill out paperwork to become a contractor in California! Same thing goes for Illinois, where I am located. You simply only need to register as a contractor with the local municipality that you will be installing the project. How Much Does It Cost To Obtain A Texas Contractors License? Applicants must pass an exam, receive insurance, and fill out a license application form in order to be licensed. Applicants must first submit their application and complete the remaining conditions before being invited to take the exam. Once their application has been assessed, they will be contacted to take the exam. The license application price is $115. What Is the Price of Fencing Material? Here are some typical prices for common fencing materials, including labor and installation: A treated wood paling fence costs $75 to $120 per meter. A hardwood paling fence costs between $80 and $125 per meter. A tubular metal fence costs between $180 and $350 per meter. While you may have many more questions, we can't possibly cover them all in this one article. There is a lot to consider when starting your own fence business. We recommend purchasing our turn-key program which will answer all of your questions. After that, set up a free 1 on 1 call with us to discuss your business and we will help you every step of the way! Click here to see our Contractor Marketing Services . To learn more about how to start your own fencing business from scratch, visit StartaFenceCompany.com

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. What are the costs of starting a fence company ? 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. We recommend SquareSpace :) 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.

Sounds like a bold statement, but with the continued growth in the market, there's no reason not to start a fence company. We expect a 6% CAGR from 2021 to 2027 for the US fence market, which was worth almost 9 billion in early 2020. The market expansion is attributed to increased building spending in the country. The need for fence products and solutions is driven by the need for security, protection, and aesthetic appeal. The demand for replacing and repairing major areas of existing residential fence stock is likely to drive market expansion. The US fence market is expected to grow in the coming years due to a robust economy and a developed market. The US market is expected to rise due to increased construction and demand for ornamental home products. Consumer interest in home décor and improvement will likely fuel industry expansion. Increasing security breaches are also pushing the need for safety and security. During the projection period, growth in the real estate sector and renovation projects will fuel demand for fence. The market's growth is aided by a large variety of goods with diverse designs, features, and colors. Schools, colleges, and factories use fencing to improve security and safety. Furthermore, both municipal and federal governments are heavily investing in parks and gardens, increasing demand for fence. The market is easily influenced by price changes and changes in raw material availability. Increasing desire for high-value fences such as ornamental metal fences in the US is likely to drive market expansion. Demand for low-cost ornamental and customized fences is projected to fuel market expansion in the coming years. A prominent product trend in the approaching years is the adoption of new upgraded materials that are not only stronger and more durable but also more eco-friendly. Customers in the country choose these materials for their performance, preferences, and aesthetics. Volatile raw material and energy costs are limiting market growth. Electricity and gas expenses are significant for fence producers, accounting for about 30% of total manufacturing costs. Several manufacturers seek to reduce losses by raising the entire product cost. Creating colorful and robust fences also necessitates additional metal resources, which are expensive and scarce. Fence Materials The market is divided into metal, wood, plastic and composite, and concrete. Metal fencing led the market in 2019 into 2020 due to growing demand from homeowners, government agencies, and businesses. Metal fencing is frequently used for its security, low maintenance, and durability. It is easier for purchasers to select metal fencing based on their budget. Metal fencing's affordability, security, and aesthetic appeal are driving segment expansion. Concrete is expected to grow rapidly throughout the predicted period due to its ease of installation and maintenance and strength. Concrete fences are easy to personalize and come in a variety of designs, allowing for segment expansion. Increasing non-residential use of stackable concrete fencing is also predicted to drive segment growth. Buying Paths for Fence Materials The US fencing market is divided into two segments: online and retail. Suppliers prefer online distribution networks over conventional distribution channels as they become more aware of their benefits. Online channels offer reduced initial costs, less money, and better customer service. Online channels also help improve consumer connections across platforms. In 2019, retail became the largest distribution route. American fencing producers prefer to market through distributors and their sales and service facilities. Suppliers generally pick the offline channel because it allows them to operate without marketing costs. Offline channels also assist firms gain brand awareness and value. Fence Installer Tips The market is divided into DIY and contractor segments based on installation. Professionally installed fences are of great quality, involve less time and effort, and are long-lasting due to the superior materials used. Manufacturers of fencing work with installers that have experience. This should drive segment growth. Customers prefer professional installation of their fences because their placement and aesthetics in the property determine its value. The DIY installation packages are tailored to the client's needs. However, due to lack of experience, do-it-yourself fence installation lacks quality. As a result, a property's appearance and value deteriorate. Usage Insights The market is divided into government, petroleum and chemicals, military and defense, mining, energy and power, transportation, and others. The military and defense segment dominates the market due to the widespread use of fencing to secure military sites and deter invasions. Increasing need for border security and other military applications is also propelling the military and defense fence market. Environmentally sensitive military and defense operations can create growing chances for fencing. The energy and power segment is expected to increase rapidly during the forecast period. Energy and power plants must be completely secured with fences, security cameras , and other security technology. In addition, governments are tightening security at power plants and energy centers due to increased terrorist activity. Electric fencing is used for energy and power plant protection because it is long-lasting, easy to install and maintain, and can be customized. Fence Markets The market is divided into three segments: residential, agricultural, and industrial. Residential dominated the market in 2019 and this trend is projected to continue. The burgeoning real estate industry, construction projects, and desire for home décor, privacy, and security drive this category. The segment was worth USD 5.3 billion in 2019 and is expected to develop rapidly over the next few years. Increased consumer expenditure on home renovation projects, coupled with rising disposable incomes, should fuel segment growth for many years to come. For residential use, PVC and metal fence are the most popular. PVC fencing is popular in residential applications because it is low maintenance, flexible, and appealing. Agricultural fencing is needed to protect farms from trespassers and wild animals. Fence Market Across States North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington Growing infrastructure and construction activities in California are likely to drive market expansion. Due to the state's numerous transportation developments, numerous fencing equipment and supplies are in great demand. The Virginia market is also expected to rise rapidly due to the state's numerous forthcoming real estate projects. Many states in the US use agricultural fence services to protect their animals and property. Increasing construction and industrialization in various US states would further drive demand for fence throughout the forecast period. Also, the growing demand of attractive residential fences opens up new business potential. The Fence Industry is Here to Stay With the overall increase in demand for fence contractors, professional fence installation, and the rise in home improvement projects across the country, there's no doubt the fence market will continue to soar. Existing fence companies are unable to meet the high demand, so new, smaller companies are popping up all over the place to meet the extreme demand. Now's your chance to get in on this super profitable fence market, strike while the iron is hot! Don't miss the chance to not only make a good living for you and your family, but also to make a difference in your local community. Learn more a bout our fence contractor training ! We cover everything from sales, marketing, and operational efficiencies to ensure a successful fence business.