How To Start a Commercial Paving Company

Starting a commercial paving company requires self-discipline and perseverance, especially if you want to make it successfully past the first year. You will be working in a competitive market. So besides providing a quality product, you’ll need good entrepreneurial skills to make yourself stand out. Then, you can dive into the business-building tasks listed in this article. Make sure you contact a lawyer before handling any legal necessities to ensure full compliance. 

 

Research and Learn

Starting and running a paving company is not a simple feat. First, you must take the time to research and learn about the properties of asphalt, the paving process, and how to operate as a business to achieve success. 

From the moment you decide you want to start a business, you need to take yourself seriously. Schedule time every day to learn until you feel confident you have the necessary knowledge to obtain licensing. Then, you can begin the next step.

 

How To Start a Commercial Paving Company

 

Gain Experience

If you try to skip this step, you’re setting yourself up for failure. Before you start a business, you need observe how does a successful company do it, and learn. For example, Dryco, a commercial paving company in San Jose, CA, was established in 1985, and they are still operational. Once you’ve gained insight into daily operations and the industry’s hardships, ask yourself if this is still the path you want to take. Then, if you feel you can handle running a paving company of your own, start planning your next steps. 

Write a Business Plan

Some people will tell you a business plan is unnecessary, but that is untrue for this line of work. You’ll likely need some financing to buy equipment, an office space with a yard for storing trucks, and storage space for supplies. This is when a business plan is handy. Lenders want to see that you are a true professional who knows what they’re doing. Plus, it’ll give you a roadmap you can follow as you build.

Become a Legal Business

Once you start writing a business plan, you should consult with a lawyer to ensure that you will set yourself up for legal safety. In addition, they should be able to guide you through the process of registering your business with the state and IRS. 

After registering and getting your EIN, you’re officially a business owner! You can open a bank account for your company and hire employees. 

 

How To Start a Commercial Paving Company

 

Buy Equipment

You will need the necessary equipment and supplies to complete each job, and some of it will get expensive. Therefore, a good practice is buying used equipment to save money. However, if you prefer to purchase brand new, compare prices and quality between manufacturers to ensure you get the best deal. 

As for supplies, find an asphalt product supplier that is both reputable and reasonable. As a new business owner, many people may try to abuse your ignorance and scam you into paying unfair rates.

Insurance and Licensing

To properly (and legally) run a commercial paving company, you must be adequately insured and licensed. While you may be tempted to get the bare minimum for legal compliance, it’s a good idea to insure anything else you can’t afford to cover in the event of a loss. As for licensing, you’ll need to check with the San Jose city government to see what types of business licenses your company is required to obtain. 

Employees

There will be many roles to fill within your company, from equipment operators to administration. Your business will not function properly without every necessary gear in the machine. 

When hiring, ensure your prospects are qualified to do their jobs. Anyone operating equipment will need to be trained and licensed before starting. If you want to cover this training as a hire-on incentive, you may have a larger pool of prospects.

 

How To Start a Commercial Paving Company

 

Networking

One of the most nerve-wracking parts of running a business is putting yourself out there for hire. So as you pull yours together, start networking with local construction companies and the city’s department. Having a good sales and marketing team is critical for success. In addition, you have the advantage of modern technology to help spread your name to as many prospective clients as possible. Therefore, you should not be skimping out on either of these departments.

Conclusion

Starting a commercial paving company requires years of dedicated work. You have to know the ins and outs of every aspect, which means gaining hands-on experience. On the other hand, don’t skip over any of the essential steps either. Indeed, many businesses don’t make it past the first year. And this is partially because they try to cut corners to reach the finish line quickly. Doing this will lead to mountains of debt, and it may be harder to acquire funds for another business in the future with a bankruptcy on your record.

 

Leave a Reply

Your email address will not be published. Required fields are marked *