In the ever-evolving contracting realm, endless entrepreneurial possibilities await. With the growing demand for specialized services, the need for contractor ventures has skyrocketed. To create a flourishing enterprise, one must possess expertise and a keen understanding of the market dynamics.
Embracing this entrepreneurial spirit and starting your contracting business will open up endless possibilities. In this guide to operating systems, we will introduce you to promising businesses you can start as a contractor. These businesses have great potential for growth and profitability, making them ideal choices for contractors.
1. Portable Dumpster Renting
The waste management industry is undergoing a significant transformation. As such, portable dumpster rental services are emerging as a lucrative business opportunity for contractors. This is especially true in the construction industry, where it has become one of the most sought-after services.
Construction sites generate a lot of waste that needs to be disposed of properly. However, traditional means of waste disposal, such as garbage bins, are expensive and inefficient. This factor has increased the demand for on-site rental dumpsters, making it a promising business opportunity for contractors.
Starting a portable dumpster renting business doesn’t require a massive initial investment, making it an ideal option for entrepreneurs. You can start with a small fleet of dumpsters and gradually expand as your business grows. The primary expenses include the purchase or rental of dumpsters, transportation, and marketing. Follow this guide to operating systems and provide timely and efficient waste management services to build a loyal customer base and expand your business.
This business venture generates a steady stream of recurring revenue since a construction company can rent out several dumpsters for months. By catering to multiple industries besides construction, it also provides divisibility, essential for business success. Additionally, you can market it as an eco-friendly option, providing environmentally responsible waste disposal services. Moreover, the dumpster renting business has few regulations and requires minimal training. However, you’ll need a Fire Protection Bureau. It also guarantees operation and price flexibility, making it a great option for new market contractors. According to Indeed, you can rake in $11 to $16 in dumpster rental hourly pay.
2. Fence Installation
Fence installation is a less commonly recognized business opportunity, but it can be a profitable venture. For many clients, fences serve practical security purposes and aesthetic benefits that enhance a property’s appearance. In 2022, The Brainy Insights reported that the US fencing industry was valued at $9.15 billion and is expected to grow at 6.22% CAGR from 2023 to 2023.
There are various fences, including wood, chain link, and aluminum. Aluminum fences are popular due to their low maintenance needs, durability, and aesthetics. You can specialize as an aluminum fence company or become a general contractor dealing with the various types of fencing materials.
Besides the general business license, some states may require contractors to obtain specific licenses. You should also have insurance coverages, including general liability and workers’ compensation. The requisite equipment to start the business includes post-hole diggers, nail guns, saws, and hammers. It’s also essential to establish relationships with suppliers to ensure access to quality materials at reasonable prices.
3. Masonry
Masonry work is another promising business opportunity for contractors looking to begin their entrepreneurship journey. Masonry work has been around for centuries, and it continues to be in demand. This steady demand, whether new construction, renovations, or repairs, makes it a great business opportunity for new contractors.
Masonry is a specialized trade that requires a certain level of expertise. Therefore, you must hire a team of experienced masons with different skills to work on the projects. You will need some initial capital to purchase tools and materials, but this can be minimized by renting them or partnering with a supplier.
Furthermore, masonry work is not limited to a single niche. It can involve building walls, chimney repair, fireplaces, and patios to constructing walkways. This versatility allows you to cater to a broad range of customers and projects and guarantees wiggle room for growth and diversification.
Since masonry requires specialized skills, it is a high-paying field that can yield substantial profits. Quality artistry and timely completion of projects will help you build a reputation in the industry and bring in repeat customers. Building relationships with contractors, real estate developers, and architects also guarantees a steady flow of clients.
Depending on your location, you may need licenses or certifications from the state government to operate as a masonry contractor. Essentially, you only need a high school diploma and learn the job through apprenticeship or on the job. It’s also crucial to have the appropriate insurance coverage to protect your business from potential liabilities and accidents on the job site.
4. Pool Installation
Pool installation is another niche business opportunity that can yield substantial profits. In the US, this is a big industry, estimated at $12.8bn in 2022 by IBIS World. A pool installation business typically offers services such as pool design, excavation, plumbing, and finishing. That means, as a pool contractor, you have to invest in more than just construction equipment.
Starting a pool installation business requires technical knowledge in constructing various pools, such as fiberglass, vinyl liner, or concrete. It’s also essential to have an eye for design and be able to provide clients with various options based on their preferences and budget. Obtaining proper licensing is vital, as this industry is heavily regulated.
Partnering with a pool supply company or supplier can also be beneficial, as you can offer pool maintenance and repair services in addition to installation. This diversification can provide a steady stream of revenue throughout the year. ZipRecruiter reports show you can earn as high as $144, but the normal pay is around $15. Additionally, investing in marketing efforts, such as online advertising and word-of-mouth referrals, can help attract new clients.
5. Plumbing
One of the most profitable ventures with a shortage of professionals is plumbing. Plumbing is an essential trade that has existed for centuries and continues to be in demand. Whether residential or commercial, there will always be a need for plumber services, making it a safe business venture for contractors.
Starting a plumbing business requires specialized skills and knowledge. However, if you have experience as a plumber, you can easily start your venture. As with any trade, having the necessary licenses and certifications is crucial to operate legally. Additionally, you should obtain insurance coverage to protect you from potential liabilities and legal issues that may arise while working on a project.
General liability cover is the most important insurance for a plumbing business. This policy covers accidental property damages and injuries to others, excluding your employees. For that, you will have to get workers’ compensation insurance. According to Forbes Advisor, the average monthly plumbing insurance cost is $166 for a business owner’s policy.
Plumbing services are required for new constructions, renovations, and repairs. This demand provides a diverse customer base, allowing contractors to expand their business. Additionally, with proper marketing techniques, such as building relationships with real estate developers, contractors, and homeowners’ associations, you can secure long-term contracts in residential and commercial properties.
Plumbing is also a high-paying field, making it a profitable business opportunity. According to Salary.com, the base salary for a plumbing contractor ranges from $66,740 to $87,617. Furthermore, with the rise in eco-friendly practices, there’s an increasing demand for sustainable plumbing solutions. By offering energy-efficient or water-conserving plumbing options to customers, you can tap into this market and differentiate your business from competitors.
6. Residential Roof Services
According to IBIS World, the roofing industry’s revenue in the US is estimated at $57.7 billion in 2021. The industry has also seen a 1.0% annual growth since 2017. This growth highlights the potential for success in starting a residential roofing business.
Roofing contractors handle new roof installations, repairs, and replacements. Forbes estimates the average roof installation between $4 and $40 per square foot. Such prices present an opportunity to make a significant profit margin. The demand for these services is steady and consistent as roofs require regular maintenance and eventually need to be replaced. A roofing contractor may also offer additional services such as gutter repair and installation.
To start a residential roofing business, contractors must obtain the necessary licenses and insurance coverage. These will typically depend on your state’s laws and regulations. However, you should have workers’ compensation, business liability insurance, and contractor’s equipment insurance. You’ll also need to invest in tools and equipment such as ladders, nail guns, and safety harnesses.
7. Residential Paving
Residential paving involves the installation and maintenance of driveways, walkways, patios, and more. It’s a specialized trade that offers an excellent opportunity for contractors to start their own business. As the construction industry grows, so does the demand for paving services.
To start a residential paving business, you will need some initial capital to purchase the necessary equipment. These include asphalt pavers, rollers, trucks, and other tools. However, you can also rent equipment or partner with suppliers to reduce starting capital. It’s essential to have experience in this field or hire skilled workers who do. Additionally, obtaining proper licenses and permits is crucial to operate legally.
A residential paving contractor can offer various services, including asphalt paving, concrete paving, and seal coating. This versatility allows contractors to cater to different types of customers and projects, ensuring steady work throughout the year. By offering quality artistry and timely completion, you can secure business and build a reputation in the industry.
Residential paving is a lucrative field with high-profit margins. According to the Bureau of Labor Statistics, paving means an annual wage of $52,000. However, it’s important to note that this business has peak seasons, with most projects being carried out during the warmer months. By diversifying your services to include snow removal and other seasonal work, you can generate revenue throughout the year.
8. Decking Designer and Installer
Decking design and installation is an exciting business venture that allows homeowners to expand their living spaces outdoors. As a local deck contractor, you’ll create unique, functional outdoor spaces that enhance the overall aesthetic and value of your clients’ homes. This field requires a strong understanding of materials (like wood, composite, and aluminum), design principles, and safety guidelines.
Starting this business involves acquiring the necessary licenses and permits. For instance, you need a siding and decking limited specialty contractor license. You also have to get the right tools and equipment. Furthermore, a key aspect of this business is the ability to provide a tailored approach, ensuring each deck installation meets clients’ specific needs and preferences.
Offering various services, from design consultation to installation and maintenance, can set your business apart in this competitive industry. Additionally, marketing strategies, such as creating a strong online presence and networking with home renovation companies, can help attract potential clients.
9. HVAC Installation
Embracing an HVAC install project presents an attractive business opportunity for contractors. As more residential and commercial buildings arise, the need for efficient heating, ventilation, and air conditioning continues to increase. According to Statista, HVAC installation revenue in the US is projected to grow by $41.8 billion from 2023 to 2028. This steady growth makes it a stable and profitable business venture.
Venturing into an HVAC installation business requires technical expertise, practical experience, and a deep understanding of HVAC systems. Prospective HVAC company owners must first acquire the necessary training and certifications, with options ranging from trade schools to on-the-job training programs. Knowledge of various HVAC systems, including their design, installation, maintenance, and troubleshooting, is indispensable.
Acquiring business licenses and permits is another crucial step. The requirements for these may vary depending on your location, so it’s advisable to consult with local authorities to ensure compliance. You’ll also need insurance coverage to protect your business from potential liabilities or accidents on-site.
Investment in tools and equipment is another consideration. The specific tools required depend on the scope of your services, but a typical HVAC install project requires items such as gauges, hammers, drills, pipe cutters, and more. You may choose to buy or rent these tools initially, depending on your budget.
As a contractor, there are numerous business opportunities available in the market. The key to success lies in finding your niche and providing high-quality services to your clients. With proper licensing, insurance coverage, and essential equipment, you can begin your journey toward building a successful contracting business. Remember to continuously adapt and update your skills to stay ahead of the competition in an ever-evolving market.
