In 2021, the US fencing industry was worth approximately $8.20 billion. And starting your own fencing business does more than give you a share of the profit. You also benefit from job flexibility as you become your own boss.
If you’re interested in working in this industry, you’ll need to learn how to start a fencing company. Here’s a guide to getting off the ground and on the path to success.
What Should You Consider Before Starting a Fencing Business?
Before starting a fence company, prepare for the responsibilities involved. There’s a lot more to running a business than just fence installation. Here are some things to consider:
- Investment. Opening a business has upfront costs, including equipment, employees, and advertising. These costs can total thousands of dollars. Think about where the money will come from and how much you need.
- Required skills. You’ll need solid skills and experience constructing and repairing fences. But, successful fence companies also have good customer service and organization. And since you have to keep tabs on the finances, you’ll need some accounting knowledge as well. You can hire employees as the business grows, but you’ll likely handle many of these tasks on your own initially.
- Location. Think about where to operate. How far will your service radius go? Where are you willing to drive? A larger service area means more opportunities to find customers. But it can take more time out of your day.
- Demand. Make sure there’s enough demand in your area for fencing services. If you operate in a big city where few people have backyards to fence, the company is less likely to be successful than if you’re in a suburb with big backyards.
- Licensing. Find out your state’s rules so you can get any required licenses to install or repair all types of fences.
- Profitability. While your main goal is to help people, you need money to be a sustainable business. Consider expenses, how much you can charge, and how much profit will be left over.
- Possible challenges. New fencing companies can face many challenges. You could have bad weather. You’ll need to find affordable suppliers. Fencing trends and technologies could change. Consider these and other challenges you’re likely to face once you get started.
Starting a Fencing Company in 10 Steps
Here are the 10 steps to opening your own fencing company.
1. Plan the Business
Before you get started, you should have a detailed business plan. This includes researching the market to identify demand and examining what competitors are doing.
You also need a step-by-step guide for finding customers and becoming profitable. This is important if you want to work with a partner or investors. Consider whether you’ll target a particular niche and market yourself to homeowners, builders, commercial projects, or a combination.
It’s also worth thinking about how you want to structure your business entity. You could operate as a sole proprietor. But you may want to consider becoming a limited liability company (LLC) or an S-corporation so you can hire employees more easily and get more protection from liability.
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2. Choose a Name
Find a name that’s memorable and understandable so people know what you do at a glance. There are a huge number of potential names you could pick, but including the word “fence” is a good idea for clarity’s sake. And make sure no other fencing company in your area has the same name as you.
3. Register the Business
If you’re structuring the company as an LLC or as an S-corp, you may have to register with the Department of Corporations in your area. For example, in Florida, you could complete this registration at Sunbiz.org.
You may also be able to register your company’s name with your state or trademark the name with the United States Patent and Trademark Office so no one else can use it.
4. Register for Taxes
Your company needs an Employer Identification Number (EIN) if you’re going to hire workers. You can get one from the IRS by requesting it online. There are some extra steps depending on what type of business you registered as, so do your research to see what applies to you.
Remember to learn the tax rules, too. As an employer, you have to withhold payroll taxes. And if you operate as an independent contractor, you’ll likely have to pay quarterly estimated taxes.
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5. Get Permits and Licenses
State rules differ for becoming a licensed fence contractor. Check with your state’s board to see what license you need to start a fencing company. In many cases, you should get a contractor’s license. This may require passing exams, demonstrating your experience, and paying a fee.
6. Set Your Services and Fees
Before you bid for fencing jobs, think about how much to charge. Factors to take into account when setting prices include:
- Material cost
- Labor costs
- Taxes and insurance
- Expenses involved in running a business, like phone service and gas for your vehicles
Price each job high enough to cover expenses and provide some profit.
7. Buy Required Equipment
When you’re trying to determine how much it costs to start a fencing business, consider the upfront business expenses associated with buying equipment. You may need:
- Fence post hole shovels
- Commercial earth augers
- Fence stretchers
- Post poppers
- Post pounders
- Fence pullers
- Come-alongs
- Digging bars
- Sledgehammers
- Fencing pliers
- Cable cutters
- Bolt cutters
- Fencing staplers
- Tape measures
- Electric drill kits
- String lines
- Scrimping tools
- Cement mixers
- Wheelbarrows
- Levels
- Buckets
- Safety glasses
- Work gloves
8. Get Insurance
You should have insurance to protect your assets, clients, and staff. Some of the types of coverage you may need include:
- General liability insurance. Also known as professional liability insurance, this covers you in case someone sues your company for property damage, physical harm, or professional mistakes.
- Commercial property insurance. This is in case your business or equipment is damaged.
- Commercial auto insurance. Commercial insurance covers work vehicles specifically.
- Income interruption insurance. Contract work can be unpredictable. This insurance protects you if something happens to prevent your business from operating.
9. Hire Employees
Unless you plan to do all of the work yourself, you need employees. Consider whether you want part-time or full-time help and decide if you’ll pay hourly or pay a salary. It’s a good idea to start small with one or two part-time employees and build up from there.
Check common wages in your area and understand your obligations as an employer, including withholding payroll taxes. While hiring people is helpful, it’s another responsibility, so treat it as such.
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10. Advertise Your Service
Potential clients can’t find you if you don’t put yourself out there. Here are some potential techniques to reach customers and grow your fencing business:
- Create a company website.
- List your business in online directories, like Yelp
- Create a social media page for your company
- Print business cards and flyers
- Ask customers for references
6 Tips To Scale Your Fencing Business
Once your company gets started, keep expanding. These tips can help:
- Offer an outstanding service and products. If you provide top-notch service, you’ll get referrals. Word-of-mouth advertising is free and very likely to get you more business.
- Promote employee development. Teach your team new skills to improve your work and offer new services. Investing in your employees pays off as they get better at what they do. It can also reduce turnover.
- Invest in advertising and marketing. Marketing your business helps you reach new audiences. Create a marketing plan and spend time and money on effective advertising. It’s worth it.
- Launch limited promotions and discounts. Time-limited promotions encourage people to act. Consider deals like a discount for homeowners who to get a fence up before summer starts.
- Research new areas to offer your services. Branch out into different kinds of fencing materials or techniques. This sets you apart and shows clients you’re invested in the industry.
- Work towards efficiency. If you can work quickly and effectively, you reduce labor costs and do more jobs in less time, boosting your bottom line.
Use Joist To Start Your Business
Fencing work is important for businesses and homeowners alike. No matter where you go as a fencing professional, you need to be able to store, access, and export customer information from anywhere, at any time. That’s where Joist comes in.
Joist makes tracking customers and jobs easier than you imagined. It helps you stay on top of jobs, quote customers, and manage client expectations to provide a better customer service experience. Learn about how Joist’s client management tools can make your fencing company a success.