Have you been thinking about launching your own concrete pumping business and turning hard concrete into cold, hard cash? Well, dive into this guide and discover how starting your own concrete pumping business can pave the way to a profitable entrepreneurial journey – and how insurance* for concrete pumping can help keep you pumping concrete for clients for years to come.
If you want to start a concrete pumping business, you will need a plan, because launching a new business doesn’t just happen overnight. Here are a dozen top tips for start a concrete pumping business.
1. Evaluate the market
There are probably a few concrete pumping businesses in your area. Some may have been in operation for over 50 years, which means that they have a large customer base and know what it takes to succeed in the industry.
Is there demand for a new company in your local area? Try to confirm this before you move forward. What can you offer to differentiate yourself from your local competitors? What makes your concrete business better or different?
2. Register your business
Registering your concrete pumping business is one of first things you will take care of. Registering your business involves a few key steps, which can include choosing your business name and your business structure and registering for an Australia Business Number (ABN).
Recommended reading: How to register a business name in Australia
3. Apply for your concrete pumping business licence
To start a concrete pumping business, you will be required to hold a High Risk Work Licence – also referred to as a HRW licence. This licence is valid for five years and is issued following identification checks and verification of your age.
Holding a HRW licence allows you to perform this high risk work in any state or territory of Australia. All states and territories will recognise and enforce suspensions and cancellations made in other states and territories.
4. Reduce your exposure to risk business insurance
Unfortunately concrete pump accidents can and do happen, and when they do they have the potential to become a disaster for your concrete pumping business. However, insurance for concrete pumping can help you avoid the worst of bad situations if things don’t go to plan.
5. Have a market concrete pumping business plan
Creating a business plan for a concrete pumping business can be essential for business success. It helps you to create a clear vision and plan of action for your company.
It also helps you to outline the goals, resources, and strategies that are necessary to achieve success in concrete pumping. Additionally, it can be used as a tool to acquire funding or investment in your business. In order to create an effective business plan, consider including the following in your concrete pumping business plan:
- executive summary;
- company description;
- market analysis;
- business insurance;
- organisation and management;
- service or product line;
- marketing and sales;
- funding requests; and
- financial projections.
6. Define your value proposition
To market a concrete pumping business you will need to be creative. What can you do that your competitors cannot? What makes you the best concrete pumper in your area? You’ll need to determine what makes you a superior concrete pumper and then sell that to potential clients.
7. Know how to reach customers
To market a concrete pumping business you need to know how to cost-effectively reach your customers. How can you reach out to your customers? Construction is still a very old-school industry. A phone call or a personal visit is still appreciated by many. Most likely, people will meet you via a connection in your network.
8. Develop key partnerships
You will benefit from having a steady stream of work before you launch your business. Contact the contractors and builders in your list of potential customers. You may be able to offer them something that their current concrete pumpers aren’t delivering.
What will it require to build and maintain these relationships. As part of how you market a concrete pumping business, think about developing key industry partnerships.
9. Secure your key equipment and business resources
What will your business require in terms of resources? Here is a list of some of the key equipment, resources, and staff that you may need to successfully run your concrete pumping business.
- a concrete line pump truck (as your concrete pumping business grows you may invest in several trucks).
- a concrete boom pump.
- a business premises or location large enough to securely store your vehicles and other assorted equipment; you will also want enough room for cleaning and maintaining your trucks it.
- a competent mechanic to keep your vehicle fleet in good working order.
- at least one qualified concrete pump operator.
- An engaging company website that clearly explains who you are, what concrete services you provide, and who you provide your services to.
Bear in mind that concrete line pump trucks and concrete boom pump trucks are essential to your new concrete pumping business and represent a sizeable business investment, so consider how you will keep them on the road day in and day out.
10. Do the math
It is important to understand the costs of running your own concrete pumping business and determine how much starting your business will cost you. Consider all costs involved in setting up your business, which will likely include at the very least:
- payments for equipment;
- business insurance;
- rental costs for your business premises
- utility costs (electricity, gas, water) and fuel for your concrete pump truck; and
- recurring vehicle maintenance.
11. Revenue streams
Once you have your concrete pumping business licence, determine what your future customers will be willing to pay for your services? What are other concrete pumping companies charging for their services? This is something you will need to establish as you solidify your partnerships.
After you establish a cost for your services, determine how many jobs you will need to perform a week, month, and year to make a profit. Evaluate all revenue streams and their potential to add to the overall revenue of the business.
12. Plan for everything
Planning is key for growing and sustaining your concrete pump truck business. This isn’t just about having a business plan; it’s also about how equipped your concrete pumping business is to respond to adversity. For example, how will your concrete business respond if you experienced a concrete pump accident?
You hope that it will never happen, but putting your head in the sand and ignoring the risks to your business may not be the best response.
Do you have a risk management strategy for your concrete pumping business? As the experts in small business insurance, BizCover can help get your concrete pumping business started on the right foot by reducing your exposure to business risks. In fact, more than 220,000 Australian small business owners trust their business to BizCover.
Call BizCover on 1300 920 868 to get business insurance coverage in just 10 minutes and get back to doing what you best.
