When contemplating the idea of launching a garage floor or concrete coating venture, the initial inquiries that naturally arise are: “What will be the financial investment?” and “What all will I need?” At Floor Shield, our response to these questions varies based on several factors, such as:
- Whether you opt for an independent path
- Become a dealer
- Choose a franchise.
In this article, we will honestly delve into the general expenses associated with starting this type of business and clarify the primary distinctions among the three business models from a financial standpoint.
INITIAL COSTS FOR A CONCRETE COATING BUSINESS
Regardless of whether you decide to go independent, join a franchise, or become a dealership, there are common initial costs to contemplate. Here's an approximate breakdown of these costs:
The estimated of your equipment will range from $20,000 to $30,000.
Major Equipment List:
- Generator: 13,000 Watt minimum
- Extension cords
- Diamond grinder (20” or larger)
- Variety of grinding pads with various hardness and grit levels
- PCD Pads or Grinding Cup Wheels for removing prior coatings
- High-Capacity Vacuum System
- Secondary vacuums for hand grinders
- Portable air scrubber
- Trailer with ramp
- Tooling and accessories
- Hardness test kits
- Moisture meter
- Rollers/roller covers
- Brushes/trowels/squeegee
- Spiked shoes
- Mixing tools/cups/half-gallon/graduated pitchers
- Mixing bins/mixing paddles
Transportation: Acquiring a truck, trailer, fuel, and insurance can amount to around $20,000 to $40,000.
Transportation Considerations:
- Will you purchase a new or used truck/trailer? Do you currently own one?
- For those with a box truck, a separate trailer might not be necessary.
- Ongoing expenses like gas and insurance should be factored in.
Permits and Licenses: Legal requisites such as a business license and zoning permit could total approximately $250 to $500.
Licensing Variations: Some states and counties have stringent contractor licensing programs (e.g., California and select counties in Florida), while others have minor licensing requirements for small businesses like a concrete coating dealership (ranging from $150 to $500).
Insurance: Safeguarding your business with general liability and workers' compensation insurance may cost around $3,000.
Marketing: Establishing a robust online presence and promoting services through avenues like website design, business cards, flyers, etc., can sum up to roughly $2,000 to $4,000.
Breakdown of Marketing Expenditure:
- Website
- Business Cards/flyers/brochures—$500 - $750
- Wrap for your trailer/truck—$1500 - $3000
It's crucial to note that these estimates exclude the startup cost of a dealership or franchise, and they do not account for any potential discounts offered by these business models. The total cost can significantly vary based on your chosen path.
Furthermore, ongoing marketing expenditure should be considered. Ultimately, if you don’t generate leads, you don’t have a growing business. You could have the best product and service in the world, but that doesn’t matter if you can’t get the leads necessary to spread your influence. We suggest reinvesting 10 – 15% of your revenue into working capital, typically around $2,000 – $3,000 per month minimum.
WHY CHOOSE TO BE AN INDEPENDENT CONTRACTOR?
The first option to think about is the DIY (Do It Yourself) approach. Independent ventures are appealing due to their low initial costs. There’s no upfront deposit for affiliating with specific brands, nor are there ongoing monthly fees.
However, even within the realm of independent contractors, numerous expenses should be factored in. DIY enthusiasts must procure all necessary equipment, materials, and permits for business operations, and costs can accumulate rapidly. This might lead to insufficient funds for essential aspects like insurance or marketing.
WHY OPT FOR A FRANCHISE?
Franchising provides a more secure path for entrepreneurs venturing into the concrete coating industry. While it offers several advantages, it also entails substantial startup costs. Franchisees typically need to:
- Bring working capital of up to $80,000 or more.
- Pay a monthly franchise fee, usually a percentage of earnings (6 to 12%).
Franchises offer valuable benefits such as comprehensive training programs and marketing support. They possess established brand recognition and a proven business model, facilitating a lot of initial customer trust for your new business. Securing financing for a franchise is often easier due to the perceived lower risk associated with established brands.
Many franchises may necessitate equipment purchase through them to standardize operations across all businesses, ensuring consistent quality and service. Financing options for the equipment might be available.
IS BECOMING A DEALER THE RIGHT CHOICE?
Concrete coating dealerships typically offer a product and some branding. As a dealer, you won’t have a fee tied to your earnings and will have more autonomy in promoting and conducting your business.
- Startup costs for a dealership can range from $50,000 to $70,000.
- Dealerships generally provide the product and may offer some training to installers, but they often lack extensive support and marketing assistance compared to franchises.
- At Floor Shield, our dealership model offers franchise-like support without the royalty fees. We provide a comprehensive training program and marketing plan for every dealer.
IT DEPENDS ON YOUR GOALS AND CIRCUMSTANCES
The cost of initiating a garage floor or concrete coating business can vary significantly based on your chosen path.
- DIY options are the most cost-effective upfront, but managing everything independently can become overwhelming.
- Franchises offer comprehensive support and an immediate reputation but require a substantial initial investment and ongoing fees.
- Dealerships offer a middle-ground option, varying in support levels, no royalty fees, and a balance between freedom and security.
For a detailed analysis of the structures of different concrete coating business models, refer to this breakdown covering:
- Utilizing CRM and managing leads.
- Managing challenges.
- Implementing an effective marketing plan and sales system.
- Initiating a successful concrete coating business.
- Emphasizing teamwork.
Ultimately, the decision to start a concrete coatings business should align with your financial capacity, business objectives, and the level of support and training you seek for success in this industry. If you are interested in Floor Shield’s dealership model, offering substantial support without franchise fees and restrictions, proceed to our dealer signup below.
