How to Start a Concrete Pumping Business

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A concrete pumping business is a business that is involved in the pumping of mixed concrete on construction sites, it offers support in the construction industry with the aid of concrete pumps. Concrete pumping is the transporting of a freshly mixed batch of concrete to a specific location on a site.

Concrete pumping is an essential element of any project involving concrete because it moves the mixed concrete around the project site quicker than when a human is trying to push a wheelbarrow manually.

Data shows that the concrete pumping market size was valued at $3,800.0 million in 2019, and is projected to reach $4,853.2 million by 2027, registering a CAGR of 4.0% from 2020 to 2027. The global concrete pump market is projected to grow from $4.74 billion in 2021 to $6.61 billion in 2028 at a CAGR of 4.9% in the forecast period, 2021-2028.

Steps on How to Start a Concrete Pumping Business

Conduct Market Research

The first step to start a concrete pumping business is to develop market-based research questions in line with your overall business goal and objective. This could help you to source information that will help you maximize your business, operate your concrete pumping business with less stress, and of course, build the business to profitability.

a. Who is the Target Market for Concrete Pumping Business?

Construction contractors
General contractors
Government works department
Mining companies
Construction companies

b. Is Concrete Pumping Business a Profitable Business?

Yes, the concrete pumping business is very profitable. There are countless ongoing government and private construction projects that require the services of concrete pumping companies. The global concrete pump market is projected to grow from $4.74 billion in 2021 to $6.61 billion in 2028.

c. Are There Existing Niches in the Industry?

No. There is no niche area in the concrete pumping business because the concrete pumping business is a niche area in the construction industry.

d. Who are the Major Competitors?

Pumpcrete USA Concrete Pumping
Alliance Concrete Pumps Inc
American Concrete Pumping Co
Keim Concrete Pumping Inc
Howard Concrete Pumping Co Inc
Elite Concrete Pumping & Finishing
Champion Concrete Pumping Inc
HI-TECH Concrete Pumping
Adonel Concrete Pumping
Bartley Concrete Pumping
Lopez Concrete Pumping
George’s Concrete Pumping
Burbidge Concrete Pumping
Brundage-Bone Concrete Pumping
Solid Ground Concrete Pumping
Jernigan Concrete Pumping Inc
SKYLINE CONCRETE PUMPING, INC
Ashmore Concrete Pumping – Augusta
American Concrete Pumping Inc
Howard Concrete Pumping Co Inc

e. Are There County or State Regulations or Zoning Laws for Concrete Pumping Business?

No. There are no county or state regulations or zoning laws for concrete pumping businesses, but players in the industry are expected to work with existing regulations governing similar businesses in the county where their business is domiciled.

f. Is There a Franchise for Concrete Pumping Business?

No, there are no franchise opportunities for the concrete pumping business.

g. What Do You Need to Start a Concrete Pumping Business?

A Feasibility Report
Business Plan
Licenses and Permits
EIN (Employer Identification Number)/Federal Tax ID Number
A Corporate Bank Account
Equipment (Concrete Pumps) and Utility trucks
Commercial Driver’s License (CDL) (at least a Class B CDL)
IRP Plates
Employees
Startup Capital

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a concrete pumping business are;

Creative Concrete Pumping Business Name ideas

Mack Pearson© Concrete Pumping Company, Inc.
Donald Drucker® Concrete Pumping Company, Inc.
Jason Macel© Concrete Pumping Company, Inc.
Go Shovel® Concrete Pumping Company, Inc.
Cist Team™ Concrete Pumping Company, Inc.
Anthony Lawson™ Concrete Pumping Company, LLC.
James Kingston© Concrete Pumping Company, LLC
Theo Maghreb® Concrete Pumping, Inc.
Allen Victory© Concrete Pumping, Inc.
Luke Wyclef© Concrete Pumping, Inc.
Tony Morgan® Concrete Pumping, Inc.
Construct Group® Concrete Pumping, Inc.
West Coast® Concrete Pumping, Inc.
The Base® Concrete Pumping, Inc.
Silver Pipe® Concrete Pumping, Inc.
Red Berret© Concrete Pumping, Inc.
Titans and Co™ Concrete Pumping, LLC
Chicago City® Concrete Pumping, Inc.
Bally White® Concrete Pumping, Inc.
Emma Braithwaite™ Concrete Pumping, Inc.

Register Your Business

a. What Type of Business Structure is Best for Concrete Pumping Business?

Although there are some options when it comes to the business structure of a concrete pumping business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

In regards to that, an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

Choose a Name for Your LLC.
File Articles of Organization.
Choose a registered agent.
Decide on member vs. manager management.
Create an LLC operating agreement.
Comply with other tax and regulatory requirements.
File annual reports.

c. What Type of License is Needed to Open a Concrete Pumping Business?

General Business License
Commercial Driver’s License (CDL) (at least a Class B CDL)
IRP Plates
Zonal Permits
Signage Permit
Operational State Facility Inspections for your parking

d. What Type of Certification is Needed to Open a Concrete Pumping Business?

No certification is required to operate a concrete pumping business.

e. What Documents are Needed to Open a Concrete Pumping Business?

Some legal documents you are required to have if you want to legally run a concrete pumping business in the United States of America are;

DBA
EIN
Business and liability insurance
Federal Tax Payer’s ID
State Permit and Building Approval (For your parking)
Certificate of Incorporation
Commercial Driver’s License (CDL) (at least a Class B CDL)
IRP Plates
Business License
Business Plan
Employment Agreement (offer letters)
Operating Agreement for LLCs
Insurance Policy
Online Terms of Use
Online Privacy Policy Document
Contract Document
Company Bylaws
Memorandum of Understanding (MoU).

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a concrete pumping business, you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Concrete Pumping Business?

The startup cost of starting a concrete business range from $80,000 to $200,000 or more depending on how much equipment the business owner decides to purchase. This amount includes the salaries of all the staff for the first month of operation.

b. What are the Costs Involved in Starting a Concrete Pumping Business?

The total fee for registering a business in the United States of America is $750.
Legal expenses for obtaining licenses and permits as well as the accounting services total – $1,200.
Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
The cost for hiring a business consultant (writing of business plans inclusive) is $4,500.
Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $12,400.
The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
The cost for leasing a facility (long-term lease agreement) – $105,600.
The cost for facility remodeling and installations – $20,000.
The cost for the purchase of concrete pumping trucks: $100,000
Other start-up expenses including stationery – $500
Phone and utility deposits will cost – ($2,500)
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
The cost for store equipment (cash register, security, ventilation, signage) – $3,150
The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, tables, and chairs et al) – $8,000.
The cost of launching an official website – $600
Miscellaneous: $2,000

c. What Factors Determine the Cost of Opening a Concrete Pumping Business?

The type of concrete pumping trucks
The Choice of Location
The Required Licenses and Permits
The Additional Services Offerings
The Cost for Branding, Promotion, and Marketing of the Concrete pumping business
The Cost of furnishing and equipping the Concrete pumping business
The Cost for Insurance Policy Covers
The Cost for Registering the Business
Source of Your Supplies and Ongoing Expenses
Cost of Recruiting and Training Your Staff
The Cost of the Purchase and Customizing of Uniforms

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

No. You don’t need to build a facility for your concrete pumping business because you are expected to go out in the field to offer your services. You may just decide to lease a parking and storage facility for your trucks, working tools, and equipment.

e. What are the Ongoing Expenses of a Concrete Pumping Business?

Gas and lubricants
Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
Trucks maintenance
Insurance
Marketing costs
Salaries of employees

f. What is the Average Salary of your Staff?

Chief Executive Officer (Owner) – $45,000 per year
Accountants (Cashiers) – $28,000 per year
Concrete Pumping Truck Driver – $28,150 per year
Concrete Pump Operation – $23,000 per year

g. How Do You Get Funding to Start a Concrete Pumping Business?

Raising money from personal savings and sale of personal stocks and properties
Raising money from investors and business partners
Sell shares to interested investors
Applying for a loan from your bank/banks
Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
Source for soft loans from your family members and your friends

Write a Business Plan

a. Executive Summary

Donald Drucker® Concrete Pumping Company, Inc. is an international concrete pumping company that has its headquarters in Grand Rapids, Michigan – USA. The fact that they are based in the United States does not restrict their scope of operations to the United States of America.

They are an international concrete pumping company and they work for their clients in any part of the world. Donald Drucker® Concrete Pumping Company, Inc. will specialize in concrete pumping in the construction of skyscrapers, bridges, stadiums, roads, dams, office complexes, shopping malls, schools, campuses, estates et al.

b. Products and Service

Concrete driveway building, concrete footings, concrete repairs, and construction cleanup
Concrete resurfacing, flooring, boom pump, commercial floors, concrete pumping, custom paint, and line pump

c. Mission Statement

Our mission is to establish a concrete pumping business that will create a standard of excellence in the industry. We want to grow our concrete pumping business to be listed amongst the top 10 concrete pumping businesses in the United State within the first 5 years of launching the business.

Vision Statement

The vision is to establish a standard and world-class concrete pumping business that will be the best concrete pumping services company in the United States of America.

d. Goals and Objectives

The goals and objectives of the concrete pumping business are to provide support services in construction projects that involve transporting freshly mixed batches of concrete to a specific location on a site.

e. Organizational Structure

Chief Executive Officer (Owner)
Accountants (Cashiers)
Concrete Pumping Truck Driver
Concrete Pump Operators

Marketing Plan

a. SWOT Analysis

Strength:

Excellent operational history
Attention to detail
Accurate estimates with no hidden costs
Experience and trained professionals
Excellent customer testimonials
Reliable and efficient concrete pumping trucks and service

Weakness:

Not enough existing clientele to run at full capacity immediately
The owner is new to large-scale marketing
The owner is currently running the business solo
Lack of economies of scale

Opportunities:

Growing construction activities in the United States
Build upon existing clientele
Online market, new services, new technology, and the opening of new markets

Threat:

Loans diminish profitability until they are paid off
The first year will be financially tight while we gain customers and pay off loans
Competition in the area could increase
Management of employees requires time, money, and efforts
The regulating department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.

b. How Do Concrete Pumping Companies Make Money?

A concrete pumping services business makes money by charging clients for the following services;

Concrete driveway building, concrete footings, concrete repairs, and construction cleanup
Concrete resurfacing, flooring, boom pump, commercial floors, concrete pumping, custom paint, and line pump

c. Payment Options

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

d. Sales & Advertising Strategies

Introduce your concrete pumping business and the services your offer by sending introductory letters alongside your brochure to construction companies, the government, and other key stakeholders throughout the city where your concrete pumping business is located
Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, and LinkedIn to get your message across
Create a basic website for your business to give your business an online presence
Directly market your services
Provide discount days for your customers
Advertise your business in community-based newspapers, local TV and radio stations
List your business on yellow pages ads (local directories)
Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

a. How Much Should You Charge for your Product/Service?

The amount to charge for your concrete pumping services should depend on some factors. Generally, hourly rates range between $150 and $200.

b. How Much Profit Do Concrete Pumping Business Owners Make a Year?

A concrete pumping business owner usually makes between $35,000 to over a hundred thousand dollars.

c. What Factors Determine the Amount of Profit to Be Made?

The capacity of the concrete pumping business
The location the concrete pumping business is covering
The management style of the concrete pumping business
The business approach of the concrete pumping business
The advertising and marketing strategies adopted by the concrete pumping business
The number of years the concrete pumping facility is in business

d. What is the Profit Margin of a Concrete Pumping Business?

The profit margin of a concrete pumping business is not fixed. It could range from 25 % to 35%.

e. What is the Sales Forecast?

Below is the sales forecast for a concrete pumping business. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year (FY1): $320,000
Second Fiscal Year (FY2): $480,000
Third Fiscal Year (FY3): $600,000

Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Concrete Pumping Business?

The demography of the location especially as it relates to players in the construction industry
The demand for the services of concrete pumping businesses in the location
The purchasing power of residents of the location
Accessibility of the location
The number of concrete pumping companies in the location
The local laws and regulations in the community/state
Traffic, parking and security et al

b. What State and City are Best to Open a Concrete Pumping Business?

Phoenix, Arizona
Fort Smith, Arkansas
Lakewood, Colorado
Columbus, Ohio
Delaware City, Delaware
Chicago, Illinois
Boston, Massachusetts
Los Angeles, California
Las Vegas, Nevada
Atlanta, Georgia

c. What Equipment is Needed to Operate a Concrete Pumping Business?

These are some equipment needed to operate a concrete pumping business; concrete pumping trucks, working tools, utility trucks, ladders, inventory-management software, and other relevant software applications. In addition, you will need computers/laptops, an internet facility, a telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

Hire Employees

When it comes to hiring employees for a standard concrete pumping business, consider hiring a competent manager (you can occupy this role), accountant, concrete pumping truck drivers, and concrete pump operators.

Launch the Business Proper

In recent times, no concrete pumping company opens its door for business without first organizing an opening party for an official launching of the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.

With a proper launching of the concrete pumping business, you will be able to officially inform people in your city that your concrete pumping business is open for business.

a. What Makes a Concrete pumping Business Successful?

You are on a retainership with the government of your city or state or even the federal government and other construction companies
You are generating profits from the business
Your customers are happy and satisfied with your services and they are freely recommending your services
Your employees are happy and satisfied with the organization

b. What Happens During a Typical Day at a Concrete Pumping Business?

When they resume work, the staff or marketing team goes out there to source good business deals.
Before a deal is sealed, a concrete pumping company is expected to carry out an inspection of the location, which enables them to know the manpower and equipment to be deployed to the site.
Once a deal is sealed, the concrete pumping carries out its job as agreed by both parties.
The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Concrete Pumping Business?

Ability to pay attention to details
Good managerial and human development skills
Good accounting and bookkeeping Skills
Visionary leadership
Team-building & interpersonal Skills
Excellent communication and negotiation skills.
Organizational skills.
Problem-solving ability
Good supervisory skills
Experience in managing construction-related services business
Experience in managing people
Experience in business administration
Experience in handling different types of concrete pumping trucks, machines, and equipment