If you are looking to start a sealcoating business, you can start the business with very minimal startup capital. But if you are looking to start a standard seal coating business that can execute top-level contracts, then you must be ready to spend above $50,000.
A seal coating business is a business that specializes in the application of seal coats to asphalt surfaces such as driveways, parking lots, and roads. Usually, seal coating businesses offer their services to residential, commercial, and industrial customers.
Factors That Influence the Cost to Open a Sealcoating Business
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The Cost of Equipment and Supplies
The truth is that no matter the size of the seal coating business you want to start, you must make provisions for some essential equipment and supplies albeit in different proportions.
You must have a budget for equipment and supplies such as seal coat spray system, crack filling equipment, agitation system, seal coat mixing tank, edging tools, line striping machine, blowers,
Asphalt cleaning equipment, safety gear (masks, gloves, boots, etc.), traffic cones and barricades, transportation (truck, trailer, or vehicles), hand tools (squeegees, brooms, rakes, etc.), and repair tools (patching equipment, crack cleaning tools, etc.).
Please note that the amount you are expected to spend in this regard will depend on the scale of operations or the size of your seal coating business.
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Business Licenses and Permits
You know that without the requisite business licenses and permits, you may not be allowed to legally operate a seal coating business in some jurisdictions in the United States.
In case you are not sure of what obtains in your city as it relates to the licensing and permits needed to start a seal coating business, you can consult with the local authority in the state where you want to start your business.
But generally, you should at least make provisions for a business license, contractor’s license (if required by state or local regulations), trade license (if applicable, such as for chemical handling),
Sales tax permit, environmental permit, sign permit (if placing signs on properties), occupational license, and home occupation permit (if operating from home).
Please note the jurisdiction where you want to start your seal coating business will determine how much you will spend on licenses and permits.
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Insurance Costs
As a seal coating business owner, it is expected that you go to sites to work, and in some cases, you will be required to climb buildings.
This can be risky hence it is required that a sealcoating business owner purchase the required insurance policy cover for the business.
The types of insurance and the coverage limit you should subscribe to for a seal coating business might differ and can be based on the risks that the business is exposed to.
But generally, you should make plans to purchase insurance policy covers such as general liability insurance, worker’s compensation insurance,
Commercial auto insurance, property insurance, professional liability insurance (errors & omissions), umbrella liability insurance, and business interruption insurance.
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Marketing and Advertising Expenses
Unlike someone who is selling products in his or her store, a sealcoating business is offering services in the facility of its clients hence they must reach out to their target market to sell their services.
This is why you must not fail to create a budget for your new seal coating business. Interestingly, there is no limit to how far you can go to market your seal coating business.
You can start with door-to-door marketing. Reach out to residents, facility managers, and businesses in and around your community to market your seal coating services.
Apart from that, you can also post adverts on billboards, newspapers, coffee shops, train stations, social media platforms, local television and radio stations et al.
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Training and Certification Fees
If you are looking to start a seal coating business, you may have to create a budget for training and certifications. Even if not for yourself as the business owner, but for your employees who you will deploy to the field to carry out seal coating services. There are different types of training and certifications you can subscribe to for a seal coating business.
Depending on your budget for training and certification, you may want to consider options like industry-specific courses from the Asphalt Institute or the National Pavement Contractors Association, online training programs, and workshops by equipment manufacturers. Certification programs such as the Pavement Coatings Technology Council (PCTC) can also enhance your credibility.
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Vehicle Costs (If Using Company Vehicles)
When we talk about vehicle costs, we are talking about the costs that are associated with keeping the vehicle in shape and on duty.
Your vehicle cost will include expenditures such as fueling, servicing and maintenance, tool fees, renewal of vehicle licenses, and any other costs that come as a result of using the vehicle for business.
You might not be able to have a concrete budget for this until you have successfully run the business for a while and notice the patterns at which you spend on the vehicle.
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Labor Costs (If Hiring Employees)
If you are looking to start a standard seal coating business, you are required to hire some employees to work with you. The only reason why you may not want to hire any employee is if you choose to go solo and operate in a very small capacity. But for a standard seal coating business, you are expected to hire key employees for your organization.
In essence, you should create a budget to hire project managers to oversee operations, skilled seal coating technicians for application, sales and marketing professionals to attract clients, administrative staff to handle office tasks, and quality control inspectors to ensure a high standard.
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Initial Operating Expenses (such as Office Rent, Utilities, etc.)
These expenses may cover office and storage rents, your utilities (software, phone, internet), and your launch party expenses. Interestingly, there is no fixed amount to set aside for this cost.