How to Start a Siding Business
Have you ever dreamed of starting a siding business? The construction industry is thriving, and it’s a great time for experienced contractors to pivot into running their own siding company.
But there are a few factors to consider when it comes to starting a siding business. Here are five key steps to help you get a new siding business up and running.
Step 1: Assess demand
Every building will eventually need siding repair and replacement. So there’s always demand for a siding crew, right? If only it were that simple. Before you can dive in, consider factors such as housing stock, weather conditions and your competition.
Understand your housing stock. Housing stock includes both building density and typical construction, providing insight into the materials you'll be working with and the type of customer you’ll be targeting.
Remember that weather determines repair frequency. Areas prone to high winds, hail or strong sun exposure typically have higher demand for siding repairs and replacements.
Analyze the competitive landscape. How many siding companies are already serving your area? Are they dedicated siding companies, or are they general contractors who offer it as a side business?
The best way to thoroughly understand demand is to fill out a business plan. A business plan is really just a series of questions that force you to account for the many details that can impact your business. A free resource that offers help with business plans is SCORE, a nonprofit dedicated to helping small businesses.
Step 2: Select a supplier
No matter the type of customer you’re serving or siding you’re installing, one thing is universally true: You'll need quality materials delivered on time and pricing that keeps you competitive.
A supplier like QXO is stocked full of industry-standard materials. Plus, it can help you connect to pros who understand the craft and business of running a siding company. They can help you select materials, put you in touch with manufacturers, and provide you with high-tech tools to make your jobs run smoother and more profitably.
Step 3: Licensing and insurance
Once you understand your customer base and have a solid supplier, it’s time to research local requirements for licensing and insurance. Paperwork is never fun, but you're much better off getting it right on the front end, rather than paying fines down the road.
Don’t be afraid to make connections with your local building department. Most building department employees just want to ensure that jobs are done properly and safely. The better they know you, the more they'll trust that you're doing the right thing.
Step 4: Grow your team and establish a pipeline
With all your formalities squared away, you're ready to start building a team and landing your first jobs. Most small siding businesses start with a single crew made up of a few team members, perhaps friends you've made on other jobsites. Or maybe you're thinking bigger and have secured a startup loan to hire a larger team from the get-go. But big or small, make sure that you're doing right by your teammates when it comes to tax forms.
You'll also need to get work lined up so that you can roll your crew right from finishing one job to starting another. This pipeline of work is what will keep your business afloat. Still, this is one of the trickiest parts of working in the trades, especially weather-dependent trades like siding.
You'll need to continually line up future work before you need it. Referrals can be a huge difference maker here. Put the word out with other contractors and your supplier, so they know you’re open for any potential customers who come their way.
Step 5: Launch your business
The big day is here! You've built your team and dealt with red tape, and you're ready to jump in there and start work. It's a huge accomplishment, and you should take a moment to enjoy it.
But the work is only beginning. It's easy to get caught up in a current project and forget to follow up on a sales call or schedule an inspection. Running a small business involves wearing many different hats. It isn't easy, but it's incredibly rewarding, and there's nothing quite like being your own boss at the end of the day.
Build your business on a foundation of strong relationships
From the biggest companies to longtime sole proprietors, we all begin somewhere. A solid business starts with building relationships, keeping your word and making a sincere effort to get things done right.
Vendors like QXO often provide resources to meet and socialize with more experienced contractors. Listen to what they have to say, then adjust it to meet your needs. And remember that in the years to come, you'll be the wise veteran whom newcomers are eager to consult.