Are Demolition Companies Profitable?

With the gradual expansion of the construction industry in recent years, we’ve also seen the rise of companies that work hand-in-hand with construction and development companies, like demolition and waste removal services. But when it comes down to time to contract one of these companies, it helps to know how they operate and make money so that you know what to look out for.

Even small-scale companies in the demolition field can turn a decent profit, which is surprising since it only requires a modest-sized investment. Due to the fact that most construction and/or renovation companies rely on subcontracting the work of interior and exterior breakdowns, there are countless opportunities for new or smaller companies to get their foot in the door. If you want to start your own successful demolition company, then we have some basic tips to help you at least get started.

  • With low amounts of start-up capital, it’s usually best to get started in the residential side of demolition.
  • Create a business plan and apply for a business license when you are fully prepared.
  • Obtain the correct amount and type of insurance. The different types of insurance that you need depends on many things like the equipment that you are using.
  • Secure office space and necessary tools/equipment. While it’s possible to start the business from home, you will quickly realize how much an actual office will help you stay organized.
  • Make sure your staff is fully trained and certified. Different aspects of the demolition world require different types of training, and each job should have a group of workers that are familiar with these different rules.
  • Study the local laws and regulations so that you are prepared to apply for certain permits to continue with jobs that you are contracted for.

Each step of the process requires an extensive amount of research, and none of them should be taken lightly. Demolition companies have a lot of pressure on their shoulders to make sure the job is done correctly each and every time, and it does get crazy when dangerous materials have to be handles and disposed of correctly.