How to Start a Demolition Business

A demolition business can be started with a much smaller investment for tools and equipment than other building and contracting services. In addition to income from demolition services, careful deconstruction can pay off handsomely in additional profits that you make from collecting reusable building materials during demolition activities.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Vehicles
• Insurance
• Business License
• Permits
• Employees
• Tools

Assess Market

1. Read Environmental Protection Agency rules, local laws and safety regulations related to this business. Some states and cities require specific training and experience in the building and home improvement industry. In many areas of the country, union membership may be needed.
2. Conduct market research for your state and local area. Visit the StartupJournal website for market research and business promotion tips. Get prices from your competitors and estimate rates to charge.
3. Review your state and local governments' waste disposal laws. Arrange for proper disposal or recycling of building materials with appropriate landfills and salvage buyers.
4. Investigate markets for salvaged building materials, demolition waste and by-products.
5. Find and contact local residential and commercial building contractors. Many prefer to outsource the removal of interior and exterior appointments from the residence or building.
6. Establish working relationships with one or more contractors, depending on their workload and your capacity to complete demolition tasks.

Operations

7. Obtain a business license and any required permits and insurance.
8. Get suppliers for dumpsters, equipment and tools. Find repair, refinishing and refurbishing tools and supplies vendors.
9. Identify appropriate space for storage of salvaged building materials.
10. Recruit and hire employees to assist with demolition, building materials recovery, construction waste transportation and disposal.
11. Advertise your demolition services. Create a marketing calendar, based on your market research and seasonal fluctuations in the renovation business. Schedule your marketing efforts to potential contractors and your potential buyers.
12. Setup your accounting system to track your accounts payable, your accounts receivables and your cash on hand. Track profits with monthly cash flow projections. Find tools for making these on the AllBusiness website.