The Pros & Cons of Starting a Powder Coating Business

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For entrepreneurs and workers with special technical knowledge, starting a business is a way to potentially make money without allowing someone else to get rich from your efforts. One option for a small or midsize business that takes advantage of a particular type of expertise is a powder coating business. Powder coating is an electrical process for applying finish to metals as an alternative to painting.

Startup Costs

One of the key drawbacks to starting a powder coating business is the cost of startup. You'll need to secure a space, such as a commercial garage or warehouse, to house your operation. You'll also need to invest in equipment, including large curing ovens, a ventilation system and spray guns. Marketing and employee recruitment also add to the cost of getting your powder coating business off the ground.

However, startup costs can prove an advantage for a powder coating business compared to other, more elaborate businesses. If you specialize in powder coating you won't need to buy conventional painting equipment or lease a large enough space to handle multiple services.

Customer Acquisition

Powder coating attracts both commercial and individual clients. This means your new powder coating business has the advantage of a large potential base of customers. You can advertise at custom car and motorcycle shows to interest auto enthusiasts and restorers in your services while, at the same time, lining up business clients with large-scale industrial powder coating needs.

Specificity

A powder coating business specializes in a single service, which can be both a benefit and a disadvantage. If you plan to establish your business as a source of superior-quality powder coating, the lack of other services will help increase your credibility and make it easier for you to work toward your single goal. However, if you fail to stand out based on your powder coating work along, you won't have any additional services to offer. Automotive or industrial finishing businesses, which combine powder coating services with conventional painting and other finishing processes such as chromate conversion coating and Teflon coating, have multiple offerings to serve the needs of an even more diverse customer base.

Competition

Competition is a problem for any business that doesn't have an exclusive hold over its market. If you choose to start a powder coating business you'll need to work toward distinguishing yourself from similar businesses in your region, as well as multi-service businesses that offer powder coating as one of their services. There's also the trend of small-scale do-it-yourself powder coating and at-home finishing to contend with. A strong marketing campaign and a diverse strategy for attracting customers will be a priority before you can turn a profit.

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