Building a Foundation: Starting a Concrete Business

Here are the most essential factors to consider when starting your concrete business:

1. Processing equipment — To get started, you will need concrete mixers such as portable mixers (Kushlan and YARDMAX), drum mixers (Multiquip and Klutch), and planetary concrete mixers (Sicoma and MEKA). Additionally concrete vibrators, molds and forms, screeds, trowels, wheelbarrows, and safety equipment. 
2. Storage solutions — You will need to store both raw materials and finished products so invest in silos, aggregate bins, and material racks. 
3. Niche — The most profitable concrete businesses are those that provide ready-mix concrete and construction services. You can also offer decorative concrete, green concrete, high-performance, lightweight, or precast concrete.
4. Licenses and permits — Most regions require a contractor’s license for construction-related businesses, including concrete installation. Because concrete production can impact the environment, you may need specific permits related to air quality, water discharge, and waste management.
5. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
6. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
7. Partnerships — Build strong relationships with reputable construction companies, real estate developers, architects, landscaping companies, material suppliers, and local governments and municipalities.

Step 1: Decide if the Business Is Right for You

Pros and Cons

Starting a concrete business has pros and cons, which you should consider before deciding if it’s the right path for you.

Concrete Industry Trends

New home construction boosts the concrete industry, as does rising income and economic stability.

Industry Size and Growth

• Industry size and past growth — The US concrete contractors industry is valued at $78.5 billion, which reflects an increase of 1% in 2024. It has posted steady growth, except for a dip in 2020 due to the pandemic.((https://www.ibisworld.com/united-states/market-research-reports/concrete-contractors-industry/#IndustryStatisticsAndTrends))  
• Growth forecast — Pent-up demand in both residential and nonresidential construction presents growth opportunities for the concrete contractors’ industry over the next five years.
• Number of businesses — There are about 100,000 concrete contractors in the US.
• Number of people employed — The industry has around 324,000 employees.

Trends and Challenges

Trends

• New home builds are hitting pre-pandemic levels.((https://www.realtor.com/research/2024-national-housing-forecast/))
• Self-mending concrete will be in demand, so it’s important for small concrete businesses to offer this option. Self-mending concrete is coated in bacteria that grows and pulls the materials around it together, increasing the durability of the concrete.

Challenges

• Skilled labor shortages exist in the concrete industry and are expected to continue, which may make it difficult for small concrete businesses to find help.
• Concrete is the second-largest carbon dioxide emitter on earth, so alternative materials are in development that may threaten the concrete industry.

What Kind of People Work in Concrete Businesses?

• Gender — 97% of concrete workers are male, while 3% are female.((https://www.zippia.com/concrete-worker-jobs/demographics/#gender-statistics))
• Average level of education — 57% of concrete workers are high school graduates.((https://www.zippia.com/concrete-worker-jobs/education/))
• Average age — The average age of a concrete worker is 39.7 years old.((https://www.zippia.com/concrete-worker-jobs/demographics/#age-statistics))

How Much Does It Cost to Start a Concrete Business?

Startup costs for a concrete business range from $11,000 to nearly $20,000. The largest expenses are for a van or truck and tools, including a portable concrete mixer. If you need to learn to do concrete work, you can take classes for about $300 through the American Concrete Institute or other educational providers.

If you later want to get your own concrete mixer truck, you could pay $25,000 to upwards of $100,000.

You’ll need a handful of items to successfully launch your concrete business. Here’s a list to get you started:

• Screeds
• Safety gear
• Wheelbarrows
• Shovels and buckets
• Laser level and floats
• Groove cutters and edgers
• Saws
• Plate compactor
• Vibrators
• Water pump
• Power hammers and drills

Start-up Costs	Ballpark Range	Average
Setting up a business name and corportation	$150–$200	$175
Licenses and permits	$100–$300	$200
Insurance	$100–$300	$200
Business cards and brochures	$200–$300	$250
Website setup	$1,000–$3,000	$2,000
Concrete contractor's license	$200–$300	$250
Down payment on a truck or van	$3,000–$5,000	$4,000
Tools including a portable concrete mixer	$6,000–$10,000	$8,000
Total	$10,750–$19,400	$15,075

How Much Can You Earn From a Concrete Business?

Driveways, sidewalks, porches, and patios will probably be your most common jobs as a small business. The average price per project should be at least $1,500. After paying for labor, your profit margin should be about 50% if you run your business from home.

In your first year or two, you could work from home and do five jobs per week, bringing in nearly $400,000 in annual revenue. This would mean almost $200,000 in profit, assuming that 50% margin. As your brand gains recognition, sales could climb to 20 jobs per week. At this stage, you would rent a commercial space and hire additional staff, reducing your profit margin to around 20%. With an expected annual revenue of over $1.5 million, you would make over $300,000.

What Barriers to Entry Are There?

• You need to have skills with concrete and know how to mix and pour it
• Purchasing a truck or van and tools is expensive

Step 2: Hone Your Idea

Now that you know what’s involved in starting a concrete business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research concrete businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a decorative concrete mason.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine Your Services

You should make a list of what services you want to offer. You can do things like:

• Driveways
• Home slabs
• Garage floors
• Patios
• Sidewalks
• Porches
• Concrete repairs
• Decorative concrete

How Much Should You Charge for Concrete Services?

The average price of labor to pour concrete is about $5 per square foot. When you quote prices you’ll include labor plus concrete and other materials. Your costs will include labor, marketing, and fuel until you rent a physical space. In the beginning, you should aim for a profit margin of about 50%. Once you rent a space, it will be closer to 20%.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will be homeowners who tend to be more established, professional people with families. You can also partner with other types of contractors or remodelers to get work as a subcontractor. 

Where? Choose Your Business Premises

In the early stages, you may want to run your business from home to keep costs low, but as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Concrete Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “concrete” or “concrete pourer,” boosts SEO
• Name should allow for expansion: “Innovative Concrete Works” over “Concrete Cutting and Drilling Services”
• A location-based name can help establish a strong connection with your local community and help with the SEO, but might hinder future expansion

Once you’ve got a list of potential names, visit the US Patent and Trademark Office website to make sure those names are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Concrete Business Plan

Here are the key components of a business plan:

• Executive summary — A concise overview of your business plan, summarizing key elements and goals
• Business overview — Detailed information about your business, including its mission, vision, and the problem it aims to solve
• Product and services — Clear description of the offerings your business provides, highlighting unique selling points
• Market analysis — Examination of the target market, including demographics, trends, and potential opportunities
• Competitive analysis — Evaluation of competitors, their strengths, weaknesses, and how your business stands out
• Sales and marketing — Strategies for promoting and selling products or services, including target audience and marketing channels
• Management team — Introduction to key team members, emphasizing their skills and experience
• Operations plan — Details on how the business will operate, including production, logistics, and day-to-day activities
• Financial plan — Comprehensive financial projections, including income statements, balance sheets, and cash flow forecasts
• Appendix — Additional supporting documents or information, such as resumes, legal agreements, and market research data

If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer to create a professional business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to concrete businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your concrete business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. Here, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step, and there are plenty of ways to raise capital:

• Bank loans — This is the most common method, but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer increasingly popular low-risk options in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank loans or SBA loans may be your best bet to finance your business, or friends and family financing is also a good option.

Step 8: Apply for Concrete Business Licenses and Permits

Starting a concrete business requires obtaining a number of licenses and permits from local, state, and federal governments. Many states require you to be a licensed contractor. Check with your state government for requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. You could also check this SBA guide for your state’s requirements. 

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

For peace of mind and to save time, we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state, and provide them to you to make sure you’re fully compliant.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account. Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your concrete business as a sole proprietorship. 

Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked, yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You can use industry-specific software, such as JobNimbus, True, or Procore, to manage your estimates, projects, financials, scheduling, and analytics.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, FreshBooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Website — Develop a comprehensive website that showcases your past projects, services, and customer testimonials.
• Local SEO — Optimize your website with SEO best practices for search terms related to concrete services and local contracting to enhance visibility. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Professional branding — Ensure your branding reflects strength, reliability, and professionalism across all mediums, including your logo, business cards, and company vehicles.
• Social media engagement — Utilize LinkedIn for B2B networking and platforms like Instagram to showcase decorative or innovative concrete projects.
• Educational blog and video content — Share blog posts and videos about concrete maintenance, construction benefits, and project processes.
• Partnerships with local suppliers — Build relationships with local suppliers and construction-related businesses for mutual referrals.
• Community projects — Get involved in local projects or sponsor events to increase brand visibility and community engagement.
• Referral programs — Offer rewards to clients who refer new business, encouraging word-of-mouth marketing.
• Targeted local advertising — Advertise in local newspapers, trade magazines, and relevant online platforms to reach a targeted local audience.
• Email marketing — Send regular newsletters to past and potential clients with updates on projects, new services, and promotions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today’s customers are inundated with buying options, so you’ll have a real advantage if they can quickly grasp how your concrete business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your concrete business could be: 

• Durable driveways poured in one day
• Concrete patios for a durable outdoor space
• Decorative concrete porches and patios

Networking

You may not like to network or use personal connections for business gain, but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a concrete business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in concrete for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in concrete. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a concrete business would include:

• Concrete laborers — assisting with concrete jobs
• General manager — job scheduling, estimates, staff management, accounting
• Marketing lead — SEO strategies, social media marketing, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Concrete Business — Start Making Money!

Concrete is hard, honest work and a valuable service for homeowners. It also makes for big business, with the industry worth over $78 billion in the US alone. With your own concrete business, you can create jobs, help homeowners, and make a pretty penny all at the same time. 

Concrete services are not cheap, so there is definitely money to be made. With a foundation of knowledge, you’re off to a great start, and you’re now ready to be an entrepreneur with your own lucrative concrete business! 

Common Questions

Is concrete leveling business profitable?

Yes, concrete services can be quite pricy, so you can make a good profit. You just need to market your services to acquire clients.

How do I manage and maintain customer relationships?

To maintain customer relationships, you need to stay in touch with people. You can send regular emails or even an email newsletter.

How do I handle customer complaints and warranty claims?

You need to address complaints immediately and honor your warranties. If you don’t, you risk negative online reviews that could impact your business.

How do I ensure the quality of my concrete products and services?

You need to seek suppliers that offer high-quality products. You also need to hire workers with plenty of experience.