Asphalt Paving as a Business: Top Tips for Beginners

by Denny F. My Opinion

Just like any other self-owned business, starting an asphalt paving business comes with numerous challenges. However, this business can prove to be successful and profitable if you get everything right from the beginning.

Moreover, you will need to know the ins-and-outs of the asphalt paving industry, especially if you are a beginner. While you don’t necessarily require years of experience in the industry, you will need to develop a solid and well-thought-out plan of action.

With this, let’s look at the top tips for anyone who wants to start an asphalt paving business.

Conduct market research

Starting an asphalt paving business is an amazing idea. However, you need to get everything right from the start if you want to succeed. Interestingly, there’s a lot of demand in the market—as more and more people are looking to pave their driveways, parking lots, and many more.

However, you need to conduct extensive market research before starting this business. This should assist you to know how to choose your target market, as well as serve your clients. According to the Florida asphalt paving contractor ABC Paving, the following are a few things that you need to research when starting an asphalt paving business:

● Income – this is the first thing to consider if you want to start an asphalt paving business. Starting your business in an area with low-income, where most of the people rent their homes might not be a good idea. Thus, you’ll need to target commercial and industrial areas, as you are bound to get clients who need your services. Thus, the average income of an area will help you determine whether there are viable business opportunities.

● Demographics – here, you will need to ask yourself questions like—who lives in the area where you want to start your asphalt paving business? Do you want to target businesses or residential homeowners? Do you desire to land contracts with the government or state? These questions will help you to determine whether the choice of your business location is ideal or not.

● The average price for property in the area – you need to research the average price for property in the area, particularly homes. Homeowners who are willing to spend more money on their homes are likely to spend a lot of money maintaining their property. Once you start your business, you can charge these homeowners higher rates. Homeowners who live in areas with lower property value, on the other hand, might not need your services, since they might not afford them in the first place.

● Weather – asphalt paving business is seasonal. Thus, setting your business in areas where it snows heavily or with too much rainfall can affect your business. Moreover, extreme heat can also affect the durability of the surfaces that you’ve paved.

● Your competitors – lastly, you need to know your competitors before starting your asphalt paving business. The last thing that you want is to start a business amid asphalt paving legends. Thus, you must avoid setting up your business in areas where there’s a lot of competition and search for a location where there is an opportunity for your business.

Understand the best practices governing the asphalt paving industry

As an emerging entrepreneur in the asphalt paving industry, you will need to understand several best practices, as they will help your business grow, and avoid major pitfalls in the industry. Here are the top 4 best practices to observe:

● Hire a professional crew – one notable thing with asphalt paving startups is that they have a very high rate of employee turnover compared to any other business startup. So, you will need to reduce employee turnover as this can affect your business negatively. To do this, you must adhere to the professional hiring process, as well as target professional employees.

● Create strategies for growth – growth doesn’t come in a silver platter. You need to plan strategically in anticipation of business growth. With this, you will be prepared to capitalize on any growth opportunities that come your way.

● Create networks with professionals in the industry – you can never succeed in the asphalt paving industry without professional networks. Thus, make sure that you become a part of the National Asphalt Pavement Association, as well as any other relevant trade organization if you want your business to succeed.

● Source for financing – the greatest mistake that you can ever make is to start an asphalt paving business without enough financial resources. Yes, we understand that it can be a challenge to raise sufficient capital when starting your business. However, you cannot start and run an asphalt paving business if you don’t have the necessary assets and resources.

Understand the seasonality challenges in the asphalt paving industry

As indicated earlier, the asphalt paving industry can be severely affected by the weather. At times, you will realize that you must shut down your business because of the weather conditions—especially during the winter season. Hiring seasonal workers is the best way to deal with this issue