The Painting service industry is worth approximately $35 billion in the US and is expected to grow more in the next few years. Hence, starting a painting business is potentially lucrative and will lead to profitability if you do things correctly. However, you would need a guide on how to start a painting business to get things going in the right direction.
The good thing about a painting business is that it is relatively easy to establish. The initial costs are relatively low, and you don’t need to worry about getting sophisticated certifications to get into the business. This blog will provide information on starting a painting business and answer a few questions about the required preparation.
How to Start a Painting Business
The painting business is less complex than others, but it isn’t a walk in the park. You’ll need to be prepared to take on the responsibility and work the hours needed to create a stable setup. Following are some of the first things you need to do before getting into the operational dynamics:
Conduct Market Research
Painting services are in demand in the US, but you still need to know about the situation in your region or community. Your preliminary research will help you know the potential scale of operations, client preferences, and general operational dynamics.
The information will help you know what your business will need to offer to your customers and understand their basic expectations.
Create a Business Plan
Your business plan will include all the preliminary information about your business, growth expectations, predicted financials, and forecasts. It is a comprehensive document that proves that you have done the background work and are planning to have a functional business.
This document will be instrumental if you need to take loans or investments to start the venture. Therefore, please pay special attention and try to make it as detail-oriented and data-driven as possible.
Conduct a Competitor Analysis
Competitor analysis will help you discover how many painting businesses already exist in the area and their unique selling points. Knowing about their product, communication, target market, and business strategy will clarify your position as a newcomer.
Your goal should be to fulfill existing gaps in the market, so highlight some from the market research and capitalize on them.
Licenses You Might Need
You do not need an academic background to set up a painting business, but each state requires a license. Obtaining the license is easier if you have experience in the painting industry, so it is best to have a clear trail of your previous work experience.
For example, getting a C-33 license requires at least four years of journeyman experience. You’ll also need to pass a two-part Contractor State License Board exam to obtain the license to run a business.
The policies may also differ from state to state, so keep that in mind when applying. The information is readily available, so you’ll need to Google to get your answers.
Documentation and Establishing an LLC
After getting the license, it is time to establish your LLC. This process is divided into several steps, and we recommend you do them one by one to prevent excessive burden. Firstly, you’ll need a name for your business. Think of something that outlines your service and encompasses the promise of excellence to your customers.
Secondly, you’ll need a business logo. Your logo is simple imagery representing your brand, so you’ll need to be careful with it. It is best to rely on a professional designer with logo design experience to get yours made.
Thirdly, you’ll need a registered agent and n LLC operating agreement. The agent will take responsibility for collecting court documents, subpoenas, etc., on your behalf and give them to an authorized person at your organization. An LLC operating agreement is a documented set of responsibilities, SOPs for profit sharing and governance, etc. Each member signs their agreement when joining the organization to show their consent.
Lastly, you’ll need to submit the articles of registration and get the state certificate. Articles of registration submission have different requirements depending on your state. It is best to check our blog about LLC registration for your state to know what you’ll need to submit.
Once you submit your documents, you’ll need the registration process to complete and receive your state certificate.
Initial Capital Requirement
A guide on how to start a painting business would be incomplete without mention of the initial capital you need. The best way is to divide the aspects and add up the cost to get the right figure.
You’ll need a truck to go to your client’s properties, which will cost you around $5000-$10,000, depending on your requirements. Choose something reliable that can last you for some time while you focus on expanding.
You’ll need essential supplies, like paint brushes, Trisodium Phosphate (TSP), Blue Painter’s Tape, paint sprayer, trays, rollers, etc. The collective cost for everything will be around $600-700. Remember that a chunk of this cost is for a paint sprayer, which can cost $400 or more.
The cost for paints will be variable and will increase or decrease depending on the size of the location you’ll need to paint. On average, you can expect to spend $100-150 for a 2000 sq. ft. home because you’ll get paints, primers, etc.
Company Gear or Uniform
Having company gear or uniform is always best to establish a formal persona for your business. Your total cost per year for gear will depend on how many people you start with. Typically, you’ll need at least two sets of uniforms for each person, costing around $150-200.
Business Cards and Brochures
Spreading the word about your business will require getting some business cards, flyers, and brochures. The total cost of printing these will be $200-$300, depending on how many prints you get and their quality.
Registering a domain for your website is necessary and will be around $12-15. Try to get your company name if it’s available, or get the closest match.
Website Development and Design
You’ll need digital experts to help design your business’s SEO-optimized, attractive, and client-friendly website. Depending on your chosen organization, the cost varies, but partnering with Trade will help you get the maximum value.
We will share the costing plan with you, with a detailed explanation of our charges. Generally, website design and development can cost somewhere between [cost range insert].
Businesses also risk natural disasters and disasters resulting from human negligence, and you must protect yourself. Insurance companies offer several coverage plans, but you’ll pay around $2,500 per year on average.
Business Number and Email
Getting a registered business number and email address is critical for presenting a professional image of your business. The number, connection, and phone will cost $500+ per year, and you can set up an account at Google Workspace for your business for $84/year.
Reaching Your Customers
Your business will need customers to generate revenue, and marketing activities are the best way to get them to notice you. You’ll need to combine on-ground and digital marketing communications to spread awareness about your services.
SEO optimization for search and relevant campaign content creation will help you generate awareness digitally. Trade can help you in this regard, so please contact our team to design and implement your marketing strategies.
Distributing brochures, partnering with related businesses (painting material companies, etc.), and placing marketing material at the right locations will help you get noticed.
Always include your website and contact details to ensure they know how to reach you.
The Workload for Sustainable Growth
The first phase of setting up your business will be tough. You’ll work more than 40-45 hours weekly between painting jobs and getting more customers to notice the business. You will likely be working 60-70 hours a week.
However, the good news is that this workload will eventually lessen. Once you establish the awareness and business starts coming in, you can reduce the number of work hours and focus more on your core operations. You can hire more people to cover part of the functions to distribute responsibilities more evenly.
Preparing to Hire Employees
You need to get authorization for hiring before you can start adding more people to the team. Applying for an Employer ID is free, but research the laws and your responsibilities as an employer before hiring. You’ll need to abide by the state and federal laws about wage determination, taxes, insurance, etc.
Knowing the details will ensure the process goes smoothly.
We hope you found this blog informative and have the necessary information on how to start a painting business. Please contact our team if you plan to launch your business, so we may help you create your website and marketing campaigns.