Youtor
How to Start an Asphalt Business 324K a Year
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=V70yJ_MvhpM
#asphalt #businessideas #entrepreneur #entrepreneurship • In this How To Business I review an Asphalt Business. An Asphalt business does asphalt sealcoating, asphalt repair, asphalt paving, and more! • 1. Know your money situation. Do you have the money to get started in this business? From doing research, you will need around $50K - $100K in asphalt equipment. • Using $100K worth of equipment as a minimum to start this business, you will need at least 25% to put down on a 5 year loan. • With $25K down on a 5 year note, your monthly payment will be $1,593. • To be comfortable, I would recommend you have an additional $10K saved up outside of the $25K down. • 2. Think of all the ways in which it WON'T work. You need to be the biggest critic of the business you are going to start. When you write down all the negatives, create strategies around minimizing them. Here are some examples below: • You don't get any jobs. Here you have a sales and marketing problem. You didn't get the word out that you started your business. No one knows. Reach out to GC's, Property Managers, and other asphalt companies prior to starting. • You do a poor job. Your quality is horrible. You simply don't know what you are doing. You did not spend the time learning the art of asphalt. Make sure you are an expert before running this business. • Your equipment breaks down. It is not just your equipment breaking down, it is you not knowing how to fix it which leads to a major disruption in your business. You need to be able to fix minor breaks in your equipment. If not, you will be in the shop every day. • You can't find employees when you need them. The best time to find employees is before you need them. Make sure you have a list of people that you can call when you land a big job. If not, you will be scrambling for workers at the last minute. • 3. Do a Demand and Opportunity Analysis. This looks like asking the following questions: • Is there a need in your community for asphalt repair, sealcoating, and paving? • Are there already too many asphalt contractors? • Are there commercial properties with asphalt parking lots? • Are there residential properties with asphalt drive ways? • Are you close to a large population or city? • 4. You need to legal up! You need to form an LLC to protect yourself and family. You need to buy insurance. You need to create a contract of work to be completed to hold your client and you accountable. • 5. How to make $324,000 a year: • The average cost of a driveway/commercial repave is: $2,000 • The average cost of a asphalt repair is: $700 • The average profit margin is: 70% • The average weeks worked: 30 (due to weather) • To make $324,000 a year, you will need to do: • 4 Repaves a week = $8,000 a week = $240,000 a year (30 weeks) • 4 Repairs a week = $2,800 a week = $84,000 a year (30 weeks) • At a 70% profit margin, this puts you at a net profit of = $226,800. • Factoring in your loan at the $25K down payment and $17,523 worth of payments = $42,523 worth of expenses. • Your Gross Profit would be $184,000 a year!
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