How to Start a Demolition Business

Co-authored by Pete Canalichio

Last Updated: August 19, 2024 Approved

A small-scale demolition business can be successfully begun with the development of a business plan and a relatively modest initial investment ($2,000-10,000). Since many construction and renovation companies prefer subcontracting the interior or exterior demolition for residential and commercial projects, there are various opportunities for new or small-scale demolition companies. By following some simple steps and obtaining the necessary licenses and permits, you can start your own demolition business.

Steps

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1
Consider beginning with a small-scale, residential demolition company. Depending on your experience and investment capital, a smaller, manual demolition company may be best. Starting with a smaller company enables you to gain the experience and expertise that is necessary to ensure the growth and development of your demolition business.^{[1]
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- Research what types of demolition companies already exist in your area. This will give you an idea of the potential for your company's success, especially if you plan on beginning with a small-scale, manual demolition company that subcontracts demolition jobs from construction companies.
- Manual demolition can involve removing concrete, wiring, plumbing, wood, metal, or other materials associated with residential structures. Mechanical demolition companies, in contrast, demolish larger buildings and structures, requiring more equipment and a much larger initial investment.
- A newer area of specialization is deconstruction or "green demolition," a slower but environmentally friendly method that permits recycling many of the original construction materials. The structure is carefully dismantled rather than demolished, limiting the amount of debris and waste that ends up in landfills.
2
Create a business plan. This will not only help you if you need to apply for a bank loan, but it will enable you to prepare for the other steps in opening your company. You should include specifics such as your business strategy, your company's type of demolition, your insurance and equipment needs, your goals (especially in regards to the growth of the company), and the initial number of employees.^{[2]
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- If you are unfamiliar with developing a business plan, there are various business sites that will walk you through the process in a step-by-step format. A minimum amount of research will help you to find the site that best suits your needs.
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This can be done by visiting the proper government office of the area in which you plan on opening your business. Some states or counties will also require a contractor's license, and your local government office should be able to provide that information, too.^{[3]
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4
Get the right amount and type of insurance. You will need general liability insurance and workers' compensation insurance when starting out. You may also need to get demolition insurance once you begin accepting jobs since some clients may require proof of demolition insurance before you may submit a bid.^{[4]
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- Many insurance companies offer the different types of insurance necessary to cover the various needs of a demolition business. Making inquiries to different companies enables you to find the best rates and the insurance that best fits your company's needs.
- The size and type of your demolition company will determine how much insurance you are required to have. A smaller scale, manual company will require less, while a larger mechanical demolition company will need additional accident insurance (for employees and any damage to the site) as well as insurance for certain equipment, such as cranes or bulldozers.
A smaller, manual demolition company can be run out of your home to start, but an office location will help you to promote your business more effectively and attract more clients.
Acquiring the initial tools and equipment can be costly. A smaller, manual demolition company can be started with tools such as hammers, chisels, pry bars, nail pullers, and wrecking bars, which can also be used with various materials, including tiles, flooring, concrete, brick, wood, metal, nails, and screws.^{[5]
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There are many options to advertise your company and the services you provide, including having your own website, getting an ad in the local phone directory, buying ads in local papers or business fliers, and handing out business cards. Use as many methods as possible in order to attract your clients.
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Ensure that you and your employees have the necessary safety training. Specific safety preparations need to be in place before beginning any job to ensure the safety of your workers on each site.^{[6]
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- Safety preparations include an engineering survey, controlling utility services, preparing for medical emergencies, and having contact information for local police and fire departments.
- Safety training can be obtained through seminars and online training from various companies and organizations, including OSHA (Occupational Safety and Health Administration).
Since demolition can be risky or even dangerous, a safety director who can regulate your company's safety standards is necessary. If your company is smaller and unable to have a full-time safety director, you should have an employee include these duties in addition to their other responsibilities to ensure that the necessary preparation and precautions are taken and your safety guidelines are followed during the job.^{[7]
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Apply for the necessary permits for each job. The type of permits that are needed can vary according to state and county; while most areas follow OSHA standards, some do have additional requirements.
- The laws and regulations regarding specific aspects of a demolition job may vary according to the county or area of the job and include such aspects as noise ordinances, acceptable working hours, and details regarding the use and placement of a dumpster.

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Question

How old should I be to start this work?

Community Answer

Age isn't important, but experience in demoliton is.

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How do I find contracts for demolition work?

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Local Councils can be a start and you can check with developers as they buy old property to demo so that they can make way for New housing. You can also try looking online for local demolition companies.

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What is the best method to win a bid for contracts besides being the lowest bidder?

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I suggest focusing on being persuasive, able to give clear details, and showing your dedication to hard work in any way possible when trying to win your bid.

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