We offer many excellent advice on how to start an aluminum business.
Aluminum Business Startup Essentials
The popularity of aluminum as a construction and manufacturing material has created an active market for aluminum businesses. Well-rounded aluminum companies provide extrusion, fabrication and finishing solutions, often with a single source business model that delivers a value-added component to commercial customers.
Although aluminum holds promise for growth and expansion, startup entrepreneurs need to be realistic about the startup requirements of the aluminum trade. Industry expertise, substantial capital equipment outlays and strong business leadership skills will be needed if your aluminum startup is going to survive past its critical first years.
New aluminum entrepreneurs also need to stay on top of current developments in the broader aluminum industry. As a starting point, we suggest participating in the Aluminum Association and other trade organizations designed to foster industry awareness for business owners.
B2B Selling Tips for New Aluminum Businesses
Aluminum fabricators live in a B2B environment. Unlike other small businesses that sell directly to consumers, aluminum businesses sell to other businesses. As a result, you will need to tailor your sales and marketing strategies to connect with commercial and industrial buyers.
- Sales department. The first step in succeeding as a B2B seller is to create a first-rate sales team within your organization. Since you can't afford to wait for customers to find your business, you'll need to hire professional sales people who are skilled in taking the initiative and pursuing targeted sales leads throughout the aluminum industry.
- Lead lists. The best aluminum sales teams leverage current and precise lead lists for prospecting and direct marketing initiatives. Stale and unfocused lead lists generate inefficiencies, causing your sales team to waste time on unproductive clients. By investing in accurate and sortable lead lists from a reputable lead list provider, you can dramatically improve team efficiency and ROI.
- Conversion rates. Conversion rates should be constantly monitored to ensure that your sales team is making the most of every selling opportunity. We suggest creating metrics (e.g. sales-per-employee metric) to gauge sales and operational effectiveness, and then using your metrics to implement improvements in your aluminum company.
Characteristics of a Good Aluminum Company Business Plan
Every business plan is unique. However, the most effective business plans do address specific sound business plan elements:
- Mission Statement – Your description of your aluminum business's reason for existing.
- Goals & Objectives – A list of mile markers on your aluminum business's road to success.
- Financial, Marketing & Action Plans – Specific plans that describe your business environment, demographic targets and quantitative estimates.
Look Over Competitors
Well in advance of opening an aluminum business in your town, it's a smart move to find out how you will fit in the competitive landscape. Try our link below to generate a list of competitors nearby. Simply enter your city, state and zip code to get a list of aluminum businesses in your town.
If there's too much competition, it may be wise to consider starting the business in a less competitive marketplace.
Finding a Non-Competitive Business Mentor
If you are seriously contemplating launching an aluminum business, you really ought to have a conversation with someone who is in the business. If you think your local competitors will give you advice, you're being overoptimistic. Why would they want to educate a future competitor?
But, a person who owns an aluminum business on the other side of the country may be more than happy to give you a few tips, provided that you won't be directly competing with them. Many business owners are happy to give advice to new entrepreneurs. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.
What's the best way to find somebody who runs an aluminum business that lives outside of your area?
No problem! Just use the link below and try a random city/state or zipcode. Then start dialing for advice until you are successful.
Three Arguments for Buying an Aluminum Business
It's almost always preferable to buy an aluminum business than to pursue an aluminum business startup.
Due diligence and other business buying requirements are essential. But there are several reasons why buying an aluminum business may still be your best bet.
- Initial Revenue. Startups struggle to bring in revenue right out of the gate while existing businesses usually have a steady stream of income.
- Established Operations & Processes. A good aluminum business should already function like a well-oiled machine.
- Funding. Lenders, investors and other funding sources almost always prefer business purchases to startups.
You should know that your odds of achieving your top business goals increase if you become a franchisee and leverage their successful brand and track record.
Prior to starting an aluminum business, you ought to check out whether franchise opportunities in your space might simplify your entering the business.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you already are in business and came here to learn about growing an existing aluminum business, try these useful resources:
If you sell to aluminum businesses, we've got better information for you elsewhere on our site. These resources are more appropriate for you:
If you are still exploring all of your options, please browse our directory of guides below.