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How to Start a Cement Business

Opening a cement business can get you on the path to a secure financial future but it's important to plan out the business in detail before you start. This article contains a few secrets to improve your startup process.

Thinking about opening a cement business? We tell you what you need to know to get started.

Cement Business

Cement Industry Fundamentals

Cement is quite literally the foundation of the U.S. construction industry. It's estimated that the U.S. consumes more 93 million metric tons of cement each year, much of which is provided by SMB cement providers.

As you might expect, cement industry sales are closely tied to the fortunes of the construction trade. When new home constructions dip, so does the demand for cement. But in general, the industry outlook for cement is good, especially for startups that are capable of providing reliable service at a competitive price.

Startup Requirements for Cement Industry Entrepreneurs

Getting started in the cement business requires knowledge of cement and the construction trade in general. It's recommended that startup entrepreneurs learn the trade by either working as an employee at a cement company or entering into a mentoring relationship with an experienced cement worker before striking out on their own.

In terms of capital requirements, you'll need at least one cement truck/cement mixer as well as other essential tools for the application of concrete (e.g. trowels, levelers, etc.). Since cement trucks aren't cheap (even used mixer trucks can run $50k+), consider leasing options to minimize your upfront capital investment.

Staffing Tips for Cement Business Startups

Hiring is an essential part of cement business ownership. Single-person cement operations usually aren't practical, so right away you'll need to hire reliable personnel who have some level of industry experience.

Your biggest hiring concern should be dependability, especially if your business model is built on providing cement for building contractors. Unreliable employees will inevitably derail your attempts to provide contractors with timely cement deliveries, effectively sabotaging the development of long-term industry relationships.

To protect your startup, be diligent about background checks and employment references to ensure that every worker your hire will show up for work on time and ready to perform at the highest possible level.

Tips for Writing a Cement Company Business Plan

As a startup entrepreneur, you're learning that small business ownership can be a lonely career path. That's especially true when it comes to writing a business plan the seminal document that will shape the direction of your new cement business.

The good news is that business plan help may be closer than you think. These days, there are tons of great resources and solutions available to support the business plan writing process.

For more information, take a look at our Business Plan Help section.

Take a Look at the Competition

Well in advance of opening a cement business in your town, it's essential to determine how you will fit in the competitive landscape. Use the link below to generate a list of competitors near you. After clicking on the link, type in your city, state and zip code to get a list of cement businesses near you.

Is the established competition doing a good job? It's important to understand their strengths and weaknesses and think through how you'll stake up against those established businesses.

Learn from Others Who Are Already In This Space

After you've evaluated your local competitors, you really ought to speak with somebody who is already in the business. If you think your local competitors will give you advice, you're being overoptimistic. It'd be crazy for them to teach you the business.

But, a person who owns a cement business outside of your community can be a great learning resource for you, given that you don't compete with them in their area. Many business owners are happy to give advice to new entrepreneurs In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.

What's the process for finding a cement business founder on the other side of the country to talk to?

Simply, try our helpful link below, type in a random city/state or zipcode, and start calling.

Pros & Cons of Buying a Cement Business

An acquisition can be a great way to enter cement business ownership. But it's important to evaluate the benefits and drawbacks of buying a business before you decide on either an acquisition or startup approach.

BENEFITS: A good cement business will deliver revenue and ROI from day one. Even more, the right cement business acquisition can place you in a market leadership position from your first days as a business owner.

DRAWBACKS: However, purchased companies can also come with pre-existing challenges and/or liabilities. Ultimately, it may be more difficult to tailor a purchased business to your ownership style.

Don't Forget About Franchising As an Option

The probabilities on your achieving your top business goals increase if you become a franchisee and benefit from the prior work of others and their lessons learned.

As part of your process in starting a cement business, a smart move is to determine whether franchising might alleviate your startup process.

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.

Related Articles on Starting a Company

These additional resources regarding starting a business may be of interest to you.

Free Business Plan Templates

Buying a Franchise

How to Find Angel Investors

Conversation Board

Have something to say about opening a cement business? This site for small business owners and entrepreneurs greatly appreciates your feedback.

Messrs Tawanda Mazhandu 11/2/2010

I am enlightened on how i can start up a cement manufacturing business though i am based in Harare Zimbabwe. Thank you very much!

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Already Own a Cement Business?

If you currently own a cement business, these resources will come in handy:

Marketing a Cement Business

Selling a Cement Business

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If you sell to cement businesses, you're in the wrong place. These resources are more appropriate for you:

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