Starting a concrete business is a rewarding venture that combines practical skill with business acumen. The industry is worth tens of billions of dollars, fueled by consistent demand for everything from residential driveways and patios to large-scale commercial foundations.
This guide will walk you through the practical steps of securing funding, obtaining the right permits, acquiring equipment, and building supplier relationships to help you launch a successful concrete business in the U.S.
Step 1: Create your business plan and validate the market
Start by researching your local market. Visit your county clerk’s office to review building permits filed in the last six months. This data shows you where construction is happening. Also, talk to general contractors to understand their needs and potential gaps in service.
Many new concrete businesses fail because they try to serve everyone. You might want to choose a niche, such as residential patios and driveways or commercial foundations. Specialization helps you focus your marketing and equipment purchases.
Analyze your local competition
Use Google Maps to find concrete contractors in your service area. Study their websites and customer reviews to see what they do well and where they fall short. This will help you define your unique value proposition. Are they known for speed, quality, or price?
Estimate your startup costs
With a clearer picture of the market, you can outline your finances. A significant portion of your budget will go toward equipment. A reliable used concrete mixer truck can cost between $40,000 and $80,000, while hand tools and forms might add another $3,000 to $5,000.
You should also budget for general liability insurance, which typically runs $4,000 to $7,000 annually, plus $500 to $2,000 for licenses. Your total initial investment will likely fall between $50,000 and $100,000.
Here are 3 immediate steps to take:
- Review building permits filed in your county over the last six months.
- List five local competitors and note their primary services, like residential or commercial work.
- Draft a startup budget that includes equipment, insurance, and licensing costs.
Step 2: Establish your legal structure and obtain licenses
Choose your business structure
You should register your business as a Limited Liability Company (LLC). This structure protects your personal assets, like your house and car, if the business faces a lawsuit. It also offers pass-through taxation, so you report business profits on your personal tax return.
Operating as a sole proprietor is a frequent misstep because it offers no liability protection. The extra paperwork for an LLC, which costs about $100 to $500 to file, is a small price for peace of mind.
Secure federal and state licenses
Once your business is registered, get an Employer Identification Number (EIN) from the IRS. It’s free and you will need it to hire employees. On a state level, most jurisdictions require a specific contractor's license for concrete work.
For example, California requires a C-8 Concrete Contractor license. Expect to pay between $300 and $1,000 for state licensing, with processing times of two to four months. Check your state’s contractor licensing board website for exact requirements.
Handle local permits and regulations
Your city or county will also require a general business license, which usually costs under $150 per year. For each project, you will need to pull a specific building permit from the local building department. These can range from $100 to over $500, depending on the job's scope.
Also, familiarize yourself with Occupational Safety and Health Administration (OSHA) standards for construction. These rules govern job site safety and are not optional.
Here are 4 immediate steps to take:
- File for an LLC with your state's Secretary of State office.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Identify the specific contractor license your state requires for concrete work.
- Contact your local city hall to understand business license and permit fees.
Step 3: Secure your insurance and manage risk
Your next move is to protect your business. Start with general liability insurance. A policy with $1 million per occurrence and a $2 million aggregate limit is standard. This protects you if your work damages a client’s property, like from concrete splatter on a house.
Key insurance policies for your business
If you hire employees, you will need workers' compensation insurance; state laws mandate it. Also, secure commercial auto insurance for your mixer truck and any other work vehicles. An inland marine policy is another smart addition to cover your tools and equipment against theft or damage.
Some new owners try to save money with a minimal policy. This can be a costly error if a claim for a cracked foundation arises. Look for agents who specialize in construction, as they understand these specific risks. Consider providers like The Hartford, Hiscox, or Next Insurance for quotes.
Here are 4 immediate steps to take:
- Request quotes for a general liability policy with a $1 million minimum.
- Contact an insurance agent who specializes in construction contractors.
- Confirm your state’s workers' compensation insurance requirements.
- Get a commercial auto insurance quote for your work vehicles.
Step 4: Set up your location and buy equipment
You will need a yard to store your truck and materials. Look for properties of at least one acre zoned for industrial use, often labeled I-1 or I-2. Check with your local planning department to confirm. When you find a spot, you might want to negotiate a 3-to-5-year lease to secure your rate.
Acquire your primary equipment
Your equipment is a major investment. A reliable used concrete mixer truck costs between $40,000 and $80,000. A used skid steer will run another $20,000 to $40,000. Some owners make the mistake of buying new, which can strain cash flow unnecessarily.
You will also need concrete forms, which cost around $3,000 to $5,000, plus various hand implements like trowels and floats. Look for used equipment from reputable sources like Ritchie Bros. Auctioneers to get started without overspending.
Establish supplier relationships
With your equipment sorted, connect with ready-mix concrete suppliers. Major national providers include CEMEX and Vulcan Materials, but local suppliers can offer competitive pricing. Ask about opening a trade account for better terms, like Net 30 payment schedules.
Be aware that most suppliers charge a "short load" fee for orders under three or four cubic yards. Factoring this into your job quotes is important for profitability.
Here are 4 immediate steps to take:
- Research industrial-zoned properties of at least one acre.
- Get quotes for a used concrete mixer truck and a skid steer.
- Contact two local ready-mix suppliers about opening a trade account.
- Ask potential landlords about a 3-to-5-year lease term.
Step 5: Set up your payment processing
For residential jobs, a 50% deposit is standard practice to cover your material costs. The final 50% is then due upon completion. This approach protects your cash flow and shows clients you are a serious professional.
Relying only on checks or bank transfers can slow you down. You might want to accept credit cards, as clients appreciate the convenience and it helps you get paid faster. This is especially true for on-the-spot agreements.
Accept payments on-site
For concrete businesses that need to accept payments on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and you are done.
The rate is just 1.99% per transaction, while many other processors charge between 2.5% and 3.5% plus monthly fees. There are no hidden costs or extra hardware needed. It is particularly useful for securing a deposit right after a client approves your quote.
Here is how it works:
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers.
Here are 3 immediate steps to take:
- Establish your payment terms, such as a 50% deposit upfront.
- Download the JIM app to see how you can accept on-site payments.
- Compare JIM's 1.99% transaction rate to other payment solutions.
Step 6: Secure your funding and manage finances
Find the right loan for your business
An SBA 7(a) loan is a strong choice for equipment purchases. Lenders typically look for a credit score over 680 and a 10-20% down payment. For a startup, you might secure between $50,000 and $150,000 with rates around Prime plus 3-4%.
You can also pursue direct equipment financing from lenders like Crest Capital. These loans use the equipment as collateral, which can simplify approval. Some new owners use high-interest personal loans, but this move puts your personal assets on the line and costs more over time.
While grants for construction businesses are uncommon, veteran-owned businesses can get a break. The SBA Veterans Advantage program can reduce or waive the guarantee fees on SBA loans, which saves you money upfront.
Plan your cash flow
You should have at least $15,000 to $25,000 in working capital to cover your first six months. This fund pays for fuel, insurance, and wages while you wait for clients to pay. A business line of credit offers a flexible buffer for these expenses.
Here are 4 immediate steps to take:
- Check your credit score to see if you meet the 680+ minimum for an SBA loan.
- Request a quote from an equipment financing company like Crest Capital.
- Calculate your six-month working capital needs, including fuel and insurance.
- If you are a veteran, research the SBA Veterans Advantage program benefits.
Step 7: Hire your crew and manage operations
Build your core team
You will likely start with a two-person crew: a Concrete Laborer and a skilled Concrete Finisher. Laborers handle site prep and form setting, typically earning $18 to $25 per hour. A good finisher, who ensures a quality surface, can command $25 to $40 per hour.
A frequent misstep is to classify workers as independent contractors to save on taxes. The IRS scrutinizes this practice, so you should treat your crew as W-2 employees from the start to avoid future trouble and penalties.
To stand out, you might want your finishers to have an American Concrete Institute (ACI) certification. This credential justifies higher rates. Also, all employees should complete an OSHA 10-hour construction safety course before they step on a job site.
Streamline your operations
Once you have a crew, you need to manage jobs efficiently. Field service software like Jobber or Fieldwire helps you schedule work, track hours, and communicate with clients from your phone. This keeps your projects organized and looking professional.
As you grow, aim for a revenue target of $150,000 to $200,000 per employee. This is a healthy benchmark for profitability in the concrete business. It helps you decide when it is the right time to expand your team.
Here are 4 immediate steps to take:
- Draft job descriptions for a Concrete Laborer and a Concrete Finisher.
- Research local OSHA 10-hour construction training providers.
- Look into the requirements for ACI Flatwork Finisher certification.
- Schedule a demo with a field service software like Jobber.
Step 8: Market your business and get clients
Establish your digital footprint
Start with a Google Business Profile. It is free and puts you on the map. Add photos of your work, your service area, and business hours. This is often the first place potential clients will find you.
A simple website also builds credibility. You can use a platform like Squarespace to build one for under $500. Include a portfolio, services list, and a clear contact form. Many new owners skip this, but it makes you look more professional.
Focus on local lead generation
Your first clients will likely come from your immediate area. You might want to print 500 door hangers and distribute them in new housing developments. Also, attend local builder association meetings to network with general contractors.
Once you complete a job, ask for a review on your Google profile. Positive reviews are powerful. Aim to convert 10-20% of your leads into paying customers. Your customer acquisition cost (CAC) should ideally stay below $250 per job.
Here are 4 immediate steps to take:
- Set up and fully complete your Google Business Profile.
- Print 500 door hangers with your contact information and services.
- Identify and plan to attend one local builder association meeting.
- Ask your first three clients to leave a review on Google.
Step 9: Price your services and create quotes
Develop your pricing model
Most concrete jobs are priced per square foot. For a standard 4-inch slab, a range of $8 to $18 per square foot is typical. This price should cover your materials, labor, and overhead. For larger projects, you might price per cubic yard, often between $400 and $600.
Your goal should be a gross profit margin of 25% to 35% on each job. To get there, calculate your direct costs—concrete, rebar, and labor—and add a markup. A common approach is to mark up materials by 1.5 to 2 times your cost.
Many new owners forget to account for indirect costs. You should add a 15-20% overhead fee to every estimate. This covers your insurance, fuel, and office expenses. Without it, you are paying for those costs out of your profit.
To see where you stand, call a few local competitors for a quote on a simple 10x10 foot patio. This gives you a real-world baseline. Do not just aim to be the cheapest. Your quote should also reflect your quality and reliability.
Here are 4 immediate steps to take:
- Calculate your price per square foot for a standard 4-inch slab.
- Call three local competitors for a quote on a 10x10 foot patio.
- Determine your overhead percentage to add to each job.
- Create a quote template that details scope, costs, and terms.
Step 10: Implement quality control and scale your operations
Your reputation depends on consistent quality. On every job, perform a slump test to check the concrete's workability before the pour. Also, specify concrete that meets a 28-day compressive strength of 4,000 psi for most flatwork. This ensures durability and client satisfaction.
You should track your callback rate, which is the percentage of jobs that require a return visit for repairs. A healthy business keeps this figure under 2%. A higher number indicates a problem with your crew's training or your process that needs immediate attention.
Know when to grow
Many owners make the mistake of expanding too fast, which hurts quality and cash flow. You might want to add a second crew only when your lead finisher can work unsupervised and your schedule is consistently booked three to four weeks in advance.
With growth in mind, consider a second mixer truck once your annual revenue surpasses the $350,000 mark. As your operations expand, spreadsheets become inefficient. You can move to a system like QuickBooks Contractor for finances or Buildertrend to manage multiple projects and crews.
Here are 4 immediate steps to take:
- Create a quality checklist for each job, including a slump test.
- Set a goal to keep your job callback rate below 2%.
- Define the revenue and booking triggers for hiring a second crew.
- Review construction-specific accounting software like QuickBooks Contractor.
Starting a concrete business is about more than just pouring slabs. Your reputation is built on the quality of your finish and the durability of your work. Focus on that, and you will build a solid foundation for your future. Good luck.
As you start, remember to keep your cash flow healthy. JIM helps by turning your smartphone into a card reader, so you can accept payments on-site for a flat 1.99% fee. No extra hardware is needed. Download JIM to get set up.
