Starting a fencing company is an exciting venture that combines craftsmanship and design skills with business savvy. The industry is a multi-billion dollar market, fueled by consistent demand for residential privacy, commercial security, and agricultural fencing.
This guide will take you through the practical steps of validating your business concept, obtaining the right permits, acquiring equipment, and building supplier relationships to help you launch a successful fencing company in the U.S.
Step 1: Plan your business and validate your idea
Define your local market
Begin by driving through new and established neighborhoods. Note the dominant fence types. Are they wood, vinyl, or aluminum? This simple survey gives you a direct look at customer preferences in your area.
You can also check your local municipality’s public records for building permits. This data often reveals which fencing companies are active and the types of jobs they perform, giving you a real-time view of demand.
Analyze competitors and estimate costs
Use Google Maps to identify local fencing contractors. Review their websites and customer feedback. Also, search the American Fence Association (AFA) member directory to find established professionals in your region.
Speaking of getting started, you will need to budget for initial expenses. A reliable used truck might cost between $15,000 and $25,000. A full set of professional-grade tools can add another $3,000 to $5,000.
General liability insurance typically runs $1,200 to $2,500 per year. Business registration and initial marketing materials could add another $800 to $2,300 to your startup fund. A common misstep is to underbid jobs early on.
To avoid this, always add a 10-15% contingency to your material estimates to cover price changes or unexpected needs. This protects your profit margin from the start and is a sound business practice.
Here are 3 immediate steps to take:
- Survey three different local neighborhoods and document the top three fence styles.
- Create a list of at least five local competitors, noting their services and online review scores.
- Draft a startup budget with estimated costs for a vehicle, tools, and insurance.
Step 2: Establish your legal structure and obtain licenses
Choose your business structure
You might want to consider forming a Limited Liability Company (LLC). This structure separates your personal assets from business debts. Profits and losses pass through to your personal tax return, which simplifies tax season. State filing fees are typically $100 to $500.
Once your LLC is registered, get an Employer Identification Number (EIN) from the IRS. You will need it to open a business bank account and hire employees. You can apply for an EIN online for free, and it is issued immediately.
Secure the right licenses and permits
Many states require a contractor's license for fencing work, so check with your state's contractor licensing board. The application process can take 4-8 weeks and cost between $300 and $500. Some states also require you to pass an exam.
Your city or county will also require a general business license. For each project, you will likely need a building permit from the local building department. A frequent misstep is to begin work before the permit is approved, which can result in fines.
Permit costs vary but often range from $50 to $200 per job. The approval process can take one to two weeks, so factor this time into your project schedule. Always include the permit fee in your customer's quote.
Here are 4 immediate steps to take:
- File LLC formation documents with your Secretary of State.
- Apply for a free Employer Identification Number (EIN) on the IRS website.
- Contact your state contractor board to confirm licensing requirements.
- Visit your local building department’s website to understand the permit process.
Step 3: Secure insurance and manage risk
Your first policy should be General Liability. A $1 million to $2 million policy is standard for contractors and typically costs $1,200 to $2,500 annually. This covers accidental property damage or injuries to clients and the public on your job sites.
Next, you will need Commercial Auto insurance for your work truck. Personal auto policies do not cover business activities. Expect annual premiums of $1,500 to $3,000 per vehicle, depending on your driving record and coverage limits.
As soon as you hire help, you must have Workers' Compensation insurance. It is legally required in most states and covers employee medical bills and lost wages from work-related injuries. Premiums are a percentage of your payroll.
Finding the right coverage
Fencing has unique risks, like accidentally striking underground utility lines. A general agent might miss this. You should work with providers who understand construction, such as The Hartford, Hiscox, or Next Insurance, to ensure your policy fits your work.
Many new owners just buy the cheapest plan, only to find it has exclusions for their specific work. Always confirm your policy covers risks like faulty gate installation or post-hole digging before you sign. This avoids claim denials down the road.
Here are 4 immediate steps to take:
- Request quotes for a $1 million general liability policy.
- Contact an insurance agent who specializes in contractor trades.
- Check your state’s website for workers' compensation requirements.
- Ask providers if their policies cover damage to underground utilities.
Step 4: Set up your workspace and buy equipment
Find your operational base
You do not need a retail storefront. Look for a 500-1,000 square foot light industrial space. This provides enough room for material storage and vehicle parking. Check with your local planning department for I-1 or I-2 zoning.
When you find a potential space, negotiate a one or two-year lease with an option to renew. This gives you flexibility. Also, confirm the landlord's rules on outdoor material storage before you sign any agreement.
Acquire your equipment
Your main equipment purchases will be a gas-powered auger, which runs $300 to $700, and a portable concrete mixer for $200 to $500. A quality miter saw will add another $200 to $600 to your budget.
Some new owners overspend by buying all new equipment. You can manage this initial cost by sourcing well-maintained used items or exploring rental options for larger machines. This protects your cash flow early on.
Establish supplier accounts
With a space secured, you can open accounts with suppliers. National distributors like Master Halco and Merchants Metals are good starting points. Also, build relationships with local lumberyards for wood fence projects.
Ask about their minimum order quantities for wholesale rates. Some require you to buy a full pallet of vinyl or a bundle of posts. A good sales rep can also offer advice on new materials and help you get better terms.
Here are 4 immediate steps to take:
- Check your local municipality’s zoning map for light industrial areas.
- Price out a gas-powered auger and a portable concrete mixer.
- Contact two national suppliers to ask about opening a contractor account.
- Draft a list of questions for potential landlords about outdoor storage.
Step 5: Set up your finances and payment systems
Standard practice is a 50% deposit to cover materials and secure the job. The remaining 50% is due upon completion. This structure protects your cash flow. Always outline these terms clearly in your written contract before any work begins.
While you can accept checks, many clients prefer credit cards. A frequent mistake is relying on clunky hardware at the job site. You should look for a payment solution that is mobile, has low fees, and gives you fast access to your money.
For fencing companies 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 done. It is particularly useful for collecting deposits on-site.
At just 1.99% per transaction with no hidden costs or extra hardware, it is more affordable than other providers, which often charge 2.5% to 3.5%. This difference adds up quickly and protects your profit margin on every single job.
Getting paid with JIM is simple:
- 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, with no waiting for bank transfers.
Here are 3 immediate steps to take:
- Draft your standard payment terms (e.g., 50% deposit) to include in your contracts.
- Compare the transaction fees of your bank with the 1.99% rate offered by JIM.
- Download the JIM app to explore its interface for on-site payments.
Step 6: Secure funding and manage your finances
Explore your funding options
The SBA 7(a) loan program is a popular starting point. Lenders typically require a credit score above 680 and a strong business plan. For a new fencing company, loans can range from $50,000 to $150,000 with interest rates around 9% to 12%.
Equipment financing is another route. This loan is for your truck or major tools, with the equipment itself as collateral. This often results in lower rates, between 4% and 8%. Also, a business line of credit can help you cover material costs before a client pays.
Calculate your working capital
You will need enough cash to cover your first six months of operations. This includes insurance, fuel, and payroll. A reserve of $15,000 to $30,000 is a realistic safety net while you establish consistent income from jobs.
A mistake some new owners make is using a personal bank account for business. This creates a headache during tax season and exposes your personal assets. Open a dedicated business checking account right after you form your company.
Here are 4 immediate steps to take:
- Check your credit score to see if you qualify for an SBA loan.
- Ask your bank about options for a business line of credit.
- Calculate your estimated operating expenses for a six-month period.
- Open a separate business checking account for your company.
Step 7: Hire your first crew and set up operations
Building your team
Your first hire will likely be a Fence Installer. Depending on experience, they typically earn $18 to $25 per hour. As you grow, you will need a Lead Installer or Foreman to manage the crew, with pay ranging from $25 to $35 per hour.
While not always required, asking for an OSHA 10-hour construction safety certification shows a commitment to safety. This simple step can reduce accidents and may lower your insurance premiums over time. It is a valuable credential for any field employee.
Managing your projects
With a crew in place, you need to manage your workflow. Software like Jobber or Housecall Pro helps you create quotes, schedule jobs, and invoice clients from one place. Many offer free trials, so you can test them before you commit.
A mistake some new owners make is misclassifying employees as 1099 independent contractors to avoid payroll taxes. This can lead to significant IRS penalties. You should consult an accountant to ensure you classify your team correctly from day one.
As a benchmark, a skilled two-person crew can typically generate between $150,000 and $250,000 in annual revenue once you establish a steady flow of work. This ratio helps you forecast your growth and hiring needs as your business expands.
Here are 4 immediate steps to take:
- Draft a job description for a Fence Installer, including your target pay rate.
- Research local providers for OSHA 10-hour construction training.
- Sign up for a free trial of a field service software like Jobber.
- Schedule a consultation with an accountant about employee classification.
Step 8: Market your business and get customers
Establish your local presence
Your first move is to claim your free Google Business Profile. This action puts you on Google Maps and in local search results. Fill out every section and upload high-quality photos of your completed projects. This is your digital storefront.
Encourage your first few clients to leave reviews. A steady stream of 4 and 5-star reviews is often the single biggest factor for new customer calls. It builds trust before they even contact you. A simple one-page website from a builder like Squarespace also helps.
Use targeted outreach
With your online profile set, try direct marketing. Door hangers in new housing developments are effective. For about $250, you can print 500 hangers. A 1-2% response rate is a realistic target and can land you several jobs from one campaign.
A mistake many new owners make is to spend money on broad advertising. Instead, focus your efforts. You can also partner with local home builders or real estate agents. They can refer clients to you for a small commission or a reciprocal favor.
As you get leads, track where they come from. Your goal is a Customer Acquisition Cost (CAC) under $250 per job. If a marketing channel costs more than that to land one customer, it may not be sustainable yet.
Here are 4 immediate steps to take:
- Claim and fully complete your Google Business Profile.
- Design and get quotes for 500 door hangers for a target neighborhood.
- Identify three local home builders or realtors to contact for partnerships.
- Ask your first three customers to leave a Google review.
Step 9: Price your services and create quotes
Calculate your price per linear foot
Most fencing jobs are priced per linear foot. To find your rate, start with your material cost and apply a 50% to 100% markup. If materials for a vinyl fence cost you $15 per foot, you should bill the client $22.50 to $30 for materials alone.
Next, factor in your labor. A good baseline is $50 to $75 per hour for each crew member. A two-person crew that works an eight-hour day would add $800 to $1,200 in labor costs to the job total. This ensures your team’s time is covered.
Finally, add 10-15% to the subtotal to cover overhead like insurance and fuel. Your target gross profit margin on the entire job should be between 30% and 50%. This ensures you are not just covering costs but building a healthy business.
Create professional quotes
Your quote should be a detailed document. Itemize everything clearly: materials, labor, permit fees, and any extras like gate installation. This transparency builds trust and prevents disputes. To check your rates, you can call competitors for a quote on a standard 100-foot fence.
Some new owners forget to charge for demolition or difficult terrain. Always walk the property first. Add a separate line item for removing an old fence, which can run $5 to $10 per foot. You should also charge more for rocky soil or steep slopes.
Here are 4 immediate steps to take:
- Calculate your base price per linear foot for a standard wood privacy fence.
- Determine your standard markup percentage for materials and your hourly labor rate.
- Create a quote template that itemizes materials, labor, and demolition.
- Call two local competitors for a quote to see how your pricing compares.
Step 10: Establish quality control and scale your operations
Your reputation is built on the quality of your work. Define non-negotiable standards for every project. For example, all posts must be perfectly plumb, set in a consistent concrete mix, and spaced exactly to panel specifications. This consistency is what clients remember.
You can measure quality with data. Track your callback rate for repairs or adjustments. A rate below 5% is a strong indicator of high-quality installations. For a long-term goal, you might want to pursue a Certified Fence Professional (CFP) designation from the American Fence Association.
Know when to scale
With quality under control, you can plan for growth. If you are consistently booked 6-8 weeks in advance or turning down profitable jobs, it is time to consider expansion. This is a clear sign that demand exceeds your current capacity.
A common misstep is hiring a second crew before your processes are solid. Document your quoting, installation, and final walkthrough procedures first. Once a two-person crew consistently brings in $200,000+ in annual revenue, you have a proven model ready to replicate with new hires.
As you add crews, managing logistics becomes more complex. Field service software like Jobber helps you assign jobs, track progress across multiple sites, and maintain communication. This prevents scheduling conflicts and ensures every crew follows the same process.
Here are 4 immediate steps to take:
- Define three non-negotiable quality standards for every job (e.g., post depth, fastener type).
- Track your callback rate for the next 10 jobs to establish a baseline.
- Look up the requirements for the AFA's Certified Fence Professional (CFP) designation.
- Set a revenue or booking lead-time goal that will trigger your first new hire.
Starting a fencing company is a rewarding path. Remember that your reputation is built on the small details, from perfectly straight posts to clear customer quotes. You have the blueprint for success, now it is time to start building your business one project at a time.
And as you complete those jobs, make getting paid simple. JIM lets you accept cards right on your smartphone for a flat 1.99% fee, with no extra hardware needed. This keeps your cash flow healthy from day one. Download JIM and get ready for your first sale.
