Starting a garage door business is an exciting venture that combines hands-on technical skill with smart business planning. With a market valued in the billions, you'll find steady demand for installations and repairs across residential, commercial, and new construction sectors.
This guide will walk you through the practical steps of validating your business idea, securing permits, acquiring equipment, and building supplier relationships to help you launch a successful garage door business in the U.S.
Step 1: Plan your business and validate the market
Gauge local demand
Start by researching your local market to confirm there is enough demand. Check your county clerk’s office for new construction permits to identify growth areas. You can also connect with local real estate agents and property managers who frequently need reliable repair services.
Analyze your competition
Use Google Maps, Yelp, and Angi to map out every competitor in your target service area. Note their services, read customer reviews to find their weaknesses, and look for any service gaps you could fill, such as 24/7 emergency repairs or specialized commercial door services.
Estimate your startup costs
Your initial investment will likely range from $25,000 to $60,000. A reliable work van or truck is a significant part of this. A frequent misstep is to underestimate tool costs, so budget thoroughly for specialized equipment like winding bars and tension gauges from the start.
- Vehicle: $15,000 - $40,000
- Tools and Equipment: $5,000 - $10,000
- Initial Inventory (springs, rollers, openers): $2,000 - $5,000
- Business Insurance and Licensing: $1,500 - $4,000
Here are 4 immediate steps to take:
- List all garage door companies within a 20-mile radius using Google Maps.
- Contact your city planning department to ask about recent housing development approvals.
- Create a detailed spreadsheet of all tools you will need and price them out.
- Call a local property management company and ask about their current service providers.
Step 2: Establish your legal structure and secure licenses
Choose your business structure
Your first legal decision is your business structure. Most garage door pros form a Limited Liability Company (LLC). It protects your personal assets if the business is sued and offers pass-through taxation, which simplifies your filings. You can file for an LLC through your Secretary of State's website.
Navigate licensing and permits
Some states, like California and Arizona, require a specialty contractor's license. Check your state's contractor license board for specifics. The application fee is often $300-$500, and processing can take 4-8 weeks. You will also need a general business license from your city or county clerk.
A frequent misstep is underestimating insurance needs. You will likely need a general liability policy of at least $1 million. Always confirm coverage amounts before you commit, as some commercial clients or property managers have higher requirements. This is a non-negotiable part of looking professional.
Here are 4 immediate steps to take:
- Visit your Secretary of State’s website to review the LLC formation process.
- Search for your state’s contractor license board to see if a license is required.
- Contact your city clerk’s office to ask about local business license fees.
- Get quotes for a $1 million general liability insurance policy.
Step 3: Secure your insurance and manage risk
Understand your coverage needs
Your first policy is general liability, which covers accidental property damage. A $1 million to $2 million policy is standard for this industry. Annual premiums typically range from $1,200 to $3,000, depending on your location and services.
Next, you need a commercial auto policy for your work truck. A frequent misstep is assuming a personal auto policy will suffice; it will not cover you for business-related incidents. This distinction is important for protecting your company from day one.
If you hire anyone, workers’ compensation is mandatory in most states. It covers injuries on the job, a significant risk when dealing with high-tension springs. This protects both your employee and your business from financial strain after an accident.
Find the right insurance provider
You might want to get quotes from insurers who understand the trades. Consider providers like Hiscox, The Hartford, or Next Insurance. They are familiar with the specific risks of garage door work and can help you build a policy that fits your needs.
Here are 4 immediate steps to take:
- Get quotes for a $1 million general liability policy.
- Request a quote for a commercial auto policy for your work vehicle.
- Research your state’s workers' compensation requirements.
- Contact an insurance provider that specializes in trade businesses, like Hiscox or The Hartford.
Step 4: Set up your location and buy equipment
Find your home base
You do not need a retail storefront to start. A 10x20 foot storage unit or a dedicated space in your home garage is enough for inventory and tools. Look for a climate-controlled unit, which can cost between $150 and $300 per month, to protect parts from rust.
Before you sign a lease, check local zoning ordinances to confirm you can operate from your chosen location. You might want to negotiate a 6- or 12-month lease instead of a multi-year commitment. This gives you flexibility as the business grows.
Stock your truck and storage
Your equipment is your moneymaker, so invest in quality. A mistake some new technicians make is buying cheap winding bars that can fail under tension. Instead, get a professional set for around $100-$150. You will also need a reliable tension gauge and a high-torque cordless drill.
- Winding Bars (18-24 inch): $100 - $150
- Tension Gauge: $50 - $80
- Extension Ladders (16-24 ft): $200 - $400
- Cordless Drill Kit: $250 - $400
For parts, find a local distributor for major brands like Clopay or Amarr. Contact them to ask about opening a trade account. Some require a business license and an initial order, but many do not have strict minimums for new businesses.
Here are 4 immediate steps to take:
- Call three local storage facilities to compare prices for a 10x20 unit.
- Check your city’s website for home-based business zoning rules.
- Price out a professional-grade set of winding bars and a tension gauge.
- Find a local garage door parts distributor and ask about their new account process.
Step 5: Set up your payment processing
Most clients will pay by check or card. To protect your cash flow on big jobs, you might want to require a 50% deposit for special-order doors. This covers your upfront material costs and secures the customer's commitment.
Relying only on cash or checks can slow you down and appear less professional. A mobile payment solution is a must for collecting payment right after a repair. It ensures you get paid on the spot without chasing invoices.
For garage door businesses that need to accept payments on-site, 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.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for collecting payment immediately after a service call. Other providers often charge 2.5% to 3.5% plus additional fees.
- 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:
- Decide on your deposit policy for special-order doors.
- Compare mobile payment solutions that let you accept cards on-site.
- Download the JIM app to see how it works on your phone.
Step 6: Fund your business and manage finances
Secure your startup capital
For startup capital, you might want to look into an SBA Microloan. These loans range up to $50,000 and are designed for new businesses. Interest rates are typically between 8% and 13%. You will need a solid business plan and a good credit score to qualify.
Another route is equipment financing, which is secured by the vehicle or tools you buy. This can be easier to get than an unsecured loan. Rates often fall between 6% and 20%, depending on your credit and the equipment's value.
Manage your cash flow
Plan to have at least $5,000 to $10,000 in working capital. This cash reserve covers your first six months of expenses like fuel and marketing before revenue becomes consistent. Many new owners fail because they only budget for initial purchases and run out of cash.
Once you have funding, open a dedicated business bank account. A common mistake is mixing personal and business funds, which creates tax headaches and removes the liability protection from your LLC. Keep them separate from day one.
Here are 4 immediate steps to take:
- Check the SBA website for local Microloan lenders.
- Get a quote for equipment financing on a work truck.
- Open a business checking account at a local bank or credit union.
- Calculate your estimated operating costs for the first six months.
Step 7: Hire your team and set up operations
Hire your first technician
You can likely handle the first $100,000 to $150,000 in revenue yourself. Once you are consistently booked a week out, it is time to hire. Your first employee will be a Garage Door Technician, responsible for installations and repairs.
Expect to pay a starting wage of $20 to $30 per hour. A frequent misstep is hiring for technical skill alone. Your technician is the face of your company, so strong customer service skills are just as important. A bad attitude can cost you more than a botched repair.
While not always required, a certification from the International Door Association (IDA) shows a high level of professionalism. You might want to look for candidates who have it or are willing to get it.
Streamline your daily operations
With a technician in the field, you need a system to manage jobs. Relying on a paper calendar or text messages leads to missed appointments. Field service software like Jobber or ServiceTitan helps you schedule, dispatch, and invoice from one place.
Now that you have a team, you can set clear revenue goals. A two-person operation (you and one tech) should aim for $250,000 to $300,000 in annual revenue. This target helps you measure performance and decide when to expand again.
Here are 4 immediate steps to take:
- Draft a job description for a Garage Door Technician.
- Look up the International Door Association (IDA) certification program.
- Request a demo from a field service software like Jobber or ServiceTitan.
- Set a first-year revenue goal based on your planned team size.
Step 8: Market your business and get customers
Dominate local search
Your first marketing priority is local search. Set up your Google Business Profile immediately. Fill out every section with your service area and hours. Once you complete a job, ask every customer to leave a review. Positive reviews are the most powerful factor for ranking locally.
You will also want a simple, mobile-friendly website. It only needs a few pages: a homepage, a services page, and a contact page with your phone number prominent. Use real photos of your work truck and successful installations to build trust with potential clients.
Use paid ads strategically
Once your foundation is set, you might explore Google Local Services Ads (LSAs). These appear at the very top of search results and let you pay per lead, not per click. A qualified lead from LSAs can cost between $40 and $80, and you get a "Google Guaranteed" badge.
A mistake many new owners make is spreading their budget too thin across multiple platforms. Your initial marketing dollars are better spent to dominate one channel, like LSAs, before you expand. A focused approach yields better results than a scattered one.
Here are 4 immediate steps to take:
- Create and fully verify your Google Business Profile.
- Ask your first five customers to leave you a Google review.
- Look into the Google Local Services Ads platform for your area.
- Plan a small monthly ad budget, perhaps $300-$500 to start.
Step 9: Price your services and create a strategy
Set your service rates
Most garage door businesses use a flat-rate pricing model for common jobs. Customers appreciate knowing the full cost upfront. For example, a standard torsion spring replacement might be priced between $250 and $450. An opener installation could run from $400 to $600, including the unit.
For parts, a typical markup is 50% to 100% over your wholesale cost. If a set of rollers costs you $20, you would bill the customer $30 to $40 for the parts. This margin covers your inventory costs and contributes to your profit.
A mistake some new owners make is pricing too low just to win business. This can attract the wrong type of customer and make it hard to be profitable. You might want to compete on your service quality and quick response times instead.
To get a feel for your market, call a few local competitors and ask for a quote on a common repair. This gives you a real-world baseline without having to guess. Use that information to position your own prices competitively but fairly.
Here are 4 immediate steps to take:
- Call three local competitors for a quote on a double torsion spring replacement.
- Create a price sheet for your five most common services.
- Set your standard service call fee, which often includes the first 30 minutes of labor.
- Calculate the final price for a part that costs you $50, using a 75% markup.
Step 10: Maintain quality and scale your operations
Set your quality standards
As you grow, consistent quality is what keeps customers calling back. You might want to aim for a callback rate under 5%. This means fewer than 1 in 20 jobs requires a free return visit. A simple way to monitor this is by reviewing photos of every completed installation.
Many owners get so busy they stop checking their technicians' work. This is where quality slips. You can also encourage your team to pursue an International Door Association (IDA) certification. It provides a clear benchmark for technical skill and professionalism.
Know when to grow
Once your first technician consistently brings in $150,000 in annual revenue, it is time to think about adding a second. This is a good indicator that demand can support another person on the team. Avoid the temptation to buy a new truck before the work is there to pay for it.
With a second technician, managing schedules on paper becomes chaotic. This is the point where field service software like Jobber or Housecall Pro is no longer a luxury. It helps you dispatch jobs, track progress, and manage invoicing for a growing team without dropping the ball.
Here are 4 immediate steps to take:
- Define your target callback rate and a system for tracking it.
- Look into the IDA Certified Door Technician program for your team.
- Set a revenue goal for hiring your second technician.
- Schedule a demo with a field service software provider.
You have a solid plan to launch your garage door business. Remember that your reputation for quick, reliable service is your best asset. A happy customer who gets a fast repair is more valuable than any ad. You have what it takes to build a great business.
And when it comes to getting paid, keep things simple. JIM turns your smartphone into a card reader, letting you accept payments on-site for a flat 1.99% fee with no extra hardware. Download JIM to be ready for your first job.
