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How to Start a Demolition Business

Last Updated: August 19, 2024 Approved

This article was co-authored by Pete Canalichio . Pete Canalichio is a Brand Strategist, Licensing Expert, and Founder of BrandAlive. With nearly 30 years of experience at companies such as Coca-Cola and Newell Brands, he specializes in helping brands find the most authentic parts of their story to build a brand strategy. Pete holds an MBA from the University of North Carolina at Chapel Hill and a BS in Physics from the United States Naval Academy. In 2006, he won an MVP Award from Newell Brands for his contributions to their Global Licensing department. He’s also penned the award-winning book, Expand, Grow, Thrive. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, several readers have written to tell us that this article was helpful to them, earning it our reader-approved status. This article has been viewed 178,905 times.

A small-scale demolition business can be successfully begun with the development of a business plan and a relatively modest initial investment ($2,000-10,000). Since many construction and renovation companies prefer subcontracting the interior or exterior demolition for residential and commercial projects, there are various opportunities for new or small-scale demolition companies. By following some simple steps and obtaining the necessary licenses and permits, you can start your own demolition business.

Step 1 Consider beginning with a small-scale, residential demolition company.

  • Research what types of demolition companies already exist in your area. This will give you an idea of the potential for your company's success, especially if you plan on beginning with a small-scale, manual demolition company that subcontracts demolition jobs from construction companies.
  • Manual demolition can involve removing concrete, wiring, plumbing, wood, metal, or other materials associated with residential structures. Mechanical demolition companies, in contrast, demolish larger buildings and structures, requiring more equipment and a much larger initial investment.
  • A newer area of specialization is deconstruction or "green demolition," a slower but environmentally friendly method that permits recycling many of the original construction materials. The structure is carefully dismantled rather than demolished, limiting the amount of debris and waste that ends up in landfills.

Step 2 Create a business plan.

  • If you are unfamiliar with developing a business plan, there are various business sites that will walk you through the process in a step-by-step format. A minimum amount of research will help you to find the site that best suits your needs.

Step 3 Apply for a business license.

  • Many insurance companies offer the different types of insurance necessary to cover the various needs of a demolition business. Making inquiries to different companies enables you to find the best rates and the insurance that best fits your company's needs.
  • The size and type of your demolition company will determine how much insurance you are required to have. A smaller scale, manual company will require less, while a larger mechanical demolition company will need additional accident insurance (for employees and any damage to the site) as well as insurance for certain equipment, such as cranes or bulldozers.

Step 5 Find a suitable location for your business.

  • Safety preparations include an engineering survey, controlling utility services, preparing for medical emergencies, and having contact information for local police and fire departments.
  • Safety training can be obtained through seminars and online training from various companies and organizations, including OSHA (Occupational Safety and Health Administration).

Step 9 Appoint a safety director, at least for each specific job.

  • The laws and regulations regarding specific aspects of a demolition job may vary according to the county or area of the job and include such aspects as noise ordinances, acceptable working hours, and details regarding the use and placement of a dumpster.

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Thanks for reading our article! If you’d like to learn more about starting a business, check out our in-depth interview with Pete Canalichio .

  • ↑ http://www.gaebler.com/Opening-a-Residential-Demolition-Business.htm
  • ↑ https://www.profitableventure.com/starting-a-demolition-company/
  • ↑ https://brandongaille.com/how-to-start-a-demolition-company/
  • ↑ https://bizfluent.com/how-2078412-start-demolition-business.html

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demolition company business plan

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