You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your sandblasting business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a sandblasting business?
Jumping right into large commercial/industrial sandblasting is an expensive proposition. The work requires a facility with tens of thousands of square feet, a crane, forklifts, and not to mention the actual sandblasting equipment. Thankfully, there are much more affordable ways to get started in the industry.
- A sandblaster rig
- Substrates (the abrasive material used)
- An air compressor
- An abrasive hose
- A reclaiming system (to gather used substrates)
- Safety equipment
Businesses that sandblast small parts might purchase an all-inclusive sandblasting chamber that comes with this equipment installed. Such chambers cost anywhere from a few hundred to a few thousand dollars. These businesses also must secure a commercial space to operate in.
Businesses that go to customers’ sites usually get the equipment as separate items. They also need a vehicle and trailer for going to sites.
Regardless of the type of sandblasting services provided, business owners need a sandblasting hood, respirator, heavy-duty gloves, hearing protection, and protective clothing.
Business owners who have limited capital should purchase smaller equipment that’s more affordable. Smaller, new equipment that’s reliable is often more affordable in the long run than larger, used equipment that might break down. Because safety is so important, business owners should plan on investing in high-quality safety gear.
What are the ongoing expenses for a sandblasting business?
The ongoing expenses for a sandblasting business are reasonable. Businesses must purchase substrates to use and fuel to run sandblasting equipment. They also must cover the costs associated with having either a physical location or a vehicle.
Who is the target market?
The target market for a sandblasting business is determined by the precise services the business offers. Most businesses target commercial customers, but some also serve individuals (e.g. homeowners, vehicle owners or individuals planning funerals).
How does a sandblasting business make money?
There are many sandblasting services that a business might specialize in. Some types of work that businesses charge for include:
- Large commercial/industrial sandblasting (e.g. metal girders, airplanes, helicopters)
- Smaller commercial/industrial sandblasting (e.g. buildings, cars, motorcycles)
- Sandblasting signs (usually made from wood with a stencil)
- Sandblasting gravestones (sometimes after a blank stone has been installed)
How much can you charge customers?
Aside from large commercial/industrial sandblasters, most business owners charge between $30 and $60 per hour regardless of their specialty. Larger commercial/industrial sandblasters must charge more to cover their higher overhead.
How much profit can a sandblasting business make?
Charging between $30 and $60 per hour, sandblasting businesses can bring in a significant revenue. Working 20 hours a week part-time could produce an revenue of between $600 and $1,200 each week.
How can you make your business more profitable?
Sandblasting is often done to prep a surface for painting or some other coating. Thus, offering painting or other coating services is a natural progression for a growing sandblasting business.
What will you name your business?
Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your sandblasting business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
For most small businesses forming an LLC is a great option, but if you still want to weigh all your options check our our article, What Structure Should I Choose for My Business?
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a sandblasting business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Occupational Safety and Health Administration (OSHA) Regulations
Sandblasting business owners may interact with harmful chemicals such as certain abrasive substrates and it is important to reference to OSHA’s (Occupational Safety and Health Administration) rules and general standards for chemicals:
- Standard 1910.1200 states that employees be adequately informed of all potential hazards when working with chemicals
- Standard 1910.132 states that the necessary personal protection equipment be provided to the employee working with chemicals, such as safety glasses, a face mask and suitable gloves
STEP 7: Get Business Insurance
Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a sandblasting business
Because sandblasting businesses serve customers within a geographic area, all marketing efforts should be focused on attracting customers in that area. Local search engine optimization, business cards and old-fashioned cold calling are a few ways to promote a business.
Recommended: Get started with local advertising for your business with a $300 credit from Yelp.
How to keep customers coming back
A sandblasting business can set itself apart from the competition by offering a professional service at a fair price. Being reasonably priced, showing up on time and cleaning up after completing a job makes a big difference.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Sandblasting Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Anyone who enjoys manual labor and appreciates seeing the effect of their hard work may enjoy running a sandblasting business. Sandblasting equipment can be heavy, and the work requires a certain amount of physical strength. There’s the immediate payoff of seeing paint come off whatever object is being sandblasted, though.
This is a business that can be started part-time, and many business owners continue to operate part-time while working another job. It’s easy to schedule sandblasting appointments around other obligations.
What happens during a typical day at a sandblasting business?
A typical sandblasting begins with the business owner looking over the object that’s being sandblasted and confirming with the customer what work is to be done. This may be done at the sandblasting business’ or the customer’s location.
Once everything is confirmed, the business owner will normally:
- Don their safety gear.
- Set up the sandblasting equipment.
- Complete the actual sandblasting.
- Clean up the substrates that were used.
Throughout the entire process, business owners must be attentive to safety so that no one is injured or inhales the substrates. OHSA has some safety-related guidelines.
What are some skills and experiences that will help you build a successful sandblasting business?
Business owners must know how to safely and effectively operate sandblasting equipment, which they may learn by taking a course. Most courses take less than a week to complete, and they may be offered by equipment manufacturers or industry experts. Pittsburgh Spray Equipment Co. and The Society for Protective Coatings are two organizations that have classes. Local vocational schools may also offer training.
After being formally trained, many business owners decide to work in the industry for a short time before starting their own operation. Industry experience frequently brings insights that aren’t learned in the classroom.
What is the growth potential for a sandblasting business?
A sandblasting business can remain a part-time operation run by a single business owner, or it can grow to be a large company. For example, Dryden Monument Company is a small gravestone company that also provides sandblasting services. Secondary Services is a larger sandblasting company that has a sizable facility.
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One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
What are some insider tips for jump starting a sandblasting business?
Before investing in a sandblasting business, business owners should thoroughly investigate what companies currently offer sandblasting services in the area and how much those companies are charging. In addition to searching for sandblasting companies, business owners must also check to see whether any nearby painters, monument companies or contractors offer sandblasting services.
How and when to build a team
Most business owners start out working by themselves. Those that want to grow their business usually hire employees as the workload requires and incoming revenue allows.