Have you been dreaming of starting your own business and being your own boss? That’s really a great path for anyone to thread. You will get to work your own hours, call the shots, and build the right team around you. If you are thinking about how to start a welding business, you need to understand that you need more than just knowing how to weld metals together. It goes farther than that – you also need to understand how to make the business profitable for you.
In this post, we have provided all the information you need to start a lucrative welding business – whether from a physical location or as a mobile company. But before we go into that, let’s answer a few questions you might have in your mind concerning how to start a welding business.
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How Much Money Do You Need To Start A Welding Business?
Let’s learn about “How To Start A Welding Business” in detail:
Starting a welding business might cost you some cash compared to other businesses around. You might need to have about $10,000 to $50,000 as startup capital. The bulk of this money will most likely be going into renting a shop space or buying a van if you decide to run a mobile welding business. You will also need to spend on purchasing some necessary tools and equipment. Insurance and getting licenses will also eat a part of the startup capital.
How Profitable Is A Welding Business?
A welding business is indeed a lucrative one. With quality service and the right marketing plan in place, you should be able to make up to $70,000 annually in profits. If you really know your onions in the business, you can even make up to six figures in a year. So a welding business is a profitable one.
Who Is The Target Market For A Welding Business?
You will be fixing and repairing metal and aluminum. So your most likely customers are going to be people who have ongoing welding needs. Your client base can include restaurants that need to make repairs, cruise ship service, farm equipment owners, steel dairy equipment providers, and even silo tank providers. Local estate agents will also make a good customer for you because of their regular need to get things fixed in their properties.
How Much Can You Charge Your Customers?
This completely depends on your niche, the kind of service you offer. However, a welder has two options when it comes to charging his clients and customers. He can either charge on a per-job basis or on an hourly rate. Working per hour as a welder, you can charge anywhere between $30 and $70 per hour. When your business starting gaining some traction and getting more popular, you can charge more for your services.
How to Start a Profitable Welding Business
#1: Choose a profitable niche
When considering starting a welding business, you need to first figure out what niche you will be going into. That is, what type of services will you be offering? There are plenty of options available to you in this regard with each of them having its unique pros and cons. Here are a few niches in the welding industry:
- Aluminum welding
- Heavy stainless steel fabricating
- Mobile welding service
- Steel construction fabricating
- Heavy haulage trailer manufacturing
- Breakdown welding service
#2: Get the required qualifications and training
Welding jobs require that you truly understand the art of the trade. And that starts from getting the necessary qualifications or training before starting out a welding business. You may need to get welding certification from an accredited school. You can also take training from a local welder you know is licensed and certified.
You can search around your area for such schools or local welder shops ready to take you in for a stipulated amount of time.
#3: Plan your finance
Like we earlier mentioned, starting a welding business does not come cheap like some other businesses. It requires a tangible amount of money as startup capital. You will need to estimate the costs and expenses you are likely to make while starting out and find a reliable source for the money.
Your startup capital may come from your personal savings, soft loans from family and friends, or a loan from a bank or private lenders. However, you will need to have a good credit score for easy loan acquisition from the bank.
#4: Write an excellent business plan for the business
A good and well-written business plan will not only keep you focused in the business and help you devise a plan to overcome future hurdles, but it can also make loan acquisition easier for your business. So sit down and write a detailed, comprehensive business plan for your welding business.
Your business plan ideally should include what your startup capital will look like, what expenses you are likely to incur in the business, your competition, and market analysis, your marketing plan, etc.
#5: Get the necessary license and permits
Like every other business, you will need to obtain the right licenses and permits to be able to run your business on the good side of the law. You will need to be licensed for you to become a reliable and professional welder. The requirement for getting licensed varies from state to state. But most states will require you to submit an application to the licensing board in your state and may require you to sit for an exam.
The exam is to make a proper evaluation of your knowledge, equipment, and welding processes and skills. A license will also be needed for you to register your business name and also to register for taxes. If you are also planning to hire employees in the future, you will be required to get a license to cover you for that when the time comes.
#6: Buy the necessary equipment and tools
Now that you have your paperwork and finance settles out, the next thing is to start getting your shop in order. The first place to start is buying the necessary equipment and tools for your welding business. Check out FastMetals for a selection of plate stock, flat bars, and pipe stock as you build your business. If you have enough cash to spare on equipment purchase, you can opt for new ones but if you are starting on a budget, you can consider buying second-hand equipment.
Some equipment and tools you will need for a welding business include:
- TIG and MIG welding machines
- Plasma and air cutters
- A fume extractor
- Respirators
- Welding helmet
- Welding gloves
- Welding goggles
- Surfactants
- Welding pads
#7: Buy a welding truck or van
If you want to start your business in a brick-and-mortar location, you may not need to bother yourself about this. However, if you are planning to run a mobile welding business, you will need to buy a truck or van to your customer’s place where you will need to work.
The truck or van will also come in really handy for advertising your business. You can post stickers on them for more publicity of the business.
#8: Find local clients
During the early days of starting your welding business, you will need to be active in letting out the word. You will need to meet a lot of individuals and business owners to let them know about your service. Make business cards and posters to catch the attention of more people to what you do.
When you eventually got your first job, make sure you put in your best and persuade your customers or clients to recommend you to their friends if they are satisfied with your service. You can also create a website to make it easier for people to find you remotely. Social media marketing will also do a great wonder in letting people know about your business.