Many aspiring businessmen find it difficult to choose a sector for their business.
A business idea such as dismantling buildings can open up new prospects for you in the future, and is also quite easy to implement.
Its implementation is quite possible both in large cities and in small towns. Especially when you consider the fact that in the second option there are often no competitors in this area. It is absolutely not necessary to open and register a large enterprise right away; it will be quite enough to place several advertisements in various newspapers without registering your type of activity.
However, it is more correct, of course, to do business legally. And if your financial capabilities allow you to open a small agency that provides services of this kind, then this will only be a plus. Indeed, today people have more confidence in a reputable organization, rather than a private person from a newspaper advertisement.
As has already become clear, the field of activity involves various types of disassembly and destruction of something. The next piece of advice: if you are new to this business, do not take orders for the dismantling of a multi-story building. At first, you are unlikely to have enough necessary equipment, technology and, of course, experience.
Next, you will need to recruit a team to work. They must be physically strong people, decent and hardworking. If you plan to hire relatives and friends, then this is not recommended, as there is a risk of ruining your relationship with them due to disagreements at work.
Next, you will need to purchase various types of equipment that may be useful in your work. These are sledgehammers, saws, hammers, nail pullers and many other tools.
You can combine the provision of dismantling services with other related activities. For example, removal of construction waste that will remain after the work performed by the team.
Payment for this type of work must be made separately from dismantling. For this you will need truck. It may well be used.
Additional income can come from selling bricks and blocks after dismantling work (if the customer does not need them). They can be offered for any construction site.
IN mandatory You need to register your private enterprise to avoid problems with the tax service.
You will need to place advertisements for the services provided in newspapers, post advertisements around the city, in building materials markets, and so on.
But keep in mind that building dismantling is a seasonal business, so be prepared for the fact that you most likely will not have clients in the winter.
Dismantling as a business is a fairly popular idea, which is successfully used in different countries peace. The key area of activity of specialists in the field of dismantling is the dismantling and demolition of partitions, buildings, fences, and various commercial buildings. By turning to a company that provides dismantling services, the customer saves himself from the need to independently carry out heavy dismantling work, and from problems with garbage removal and eliminating the consequences of the work.
As a rule, companies that carry out dismantling and removal of garbage from apartments with movers use physical force, especially when the work must be carried out manually and indoors. In this case, sledgehammers and hammers, nail pullers and crowbars, as well as other tools, are used, depending on the conditions of the dismantling work. In addition, a stretcher will be useful for moving construction waste to the car, and the truck itself, which is necessary for removing the debris remaining after dismantling work. Because the company’s reputation depends on the quality of the work performed, and if you leave the site of the dismantling work uncleaned, your clients are unlikely to be satisfied with the result.
Business related to dismantling work is often in demand during demolition outbuildings and residential buildings. In this case, you cannot do without heavy mechanized machines, such as tractors and excavators. You can buy a tractor as your own or rent it, but in any case, you cannot do it with manual labor alone when demolishing large buildings. In the future, as the dismantling business develops, it may be possible to purchase an excavator or mobile crane unit to carry out large-scale dismantling of tall multi-storey buildings.
One should not lose sight of the fact that this type of business, like many others, requires legal registration, as well as state registration. Then, you will be able to hire workers and pay employees wages according to the letter of the law. Carrying out dismantling alone, in any case, is an almost impossible task.
You can offer your services privately, through advertising in newspapers, the Internet and on television. There is also the possibility of corporate cooperation with various construction companies, which often need assistance in preparing the site for construction. In addition, you can offer the cooperation of the local administration, because often government agencies require assistance in the demolition of illegally erected buildings, but there are not enough resources to carry out this action. Developing your business, expanding your sphere of influence and introducing new services are the key to the success of your company!
Construction is rightfully called one of the most promising industries. In large cities, this industry is developing at a particularly rapid pace. It’s just that when organizing a business in this industry, many people completely forget about the possible business of organizing the demolition of buildings and structures. Most believe that it is unprofitable and too complicated. But, in fact, this is completely wrong.
First of all, work in the demolition industry promises licensing and subsidies from the state.
Secondly, you do not need to have much experience or knowledge in this industry (although this only applies to the head of the company). And a very low competitive environment. Until now, even in the most major cities, only 2-3 organizations operate in the entire territory. Of course, some construction companies are trying to demolish the previous building for new construction on their own. But, most often it takes more time and effort than contacting a specialized company.
The only thing before starting a business organizing the demolition of buildings and structures is to clearly evaluate the construction market of the selected work area. The fact is that the city must actively develop the construction of new buildings, otherwise the business simply will not be able to make a profit, and the equipment will remain idle.
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Selecting business premises and renting them.
It is necessary to rent a hangar where tools and large equipment will be stored. This is a clean place within the city limits or no more than 20 kilometers outside the city limits. It is worth immediately calculating the money for moving equipment. But at the same time payment utilities, and the cost of rent outside the city will be slightly lower. A hangar with an area of at least 250 square meters, with a power line. It is also necessary to rent office space. Administrative staff will work there and the manager’s office will be located there. Here it is better to rent within the city, it is important that it is convenient to get to it both by public transport and by your own cars.
Office space can be rented in a business center; a rented one-room apartment on the ground floor of any building with a separate entrance is also suitable. It is necessary to create an office interior that is clear, strict, and without frills. It is important to prepare for likely meetings with potential clients. It is necessary to rent a building with an area of at least 30 square meters with all communications.
They shell out at least $1.4 thousand to rent the premises.
Equipment and technology.
To organize the demolition of diverse buildings and structures, it is necessary to purchase the following machinery and equipment:
1. A truck crane with a lifting capacity of at least 21 tons - about $80 thousand;
2. Hammer weight for a truck crane (order separately) - $12 thousand;
3. Bulldozer (depending on power) - from 44 to 484 thousand $;
4. Backhoe loader - from $82 thousand;
5. Dump truck (with a carrying capacity of at least 20 tons) - from $40 thousand;
6. Trailers - $18 thousand;
7. Semi-trailers - $12 thousand;
8. Tractor - from $17 thousand;
9. Flatbed truck - $15 thousand;
10. Tractor - from $20 thousand;
11. Grader - $25 thousand;
12. Hand tools - $4 thousand.
The total cost of the necessary equipment and machinery is quite high - from $400 thousand.
Often businessmen, paying attention to such high expenses, take out leasing. By paying attention to the power and functionality of the equipment, reviews from equipment, you can save a little by choosing equipment from domestic manufacturers.
Staff.
To organize the work of the company, specialists in the following specialties are needed: tractor driver, bulldozer driver, dump truck and truck crane driver, loader driver, general workers. In total, two teams of workers are needed, up to 15 people per shift. Office staff are also required: accountant, secretary, assistant accountant, lawyer. Mostly 5-6 people per office.
It is worth noting that as the company develops, the need for office staff will increase and new teams of workers will be created. It is important to hire responsible people, without bad habits (required), and most importantly, with work experience. About 40% of the profit from the demolition of buildings and structures is spent on paying staff. This means that you should expect an amount of $10-15 thousand to pay all salaries.
Documentation.
To work according to such a specification, it is necessary to prepare a package of documents: a certificate of inclusion in a special state register, protocol and seal of the opening of a new company, charter, TIN and OGRN certificates, insurance contract, statistical code. It may take six months to complete all the documentation.
The initial deposit to create a business will be at least $4 thousand, sometimes more.
Monthly expenses.
Thus, the purchase of special shoes and clothing for workers becomes a separate expense column. It is best to sew to order, it will wear out quickly. You need to sew based on the season. In summer, thin fabrics, for winter - insulated options. The purchase of fuel for moving equipment also becomes an expense item. This will also include waste removal after demolition of the building.
In total, about $6 thousand is invested in monthly expenses.
Advertising.
A website is created to advertise the business, and funds are invested in its development. It is also worth taking advantage of paid and free advertisements on popular sites offering services. Contextual advertising will also come in handy. It wouldn't hurt to rent outdoor advertising within the city and beyond.
In total, about $500 is invested in this aspect.
Basic costs.
The main costs include:
1. Office and hangar rental - from $1.4 thousand;
2. Purchase of equipment - from $400 thousand;
3. Personnel - $10-15 thousand;
4. Documentation - $4 thousand;
5. Monthly expenses - $6 thousand;
6. Advertising - from $500.
In total, creating a business to organize the demolition of buildings and structures will cost about $430 thousand.
At the same time, it is worth considering the option of leasing if this is possible.
Profit and payback.
Depending on the complexity of the building structure and its features, different prices may be charged for such a service. It often happens that a small brick building can be demolished for $500. But they spend at least $10 thousand on a huge high-rise building.
Generally speaking, the average profit of such a company can reach $120 thousand per month.
When working with good demand for the service, payback occurs in the first 3-8 months of work.
Development opportunities and clients.
Main clients - construction companies. We rarely receive requests from private individuals for the demolition of small structures. The sale of materials after the demolition of the building is used as additional income. Basically it is ferrous and non-ferrous metal.
Anyone can start their own business. Yes, it sounds banal, but when you meet people who have actually proven this principle, it is seen completely differently. Alexander Kostritsa is just one of those. A 25-year-old lifter from St. Petersburg, who moved to this city from Vitebsk, managed to open a dismantling company with almost no investment and in the second month reached more than 100 thousand net profit per month.
- How a former hoist from St. Petersburg opened a dismantling company;
- What are the prospects for business in the construction industry;
- How can you start your own business with a minimum budget, practically from scratch;
- What young entrepreneurs should focus on at the beginning of their journey and how to set priorities correctly at the initial stage of business development.
Main points of the interview:
- Type of activity: construction, dismantling
- Business locations: Russia, St. Petersburg
- Occupation before starting a business: lifter building materials.
- Start date of business activity: 2014
- Organizational and legal form of doing business: OOO
- Initial investment amount: 20,000 rub.
- Source of initial capital: savings
- Payback period: 1 week
- Formula for success: Adventurism works wonders, and good personnel keep these wonders in working order
Good afternoon, Alexander! Tell us what you are doing now and for how long?
Greetings. My company provides dismantling services in apartments, country houses, sports complexes and industrial buildings.
What did you do before entrepreneurship?
Before entrepreneurship, he studied at the Faculty of Law in Moscow. Later he moved to St. Petersburg, worked as a window installer, then as a lifter of building materials at the Petrovich STD.
Tell me why you chose dismantling?
I did not immediately choose dismantling. Initially, my companions and I tried our hand at lifting building materials. In the construction industry, everything is interconnected, and we soon became quite familiar with dismantling. At that time, we worked with foremen who had a need for this service. We talked a lot with them and came to the conclusion that dismantling is a service in demand, and there is money there. Then the idea came to do this business.
Tell us more about how it all began. When you decided to open a dismantling company, what was the most difficult thing at the beginning of your journey?
I’ll say right away that although I thought through all the actions in basic terms, the risk of failure was great.
The beginning was like this: the end of 2014, November-December. I understand that it’s time to start, because if not now, then at least next February. Of course, there were some doubts, but I clearly understood that it was futile to continue working as an ordinary lifter.
And now a map of the Northern capital is placed on the table, and we begin to mark the most profitable objects on it. Why waste time on trifles? The emphasis was on elite apartment buildings in the center of St. Petersburg.
We initially focused not only on dismantling, but also on waste disposal and removal, that is, we provided comprehensive services. Since we didn’t have our own cars, we agreed on permanent cooperation with a company involved in cargo transportation.
They did not advertise on the Internet. The budget was limited, and I was far from a professional in Internet marketing - I didn’t want to spend considerable amounts of money on contextual advertising. Then the algorithm of actions was as follows:
- purchased several thousand business cards;
- chose a quarter where the cost of apartments ranged from 50-200 million rubles.
- developed a small offer and went “to the fields”;
- before distributing promotional material, established relations with the Administration
On the first day we visited 32 apartments. We talked with the foremen, talked about the advantages of working with us, and agreed on working together. As a result, we received 6 orders, which were processed within two weeks.
How much did you start with? What expenses did you have to incur when starting a business?
It’s funny to say, but we literally started with an amount equal to the average St. Petersburg salary, that is, practically from scratch. Later, about 50,000 rubles were spent on all organizational issues (company registration, licenses).
When did the first profit begin and how did it increase?
By the end of the month, the net profit per person was around 15 thousand. And this is not bad, because the result could have been negative. In the second month, profits doubled. And by the New Year it had increased several times more. At that time, we used most of our profits to purchase advertising materials. During the holiday period there were few orders, at this time we were looking for an accountant and resolving issues with standard contracts and the website.
What did you primarily invest in at the initial stages?
If the amount to start a business is small, like ours, then it is better to opt for proven and cheap methods of promotion. Reduce all mandatory expenses to a minimum. How did we do it?
- Get business cards (these can be leaflets or other handouts, depending on the specific situation).
- We bought a SIM card with an unlimited tariff and connected a short number.
- We ordered a standard contract from a lawyer. You could simply download the current sample and fill it out, but this is an important element - if the agreement is drawn up incorrectly, any court will recognize the transaction as void.
- We also ordered a database of companies involved in construction activities from the call center.
What would you invest in if you had a more substantial amount at the start - 200-300 thousand?
I would bet on internet marketing. I would immediately create a website and send traffic to it from contextual advertising, would order comprehensive lead generation, perhaps cold calls from the call center.
What about seasonality?
The greatest decline occurs in winter, when construction slows down. During this period, we are content with little and do dismantling in apartments. However, the dismantling business entirely depends on construction and demand for apartments.
Which key points can you highlight in business?
First of all - personnel. In the construction industry, finding good workers is not so easy, because there are many hacks and drinkers. If the customer smells alcohol emanating from the workers, you can’t count on further cooperation with him. On the other hand, there are also a lot of valuable personnel, but they need to be carefully sifted out. Many employees came on recommendations from people who worked for us permanently or temporarily.
It is worth considering the payment system and motivation. At first glance, using hourly wages is beneficial, but its depravity is soon revealed: people delay the work process. It’s better to work based on results and pay for volume. Work will move faster, and its quality will improve, because workers will approach their work more responsibly. Customers will appreciate this.
What advantages and disadvantages would you highlight in your business?
The main advantage is the relatively small amount of investment required at the start. The price of specific tools (perforators, jackhammers, concrete cutters, sledgehammers) is low, and knowledge and skills can be acquired by working for some time in this area under the guidance of an experienced foreman... Any person with at least a little knowledge of the topic can open a dismantling company.
It’s also good that you can establish long-term cooperation with each customer. There is a lot of work at each site: in addition to the actual dismantling, you need to regularly remove construction waste from it. This is a long process that brings a lot of money to the owner of the contractor company.
Now as for the shortcomings. I’ll say right away that for workers, dismantling and loading garbage is difficult and exhausting work. Dust and eternal dirt have a detrimental effect on health; sometimes people do not go to work due to high fatigue. This is understandable: you spend half a day destroying walls, half a day you go from your apartment to the street and load bags of construction waste into your car. Hard.
Accordingly, staff turnover is high. Even if we treat our employees loyally and create the most comfortable conditions for them in terms of working hours and pay. As far as possible, of course.
Would you start doing this business if you knew all its features and difficulties in advance?
Not a fact, and the point here is not the difficulties as such. I achieved good results through persistence, thinking not about possible difficulties, but about where and how to move. Knowing all the nuances in advance, I would have thought for a long time and started making various cunning plans instead of acting. It is better to move blindly than to stand in one place and survey the surroundings, figuratively speaking.
How has the crisis affected the dismantling business? Has it become much more difficult, how are you coping with it?
Recession... Now we can already feel a decrease in prices for services in this industry, with a simultaneous increase in prices for goods. We keep the price, but we understand that the year will be difficult. Of course, this is not a reason to give up.
What are your guesses - what will happen to business in this area in the future? How are you going to develop further?
A difficult question, a crisis is a crisis. It is difficult to engage in long-term planning, there are a lot of unknown variables, which are also constantly changing. Now I'm focusing on online promotion. We create a website on a good engine (http://www.bezgranits78.com/), it will be optimized and promoted through SEO, promoted in social networks. We will finally have our own vehicle.
What advice can you give to aspiring entrepreneurs?
Before opening, you need to determine the size of the market for the services you are going to provide in your city. If the city is not even a million-plus city, but the competition is decent, is it worth the risk? As a rule, customers work with proven service providers, and in small localities new ones appear rarely and in smaller quantities. It will be difficult for a young company to develop; it will take much longer. In St. Petersburg, the construction market is extensive, but not oversaturated, but I would not open a dismantling company somewhere in Saratov.
It’s a good idea to immediately think about additional services. This is a foundation for the future, when the company’s activities will expand and scale. For example, we offer not only dismantling, but also lifting building materials to the floor, lowering them and removing waste.
Another sore point is how beginners can make themselves known and get clients. If the budget is limited, you need any accessible ways make personal contact with the customer. Come to the site, communicate with the foreman, ask for the director’s phone number and arrange a meeting with him... You can call people and sell your services over the phone, but this is less effective way. The trick is that the decisive selling factor is not the impression of the company, but the impression of the person who represents it. Establish friendly relations with the decision maker and get a permanent, loyal client.
I would not recommend dumping, although sometimes it is inevitable. As a last resort, you can reduce the cost of services by 10% of the market average, but it is better to just add a few bonuses.
In the initial stages, you can safely forget about free time and sleep. Every day from 7-8 am you need to go “to the fields”: communicate with customers, manage the work. You don’t really relax much in the evening either, because it’s time to distribute work for the staff for the next day. During breaks, you work on negotiating contracts, consulting with lawyers... In a word, your task is to mentally prepare to plow in “horse mode.” To relieve yourself a little, it is highly advisable to start a business with a partner.
Well, then everything is standard: as soon as you get back on your feet, begin to increasingly increase the number of services offered, recruit new employees (sales, advertising, marketing specialists). The main thing is not to stop developing.
Small dismantling enterprises, which can do their work very inexpensively and in a short time, are in demand on the market both in crises and in the era of a construction boom.
Of course, no one guarantees you victory at large tenders, but you can always join such a large order as a subcontractor of the company that won the tender.
The dismantling business market in numbers
It costs 250 thousand dollars to open a dismantling business. Well, if you buy used equipment, you’ll spend even less to get started!
In general, the profitability of a dismantling company is 25-30%.
You can recoup the money invested at the start by dismantling 50 objects worth 400 thousand rubles each.
You can recoup your investment in two to three years.
Minimum set of machinery and equipment for a dismantling company
- one excavator weighing 25 tons and a bucket volume of 1.5 cubic meters at a price of 150-180 thousand dollars,
- attachments: hydraulic shears 25-30 thousand dollars. (Hydraulic shears can be used to cut the walls of an object),
- and a hydraulic hammer priced at 40 thousand dollars. (Hydraulic hammer - break reinforced concrete slabs and blocks)
- gas-cutting equipment priced at $250 (means autogen for cutting and laying metal reinforcement, which is contained in reinforced concrete blocks, and which cannot be cut with hydraulic shears)
Equipment can be leased. With a down payment of 30% of the cost of the goods and a leasing period of three years, you will pay 13-15% per annum (in dollars).
With this set of tools you can demolish a 500 cubic meter building within a working week.
Additional equipment for dismantling business
- an excavator with an extended boom, for 300-400 thousand dollars, for the destruction of buildings with a height of 21 m
- self-propelled crushing plant for 250-420 thousand dollars, for processing construction waste. This installation sorts out pieces of reinforced concrete and crushes the concrete into crushed stone
- special cutting equipment: wire saws ($37 thousand) and wall saws ($43 thousand), seam cutters ($1.8 thousand), with the help of which the walls and supports of the structure are pre-cut into several parts.
Additional equipment will allow you to take on larger objects. To do this, you need to invest at least $1 million at the start.
Crushed stone processing is a source of additional income for a dismantling company
Develop additional services, that is, expand the range - a company that destroys buildings can make money by processing reinforced concrete.
The resulting crushed stone can be used both on the same construction site, and sell to road construction companies (They lay crushed stone as a “cushion” when constructing the road surface).
Dismantling business: looking for a client, studying demand
Your customer can be absolutely any enterprise or even institution.
As a small company, you may be interested in any small objects suitable for demolition:
- purchased sites with unfinished buildings located on them,
- dilapidated facilities on the territory of industrial enterprises,
dilapidated facilities in industrial zones.
Dismantling company personnel
For a demolition company you need:
- excavator operator, (destroy the building roughly),
- gas cutter (cut and sort metal),
- foreman (The foreman’s tasks are the most extensive: to look for clients, manage the dismantling process, and also draw up a work plan and coordinate it with local authorities, firefighters, and police).
- crushing plant operator,
- engineer.
As the number of orders increases, you will need:
production preparation department (which includes 2-3 engineers)
Dismantling company: premises
- rented parking in a car park,
- equipment storage room with an area of 30-40 sq.m.
- an office with an area of at least 50 square meters for your company’s technical workers who will be engaged in mental work.
Tricks of the dismantling business
In order to consistently win tenders and have profits rather than losses, it is important to be able to competently evaluate the scope of work.
A qualified engineer must be able to conduct a preliminary assessment of the object, and the commercial director of the company must have information about the capabilities of competitors, be able to convince and lure customers.
Despite all the attractiveness and relative simplicity of this business (after all, breaking is not building), experts advise opening a business when the pace of construction returns to the pre-crisis level.
After all, before you build something, you need to break something. And if no one is building, then there is no need to destroy.