Girish C. Dubey
Entrepreneurship is engrained in the psyche of most Americans. A stage comes in the life of hard-working people when they feel compelled to have the freedom to call the shots, be their own boss and control the destiny of the company and people around them. They want to “take the plunge” and make a big splash, and with the proper planning and execution have a good chance of achieving the American Dream, however, keeping in mind that 85% of business fail in the first year. There is a myriad or reasons and factors for the failure, but we must concentrate on success not failure.
So, you have decided to go for it. Congratulations, you have selected to be a part of an industry that is mature and stable. Pavement maintenance industry, through sealcoating and other treatments, has established its value and has every chance of maintaining momentum, in the future. Over the decades, since its inception, homeowners and property owners have realized the value of preservation and the protection of pavement surfaces; both asphalt and concrete.
Now let’s run the evaluation and execution of your business plans. The very first item on the list is the valuation of available resources (capital, expertise and manpower) for launching yourself into business. Based on your resources, you will determine the level at which you want to enter the business meaning small, medium or large, which can be sustained.
The next step is to talk to people in the industry and do your own research. A lot of data is available from various industry associations, industry magazines, business directories. Go to the pavement conventions and talk to sealcoaters and suppliers.
After establishing the viability of the business, do the Market research of the area that you aim to serve; both the demand or the need (demographic, income levels, avg. price of homes, businesses, etc.) and the current level and quality of the available service. Most of the information is available on-line, the local chamber of commerce, and trade publications.
After establishing the opportunity, contact the sealcoat manufacturer serving your region. Depending upon the size of your intended business, it is essential to know if you will have any restrictions in serving the intended region.
Write a well laid out business plan with 5-year projection of revenue, expenses and income. Your sealcoating supplier will have to be involved for some crucial cost numbers. They will also be able to assist you in overall planning of the manpower, facilities requirements, direct and indirect overheads, and competitive pricing. In addition to material costs, a crucial line item in pro-forma projections is the direct labor cost i.e., how many crews, people on each crew that will be needed for cleaning, prepping, crack-filling, sealcoating and striping. Your projection and estimate will have to be as precise as it can get., for effective bidding.
There will be many pieces that you need to put together in an objective manner. Be objective in your assessment of the market share that you will be able to capture in the future years. Listen but don’t be swayed by lofty projection given by your suppliers. Also, be honest with yourself and avoid the temptation of thinking that things will work out as you move along. The numbers must shake out in the projection to ensure that the business will grow and yield the bottom-line numbers to keep the business going and growing. Remember, if the numbers work on paper, you will have a very good chance of succeeding. Your business plan is the blueprint that will be immensely helpful in working with the banks, investors, and vendors.
Getting ready to get started- Nuts and Bolts
In this section we will elaborate upon the equipment needed for your operations. Out of many entry levels, we will choose the middle of the road; not too small not too big, for the selection of equipment and their capacities. All these items shall be listed in the list of equipment, a part of the business plan. Collect most of the cost information from your intended sealer supplier and equipment vendors.
The list of the essential equipment’s, categorized by the stages of the pavement preparation for sealcoating is:
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- Pavement cleaning; dirt and debris.
- Wire brushes
- Scrapers
- Blower
- Brushes
- A Portable power washing unit will be handy for tough to remove, caked on dirt areas.
- Pavement repairs and preparation.
- Oil Spot sealer and suitable brushes and roller.
- Crack filling:
1. Hot Crack Filling- Melter, pour pot, application wand. Sand for broadcasting over recently filled crack to avoid tracking.
2. Cold pour crack filler, pour pot, V-Squeegee. Cold Patching compound-Trowels, etc.
- Sealcoating Machines, equipped with full sweep agitation, hydraulic motor, compressor, diaphragm pump, application hose, spray tips, are suitable for the application of sealers, with and without sand. The commonly used machines have 550-gallon tanks, either steel or plastic tanks; both have been used successfully over decades. Full sweep agitation is essential to keep the sealer uniformly mixed during transportation to the site and application.Sealer may be supplied as a concentrate, where the applicator mixes, water, sand and additive (optional). Now, quite a few manufacturers supply ready-to-use sealer, thus tanking out the calculation and guess work by the applicator. Check with your supplier.
- Pavement cleaning; dirt and debris.
Other items for application are brushes and squeegee for sealcoating the edges. Also, the machine should have water container for soaking and cleaning the tools.
Conclusion
The entrepreneurs who are considering entering the sealcoating business are urged to research the opportunities in the region they intend to serve. It is essential to develop a detailed business plan with background research, market analysis, and a 5-year projection, with a statement of profit/loss. A sealer supplier, with good reputation for products and service, will need to be consulted from the very get go for a lot of nuts-and-bolts information for preparing an objective projection. They would have a mutual interest in your success and are going to be your long-term business partner. While wishing you success, you are urged to do diligent research before committing to the business. Once committed go with full confidence and gusto.