Spray foam is changing the insulation industry—for the better. Where old types of insulation, such as fiberglass batts, is bulky, scratchy, and difficult to fit into cracks and crevices, spray foam insulation's ability to provide an effective barrier for heat loss and be easily installed in difficult situations has been a game changer for the building construction and renovation industry. Available in two types, closed-cell and open-cell, spray foam works best when professionally applied. Because of this, the spray foam industry offers excellent opportunities for motivated entrepreneurs who want to own their own business to become successful spray foam contractors.
If you are interested in opening your own spray foam insulation contracting business but unsure of how to proceed, the following guide can help.
Determine what licenses and permits will be needed for your service area
The first step for any new contracting business is to determine what laws and regulations will apply and make arrangements to procure them. In most areas, contractors will likely need to get a business license for each city or county where they plan to work, as well as a state-issued contractors license. When making application for a contractor's license, applicants are typically required to supply some or all of the following:
- a legal name for your company that has been properly registered with your state
- the exact type of contracting you plan to do and whether your business will be a sole proprietorship, or some type of corporation, such as a limited liability corporation (LLC)
- an employer identification number (EIN) or tax identification number (TIN) (applicants who plan to work alone may be able to use their social security number for this part of the process)
- proof that you have purchased any bonds or insurance that will be required, such as business liability insurance
- payment for any fees required for the process
In most states, aspiring contractors will also need to pass a background check and successfully complete one or more examinations before a license is actually granted.
Outfit your business with tools and equipment
The next step in becoming a spray foam insulation contractor is to determine what tools and equipment will be needed and purchase them. One of the most important pieces of equipment needed for a successful spray foam contracting business is a vehicle to work from that is capable of carrying the tools and materials used for each job.
Since most new contractors have budget limits on what they can spend to outfit their business with tools and equipment, opting to purchase a spray foam insulation trailer instead of a dedicated truck can be more cost-effective option. Most spray foam insulation trailers are easily pulled by standard pickups, as well as full-size vans and sport utility vehicles. If the contractor already owns a vehicle suitable for pulling the spray foam insulation trailer, it will be much more cost effective to do so, instead of purchasing a separate vehicle just for work.
Spray foam insulation trailers can often be purchased fully outfitted with the equipment needed to apply both types of spray foam, including pumps, compressors, and hose assemblies. In most cases, making this type of all-in-one purchase is much more economical than buying each piece of equipment and component separately and then installing them in a truck, van, or empty trailer. Learn more about your options by contacting services like Spray Equipment and Coatings Inc.
Find a business mentor to provide helpful advice as your business grows
Once you are have taken all the steps needed to obtain the permits and licenses to open your business and successfully assembled the tools and equipment you will need, the next step is to find a successful contractor who will be willing to mentor you. Organizations such as your local Chamber of Commerce, may be able to provide you with a list of retired business people in your area who will be willing to mentor your business and help ensure its success.