Our guide to starting a painting company includes everything from getting registered to setting up a business bank account.
Aside from death, taxes, and the inevitability of home improvements, there are a few certainties in life which may be excellent news for you if you want to start your own company. If you watch enough home renovation programs, you’ll notice that a new coat of paint can transform a property. However, not everyone has the patience or brush skills to complete the task independently. That’s why learning how to establish a painting company may be a fantastic way to become your boss while also letting your creative side shine.
Whether you’re a seasoned entrepreneur or a first-timer, starting a painting company may be fraught with issues and considerations, some of which are particular to the home improvement sector. Brushes, ladders, and a truck to transport everything are all that some individuals need to start a painting company. However, this isn’t always the most excellent option since there is a slew of small business funds and licenses that you’ll need to stay on the right side of the law (and, most importantly, protect against accidents).
It doesn’t have to be challenging to figure out how to start a painting company, but there are a few things to consider before hanging your shingle, donning your painter’s helmet, and beginning to work. We’ll walk you through the steps of establishing your company, opening a business bank account, determining what permits and insurance you’ll need, and obtaining business finance if necessary.
Even though the initial expenses for establishing a painting business are minimal, that doesn’t imply you’ll have enough cash on hand to cover everything you’ll need to get started or build your company. However, there are several attractive options for obtaining the funds you want. One of them is Greenday Online $1000 loans.
There are five compelling reasons to establish a painting company.
There are a variety of reasons why you may be interested in learning how to start a painting business: overhead is inexpensive compared to other professions, you don’t require specific training to get started, and you aren’t as affected by seasonal swings as additional trades are.
Here are five reasons why you may want to start a painting company.
1. It’s simple to get started.
Starting a painting company has a minimal entrance barrier. Painters are frequently exempt from the same stringent schooling and certification requirements as other craftsmen, such as metalworkers and carpenters. This means you’ll be able to discover workers who can start right away, learn on the job, and aren’t as costly to recruit as in other industries. You won’t have to waste time (or money!) attending preparation courses if you intend to complete the job yourself. A continuing education class to understand the finer details of painting houses is a good idea. Still, if you’re already knowledgeable, you should be able to get started without one.
Another compelling argument for establishing a painting company is its adaptability. You have complete freedom to work as many or as few jobs as you choose. This is especially true if you want to conduct painting work on a seasonal basis. There’s a reason why teachers joke about becoming summer home painters: it’s a terrific way to supplement your income when your regular employment (or other contract work) is sluggish or out-of-season. And, for the most part, you can get started without having to fill out a ton of paperwork to register your company. However, small company insurance may be a different situation, which we’ll discuss later.
2. Low startup and overhead expenses
In comparison to other disciplines, painting needs less costly equipment. You don’t need any power tools, welding equipment, plumbing supplies, or other overhead-heavy stuff to get started; all you need are brushes and ladders. Scaffolding and paint sprayers, for example, may be added once you’ve recouped your initial costs. Furthermore, updating your resources over time may help pay for itself by allowing you to work more effectively and take on more assignments.
You won’t have to spend a lot of money on workers if your firm grows to the point where you need an extra pair of hands to get things done. Compared to other occupations, such as carpentry and plumbing, learning how to paint homes has a lower learning curve. This implies you won’t have to spend as much on employees as if you hired more competent workers. Granted, this may not be true in every location, but the national average wage for painters is roughly $38,000, compared to just over $57,000 for plumbers.
3. Clients are willing to pay extra for specific painting abilities.
The contrast between applying a fresh coat of paint to the side of a home and applying a German smear-style coat to a brick wall is significant. You may charge more for your painting services as your abilities get more specialized. These methods may take a bit longer to master, but understanding specialist painting styles and techniques may help you make a lot of money if you put in the effort.
Even the most DIY-averse property owners have become aware of the world of distinctive designs and decorating trends thanks to the development of home improvement programs. This trend might significantly benefit your company and provide you with a competitive advantage. Furthermore, certain specialized services, such as historically correct painting, might result in significant revenue for your company.
Most towns have tight laws concerning what colors (and painting procedures) may be used on historic properties, and you might be one of the companies that provide these services. You might even extend out into similar activities, such as wallpapering, to expand your business’s opportunities.
4. Painting companies are in high demand.
According to current statistics, the painting sector increased by 4.2 percent from 2014 to 2019, employing over 500,000 people. The industry is also estimated to be worth $43 billion. So, if you’re thinking about beginning a painting company, what does all of this imply for you? In a nutshell, it signifies that you’ll be in great demand.
If you live or work in a region where the real estate market is booming, you may be able to cash in by launching a painting company that works with house flippers. Real estate investors want quick home renovation work and typically quickly elaborate on several projects with a dependable partner. You could just have your first long-term customer if you find a flipper who needs painting services. This may assist you in establishing positive cash flow and getting your firm off the ground, especially if you can use the power of word-of-mouth marketing.
5. You have the opportunity to be your boss.
If you’re seeking to start your own painting company, this benefit may seem self-evident, but it’s worth emphasizing. One of the most appealing aspects of being an entrepreneur is the ability to choose your schedule, develop your company the way you want, and work the hours you want. This is a significant advantage for many people when learning how to start a painting company or any other kind of small business venture.
Granted, if you’re starting on your own, that means getting your hands filthy with financial, legal, and regulatory issuesoften without much aid from others. Painting companies may have fewer regulations and limitations than, say, an HVAC firm. However, any company must still overcome obstacles, primarily when registering and opening a business bank account.
The fundamentals of starting a painting company
You’re prepared and ready to launch your painting career (sorry, we couldn’t help ourselves). Whether you’ve already considered your market entry strategy or are still in the idea stage, there are some elements and subsequent actions to consider if you want to offer your business the most excellent chance of success possible. In order of operations, here are a few business essentials to consider when establishing your painting company.
Make a business strategy.
You may not believe that establishing a painting company necessitates writing a business plan, but there are several benefits to completing your research in this area. Plus, your business plan doesn’t have to be too complicated or detailedit may be as short or as lengthy as you like, as long as it includes the essentials. Don’t be intimidated by the prospect of having to put pen to paper (or letters to screen, as the case may be): the best business plans are iterative, evolving, and growing in tandem with your company’s demands.
An excellent business plan gives you a blueprint for how to create your firm and a set of guiding principles once it’s up and going. When you’re juggling employment, managing the budget, and collecting bills, you probably don’t have a lot of mental capacity to focus on big-picture strategy development. When keeping afloat becomes a full-time job, an intelligent business strategy may help you remain on track.
Obtain a business license.
Do you have your business proposal ready to go? Great. The real fun starts now. We mean paperwork when we say fun (everyone has their definition of fun, right?). Running a small company safe from accidents, legal difficulties, or any other unanticipated IRS events entails completing documentation and protecting your assets. Registering your painting business is perhaps one of the most critical milestones in the life of your company.
Because of the liability protections and tax ramifications that come with each of the alternatives out there, it’s critical to register your companyand to pick the correct form of business structure. You may be able to form a sole proprietorship without submitting any papers, depending on where you reside. While this is the quickest choice, it also puts you in the greatest danger if anything goes wrong.
A limited liability company (LLC) or a limited liability partnership (LLP) may suffice for most painting firms (LLP). Both come in various shapes and sizes, each tailored to fit multiple corporate formats. Individual owners or partners may use certain LLCs as pass-through businesses. These enable you to keep your assets separate from your company assets and even submit your business taxes on your tax returns.
Other forms of corporations, such as S-Corps and C-Corps, need more paperwork and logistics and file company taxes separately from your taxes. Before choosing, consult with a lawyer, as is the case with all legal problems.
Obtain insurance and licenses.
Painting companies may be required to be insured and licensed in certain areas but not in others. Employers are obliged to get worker’s compensation insurance in all states except Texas. Even if one or both of these procedures aren’t essential, it’s usually to your best advantage to do both. Some forms of small company insurance may help protect you and your workers in the case of a workplace accident, as well as provide financial assistance in the event of a lawsuit or legal difficulty. Your coverage will be determined by the kind of insurance you choose, and there is a range of alternatives available.
To legally undertake professional painting work in most places, you’ll need a business license. State and municipal governments are usually in charge of enacting and enforcing these policies. As a result, there is no one-size-fits-all solution, as each place is likely to have its own set of restrictions. Before you start working, double-check that you’re entirely licensed and abide by local rules. If you don’t have the correct licensing, you might end yourself on the wrong side of the law, and you could face fines for operating without the required licenses. This is another situation where a lawyer’s expertise might be beneficial.
Create a bank account for your company.
To keep your personal and company money separate, create a business checking account once you’ve gotten your business legally on the books with the local or state governments. If you don’t route your firm’s money via a corporate bank account, you risk leaving your assets vulnerable if your company goes bankrupt or has issues.
The good news is that opening a business bank account is simple. Most brick-and-mortar banks will let you begin the procedure online and complete it in a location near you. There are an increasing number of online-only business banks that enable you to open a business bank account without having to visit a physical site. These banks, however, will not work for companies that do the majority of their transactions in cash since they do not have ATMs where you may deposit some money. If you want to conduct most of your business in currency, you should open a more traditional business bank account.
The financials of starting a painting company
Here are several types of loans you may get to start your painting company.
Obtain a loan for equipment finance.
People who want to establish a painting company may find that equipment finance loans are a good alternative. Equipment financing loans work differently than traditional bank term loans in that they don’t need you to put up collateral to acquire the money you need. Instead, you may borrow the amount of money you need to complete a particular purchase. Most equipment loan lenders will inquire about your intended purchase as well as a pricing quotation from a vendor. If you’re authorized, they’ll provide you a loan for the entire cost of the equipment in return for payback over time plus interest. What you buy acts as collateral for the loan, which means that if you default on your payments, the lender will sell what you purchased with the loan.
Take out a term loan for your small company.
A small company term loan is most likely what comes to mind when you think of a traditional bank loan. Banks provide these loans to creditworthy clients. Depending on how the loan is structured, they have a preset payback schedule and either fixed or variable interest rates. For company owners with good personal credit, a track record of repaying business loans, and a solid business strategy, business term loans might be an excellent alternative. It’s worth noting that small company term loans are notoriously tough to get for first-time entrepreneurs, so you may not be as successful if you don’t have a track record from previous business loans.
Get a business credit card with a 0% introductory rate.
You aren’t entirely out of choices if banks aren’t willing to give your firm money, and you can’t define a particular item for which the loan is needed. So long as you utilize your card responsibly, getting a 0% intro APR business credit card may allow you access to cash with no interest charges. This option will enable you to purchase what you need to start while paying no interest throughout the 0% APR term. Consequently, in some instances, this may be preferable to a loan.
Remember that you must pay off your bill in full before the promotional period ends, or you may be charged interest on top of your credit card balance.
Last but not least
Starting a painting company as your boss may be a gratifying experience, especially if you don’t mind getting your hands filthy (metaphorically and literally). Without moving mountains, you can scale up and prepare your company for primetime with a bit of paperwork, cash, and determination.
Your paint rollers should be ready to roll if you’ve set yourself up for success with the correct company structure, licensing, insurance, and strategy.