A pool installation company is one that builds swimming pools for clients as well conducting pool removals, repairs, and regular cleaning and maintenance The biggest client base is residential homes that require pools but some companies also build commercial and community pools.
Pool installation companies can be very profitable as they can make around $20,000 for each successful pool installation. Are you considering starting a pool company? Then keep reading for the 9 steps you should follow when planning how to start a pool company
1. Write A Business Plan
Like with any other business, the first step for how to start a pool company is to write a business plan. This will help you to determine the viability of your business and how much profit you can expect to make. A business plan will also help you think through important business elements like hiring, marketing, and even proper pricing.
2. Set Your Company Up As A Legal Entity
The next step for how to set up a pool company is to set your business as a legal entity. You can either have your company as a sole entrepreneurship, a partnership, a limited liability company (LLC), or a corporation. LLC’s are preferred by most people because they prevent you from being personally liable for any lawsuits brought against the company.
3. Register To Pay Taxes
Once you’ve registered your business you also must register to pay for state and federal taxes. You do this by applying for an Employer Identification Number (EIN).
4. Open a Business Bank Account and Get a Credit Card
You will need a bank account and credit card to pay your debtors as well as receive payments. It is best to keep your finances and business finances separate otherwise your personal assets may be seized if your business gets sued. Getting a business credit card will help build your business credit rating so that you can easily get a business loan when you need it.
5. Set Up a Formal Accounting System
The next step in setting up your business is to set up an accounting system. Recording all your income and expenses will show you if your swimming pools installation business is profitable. Diligently recording all your financial transactions also makes filing your annual tax returns a painless process.
6. Get Your Business Licenses and Permits
As a pool installer there are several licenses and permits you must obtain to legally operate your business. Failure to do so could result in hefty fines or your business getting shut down. Check with your town, city, or county office to find out which state and local permits you need to run your business.
One license you may require is a certificate of occupancy for your business premises. Additionally, approach a lawyer to draft agreements you will need for your business such as employment contracts and services contracts.
7. Get Insured
Your business is now ready to get off the ground. But first, you must get insured. General liability insurance is a basic legal requirement for most businesses as it protects both you and your client in case an accident occurs during a project. If you have employees, you will also be required to take out workers compensation insurance. Contact a trusted broker for more information about other types of insurance
8. Create a Marketing Strategy
You will need to promote your business to get an optimal number of clients. Great marketing will also set you apart from your competitors so that you can win business. An effective marketing strategy requires you to have a specific niche and target market. For instance, you could focus on concrete swimming pools for residential homes.
Try and match your company name, brand, and logo to match the services that you will be providing. Promote your business in the places where your target market hangs out. Additionally, do your work excellently so that you can get recommendations to install a pool for other clients.
9. Create An Online Presence
The final step in starting a poll company is to create an online reputation. Make sure you have a website as most consumers do their research online before selecting a pool provider. You should also have an active blog as well as active social media accounts as these will help you create a reputation as an expert pool building company.
Key Steps For How To Start A Pool Company
So those are the 9 steps you will need to follow to set up a successful pool company. Pool companies that go out of business usually happens due to not following these steps for starting a company. These are key factors to growing a successful company. For more information about pool building and maintenance, read the rest of our blog.