Starting your own business can feel like a big step. When you combine a growing industry, a steady demand, and the satisfaction of building something people love, it makes sense to dive into the pool-building business.
It doesn't matter if you're someone with construction experience or simply passionate about the pool and spa industry.
This guide will walk you through everything you need to know to kick-start a successful pool construction business in 2024. Blue Collar Websites can also help with providing web design for pool builders.
How Risky Is It to Start Your Own Business?
It can be exciting and just a little bit terrifying to start a pool installation business. There's one question that keeps most potential entrepreneurs up at night: How risky is it?
Financial Risks: Is Your Wallet Ready for This?
Let’s get the obvious one out of the way: money. Starting a business is going to cost you some hard-earned cash.
Whether it’s buying pool equipment, renting a space, paying for a website, or getting a fancy new logo, the expenses can quickly add up.
That doesn't mean you're guaranteed to go broke. The key is planning and budgeting for the long run and not spending your entire savings at once.
Plus, there are small business loans, grants, and other financing options to help you get started without draining your wallet. The risk level that comes with starting a pool installation company stands at medium.
Market Risk: Who Needs Your Pool Services?
You might have the best equipment and skills in the world, but your pool cleaning business won't last if you can't target the right demographic.
The good news is that the pool industry is quite profitable. In fact, the United States alone generated approximately $12 billion in revenue in 2023.
Residential pool contractors are in high demand around upscale neighborhoods. On the other hand, pool construction businesses catering to commercial properties can target metropolitan areas.
While the competition is fierce, it's also rewarding when your hard work pays off. The trick is to find your niche as early as possible and keep up with changing trends.
Swimming Pool Construction Businesses Demand Extensive Physical Labor
Starting a pool cleaning company isn't just about filling a hole with water and calling it a day. Construction businesses are typically responsible for all the heavy work you can imagine, including project management and fieldwork.
Workers need to be on-site eight to 10 hours a day, working alongside their teams to make sure every detail is perfect. A lot of that comes down to hands-on labor, from the moment they start digging to the final tile placement.
Remember to take employee well-being and training into account before you kickstart your swimming pool construction business.
Follow Six Steps to Start a Pool Builder Business
The swimming pool construction industry is booming, and with the right know-how, you could be well on your way to helping people turn their backyard dreams into reality.
However, like anything worth doing, starting a pool cleaning business requires some planning, strategy, and a little elbow grease.
Conduct Thorough Market Research
The most important part of starting any business is figuring out whether there is any demand for it in the area. Market research is key to understanding if there’s room for you in the game. Here’s how you do it:
Identify Competitors
Take a look at who’s already out there building pools. Who are the top contractors? How long have they been in business? What kind of services do they offer, and what are their prices like? The goal here isn’t to copy them - it’s to find gaps that your pool service business can fill.
Maybe they don’t offer a certain style of pool, or they only focus on high-end clients. That’s where you come in with a fresh take.
Scour Local Markets
Your local market matters. Are people in your area actually building pools, or is it more of a seasonal thing?
Is the area booming with residential growth, or are there tons of commercial properties being developed that might need swimming pools? Researching your local market will help you decide where to focus your efforts.
Find Your Target Audience
The next step for pool companies is to find out who is willing to buy their services. Commercial properties like hotels and resorts may have a high demand for pool maintenance. On the other hand, residential pool owners may seasonally need a pool cleaning business to lend a hand.
Advertise Your Unique Selling Proposition (USP)
Your Unique Selling Proposition (or USP) is what sets you apart from the competition. Why should people choose your pool installation business over the others?
Whether it’s exceptional customer service, eco-friendly pool designs, or quick turnaround times, make sure you’re clear on what makes your company stand out. This is what you'll advertise to your target market to show them why you're the best choice.
Create a Comprehensive Business Plan
Now that you know your market and what you bring to the table, it’s time to get serious with a business plan. This document is your roadmap for success. Here’s what you should include:
Executive Summary
This section provides a high-level overview of your pool construction business. Think of it as your elevator pitch.
Business Name: [Your Business Name]
Location: [Your Business Location]
Business Overview: Explain what your pool construction business specializes in, whether it's residential and commercial swimming pool installations, maintenance, or repair services. You should also emphasize delivering high-quality pools with innovative designs and exceptional customer service.
Mission Statement: Create a summarized version of what your pool cleaning business offers customers. The mission statement should highlight the long-term value your company brings to pool owners.
Business Objective Examples:
Complete 15 residential pool projects in the first year of operation.
Establish a team of skilled contractors by the end of year one.
Increase market share in local commercial properties by year two.
Company Description
This section should cover all the technical aspects of your swimming pool installation business.
Business Structure: This will likely be an LLC (Limited Liability Company) to protect your personal assets. List the names of all founders, investors, and share/stakeholders in this section.
Industry Overview: The pool construction business is part of the broader pool and spa industry, which generally includes equipment sales, cleaning services, and maintenance.
Products and Services: Briefly explain which sectors you cater to and how you can help them. Mention all high-demand services first.
Market Analysis
Be as comprehensive as possible and list all the information you collected earlier during market research.
This section should also cover competitive analysis, your target market, SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, and an operations plan.
Marketing Strategy
A pool cleaning business is hard to scale unless you can get the word out.
This section is ideal for showcasing your marketing strategies and how you plan on promoting the company on social media platforms and through local advertising.
You can also mention how you plan on offering referral programs and seasonal discounts to grab your audience's attention.
Financial Plan
This is one of the most important sections in a business plan, especially if you plan on franchising your pool cleaning business at some point.
Mention all costs, funds, and expected cash flow statements in the financial plan. You should also create an overview of the projected revenue.
Another good section to add to this part is an "exit strategy," where you explain what happens to the company if you decide to step back from the swimming pool installation business.
Annex
This is the last section of a business plan. Here, you can state anything and everything you might have missed previously.
It's always a good idea to revise the plan and add notes in the annex (or appendix) before you save the final copy.
Form a Business Identity
Next up, you need to establish your pool installation business identity. This is what’s going to give your company a professional look and feel.
You want your pool construction business to have a brand that’s recognizable and trusted by potential clients.
Name Your Business
Pick a business name that’s catchy, easy to remember, and clearly represents what you do. It’s tempting to get overly creative, but clarity is key here.
Register Your Firm
Once you’ve finalized a name, you’ll need to officially register your business. As mentioned above, this might involve setting up an LLC (Limited Liability Company) to protect your personal assets or another business structure depending on your needs.
Branding Matters
Get a logo, create business cards, and establish a professional presence. Branding might seem like a small step, but it’s what makes your company look legit in the eyes of potential customers.
Hire a designer to create a logo that’s clean and memorable - it will be plastered on everything from your website to your truck.
Apply for Business Insurance and Register for Taxes
Pool building involves a lot of expensive materials and some risks, so you need to make sure you’re covered.
You’ll need general liability insurance to cover any potential damage or accidents that might happen while you’re on the job. On top of that, a pool installation business may also need workers’ compensation insurance if it is planning to hire contractual employees.
Shop around for quotes, and make sure your business is protected from day one. You’ll also need to register for your state and federal taxes. This includes applying for an EIN (Employer Identification Number) from the IRS.
The document essentially acts as your business’s social security number for tax purposes. Make sure you understand your tax obligations to avoid any surprises later.
Create a Corporate Bank Account
Mixing personal and business finances is a big mistake. It makes tax time a nightmare and can get your pool construction business into legal trouble if things go south. That’s why you need to open a separate business bank account.
Keep Your Finances Clean
By having a dedicated bank account, you’ll be able to keep track of your income and business expenses.
This is crucial when you’re trying to manage your cash flow, pay employees, and cover expenses like materials and equipment.
Build Business Credit
Having a business account also helps you build credit for your pool installation business.
As your company grows, you may need to take out loans for bigger projects, buy new equipment, or expand your team. Establishing a good credit history for your business early on will make it easier to secure financing later.
Go Live with a Website
In today’s world, if you don’t have a website, you’re basically invisible.
Potential customers are going to look you up online before they even think about picking up the phone, so you need a professional website that showcases what your pool installation business does.
Make Your Website Stand Out
Your website doesn’t need to be overly fancy, but it does need to look professional and be easy to navigate. Include sections like:
Home: A welcoming introduction to your business.
About: Share your story, experience, and why people should choose you.
Services: List what types of pools you build and any additional services like pool maintenance or pool cleaning.
Gallery: Photos of your past projects are key to showing off your work. Clients want to see the magic you can create.
Contact: Make it easy for people to reach you. Include a phone number, email address, and contact form.
Consider hiring a web designer from Blue Collar Websites to make your site look polished and professional.
SEO Matters
You’ve got the site - now you need people to find it. Fortunately, companies like Blue Collar Websites can help your website rank higher on Google, so potential clients can find you easily.
This includes adding keywords like “pool construction business,” “swimming pool services,” and “pool builders” throughout your website.
Common Costs Involved in a Pool Building Business
The first splash into your business will come with an upfront initial investment.
Pool building involves more than just hard work - it demands specialized tools, equipment, and resources, so you’ll need to prepare for a hefty initial outlay.
Pool Equipment
From concrete mixers to excavation supplies, the pool building business is equipment heavy.
You’ll need high-quality tools to do the job right, which can easily add up. Expect to spend between $20,000 and $50,000 for basic tools and larger items like excavators and concrete sprayers.
Each pool you build needs a pump and filter system, which usually runs from $1,500 to $3,000 per pool. Clients will expect these to be top-of-the-line to ensure their pool stays crystal clear.
If you’re offering maintenance services, you’ll need chlorine, pH balancers, and other chemicals to keep pools clean. A steady supply of chemicals could cost you around $100 to $300 per month.
Licenses and Insurance Coverage
In most states, you’ll need a pool contractor’s license to operate legally. The cost of licensing varies by state but generally runs between $200 and $1,000 per year. Make sure to renew this on time, or you could face hefty fines or, worse, lose the right to operate.
Given the high cost of pool installations and the risks involved with heavy machinery and water features, expect to pay $2,500 to $5,000 annually for a solid insurance policy.
You’re also going to need workers’ compensation insurance, which could range from $1,000 to $3,000 annually depending on the size of your team.
Some clients may request that your business be bonded. A bond protects clients in case the company doesn’t complete the job or meet contractual obligations. Bonding typically costs 1-3% of the total project cost.
While insurance and licensing costs might seem like a drag, they’re necessary investments to protect you from financial disaster if something goes wrong.
Warehouse
Depending on your location, renting warehouse space will be one of your ongoing business expenses.
A small storage space might cost around $500 to $1,500 per month. However, larger warehouses for heavy equipment and bulk materials could run you up to $5,000 per month. Budget $300 to $500 per month for utilities such as electricity, water, waste management, etc.
Look Professional on the Internet with Blue Collar Websites!
Having a solid online presence is a must for pool-building companies. The internet is where people go to find and trust your services.
If your website is outdated, unprofessional, or hard to find, you could be missing out on tons of potential customers. That’s where Blue Collar Websites comes in to help you step up your game up and explain how to start a remodeling business.
It offers clean, user-friendly designs that make your site a breeze to use. The best part is that you can get a site custom-made to your liking within two weeks for only $97!
You can also make unlimited changes to your draft website or ask for a full refund with no questions asked - a perfect deal for entrepreneurs.
Give Blue Collar Websites a call at (740) 729-1010 today to get started!
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