If you want the best tips on how to start a Welding Business and be successful, this article will really help you.
It explains a lot about Welding as a business and exactly what to do and how to be successful.
Why Start a Welding Business?
Starting a business takes more than a dream, vision, and hanging one’s “shingle” outside of a building.
Starting a business is a melding together of what is best about the American character.
Starting a business takes determination, grit, and discipline.
Furthermore, what better business to start and succeed at other than a business that America was literally built on?
The welder vocation and skill forged America from sea to sea and from northern to the southern border.
The welding business is truly a representative company of Americans who are hard-working, determined, and no-nonsense workers who “roll up their sleeves” and get the job done.
Most likely if you wish to start a welding business you will see it through to completion because of the reputation of welders.
Importance of Welding Businesses
The welder and welding businesses are essential to the continued growth and building needs of America.
This critical industry is paramount in meeting the building requirements of American-made cars and facilitate American’s love for their vehicles.
Welders are essential in the construction industry and keep America employed through new business construction.
Welders also keep America soaring through their hard work in the aviation industry.
The list of services and products experienced by the welder’s torch goes on and on like America’s future.
In fact, the astounding craftsman touch of welders is seen in 70% of all manufactured products.
Thinking of a welding business?
You may quite possibly be on to something.
It is anticipated that by the year 2025, there will be a shortage of 400,000 welders.
Let us put on the welding helmet or “hood” and take a look into starting a welding business and being successful.
10 Tips to Successful Starting and “Igniting” a Welding Business
As a safety-conscious welder, you know all too well the value of following safety procedures and protocol in keeping yourself and others safe in the use of welding equipment.
You are also keenly aware that to operate welding equipment and commercially practice your welding vocation requires certification from various entities that are charged with welding oversight.
Therefore, it is important that before you begin your journey of operating a welding business that you are up-to-date with all of your certification and needed licensing required welding at a commercial level.
It also may prove beneficial to take a refresher course, if your skills have become a little rusty, or if certain new techniques have been developed, etc. to build on your existing skills.
This step can be accomplished by enrolling in night school through a community college or vocational school and brush up on the art of welding.
Also, in order to receive any certification, it may be a requirement that a recent instructional class was successfully attended.
Related: How to Make a Lot of Money from Welding.
Before the welder begins the process of welding metal together, they 1st need to don safety equipment such as gloves and a helmet to protect the hands and eyes.
So it is when beginning to look at starting a welding business.
There needs to be preparation or an evaluation to make sure that everything is ready to go and that the safety requirements to protect the welder are in place.
Consequently, before starting the welding business it is best to evaluate the market in which you reside.
Questions that should be addressed include:
- What’s the demand for welding services in your community?
- How many welding companies exist?
- Are there certain specific niches within various businesses that require the unique skill of a welder and are possibly not being met?
Knowing the answer to these questions will drive pricing, whether the business market is saturated with welders, and possibly reveal a particular welding specialty that is not being met in your area.
3: Before Taking the Plunge
You’ve heard the expression don’t quit your day job.
A possible plan of action in moving towards starting your own successful welding business would be to remain at your present employment position.
Then earn extra money on the weekends or in the evenings by providing independent welding contract work.
This has great value. You will begin to build your customer base and you will be practicing your specialty.
Also, you will be able to determine what the demand is for welders and will ultimately give you a strong indication as to whether your business is ready to proceed without there being any safety net.
Serving as an independent contractor and providing the welding service will help you to build your confidence towards starting your business and that in fact, it is a viable option to proceed fully into starting your own business.
4: Business Plan
When working on a welding project, it is always good to have a plan in mind as to what the finished and successful product will look like.
The same holds true for starting a business and the plan of action is known as a business plan.
The business plan addresses a number of questions as to how the business will operate, under what structure it will be formed, what its purpose, mission, and vision are, how finances will be raised and accounted for, whether there will be employees, the marketing plan, etc.
In essence, the business plan is the blueprint for the business’s success and provides all of the schematics to ensure that the business is profitable.
Additionally, as part of the preparation planning process, the company will need to be registered with the appropriate department within your state of operation.
In addition, a business permit will need to be obtained and the filing or registration of the company name will need to be captured by the state.
It is important to remember that for any business that operates within a state that imposes or levies, sales tax, that you understand how this process works as well.
In other words, you will have to assess each of your customers with the appropriate sales tax and then pay those state taxes appropriately.
Other business plans that might be helpful:
- Wine Business
- Soap Making Business
- Shipping Business
- Lip Gloss Business
- Knitting Business
- Transportation Business
Obviously, an important aspect of starting a welding business is to have the proper welding equipment. The two watchwords would be slow and steady.
By this, it is meant that any investment in the equipment should be a slow process and start out with welding equipment that can meet a variety of welding jobs.
As the word gets out about your quality welding work and more customers start to frequent your welding workshop, then you can add additional equipment.
Your profits can be reinvested into the company towards the purchase of other pieces of equipment.
This will make your welding business more comprehensive in having the needed equipment to meet the potential special needs of your customers.
Also, by starting out slow, if there is a lull in business (and there most likely will be), then any associated stress with concern about paying bills on purchased equipment will not be as intense.
It is also recommended that instead of purchasing new equipment that you as the business owner be on the lookout for used equipment that when utilized will still get the welding jobs done.
By searching online, you will find various recommendations from professionals on how on what equipment to buy with a startup business.
One such machine that is recommended is the MIG/Flux Core Welding Machine.
It also goes without saying that you will need related items within your welding workshop to service your clients.
Items such as a workbench, safety equipment, angle grinder, etc. are a necessary part of a successful operation
Marketing is the lifeblood of any business.
Marketing is that segment of the business plan that reveals how you will make customers and potential customers aware of your business service to the community.
Marketing can include the use of radio spots, television spots, advertisement in printed media, flyers at local garages, social media platforms, and word-of-mouth.
Of course, the budget that you set up in your business plan should include a line item for marketing.
Another important consideration when starting your welding business is the business component of accounting.
It is important to note that there are many accounting software packages that can be utilized to provide an accounting of income and expense.
It is also important to ensure the software package has the capability of generating invoices and generating needed financial reports.
Some of those reports could include cash flow, balance sheets, profit, and loss reports.
Also, an important component of an accounting program is the software’s ability to reflect accounts receivable.
This report will help the business owner or designated individual to keep track of who owes what and how much to the company.
Often, a company will allow for an individual, a period of 30 days to pay their invoice. Anything after that is labeled as overdue and all of this needs to be carefully monitored so as you are not losing money.
Additionally, it is important that you not co-mingling your funds from the company with your personal bank account.
Therefore, it is paramount to set up a separate business banking account for your financial operations. This will certainly be most welcome, especially during tax season.
One other critical aspect of operating a business is where you will be setting up shop.
Obviously, a rental with the appropriate exhaust system and other features conducive to the welding occupation may prove to be expensive.
This is an option if your budget and cash flow are adequate to handle this expense.
Another option is to be a mobile welder in which their welding equipment and needed accessories are in total behind your truck.
This may be a viable option in starting out with your business and also provide a great service to potential customers in that you will go to them for their welding needs.
Also, to help with your decision, it may interest you to know that welders that provide mobile services earn more business income.
Of course, the downside to providing mobile services is the associated vehicle costs.
9: Spark into Flame
As a welder, you are well acquainted with working with a plan, knowing your craft, getting to work, and the experience of sweat on your brow.
If you carry the same dynamics into your vision and mission of starting a welding business you will be well on your way to success.
10: Be Persistent
After all said and done, it’s important to be persistent if you want to really succeed with any business, especially one that’s as physical as welding.
This is also because it’s unlikely to immediately start making a lot of money from this business. It might take a bit of time (as does everything in life).
But the more persistent you are in doing the right things, the more success you will get.
An Aside: Famous Welding Job
The influence of welding is as close as our manufactured household appliances or the very cars or trucks that we drive.
Additionally, the influence of the welding trade spills over into our recreational lives. Specifically, America’s love for baseball.
A case in point is Yankee Stadium. Inside the stadium, one of the most expensive sport’s complexes built is a constructive design that once graced the ballpark that Ruth built.
It is the white frieze that is layered with steel and has been coated with zinc. This architectural design encircles the roof and was welded together.
The purpose of this design is to support the stadium lights and upper deck. Therefore, there are no steel beams to obstruct the view of the fans.
The welding profession is critical to the growth, manufacturing, and industrial needs of America. Just as importantly, welders play this same role in their local communities.
One would be amazed at the importance of welding as it relates to America’s growth and how welding plays a major role in the lives of Americans today.
Welders facilitate some of our recreational, transportation, and lifestyle needs.
This importance of welders coupled with the power of small businesses makes for a formidable welded combination.