Welding Business Plan Template
Written by Dave Lavinsky
Welding Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their welding companies.
If you’re unfamiliar with creating a welding business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a welding business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your welding business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a welding business or grow your existing welding company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your welding business to improve your chances of success. Your welding business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Welding Businesses
With regards to funding, the main sources of funding for a welding business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for welding companies.
How to Write a Business Plan for a Welding Business
If you want to start a welding business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your welding business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of welding business you are running and the status. For example, are you a startup, do you have a welding business that you would like to grow, or are you operating an established welding business that you would like to sell?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overview of the welding industry.
- Discuss the type of welding business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of welding business you are operating.
For example, you might specialize in one of the following types of welding businesses:
- Aluminum welding: Aluminum welders can produce a variety of aluminum products such as baseball bats, bicycle frames, and golf clubs.
- Heavy steel fabricating: This type of welding business specializes in large projects using thick metals to manufacture products such as industrial tanks and agriculture machines.
- Mobile welding: This type of business specializes in small welding projects in residential homes or commercial businesses.
- Truck trailer manufacturing: This type of welding business specializes in manufacturing tuck trailers, trailer decks, and trailer bodies.
- Underwater welding: This type of business specializes in welding services that require the welder to be submerged in water such as working on dams, pipelines, and nuclear power facilities.
In addition to explaining the type of welding business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, the number of projects completed, and reaching $X amount in revenue, etc.
- Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the welding industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the welding industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your welding business plan:
- How big is the welding industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your welding business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your welding business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, schools, families, and corporations.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of welding business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other welding businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes businesses that provide other forms of manufacturing methods, welders who use other types of techniques or materials, and companies that use their own in-house welders. You need to mention such competition as well.
For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of welding business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you make it easier for customers to acquire your product or service?
- Will you offer products or services that your competition doesn’t?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a welding business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of welding company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide heavy welding, underwater welding, trailer manufacturing, or aluminum fabrication services?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.
Place : Place refers to the site of your welding company. Document where your company is situated and mention how the site will impact your success. For example, is your welding business located in a busy retail district, a business district, a standalone facility, or is it a mobile operation? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your welding marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise in local papers, radio stations and/or magazines
- Reach out to websites
- Distribute flyers
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your welding business, including answering calls, meeting with clients, sending invoices and collecting payments, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your welding business to a new city.
To demonstrate your welding business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing welding businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a welding business or successfully running a small welding operation.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you employ 3 welders, and will each welder work for 8 hours per day at an hourly wage of $50 per hour? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your welding business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a welding business:
- Cost of welding equipment and supplies
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility location lease, or a list of successful welding projects completed.
Writing a business plan for your welding business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the welding industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful welding business.
Welding Business Plan Template FAQs
What is the easiest way to complete my welding business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your welding business plan.
How Do You Start a Welding Business?
Starting a welding business is easy with these 14 steps:
- Choose the Name for Your Welding Business
- Create Your Welding Business Plan
- Choose the Legal Structure for Your Welding Business
- Secure Startup Funding for Welding Business (If Needed)
- Secure a Location for Your Business
- Register Your Welding Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Welding Business
- Buy or Lease the Right Welding Business Equipment
- Develop Your Welding Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Welding Business
- Open for Business
Learn more about how to start your own welding business .
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How to Write a Business Plan for Your Welding Company
Hugo Britt Apr 25, 2022
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Writing a business plan forces welding company operators to focus on the details of the business, understand the risks, and establish a roadmap for future growth. It can also be used to attract and secure funding.
The document should include the usual elements found in a business plan (detailed below), along with some information that is unique to a welding company, such as details about welding equipment, welding methods, and safety compliance.
Business plans can be created at any time, such as in the early planning stages or when a business has already been operating for some time but could benefit from a roadmap.
How Long Should Your Business Plan Be?
A business plan can vary in format from a multi-page document to a “lean” plan that fits on a single page . Take the plan’s intended usage into account when deciding on the format; for example, banks or other lenders expect a detailed plan, while a lean plan is easier to update regularly.
Standard Business Plan Elements to Include
All business plans – including a business plan for a welding company – should include the following standard information:
- Executive summary: A summary of key points from all of the following sections, along with a clear explanation of the plan’s purpose (such as asking a lender for finance).
- Identity: The business name, location, and an explanation of what the business does. Include a summary of the industries served (such as aerospace) and the method(s) of welding used (such as MIG welding or plasma arc welding).
- Market analysis: Could include an economic outlook, industry analysis, market segmentation, and customer profile (understanding what current and potential customers need).
- Products and services : What will the business produce to meet its customers’ identified needs? Make a list of the products and services (such as inspection and repair) currently offered by your welding company, and how you intend to expand these in the future. How will the business match its capabilities to the customer requirements identified above?
- Sales and marketing: How will the business promote and sell its products and services? This section should include sales channels, marketing partners, and advertising strategies.
- Competition : Who are the key competitors, and what unique value proposition/competitive edge will the business have over its competition?
- Rate structure: What will the business need to charge for its products and services to stay abreast of competition while recovering operating expenses?
- Finance : Will the business be financed through savings, or by securing funding? What level of funding is sought, and what will be done with the money (such as investing in welding equipment).
- Income projection: When is the business expected to see a positive cash flow?
- Personnel: Key employees, roles, and responsibilities.
- Partnerships: List of third-party partnerships (such as logistics providers and marketing agencies) required for the success of the business.
- Insurance: Insurance details.
- Milestones: A roadmap showing key goals and targets for the future.
Elements Specific to a Welding Company
- Welding equipment: Description and capabilities of current and future welding equipment. With approximately 30 different methods of welding, be clear about the methods used.
- Systems: The current and future IT systems (including IoT) in use in the facility.
- Standards and certifications: A list of quality certifications or standards required by your customers in order to do business with your company, such ANSI Z49.1:2012, Safety in Welding, Cutting, and Allied Processes , and how your welding company meets these standards. Include membership details and certifications with relevant professional bodies such as the American Welding Society .
- Safety: A summary of your business’s safety policies, training, and equipment such as fume extraction fan units.
- Supply chain: A summary of the company’s supply chain, including identification of key supply chain risks and how these will be mitigated.
- Distribution: An explanation of how the product or service will be delivered to customers.
Single-use or Live Business Plans
Some business plans may only be intended for a single purpose (such as securing funding), then put in a drawer and never used again. However, business plans can also be used as a “live” document that is updated and referred to regularly. While some parts of the plan will stay the same, others (such as milestones, personnel, and market analysis) should be updated several times a year.
Other Business Plan Articles
- How to Write a Business Plan for a Machining Company
- How to Write a Lean Startup Business Plan
- How to Write a Business Plan for a Solar Farm
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- Sample Business Plan Questionnaire
Image Credit: Mike Keller/ Flickr
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Home » Business Plans » Construction & Engineering
How to Write a Welding & Fabrication Business Plan [Sample Template]
Are you about starting a welding and fabrication business ? If YES, here is a complete sample welding and fabrication business plan template & feasibility report you can use for FREE . When we look around where we work or reside, we will sure note items that you that was produced by a wielder or has been through a welding process. This is why the services of skilled wielder will always be needed and the craft will keep getting attractive.
It is believed that the wielding industry is one industry that shows a substantial return in your investment at every turn and moment. When starting a wielding business, you go need to go for welding training. You also need to be certified, and to get certified, you need to undergo certain trainings in welding.
A Sample Welding and Fabrication Business Plan Template
1. industry overview.
This ever blooming industry seems to be growing the fastest with recent years showing maximum growth. The welding industry has been approximately stated to grow at the very least 6% per year. Conventional electric arc welding equipment and filler metals represent over two-thirds of this total.
This industry has many segments and each segment of the industry and each welding process have its own growth patterns noted after accurate research. It’s important to note that Welding is now the universally accepted method of permanently joining all metals. The wielding industry is considered a mature industry but it is still a growing industry from different perspectives.
The true impact of welding on the metalworking industry should be measured in the value of the parts produced by welding, the amount of money saved by the use of welding over other metal fabrication processes, and in the value of products made possible by welding.
Facts on ground has gone a long way to show the growth of the welding equipment and materials industry, which also serves as an indication of the projected growth for the future.
2. Executive Summary
Sonic Welders (SW) is an established wielding and fabrication business that is engaged in the production of aluminium boat docks that will suit and satisfy the diverse designs and concepts of the customer. We at SW are very much dedicated to providing the highest quality workmanship, reaching the agreed delivery dates, and actualizing the custom work exactly in accordance with the customer’s concept a d astonishing designs.
Our focus at SW is to find out who our future target clients are and understand our marketing strategy, and to expand our operations and marketing so it can substantially increase profitability while also serving the united states of America. Sonic Welder will be established in Thunder Bay, Wisconsin.
Marquette is the county seat of Marquette County and it’s in the upper peninsula of Lake Superior. SW is a business built or established as a sole proprietorship and is owned by Nathan Cardozo who has over 27 years of experience in the wielding and fabrication industry and has built a reputation of excellence and quality work that is very important in the industry.
We at SW plan to manufacture and sell aluminium boat docks and also perform other welding and fabrication services for truck bodies and commercial equipment. We at SW plan to gain our market share in the following target markets: Marinas in Marquette, Lake Superior Upper Peninsula (boat owners), Commercial Customers, Agricultural Entities, and Local Municipalities.
3. Our Products and Services
We at SW primarily wield, fabricate and sell aluminium boat dock in the Marquette area of upstate Wisconsin. We also plan to fabricate and repair truck bodies, and perform aluminium repair jobs. All unused scrap metals will also be recycled by Sonic Welders.
The first revenue stream is extremely important to us at SW as our bottom line is to make sure that the welding services we render are in continued demand despite deleterious changes in the general economy. We also believe that this revenue stream has very high margins and will make sure that the profitability of our enterprise on a monthly basis.
We at SW also plan to raise revenues through the distribution of welding supplies, gasses, and related items that will be bought primarily by local contractors (and also individuals that do their own welding). We at SW expect gross margins of 50% on all welding products sold in our company.
4. Our Mission and Vision Statement
- Our vision at SW is to become the recognized local leader in our targeted market for all wielding and fabrication activities.
- Our mission at SW is to build the best quality product, supply over the top service at installation, and provide exceptional customer service after the sale of the product.
Our Business Structure
It is very important to note that the backbone and founder of SW is Nathan Cardozo. Nathan Cardozo got a dual degree from UC Berkeley, one in business, the second in mechanical engineering . We believe that Nathan Cardozo chose these fields because of his interest in parts construction and general engineering theories and application.
Nathan also believed that it would be very crucial for him to have a business background for possible future application. Sonic Welders will be run solely for now by Nathan Cardozo. He will be in charge of product procurement, order taking, customer service, and assorted other activities.
But as he moves to grow the business, by travelling to the trade shows, doing all necessary things as well as ramping up sales to accommodate the distributor sales, Nathan Cardozo will employ workers that will cover a wide range of services for the company. These workers include;
Chief Executive Officer
Service and Production Supervisor
- Sales and Marketing Executive
- Welding and Fabrication Engineers / Technicians
Client Service Executive
5. Job Roles and Responsibilities
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- In charge of providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- In charge of signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that the service and production department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
- Make sure s that the organization works in line with international best practices.
- In charge of overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of arranging travel, meetings and appointments
- Oversee the smooth running of the daily office and factory activities.
Sales and Marketing Manage r
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyse the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- In charge of handling business research, market surveys and feasibility studies for clients
- In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Accountant / Cashier
- In charge of preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- In charge of financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the business
- Serves as internal auditor for the business
Welding and Fabrication Engineers and Technicians
- In charge of developing welding and fabrication techniques, procedures, and application of welding equipment to problems involving fabrication of metals, utilizing knowledge of production specifications, properties and characteristics of metals and metal alloys, and engineering principles: Conducts research and development investigations to develop and test new fabrication processes and procedures, improve existing or develop new welding equipment, develop new or modify current welding methods, techniques, and procedures, discover new patterns of welding phenomena, or to correlate and substantiate hypotheses.
- Tasked with preparing technical reports as result of research and development and preventive maintenance investigations.
- Builds welding procedures to guide production and welding personnel relating to specification restrictions, material processes, pre- and post-heating requirements which involve use of complex alloys, unusual fabrication methods, welding of critical joints, and complex post heating requirements.
- In charge of evaluating new developments in welding field for possible application to current welding problems or production processes.
- Responsible for directing and coordinating technical personnel in performing inspections to ensure workers’ compliance with established welding procedures, restrictions, and standards; in testing welds for conformance with national code requirements; or testing welding personnel for certification.
- In charge of contacting personnel of other agencies, engineering personnel or clients to exchange ideas, information, or offer technical advice concerning welding matters.
- May perform experimental welding to evaluate new equipment, techniques, and materials.
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Make sure s that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Serves as a auto parts sell attendant
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to Make sure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
We at SW believe will have the plan and capabilities to take over the welding industry. We hope to build and maintain an extensive shop which can handle all welding and fabrication issues. We have adequate plans to make our business the best in the industry, which is why we contacted Mandolin Business Consultants to do our SWOT Analysis for us.
Mandolin Business Consultants are known for the experience and agility they posses in terms of business consulting and analysis. They were very thorough with their dealings and outlined below is a summary of the SWOT Analysis they conducted for us. The following SWOT analysis captures the key strengths and weaknesses within our company, and describes the opportunities and threats facing us at SW.
- Outstanding reputation.
- Quality – we at SW will guarantee all of our work, using the highest quality materials available and the most experienced fabricator available.
- Customer Care – we at SW will go extra time to make sure the customer is satisfied with the service provided.
- Experience – Over 27 years in the construction business, Nathan Cardozo is a talented, experienced fabricator, with a strong work ethic.
- Our weaknesses at SW come from the lack of funding to grow the business. Grant money will be used to purchase equipment, company expansion, create website, advertise, and hire an employee.
- Growing market with a significant percentage of our target market still not knowing we exist.
- Strategic alliances offering sources for referrals and joint marketing activities to extend our reach.
- Increasing sales opportunities beyond our “lake area” to include the many other lakes in the [STATE] area.
- The only obstacle to our success at SW would be further downswings in the economy of the world
7. MARKET ANALYSIS
- Market Trend
After due research, it is believed that semiautomatic welding will greatly increase, machine and automatic welding will increase modestly, but manual welding is decreasing at least as a percentage of the total. Furthermore, it is now evident that the following must be considered with regard to the future of welding:
- There will be continuing need to reduce manufacturing costs and to improve productivity, since wage rates for the people in manufacturing industries will keep on increasing, the cost of metals for producing weld metals and filler metals will also continue to be more expensive, and energy and fuel costs will increase and shortages may occur.
- Also there will be a continuing trend towards the use of higher-strength materials, particularly in the steels and lighter-weight materials.
- There will be more use of welding by manufacturing industries, probably decreasing the use of castings.
- There will be a trend towards higher levels of reliability and higher-quality requirements.
- The trend towards automatic welding and automation in welding will accelerate.
Productivity in this very industry is considered the amount of welding that can be done by a welder in a day. Productivity can be determined by several factors, the most important of which is the operator factor or duty cycle. Operator factor for a welder is the number of minutes per eight-hour period that is spent actually welding.
The different methods of welding have different average duty cycles. Manual welding has the lowest operator factor with semiautomatic welding approximately double and machine welding the next highest, with automatic welding approaching 100%.
Efforts will be made to utilize those processes that have the highest-duty cycles. The expected trend will be away from manual welding towards semiautomatic welding and to machine or automatic welding when possible.
Another factor affecting productivity of welders relates to the deposition rate of the welding process. The higher current processes have the highest deposition rates, thus the submerged arc welding process and the electro slag welding process will remain important as costs must be reduced.
8. Our Target Market
We at SW hope to focus on our ability to complete any project with the required equipment by having all the necessary tools. Sonic Welders market segmentation scheme is fairly straightforward, and focuses on the target markets of the lake marinas within the banks of Lake Superior, local municipality contracts, agricultural entities, and commercial and residential customers.
We also understand that our prospective customers will prefer a certain quality of work and timeliness and it is our duty at SW to deliver on their expectations. We at SW know that there will always be a need for fabrication companies.
We understand that the customers within the fabrication industry want exceptional workmanship and affordable rates. We believe that our prospective customers will appreciate the quality service that we are hoping to offer, as well as the knowledgeable and experience of our owner.
We believe that these customers have the option to go elsewhere, but they understand that giving their business to SW will be of more advantage to them because we at SW deliver the dedication that they desire. We know Boat dock fabrication is seasonal but with aggressive marketing efforts could expand company operations and reach many more markets along the lakes. Our target market may include;
- Marinas around the mighty Lake
- Agricultural entities in Marquette
- Local Municipalities
Our competitive advantage
It is a known fact that Welding will continue to be a highly efficient and economical method for maintaining structural integrity when joining metals and non-metals, including plastics and composites. We also believe that the welding industry will continue to maintain a strong reputation for producing reliable and cost-effective welded components in the global market.
We have also noted after extensive research that the industry due to a growing need for welded components and a decline in skilled workforce is focused on continual design advancements in welding machines (particularly welding automation) to further enhance efficiency. The competition in this industry is becoming heavy and unbelievable, which is why we are making all plans efficiently to make sure we take over the market.
We at SW have a strong competitive edge in the industry due to the many fabrication services we hope to offer. We hope that by building a business based on satisfying clients, SW simultaneously build defences against competition. We at SW plan to continue helping clients understand what we offer them and why they need it.
We at SW also plan to become a leading provider of fabrication services in the local area. We believe that to achieve this, we have to invest in many ways that will pay off in competitive advantages for our customers, by pre-job conferencing upon request and assisting in the technical or conceptual design.
9. SALES AND MARKETING STRATEGY
- Sources of Income
It is very important to note that the US fabricated metal parts manufacturing industry includes about 55,000 companies with about 0 billion in combined annual revenue. Major companies in specialty segments include Ball Corporation, Flowserve, Mueller Industries, Snap-On, and The Timken Company.
We believe that because of the special manufacturing processes involved for individual parts, most companies make a limited range of products. We also have noted after extensive research that the industry as a whole is fragmented: the largest 50 companies account for about 20 percent of revenue. But concentration can be high in industry segments such as boiler, cutlery, metal can, and spring manufacturing.
We at SW plan to get revenues by wielding, fabricating and selling aluminium boat dock in the Marquette area of upstate Wisconsin. We also plan to get funds by fabricating and repairing truck bodies, and performing aluminium repair jobs.
All unused scrap metals will also be recycled by us. The first revenue stream is extremely important to us at SW as our bottom line is to make sure that the welding services we render are in continued demand despite deleterious changes in the general economy. We also believe that this revenue stream has very high margins and will make sure that the profitability of our enterprise on a monthly basis.
10. Sales Forecast
Our primary ethics at SW is to maintain an excellent customer relation skills and work ethic; these skills we believe will be useful in making customers comfortable in believing us to provide their construction services. We believe that maintaining our customer’s satisfaction is an implicit part of building a relationship that will encourage repeat business.
Our sales projections at SW are based on our promising foundation, our planned increase investment in advertising for our business and future expansion will make us even more appealing to prospective customers. Our Sales forecast for the coming three years in as follows;
- First Year-: $650,000
- Second Year-: $1,100,000
- Third Year-: $2,452,000
- Marketing Strategy and Sales strategy
We at SW totally understand that satisfied customers will aid our business by referring our company to other clients who need our services. We at SW plan to serve the metal fabrication market segment. Our specific choice of target markets at SW is based on an in-depth understanding of our prospective customer’s needs.
We believe that our skills and capabilities will allow us to very well compete and develop our reputation within our business area. This is the reason why we believe that obtaining grant funding and developing a marketing strategy will improve our profitability levels and help us in building a strong customer base.
We at SW plan to use a direct sales force and relationship selling to reach its target markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.
We also plan to advertise in Yellow Pages and local newspapers, and create a website with information, construction background, and contact information will be available online. References to the website will be mentioned in all other forms of advertising once the website is in effect.
SW is a member of the Marquette Lake Association and will obtain a mailing list for potential customers. But we believe that our marketing budget will allow our employed marketing firm the leverage to push us to the top.
11. Publicity and Advertising Strategy
We at SW plan to use email marketing campaigns as an outreach to our prospective customers. We all know that technology that incorporates video with email and offers very powerful, robust and dynamic features. Another advantage is in communicating through the use of streaming video embedded within the email.
We at SW believe that the use of this technology will give us a strong competitive edge and outreach to the community. We at SW are also planning to incorporate an email drip campaign with video into our marketing efforts.
We believe that this technology will more effectively market to our customer and potential customer base. We understand that it is cost effective (averaging about $99 per month), especially when compared to the $1,000’s spent on print advertising, mailing and postage.
We believe that the built-in analytics provide immediate feedback as to the campaigns effectiveness and who actually viewed the message. We also hope that the Auto responders with a specific message can be utilized as an immediate follow-up tool.
It is important to note that we at SW hope that this new email marketing campaign technology will serve to position us to achieve and sustain name recognition in front of our current market within the local community.
We believe that this type of marketing is cost effective and efficient. The first thing most of us do every day is check our email in-box. It is also worthwhile to state that we at SW are currently unaware of any of our competitors incorporating the use of this technology within their operation.
12. Our Pricing Strategy
We at SW know that we are in a purely competitive industry where each business must be a price taker. Meaning that a business that has no ability to affect the market price of its services, regardless of how much work it does is destined for a meltdown.
Therefore, putting it, that marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, we at SW plan to at total capacity without affecting the price in the market.
This means that we at SW must strive or look to charge our clients at the market price (or lower). We believe that the price we charge will depend on the workload and duration of the said work, and we understand that as long as marginal costs do not surpass revenues, the method to increase short-run profits is to service automobiles at maximum capacity.
- Payment Options
We at SW after extensive research understand that payment options are the forces that bring any business closer to the heart of the people, and we hope to make use of that extensively. We will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.
- Payment by via bank transfer
- Payment via POS machine
- Payment via online bank transfer
- Payment via mobile money
- Payment with cash
To provide all these outstanding services, we have partnered with a renowned bank in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
13. Startup Expenditure (Budget)
It is very important to note that no matter how breath taking your ideas and goals might be or how attractive your business plan might be, without proper and enough financing your ideas are just like water poured on a rock.
It is a known fact that in every business enterprise fund is a big ingredient that can move a business to the limelight and without a detailed business plan; a business won’t be able to land substantial funds from prospective investors. We have analysed the market and have decided on how we plan to spend our start up fund.
These are the key areas where we will spend our start – up capital on;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a work facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
- The amount required to purchase the needed tool box and repair equipment – $25,000
- Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- Amount required to purchase the needed software applications to run our business – $3,500
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
From our detailed cost analysis above, we will be needing approximately two hundred and fifty dollars ( $250,000 ) to start SW. Everything has been put in place and every fact made sure of, that is to enable us achieve our goal and objectives.
Generating Funding / Start up Capital for Sonic Welders
Sonic Welders (SW) is an established wielding and fabrication business owned by Nathan Cardozo that is engaged in the production of aluminium boat docks that will suit and satisfy the diverse designs and concepts of the customer. The business will be funded by him until we decide to accept investors or partners. Ways we hope to raise our start up capital may include;
- Generate part of the start – up capital from personal savings
- Generate part of the start – up capital from friends and other extended family members
- Generate part of the capital from the bank (loan facility).
Note: Nathan Cardozo has been able to raise $100,000 ( $70,000 from personal savings and $30,000 as soft loans from family and friends ) and we are at the final stages of obtaining a loan facility of $100,000. We have verified all the necessary procedures to actualize or get our start up cost.
14. Sustainability and Expansion Strategy
We at SW understand that our business being medium in nature requires a simple organizational structure. We believe that the implementation of this organizational form calls for Nathan Cardozo to make all of the major management decisions in addition to monitoring all other business activities.
Nathan Cardozo started working in the metal fabrication industry after working in the salt mines for several years and now brings over 27 years of experience to the success of the Company. Our management philosophy at SW is based on responsibility and mutual respect.
We believe that SW will maintain an environment and structure that will bring about productivity and respect for customers and fellow employees. At Sonic Welders, everybody is considered as an individual and we strive to the very last point to respect their dignity and recognize their merit.
We believe that our employees will be encouraged to have a sense of security and pride in their jobs. We will also afford equal opportunity for employment, development, and advancement for those qualified. Our employees at SW will be committed to:
- Afford a safe work environment to protect employees, the employees of customers and subcontractors, and the public.
- We will also supply safe products for customers.
- We will also without setbacks keep on improving the company’s safety program to reduce the risk of accidents and occupational illness in a changing work environment.
- We will advice our employees to participate in accident prevention programs and take personal responsibility for their own and their co-workers’ health and safety.
- Regulatory compliance and contribution to high safety standards for our industry.
- Monitoring workplaces, enforcing safe work practices, and communicating the company’s safety performance to employees and other stakeholders.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress
More on Construction & Engineering
Mobile Welding Company Business Plan Sample
This mobile welding business plan example is a result of the booming construction industry. When developing your business plan be sure to ask yourself how the wider sector will affect your startup. For example, if construction was expected to slow you may reconsider starting a mobile welding business.
Furthermore, be sure to perform a market research analysis prior to pouring your life savings into the new company. It is always important to know how viable and in demand your product or service is before writing a business plan .
1.0 Executive Summary
“Mobile Welding Co.” operating as “Mobile Welding Co.” (The company) was incorporated on January 5, 2019 in the province of British Columbia by owner operator Pete Gridwall. The company specializes in oilfield construction and maintenance, including the decommissioning of wellheads, structural fabrication, pipe fabrication, and trucking services.
Founder and owner Pete Gridwall is an Indigenous entrepreneur from the River First Nations and has been serving the Northern BC region with professional welding, inspection and maintenance services to the oil and gas industry since 2001. The company is seeking funding through the River Nation Business Loan Program.
This opportunity and business are led by experienced welder, Pete Gridwall, who has sector-specific experience and industry connections. Pete Gridwall is a Qualified Welding Inspector and has over 20 years of experience in the oil and gas industry. The company’s goal is to provide high-quality services to clients, always going above and beyond what is expected, while maintaining a high level of safety and compliance. The company aims to be inclusive of local indigenous people by prioritizing employment of local indigenous peoples, providing steady, reliable employment in nearby areas.
The company is seeking a $65,000 loan from the River Nation Business Loan Program to cover expansion expenses, operational expansion, and hiring of key personnel and staff accommodation. The River Nation Business Loan will be used for the purchase of a company truck, payroll expenses, and the leasing of a brick and mortar location. The company will also use the funds to maintain certifications such as CWB and Technical Safety Certifications.
2.0 Business Overview
Mobile Welding Co. provides professional welding, inspection and maintenance services to the oil and gas industry. The company’s services include well abandonments, structural fabrication, pipe fabrication, and trucking services and rentals.
2.1 Mission Statement
The company’s mission is to provide high-quality, safe professional welding, inspection and maintenance services to the oil and gas industry. The company also prioritizes indigenous hiring in all jobs to promote employment opportunities and economic development.
2.2 Vision Statement
The company’s vision is to be the leading oil and gas service company in North Eastern BC, providing competitive rates and excellent service to their customers on a year-over-year basis.
2.3 Core Values
Mobile Welding Co.’ core values are centred on providing the best, high quality service to their customers while creating an inclusive employment opportunity for rural indigenous community members. The company values strong relationships and going above and beyond for clients to deliver a superior service.
The company has achieved the following milestones thus far:
- Hired an administrative staff
- Purchased a second welding unit and trailer for the business
- Plan to purchase an additional truck to accommodate increased demand
- Developed a partnership with another company to expand offered services
2.5 Goals and Objectives
. The goals and objectives for Mobile Welding Co. are as follows:
- Grow the company’s human capital to allow Pete to take a director role
- Hire an Operations Manager
- Open a brick and mortar location in Fort St John equipped with housing for employees
- Increase employee productivity
- Increase website traffic
- Reduce expenses
- Open a second location in Kelowna
3.0 Market Analysis
Mobile Welding Co. primarily serves the oil and gas sectors located in Northern BC. The oil and gas industry relies on welders to build infrastructure such as rigs, pipelines, platforms, and is necessary when building, maintaining, and dismantling oil and gas infrastructure. Canada has oil and petroleum products, natural gas, and natural gas liquids. Alternatives to traditional oil and petroleum including liquid natural gas and compressed natural gas are increasing in Canada, expecting a 40% increase by 2040 (Canada Energy Regulator, 2021), indicating that whole global trends for oil sands production may be slowing globally, demand will maintain or even increase in coming years due to further energy transitions.
3.1 Government Regulations
Oil and gas construction companies are typically considered highly risky workplaces. As such, Mobile Welding Co. is required to abide by the following regulations: Worksafe BC Oil and Gas Guidelines, Canadian Welding Bureau (CWB), ISNetworld, Complyworks, and Technical Safety BC. All regulations require annual certifications and are subject to audit and inspection.
3.2 Market Trends
The Canadian Oil and Gas Construction Industry is currently valued at $7.8BN in revenue, with an annual growth rate of 4.7% between 2020-2025. While the oil and gas industry is dominated by a few key players, the oil and gas construction sector is highly fragmented between a number of smaller, independent companies and contractors. Most companies are dependent on location, serving a few key markets in specific geographic locations and work sites. Companies in the oil and gas construction industry determinants for success include the ability to accommodate environmental requirements, having a good reputation, ability to secure and manage external contacts, and prior success, meaning reputation, customer service, and performance are crucial in maintaining a successful business in this sector. As of 2021, there are 3,218 established units in Canada, and this is expected to increase to 3,454 by 2025.
3.3 Key Competitors
Mobile Welding Co. competes with other businesses located in Northern BC providing services to similar clients such as Endbridge, Petronas, Keyera and Canadian Natural Resources. The top three competitors are as follows:
Rumble Industries: is a general construction contractor providing services to oil and gas customers in the Northern BC and Alberta areas. Their services include general construction contracting, oilfield maintenance, specialized welding, and decommissioning of wells, facilities and pipelines, and environmental drilling. They hold an A Class Contractor license and are CWB certified for Stainless and Aluminum welding. Rumble Industries offers both on-site and internal fabrication and welding services, and offers a variety of on and off site services.
D-W Wilson: is a general contractor company serving customers in the Northern BC and Alberta area. They offer a variety of services including facility construction, fabrication, pipeline construction, maintenance, decommissioning and asset retirement, civil earthworks, and utility construction and maintenance. The company’s pillars are health and safety, quality, and environment, and have a number of programs and certifications in place to support these corporate values. Arctech Welding & Machining: is a welding and machining company based out of Fort St John, BC. The company specializes in structural steel and mobile welding. The company offers general fabrication, beam line, structural steel and mobile welding, with a combination of workshop and field welding services.
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4.0 Products and Services
The company has a variety of offerings in welding, well abandonments, and trucking services. Within each offering, the following services are available:
- Track repair for tracked equipment such as vehicles
- Ice lugging on tracked equipment
- Repair to cracks or damaged frames, buckets and blades
- On-site fabrication services
- Welding repair for structures, handrails, and pipes
- Wellhead cutting and capping
- Wellhead removal
- Full service well abandonment
- Trucking and Transport Services
4.1 Pricing Model
Prices are not standardized due to the variety in job type and complexity and variability of needs per job. Some jobs may require all offerings listed, while others may only require one or two. The hourly prices for each services are broken down below:
Welding: $140 per hour for labor
Welding Truck and Operator: $140 per hour
Welder Helper: $50 per hour
Crew Truck Operator: $140 per hour
Trailer: $200 per day
230 Backhoe: $250 per hour plus $285 per hour trucking fee
(typically one well abandonment job is complete in one 12-hour day)
Hydrovac/Combo vac/ Straight Vac: $290 per hour
16m3 Water Trailer: $745 per day
6-8 Axle Box Truck: $220-240 per hour
Potable Water Truck: $165 per hour
Truck Rentals: pricing varies
4.2 Competitive Advantage
The company’s competitive advantage is built on the strong capabilities of the Mobile Welding Co. expertise, commitment to customer service, and strong existing industry connections. Founder Pete Gridwall has 20 years of experience in the oil and gas industry, bringing a wealth of experience, knowledge and success from his experience operating Mobile Welding Co.. Pete instilled a culture of service, dedication and passion into Mobile Welding Co., ensuring customers are fully satisfied with the service provided.
4.3 Key Success Factors
Key success factors for this business are determined by the world price of crude oil, world price of natural gas, world price of steel, the value of nonresidential construction, and the Bank of Canada’s overnight rate. The industry has a low concentration of competitors, however many small independent competitors in respective areas compete for the same few large clients. As Canada, and the world shift towards more compressed and liquid natural gas, it is expected that demand for these resources will increase in key areas that Mobile Welding Co. operates.
5.0 Sales and Marketing Plan
The company primarily serves a few key contacts in the North Eastern BC region. The sales and marketing plan will focus on defining those key target customers and contacts, plans for generating customer awareness and consideration of the product, and key performance indicators that track and measure success.
5.1 Target Customer
The company’s target customers are large oil and gas companies that operate in Northern BC and Alberta. This includes Enbridge, Petronas, Keyera, and Canadian Natural Resources (CNRL).
Enbridge : is Canada’s largest natural gas storage, transmission and distribution company based in Calgary, with a more than 170-year history of providing safe and reliable service. The Enbridge Pipeline is the world’s longest crude oil and liquids pipeline system, with 27,564 km (17,127 mi) of active crude pipeline in both Canada and the United States. The company currently has active sites as well as pipeline infrastructure throughout Northern BC and Alberta.
Petronas : is an energy company that is one of the largest liquid natural gas providers in the world. Petronas Energy Canada provides exploration, production, extraction, and transmission services, with operations in Fort St John BC and Calgary Alberta. The company has a number of existing and upcoming projects throughout BC and Alberta.
Keyera: is one of the largest midstream oil and gas operators in Canada. The company services oil and gas producers in Western Canada and transports natural gas liquids such as propane, ethane, butane, condensate and iso-octane to markets throughout North America. Keyera operates within the midstream sector of the industry meaning that it isn’t focused on the production or refining of petroleum. Instead, Keyera serves customers by providing them with the means to store and transport various oil, gas and NGL products.
CNRL: is a natural gas, crude oil, and oil sands mining company that operates in North America. The company’s North America assets consist of conventional and unconventional natural gas, along with projects in light, medium and heavy crude oil, as well as in situ oil sands and oil sands mining and upgrading production.
5.2 Key Channels
The company will use a variety of digital marketing channels to advertise their services. These include social media, Search Engine Optimization (SEO), emailing, and phone calls. Additionally, key personnel from the Mobile Welding Co. team will visit key accounts in person, and use word of mouth marketing to generate organic sales.
5.3 Key Performance Indicators
The company will track the following key performance indicators (KPI’s):
- Profitability ratios
- Gross Profit Margin
- Customer Acquisition Growth
- Website conversion rate
- Relative Market Share
- YOY Sales Growth
- Retention Rate
- Employee Retention and Satisfaction
5.4 SWOT Analysis
6.0 Operational Plan
Mobile Welding Co. is wholly owned and operated by Pete Gridwall. His current staffing requirements range from 5-10 employees, with plans to hire more as the company grows. The company currently provides the majority of its services on-site, but has plans to open a brick and mortar workshop location as well as a staff accommodation facility.
The company will offer services to customers who will pay through 30-60 day net terms. Typically Mobile Welding Co. customers will contract the company for a number of jobs on site, and will pay as they are completed as per the terms of the contract.
6.1 Health & Safety
Mobile Welding Co. has a $5M liability insurance. The company is ISNetworld Certified, and the company carries CWB Certification. All employees are trained in H2s. First Aid Level 1, TDG, WHMIS, Ground Disturbance, Fall Arrest, Confined Space, ATV, Aerial Platform, Skid Steer, and Telehandler operations. All welders require a journeyman ticket and related CWB, and pressure piping certifications. All employees are required to undergo pre-employment drug and alcohol testing. The company also plans to hire a dedicated Quality Control and Safety Officer to ensure operations are held to a high standard of safety and compliance.
6.2 Equipment & Inventory
With the River Nation Business Loan, the company plans to acquire a new work vehicle, lease a brick and mortar shop, and certify Mobile Welding Co. through CWB and Technical Safety BC.
The company is registered at 778 Milwaukee Ave. in Kelowna, BC.
6.4 Risk Analysis
The oil and gas construction and maintenance industry is closely tied to the oil and gas industry, as well as the overall economy. The main risks associated with the oil and gas industry sector are as follows:
Residential Construction Rates : Oil and gas infrastructure is inversely impacted by the levels of residential construction rates. Therefore, if residential construction rates increase, this will result in less funding allocated to oil and gas construction projects.
Resource depletion: As a non-renewable resource, depletion is a major risk that impacts the longevity of the oil and gas industry. As oil wells dry up and sources become depleted, stakeholders and companies may look to other major oil-producing countries.
Political risk: Changing political environments have the potential to impact regulatory requirements for oil and gas production. Increasing public awareness and negative outlooks on the sector can also influence public policy towards more renewable energy sources.
The overnight rate: The overnight rate is a rate set by the Bank of Canada at which major financial institutions borrow and lend short-term funds to one another. When interest rates are low, construction activity typically picks up due to low-cost financing. Conversely, higher interest rates make it more difficult to obtain financing for costly oil and gas construction projects.
The World Price of Steel: Steel is the primary input for pipelines and components used for oil and gas infrastructure construction. High steel prices result in high pipeline and building component prices, which put pressure on the industry profit margin. Although oil and gas infrastructure contractors can pass along some costs to downstream operators, rising steel prices typically lower industry profitability.
7.0 Management Team
Owner and Operator
Pete Gridwall proud, River First Nations Band member with 20 years’ experience in the oil and gas industry. He is a highly qualified, motivated individual. He strives for efficiency, quality, and integrity, with safety being my utmost priority. He has owned and operated his own business for the last 10 years which has been instrumental in gaining extensive knowledge and capabilities within the oil and gas sector. Pete has his Level 1 Welding Inspection with CSA, BCP 100 Alberta Level Welding Ticket, A and B Level Welding Ticket, and is CWB Certified for SMAW and FCAW for all positions. He has worked on jobs with companies such as Gaslink Industries, Triple J Pipelines, IPAC Services and Keyera Corp as a prime contractor and welder. Pete is experienced and prepared to lead the Mobile Welding Co. team forward to success.
7.1 Key Personnel
Operations and Sales Manager
Salary: $120,000 annually
- Managing client relationships through all the stages of the sales cycle
- Locating prospective customers, generating them into leads, and converting them to customers
- Meeting or exceeding weekly, monthly, and quarterly sales quotas
- Using strong research skills and deep product or industry knowledge to answer any questions about the product
- Preparing and submitting sales reports to management
- Keeping contact lists and following up with current customers to continue building relationships
- Become a subject matter expert in operational policies and procedures;
- Assist in the development of company guidelines and policies (office policies, operational policies, internal policies, expense policies, office guidelines);
- Assist with developing processes that enhance accuracy and streamline processes while ensuring that regulatory compliance is met;
- Liaise between advisors and custodians to research potential issues within client accounts;
- Build and maintain strong working relationships with internal team and external business partners
- Assist in helping with manual Operational processing (working with backoffice on setting accounts, open accounts, process accounts and fund accounts)
Salary: $84,000 annually
- Collecting, interpreting, and reviewing financial information
- Predicting future financial trends
- Reporting to management and stakeholders, and providing advice how the company and future business decisions might be impacted
- Producing financial reports related to budgets, account payables, account receivables, expenses etc.
- Reviewing, monitoring, and managing budgets
- Developing strategies that work to minimise financial risk
- Analysing market trends and competitors
- Conducting credit checks on new and potential customers.
- Implementing debt collection policies and regulations of the company.
- Implementing deadlines for invoicing and payment collection.
- Monitoring the invoicing and money collection processes.
- Ensuring the timely collection of payments.
- Preparing monthly feedback reports on payment collections.
- Keeping records of invoices, deposits, and all correspondence regarding payment collection.
Salary: $240,000 per year
- Determine and define scope of work and deliverables
- Predict resources needed to complete project
- Obtain necessary permits, approvals, and other regulatory prerequisites
- Draft and submit budget based on scope of work and resource requirements
- Manage costs in order to meet budget
- Provide direction over contracts and subcontracts
- Manage construction schedule and activities
- Issue progress updates as needed regarding costs and timelines
- Ensure work is done in compliance with all relevant building and safety codes
- Select and manage subcontractor and supplier relationships
- Coordinate efforts across entire project between all involved parties
- Supervises and coordinates activities of workers
- Requisitions supplies and inventory
- Inspects work to maintain specified standards and quality.
- Trains workers in operation of equipment.
- May set up machines or make trial welds to make test runs and experimental products.
- May supervise brazing and soldering operations.
- May supervise fitting and assembly of structural frames.
- Important variations include location of workers supervised, such as in-plant, job-shop, construction site, or oil sand.
Salary: $78,000 annually
- The preparation of the companies QA manual control and supervision of all amendments and revisions
- Control and the distribution of all the companies quality documentation
- Monitor all quality related activities on the project
- Perform all internal and external audits on behalf of the companies management
- Verify contractor quality requirements are specified to vendors and contractor documentation submittals.
- Attend all pre-bid meetings and coordinate all project requirements with the project bidders.
- Attend client quality management meetings
- The preparation and control of project quality system management documentation prior to project commencement.
- Review quality inspection personnel qualifications and training requirements
- Monitor the disposition of all issued nonconformance reports.
- Monitor the progress and effectiveness of the project quality management system. Recommend and implement improvements when required.
- Coordinate all QA/QC activities with the site QC manager
- Coordinate all QA/QC activities with the site QA/QC procurement manager
- Coordinate all quality related correspondence with the customers representatives.
- Monitor statistical method reporting.
- Action and close all customer complaints
- Control all achieved documentation upon the completion of the project.
HSE Safety Officer
- Administer First Aid to personnel for designated jobsite
- Promote a culture of safety within organization and on jobsite
- Support the enforcement of safety processes, practices and safety management plans
- Manage return to work program for site staff
- Coordinate with WorkSafe BC regarding site specific injury management
- Monitor compliance of company health and safety policies and procedures
- Ensure a safe working environment for all personnel and third parties
- Raising health and safety awareness and reporting on key issues
- Advise on provisions to minimize safety risks
- Enforce OHS policies (e.g. accident reporting process)
- Collaborate with managers to ensure site complies with relevant safety legislation and regulations and identify safety issues
- Liaise with and report to official regulatory bodies on OHS matters
- Attend, participate and / or facilitate safety meetings including Safety Committee meetings and Toolbox Meetings
- Consult with employers to identify needs and preferred qualifications
- Interview applicants about their experience, education and skills
- Contact references and perform background checks
- Inform applicants about job details such as benefits and conditions
- Hire or refer qualified candidates
- Conduct new employee orientations
- Process paperwork
- Plan and coordinate the workforce to best use employees’ talents
- Resolve issues between management and employees
- Advise managers on policies like equal employment opportunity and sexual harassment
- Coordinate and supervise the work of specialists and staff
- Oversee recruitment and hiring process
- Direct disciplinary procedures
7.2 Recruitment Plan
The company currently operates between 8-10 employees based on demand and ongoing jobs. As the company grows, Pete plans to hire an operations and sales manager, financial officer, project manager, welding supervisor, HSE Safety Officer, and a Human Resources personnel.
The company will recruit on traditional platforms including Indeed, Workopolis, and Glassdoor. Additionally, the company will look to its network and contacts to source staff with sound experience and a strong reputation.
8.0 Financial Plan
8.1 Capital Requirements
8.2 income statements – year 1 , 8.3 cash flow statement – year 1, 8.4 balance sheet.
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Welding Business Plan
This free, printable business plan covers the basic outlines, summaries, market strategies and charts needed to start a welding enterprise that provides package boilers and hydric units within the business world.
Sample text from Welding Business Plan:
1.0 Executive Summary
[Your Company] LLC plans to become the leading provider of package boilers and hydronic unit services in the area. This means always having the best and most efficient facilities, processes, and people. To achieve this, [Your Company] is investing in many ways that will pay off in competitive advantages for its customers.
The company's overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress.
[Your Company] is a [Your State] Limited Liability company, with principal offices located in [Your City], [Your State]. [Your Company]'s management is highly experienced and qualified. Mr. [Name] leads the management team with over 18 years of experience in the construction industry.
[Your Company] has developed sophisticated boiler and hydronic unit solutions for some of the most complex construction projects being done today.
The [Your Company] system can be adapted to almost any construction requirement that calls for forming. The company's expert staff has the capability to design and manufacture any custom component or accessory item that may be required to complete the boiler and welding package.
Owners, developers, construction managers, general contractors, and subcontractors will realize substantial savings in labor and material costs by using structural contours construction methods, systems and equipment.
The company plans to rapidly develop marketing alliances with industry leaders and pursue new sales of its services to commercial builders. The market strategy is to capitalize on [Your Company]'s alliances by securing city, county, and state and federal government contracts.
[Your Company] plans to use a direct sales force, relationship selling, and subcontractors to reach its markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.
The purpose of this plan is to attain grant funding in the amount of $547,000 in order to purchase supplies and equipment, launch an advertising campaign and pay for new employees.
1. Achieve sales revenues at an impressive increased year each year of operations.
2. Achieve a customer mix of 30$ commercial/60% residential building contracts per year.
3. Expand operations to the surrounding nearby counties in order to service more customers.
The mission of [Your Company] is to provide quality service at competitive pricing.
1.3 Keys to Success
Keys to success for the company will include:
1. Maintaining a reputable and untarnished reputation in the community.
2. Quality care.
3. Competitive pricing.
4. Flexible hours.
2.0 Company Summary
[Your Company] is a [Your State] Limited Liability company, with principal offices located in [Your City], [Your State].
2.1 Company Ownership
[Your Company] is a privately owned limited liability corporation equally owned by [Name], [Name], [Name] and [Name]. Each owner has 25% share of the company. [Your Company] will be a woman operated business.
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Welding and Fabrication Business Plan Template
Quality Business Plan has a welding and fabrication business plan template and financial projection template ready for small business owners to customize in minutes! Before starting a business, entrepreneurs should have, at the very least, a basic business plan.
The important sections of a welding business plan template would include the executive summary, company description, industry research, marketing section, funding section, and always pro forma financial projections.
Unfortunately, most business owners have no idea how to start or write a well-prepared business plan for their business. From this, the need for a welding and fabrication business plan template is critical.
Benefits of a Welding and Fabrication Business Plan Template
There are numerous benefits to using our welding and fabrication business plan template. For example, our template includes common services provided by a welding and fabrication company such as custom welding, structural work, and small/medium scale production. This format not only lets your reader know your popular services offered but also provides you with an opportunity to expand the foundation of the service with your customers' thoughts and ideas.
"Free" Business Plan Templates
- Pretty Cool - Business Plan Structure
- Excellent - Industry-Related Research
- Awesome - Customized Financial Projections for your Industry
- Even MORE Awesome -Template Written by Paul Borosky, MBA.
- - Fill-in-the-highlighted-areas Format
- - Completed Pricing Strategy
- - SWOT Analysis Completed
- - Organizational Chart
- - Funding Request Section
- - Step-by-Step Tutorial for Business Plan Doc.
- - Step-by-Step Tutorial for Financial Projections Model
Quality Business Plan Templates
- Excellent - Industry-Related Research ($100 value)
- Awesome - Customized Financial Projections for your Industry ($300 value)
- Even MORE Awesome - Template Written by Paul Borosky, MBA.
- Plus... - Fill-in-the-highlighted-areas Format
- Plus... - Completed Pricing Strategy
- Plus... - SWOT Analysis Completed
- Plus... - Organizational Chart... Done!
- Plus... - Funding Request Section... Yes!
- Plus... - Step-by-Step Tutorial for Business Plan Doc.
- Plus... - Step-by-Step Tutorial for Financial Projections Model
More Benefits: Free Business Plan Template Tutorials!!
All of our business plans come with FREE business plan writing tutorials. Business plan writing tutorials range from customizing your executive summary section to using our proprietary financial model!!
CLICK HERE FOR OUR FREE TUTORIALS!!!
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Welding Business Plan Templates Includes:
- Executive Summary
- Company Description
- Ornamental and Architectural Metalwork Industry Analysis INCLUDED!
- Organizational Structure.
- Funding Request
- 12-month profit and loss statement
- 5-year pro forma income statement
- Basic customizable Excel File
- Ability to change revenues, costs, and labor.
- 12 Profit and Loss
- 5 Yr Annual Projections.
How to Start a Welding Business
A welding business repairs, restores, and assists building metal-based items. Welding and fabrication services include flux core welding, aluminum welding, plasma cutting, metal fabrication, dump truck box repair, and more. A high-quality welding business can fix most things made out of metal, assisting numerous projects in the span of a year.
Ready to form your LLC? Check out the Top LLC Formation Services .
Learn how to start your own Welding Business and whether it is the right fit for you.
Start a welding business by following these 10 steps:
- Plan your Welding Business
- Form your Welding Business into a Legal Entity
- Register your Welding Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Welding Business
- Get the Necessary Permits & Licenses for your Welding Business
- Get Welding Business Insurance
- Define your Welding Business Brand
- Create your Welding Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your welding business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas .
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
How much can you charge customers?
What will you name your business.
Luckily we have done a lot of this research for you.
What are the costs involved in opening a welding business?
Startup costs sit around $10,000 to $50,000. These costs include a metal fabrication shop, which has a rent of about $3,000 per month. These costs also account for insurance, tools, electronics, mobile service options, and personal protection equipment. Minor equipment can be purchased for as little as $1,000, but you’ll need to expand your inventory as more projects are approached.
Read our welding business purchasing guide to learn about the materials and equipment you'll need to start a welding business, how much to budget, and where to make purchases.
What are the ongoing expenses for a welding business?
Employees will be paid between $45 and $65 per hour. Additionally, raw material will need to be purchased. Typically, this raw material will be marked up by about 50 percent when it’s used.
Who is the target market?
The best clients and customers are those with ongoing welding needs. While you can conduct single projects, you’re better off engaging clients who manage commercial machinery. Among your many clients, several will be incredibly profitable. The best jobs a welding business scan undertake are mega yacht repair, marine equipment fabrication, architectural iron modification, aircraft repair and remanufacturing, cruise ship service, and restaurant equipment repair.
Because commercial providers need to meet certain industry standards, they’re incredibly profitable. Welding clients can extend to farm equipment owners, other welding shops, silo tank providers, and even steel dairy equipment providers.
How does a welding business make money?
Most welding businesses make money by performing small projects. They can, however, make a lot of money by engaging long-term projects. Because a welding company’s best providers are normally marine equipment providers, a lot of service is needed to prevent rusting and water damage.
A welding company also makes money by making metal modifications and repairs. If a company’s machinery breaks, a welding business will be called to examine the surrounding problems. It may also contact a separate repair team—taking charge with metal repairs and needed fabrications, itself.
Welding services can be charged in two ways. First, they can be charged on a per-job basis. They can also be charged at an hourly rate. Typically, per-hour rates are between $30 and $70 per hour. A well-established welding company may offer higher prices for special jobs and work needs.
How much profit can a welding business make?
A well-established welding service provider can gain yearly profits of about $70,000. A highly successful welding business, meanwhile, can make six figures easily.
How can you make your business more profitable?
Every period of work time should be budgeted. A poorly drawn business plan is believed to be the number-one cause of welding business failure. Know what you can afford, and prioritize your customers. Don’t buy personal toys—welding equipment—before you need it. Focus on getting the business in the door, and find the best customers who need your services. From start-up independent jobs to multi billion-dollar contracts, you’ll need to be a good face-to-face negotiator.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Welding Business Name Generator
If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name , we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability .
It's very important to secure your domain name before someone else does.
Find a Domain Now
Powered by godaddy.com, step 2: form a legal entity.
The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your welding business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended : Read our best net 30 vendors , guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Federal Business Licensing Requirements
Certain state permits and licenses may be needed to operate a welding business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a welding business business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources .
In business where services are provided on an extended basis, a services contract is often put in place outlining terms and conditions of service.
Welding businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, and service level expectations. An example of a service contract can be found here .
Labor safety requirements
It is important to comply with all Occupational Safety and Health Administration requirements .
Relevant requirements include:
- Employee injury report
- Safety signage
Certificate of Occupancy
Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location :
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a welding business
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location :
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your welding business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance .
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
Recommended: Learn what business insurance for your Welding Business will cost.
Business Insurance for Welding Business
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a welding business
Market directly to businesses. While cold-calling tactics are difficult to pull off, you’ll need to become good at them to find high-quality clients. Market to any business related to marine services, and try to get hired by big companies. If they’re part of a business network, fish for opportunities there.
How to keep customers coming back
Hiring an ongoing welding service provider is a long-term commitment. For this reason, customer retention can be difficult to obtain but easy to maintain. Your best retention tool is to ensure high-quality, quick services. As with any contracting job, companies will stick to providers which ensure reliable services.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business .
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides , the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .
Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Welding Business in your State
- District of Columbia
- New Hampshire
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.
Is this Business Right For You?
A welding business should be run by individuals who’re experienced in metalworking, welding, and fabrication. It’s a solid business plan for workers who love excavating projects, fixing mechanical items, and performing general maintenance. A lot of welding projects are custom, giving project managers a lot of control over the services performed. A high degree of investment takes place, too, making it a good business for individuals who enjoy completing ongoing repairs, installations, and upgrades.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a welding business?
A welding business owner must perform a number of activities. Among the many responsibilities a welding business owner has, understanding local laws, sales needs, and self-starting requirements is important. Welders assist with dump truck box repair, aluminum tank restoration, blade welding, lift welding, silver brazing, and fabrication projects. Other activities include ongoing research, metal repair, plasma cutting, and machine maintenance.
As an owner, you’ll need to conduct research on local market needs, effective sales strategies, management, and finance. You’ll similarly need to protect your team’s tools from damage, maintaining a healthy supply of metal-cutting tools to ensure high-quality services.
What are some skills and experiences that will help you build a successful welding business?
The skills a welding business provider must have are numerous. First, you’ll need to be able to read blueprints quickly and easily. You’ll also need an awareness of safety standards. Concentration, customer service skills, a detail-oriented work ethic, good eyesight, knowledge of metallurgy, tool knowledge, dexterity, and in-depth knowledge of different welding techniques are also important.
A successful welding business can service a wide array of projects. They handle jobs quickly, and they’re capable of meeting a high variety of client needs. Lasting welding businesses are committed to their work, ensure all aspects are completed correctly and have a sharp eye for new potential.
What is the growth potential for a welding business?
Welding businesses have a lot of potential. They can either be a niche welding business or a general welding shop. Understandably, niche welding businesses have a tight market area. They’re able to grow quicker, as there is less competition.
General welding shops, meanwhile, face a lot of competition. However, they do have a lot of services available. If a general welding shop advertises correctly, it can offer fabrication services for most jobs, though it will need to advertise across multiple industries and have a wide range of services and equipment.
TRUiC's YouTube Channel
For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.
Take the Next Step
Find a business mentor.
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a welding business?
Develop a business plan quickly. A lot of welders think business plans are a time-sink, but a solid business plan can help you map out your business’s needs and expenses.
How and when to build a team
Once you’re spending over 40 hours a week fabricating and welding, you’ll need to hire more employees. Working this much is a good sign, as it proves you’re becoming a successful business. As a business owner, however, you’ll need to manage between three and five additional workers with care. They depend on you for their financial survival, and they’re typically paid more than average employees.
Read our welding business hiring guide to learn about the different roles a welding business typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.
Get more ideas with our Business Ideas Generator .
Check out our How to Start a Business page.
Sign up at the Business Center to access useful tools for your business.
- TRUiC's Welding Business Hiring Guide
- TRUiC's Welding Business Purchasing Guide
- Get Certified By the American Welding Society
- Membership Opportunities with The Welding Society
- Become a Certified Member of The International Institute of Welding
Real World Examples
- Large Welding Company
- Local Welding Company
- Tips for Starting Your Welding Company
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The World's Leading Business Plan Template Directory
Welding Business Plan Template [Updated 2023]
Welding business plan template.
If you want to start a welding business or expand your current welding business, you need a business plan.
The following Welding business plan template gives you the key elements to include in a winning Welding business plan.
You can download our Welding Business Plan Template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of your Welding business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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Welding Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
Executive Summary · Give a brief overview of the welding industry. · Discuss the type of welding business you are operating. · Detail your direct competitors. Give
Standard Business Plan Elements to Include · Executive summary: A summary of key points from all of the following sections, along with a clear
We hope to build and maintain an extensive shop which can handle all welding and fabrication issues. We have adequate plans to make our business the best in the
The company's mission is to provide high-quality, safe professional welding, inspection and maintenance services to the oil and gas industry.
In this video, Paul Borosky, MBA., owner of Quality Business Plan and Quality Business Consultant, offers some tips and tricks on how to
planning a welding business. 6hpmsing a location getting money to start being' in charges ft organizing,the 'work setting prices advertising and'selling.
Welding Business Plan · 1. Achieve sales revenues at an impressive increased year each year of operations. · 2. Achieve a customer mix of 30$ commercial/60%
The important sections of a welding business plan template would include the executive summary, company description, industry research, marketing section
Plan your Welding Business · Form your Welding Business into a Legal Entity · Register your Welding Business for Taxes · Open a Business Bank
Welding Business Plan Template ... If you want to start a welding business or expand your current welding business, you need a business plan. The