Startup cost
$10k–$30k
TRUiC Business Ideas
How to Start a Fence Company
Decision Snapshot
Fence Company
Idea Score
67
Profit margin
23%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Full time
Part 1 - How to start a Fence Company business - Background
A fence installation company contracts with clients to perform a number of services. Contracts are negotiated based on the measurements of the area to be fenced, the materials used, the degree of difficulty, and the amount of time and labor required.
Our guide is in 3 parts:
- Part 1 - How to start a Fence Company business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a fence company?
Opening expenses include a business and tax license, a contractor’s license, and liability insurance. Insurance is necessary to protect your business in the event of an accident or injury. Purchasing a surety bond is also a good idea. Many come in amounts from between $6000 to $12000, but coverage for up to $50,000 can be purchased for large projects. The cost of yearly premiums for a small business averages between $500 and $900. At minimum, you’ll need a full size truck with an extended bed for delivering materials. A forklift can also be useful in loading fencing materials quickly and easily. The necessary equipment required for building fences includes post drivers, fence stretchers, saws, drills, air compressors, hydraulic augers, and a concrete mixer. Purchasing that equipment new will require a minimum investment of approximately $10,000. Finally, you’ll need a place to store all of that equipment as well as office space for storing files and contracts. Fortunately, depending on your local zoning laws, your home may be able to serve those multiple purposes.
What are the ongoing expenses for a fence company?
Ongoing expenses for a fence installation business may include:
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Vehicle and equipment maintenance
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Fencing materials
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Storage costs
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Shipping fees
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Credit card processing fees
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Website maintenance and office supplies
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Employee payroll
Who is the target market?
Preferred customers are homeowners, business owners, real estate developers, farmers, ranchers, and government agencies.
How does a fence company make money?
A fence installation business makes money by purchasing fencing supplies at wholesale prices and charging for the labor and expertise necessary to design and install fences.
How much can you charge customers?
It is estimated that the average cost of a fence is $2,620. In many places, building permits are required. The average building permit costs about $800. If the area to be fenced is sloped or contains obstructions that need to be removed, the cost can be significantly higher. For a simple wooden fence, the industry standard for materials is currently from between $7 and $19 per linear foot. The charge for a vinyl fence can be as high as $33 per linear foot. Other materials, such as decorative wrought iron, can be priced as high as $300 per linear foot when installation costs are included. Labor costs per linear foot vary from $7 to $12, depending on the type of materials used.
How much profit can a fence company make?
Depending on the level of training and experience, the annual salary for a fence installation worker ranges from between $21,160 and $51,800 with an average of $32,450. A large, well- established fence installation business can create as much as 1.4 million in annual revenue.
How can you make your business more profitable?
One way to make your business more profitable is by creating a display showcasing all the different types of fencing your company offers for potential customers. Erecting a number of small sections of each type, using different materials, including decorative elements, provides your customers with a visual representation of the finished product. Another important step you can take to make your business more profitable is teaming up with other fencing contractors who specialize in different types of fences than those your company normally builds. Cooperation as well as competition between industry professionals benefits everyone involved. It can both increase your company’s name recognition and result in a greater number of satisfied customers.
Day-to-Day and Growth
What happens during a typical day at a fence company?
Daily activities can include:
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Meeting with potential clients
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Surveying and measuring areas to be fenced
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Performing safety checks on utilities
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Obtaining building permits
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Preparing bids and estimates
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Negotiating prices and purchasing supplies
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Using tools and equipment such as augers and spades
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Erecting and repairing fences
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Interviewing, hiring and training support staff
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Marketing
What are some skills and experiences that will help you build a successful fence company?
Some of the skills necessary in this business include:
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Physical strength and dexterity
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Knowledge of building and construction
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Ability to understand clients’ needs and give clear and logical presentations
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Ability to accurately estimate costs, time and materials needed to complete jobs
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Knowledge of tools and materials needed
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Time management skills
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Experience in repairing tools and machinery
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Math skills for measuring distance, area and ensuring structural integrity
Certification in fence and gate design is highly desirable. In addition to formal education courses, there are also a number of helpful books available.
What is the growth potential for a fence company?
This industry is expected to exceed $9 billion dollars in sales by the year 2018. Many fencing companies have grown large enough to offer franchise opportunities for those wishing to gain knowledge and experience from seasoned professionals.
What are some insider tips for jump starting a fence company?
Joining the American Fence Association can benefit your business. They provide industry discounts as well educational opportunities and valuable network connections. Their prestigious Blue Ribbon designation signifies that a company has demonstrated the highest professional and ethical industry standards.
How and when to build a team
While maintaining a small, one-person operation is possible, building a team of trusted suppliers and skilled workers from the beginning is essential for the continued growth of your business. Hiring independent contractors may be more economical while building your business, but hiring permanent employees makes it easier to maintain a consistent level of quality and dependability.
Part 2 - Is a Fence Company business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Fence Company business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Fence Company Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Fence Company business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.