Saving money on energy by using insulation is very appealing to many customers in the residential and industrial markets. Polyurethane is expected to grow by 4.4% each year through 2030, so it’s a steady-growth industry to be part of. That being said, the success of starting any business is dependent on multiple variables, including hard work, proper training, and building and maintaining a good team.
There is a difference between simply starting a spray foam insulation business, and starting one that will become successful and profitable. Learn more about the ins and outs of the spray foam insulation industry, as well as how our team at SprayWorks Equipment can help you get started today.
What Is Spray Foam Insulation?
Absolutely. According to Future Market Insights, the spray foam insulation market is projected to rise at a compound annual growth rate (CAGR) of 6.5% from 2022 to 2032, making it a great time to start investing in a spray foam business.
Why Are More People Choosing Spray Foam for Their Homes?
Over time, there has been a consistent increase in the use of spray foam in homes. Some of the reasons people are choosing to make the switch include the following:
- It helps your home maintain a constant temperature, thus lowering your energy bills anywhere from 5% to 30% each year
- Spray foam can create a barrier between the temperature of your home and the temperature outside, reducing condensation on your walls
- It has sound-dampening qualities, making it easier than ever to deaden noise in your home
- It can deter mold growth that can occur from the presence of condensation in the home, as well as keep harmful allergens outside of your home
Looking to start a spray foam business? That is where our team comes in to help. Read on as we answer your most frequently asked questions.
Frequently Asked Questions About Starting a Spray Foam Insulation Business
For those looking to start a spray foam business, here are just some of the most commonly asked questions. These questions cover starting an insulation business, what can make it a profitable investment, and just how profitable it can be.
Why Should I Start a Spray Foam Business?
As stated previously, there is a growing desire for spray foam insulation inside homes and commercial properties, making it an ideal time for you to start a spray foam business. Additionally, the spray foam field has continuously created industry-leading equipment to make it easier than ever to handle and apply portable spray foam technology. So, if you are interested in starting a spray foam business, we highly recommend doing so!
How Do I Start a Spray Foam Insulation Business?
A spray foam insulation business is no different than any other startup, in that it requires proper equipment, training, and knowledge of the industry. Before purchasing anything or attempting to secure clients, imperative for not only your safety but the safety and the safety of your customers. This involves doing your homework by thoroughly researching spray foam insulation, its application, its versatility, the equipment needed, and how much of a financial investment everything is on your part.
If you’re interested in investing in this venture, you will need to be trained to learn how to properly apply spray foam, understand the industry as a whole, and be able to bounce any questions off of industry experts. You will also want to research other spray foam businesses in your area to determine if there is market saturation and who your competitors may be. If saturation exists, don’t let this discourage you. Many companies focus primarily on residential spray foam, but spray foam has a lot of residential and commercial opportunities, so you could always refocus the services you offer.
Having a well-designed website is also crucial for any modern business. Your website will be your primary marketing driver and link to prospective and existing customers. Using an eye-catching logo to identify your business is important for creating trust in your customers. Also, make sure your business name is available and not already in use. A well-structured website can serve as your customers’ personal portal to all things about your company.
On top of that, it’s key to never underestimate the significance of the human factor. When your customers contact you, it’s important to be responsive. It’s reported that 47% of small businesses leave calls unanswered, and unreturned voicemails are one of the most common reasons for lost business. That’s why we recommend having a dedicated receptionist who will help with answering phones, following up with invoices, and scheduling.
When considering spray foam equipment, think about cost and long-term financing. Some contractors save money by purchasing used equipment, but while it is easier financially, secondhand equipment comes with no warranties or repair plans. That’s why it’s advised to invest in new equipment that includes both of these. You will also need a way to transport all of your equipment from project to project, which means you will likely need to invest in a spray foam rig. A spray foam expert can help you decide which rig you need for your business.
Finally, you will need to purchase the actual spray foam material. Make sure you calculate how much product you need and when it expires since you’ll want to maintain your reputation by providing your clients with quality products. Many spray foam manufacturers offer assistance to new businesses as well, so try to find a reputable supplier and develop a good working relationship. For more information, contact a spray foam expert to help you get started.
How Do You Get Business as a Spray Foam Company?
There are several approaches you can take to expand the reach of your spray foam company, including the following:
- Building a user-friendly website to host all of your company information, such as services and service areas, qualifications, frequently asked questions, reviews, and certifications
- Continuously networking with contractors and builders within the industry to find customers who may be interested in spray foam insulation
- Offering free inspections or quotes to give potential customers an idea of your work ethic and expertise
- Attending trade shows where you can directly meet homeowners and business owners who are specifically in the market for spray foam insulation
Additional tips for maintaining your business include the following:
- Connect with your customers – You may be surprised to learn that 65% of new business comes from referrals. This means that your customers have the power to tell everyone how great or unsuccessful your craftsmanship or service is, so make sure you do right by them. That’s why we recommend offering referral discounts, sending thank-you notes, and showing up on time. All the little things add up to an overall satisfactory experience for your customers.
- Get social – Between Facebook, Twitter, and Instagram, it may seem overwhelming to manage a business’s outreach. Believe it or not, many consumers determine the legitimacy of a business by their social media accounts, so maintaining a good presence is key. You can also ask friends and family to share your company’s profile, which offers great exposure for your business. Customers additionally love to post reviews (which are especially important on Google Business Profiles!), and a few great reviews might be just what you need to encourage potential consumers to pick your business over the competition. Not savvy with social media? Ask your teenager or niece or nephew to help you get started.
- Mobilize your business – With 63% of searches done on a mobile device, optimizing your website so it can be viewed on a smartphone is a great way to turn your visitors into loyal customers. That’s because these customers want the path of least resistance, and if your website isn’t set up for mobile, it’s time to make a change. Companies that specialize in website building such as WordPress, GoDaddy, and Squarespace are a great choice for new businesses since they offer the most up-to-date templates that also include mobile-friendly versions.
- Join your local chamber – Networking may seem tedious, but many business owners have testified to the benefits of being a local chamber member. Not only does the chamber include you in their directory and website, but you’ll get to go to networking events that can connect your company with other businesses that can ultimately serve as a reference to you. An added bonus is that many chambers even offer a free website for joining, along with other perks depending on the organization.
- Educate the customer – Consumers are more educated than ever, and that’s why they expect you to educate them. Taking a few extra minutes to explain how spray foam or coating chemicals work will take you a long way. Ever noticed your customer hovering around the jobsite? It’s because they want to learn, and an informed customer is a customer for life.
What Equipment Will I Need to Start a Spray Foam Insulation Business?
Depending on the goals of your business, you will want to purchase different equipment that will help you along the way. We recommend acquiring the following to get started with your spray foam insulation business:
- Spray foam rig/trailer – This trailer is specifically designed to hold all necessary equipment.
- Spray robots – These automatic spray machines simplify the process of applying spray foam, with both single and plural component application options available.
- Spray guns – Spray guns combine the chemicals that are then applied to the surface.
- Heated hoses – Heated hoses connect to machines that apply spray foam. They are made of braided material to resist fatigue and failure.
- Personal protection equipment – PPE includes respirator masks, fresh air systems, protective suits, safety glasses, and more to protect yourself and your team from any hazards present.
And the list goes on. Check out our selection of products, such as spray rigs, spray guns, and more, today!
How Much Maintenance Does Spray Foam Equipment Require?
When owning and operating spray foam equipment, routine maintenance is essential to ensure that your operations run as smoothly as possible.
Some tips for maintaining your spray foam equipment include keeping a regular maintenance schedule, periodically inspecting your spray guns and hoses, and documenting your equipment use in a detailed log.
Are There Good Used Spray Foam Rigs Available to Buy?
Yes. At SprayWorks Equipment, we offer an expansive selection of spray foam equipment that is specifically designed by some of the most trusted manufacturers in the industry, such as PMC, Graco, and beyond.
Along with our offerings, we also include equipment training at an affordable price, ensuring that even those just starting their spray foam business can benefit from working with us! Contact our team directly for more information about how we can accommodate your business’s needs.
Is a Spray Foam Insulation Business Profitable?
With all of the associated costs of equipment, parts, and materials, you might be wondering if a spray foam insulation business can be profitable. All of the investment costs, while significant, must be weighed out against the demand for spray foam insulation and properly priced per square foot.
If you invest correctly in your marketing and get several quality customer referrals under your belt, this will help you get established with consistent work. The more your business base grows, the quicker your initial investments will be paid off. If you maintain a good relationship with your supply line, as well as with your customers, building your reputation as a quality service, you can begin to see profits.
So yes, a spray foam business can be a lucrative endeavor, but it may take a little time to get to that point.
How Long Will It Take to Recoup My Initial Investment in the Business?
Though the duration may differ depending on the business and its initial starting point, on average it takes anywhere between 2 to 3 years for a company to become profitable after the initial investment. However, spray foam companies that are good at following up, word of mouth and working quickly and efficiently will typically see a much faster return. For a spray foam business, investments can include equipment, materials, licensing, and marketing spend, and the recoup can depend on the efficiency of acquiring customers and the seasonality of the work, among other things.
How Do I Find a Spray Foam Business for Sale?
If you’re searching for a spray foam business for sale, you’ll want to consider your market and determine the type of equipment you’ll need to complete the jobs you want to target. Here just some things to keep in mind going forward:
- Do the research for a business in your area – Once you’re ready to jump on board, you’ll need to find a spray foam business for sale in your area. You’ll want to research the seller and ensure you’re purchasing a foam insulation business that’s right for you. Check your market’s competition, and don’t be afraid to question why the business is being sold. Make an appointment to look at the spray foam business’s existing assets and all the equipment you’ll be buying. Finally, thoroughly check to make sure all equipment works, or there’s an agreement for repair or replacement.
- Come to an agreement that works for you – When you and the seller have come to an appropriate agreement, everything should be put into writing and signed by both parties as a formal contract of sale. Any terms that you have discussed, such as which equipment you’re purchasing, should be clearly expressed in the sale agreement. You may put a deposit on the business, but the final payment shouldn’t exchange hands until all equipment and assets are picked up.
- Refer to an expert – If you’re wondering how to start an insulation business, you may be surprised to discover that in some cases, buying new spray foam equipment can be less expensive than opting for used equipment. A reputable retailer can offer brand-new spray foam insulation equipment for a great price, and you are guaranteed to get a working product that is worth the investment. Otherwise, finding an existing spray foam insulation business for sale can be a great way to get started in the growing industry. Do your research, find a seller, and ensure everything is agreed to in writing.
How Much Does It Cost to Start a Spray Foam Business?
The cost of a spray foam business is hard to nail down by the numbers because it greatly depends on the services you offer, the size of your staff, whether you purchase new or used equipment, and how much you reinvest in your company through marketing efforts.
The upfront costs of starting a spray foam business tend to range between $45,000 and $65,000. With bigger projects that require more material and equipment, depending on the range of services you offer and the purchase of the product, those costs can be up to $80,000 to $90,000.
Does Being Part of a Spray Foam Business Require Ongoing Training and Education?
Yes, when working for a spray foam business, ongoing training is incredibly important for keeping up with the latest codes and regulations, maintaining or obtaining industry certifications, mastering new equipment, and more.
What Specific Skills or Qualifications Are Needed to Start a Spray Foam Insulation Business?
A common working knowledge of the spray foam insulation process is needed, especially when you are wanting to establish yourself as a credible, industry expert in the field. Luckily for you, SprayWorks Equipment offers unmatched spray foam education, as well as helpful blogs and tips from the experts, to help you get started.
Some of our educational offerings include:
Depending on the amount of experience you bring to the table, our team can help you get up to speed before you officially start your spray foam insulation business. For convenience, we offer training at two separate locations: Kent, Ohio, our primary training facility, and on jobsites, for those that need help with specific projects. When you enroll in our program, you can expect to develop skills in the following areas:
- Project management
- Equipment start-up and shut-down
- Proportioner service and gun maintenance
- Processing of chemicals
- Equipment operation
- Basic spray foam equipment troubleshooting
- Polyurethane foam and coatings application methods for multiple substrates
Whether you have received training in these areas previously and need a refresh or are new to spray foam, our program in our OSHA-approved polyurethane facility will guide you to success.
Plus, we are here to help our students after classes are over as well. We are always just a phone call away, ready to supply ongoing support as you begin using your equipment or encounter scenarios that might be unexpected. Contact our team directly to learn more about our educational courses.
What Are the Benefits of a Properly Trained Team of Spray Foam Applicators?
- Reduces downtime – If you have knowledgeable staff, this reduces the risk of mistakes, such as forgetting parts/equipment at the office and then calling the boss to drop things off, poor spray techniques required a teardown and respray, and running out of material and thinking it’s a good idea to supplement material with water (yes, it happens!). This last aspect is a costly mistake that can destroy expensive equipment.
- Prevents equipment mishaps – New equipment requires training, and a spray foam business can be very profitable if you understand how to properly operate the equipment and troubleshoot any issues that may arise. It’s not something you can learn in one training session, but the ongoing guidance will give you the foundation to understand the operation and basic troubleshooting techniques. More advanced troubleshooting may require a phone call to your supplier or simply years of experience. Watch our Fix-It Friday videos for more advanced techniques you can apply to your application.
- Decreases overall project and material cost – It’s simple: less expense on parts, materials, and repairs can lead to less money being spent. Having a crew that understands how to be efficient and properly use equipment can determine the overall productivity of your business. You can’t go back to a building owner and say, “Well, my guy didn’t know what he was doing so I’m adding extra expenses to your bill.” They probably won’t be interested in your services again. Remember, approximately 65% of new business comes from referrals. They are a valuable commodity.
- Decreases total time spent on projects – Time adds up quickly when a crew member is spending 5 extra minutes here and 20 extra minutes there. On the other hand, an employee who understands how to complete the job and knows how to work with the equipment is more likely to finish the job with unmatched efficiency. Let’s say, a crew of 10 waits around while one guy spends 2 hours trying to figure out why a spray gun is not spraying properly – that’s 20 hours in lost revenue. Can you afford to pay a crew to sit around for that time?
- Decreases workplace injuries and OSHA infractions – Workplace injuries are a serious issue, and there is nothing more important than a worker’s safety. We always recommend starting the day with a safety meeting, so the crew is aware of any potential hazards, project expectations, or additional PPE required. Especially when working with heavy equipment or on jobsites with fall hazards, having a clear plan in place is imperative. Training employees to understand workplace hazards and how to handle them is the first step in preventing injuries.
Do I Need Specific Licenses or Certifications to Start a Spray Foam Business?
In the United States, there is no national certification program needed when starting a spray foam insulation business. Because of this, most states usually just require a business license for independent insulation contractors.
Though there are no required certifications needed to start a spray foam business, there are industry certifications that we would recommend to make your company more experienced and credible compared to your competitors.
For example, the Spray Polyurethane Foam Alliance (SPFA) offers a certification to members looking to increase the overall quality of their installations. They do so by only implementing the industry’s best practices, as well as creating differentiation points between your company and other spray foam insulation businesses.
How Much Can a Spray Foam Company Make?
With the necessity of a considerable investment initially, it’s important to recoup that investment as your business develops in order to begin making profits. Via the right pricing structure and a steady flow of client acquisitions, a spray foam insulation business can be very lucrative, and you can generally cover your investments quickly if you do approach the process correctly. The spray foam jobs typically expect 50% in gross profits and about 25% in net profits.
In other words, a $10,000 job, after the cost of materials and labor, should gross about $5,000 of square footage if priced correctly. Expanding this to an annual scale, if each job takes two days to complete with a two-person crew operating out of one spray foam rig, it can net a business around a million dollars in annual profits.
What Are Some Organizations for Spray Foam Professionals?
If you are passionate about helping properties become as efficient as possible, beginning a spray foam insulation business is a great way to contribute to the cause. Getting involved can mean enrolling in classes, but education doesn’t need to stop there. Consider joining some organizations that will grow your network of spray foam professionals while giving you valuable knowledge that you can use to expand your business.
Here are a few organizations that are worth joining:
- The Spray Polyurethane Foam Alliance – You can either join the SPFA as a business or an individual for networking with other professionals
- The National Insulation Association – This national organization offers education, events, and publications for the insulation industry
- Insulation Contractors Association of America – The ICAA delivers programs to its members that keep them updated on the changes happening in the world of insulation
Want to Start a Spray Foam Insulation Business? Contact Us Today!
The most crucial steps are those you take to get started with your spray foam business.
Contact an expert today to discuss starting a spray foam business.
