Things to Consider When Starting an Elevator Business

If you’re a budding entrepreneur and want to start a business that promises to see growth in its industry of 25 percent from 2015 to 2022, then an elevator installation and maintenance business is an excellent choice.

Elevators move more than 300 million passengers daily throughout the United States, and all those elevators need someone to help with the upkeep. Additionally, there are many technological breakthroughs on the verge of hitting the marketplace. Chief among these is like something straight out of science fiction: the elevator that goes sideways as well as up and down. ThyssenKrupp Aktiengesellschaft is at the forefront of this exciting innovation, and it’s only a matter of time before it comes to fruition in New York City.

To begin the process, you should evaluate both the market in the city where you wish to locate your business. Large, urban centers, such as New York and Chicago, offer the most opportunities; however, midsize cities can also provide an exceptional opportunity if there are few competitors. Using the information regarding the competition as a guideline, you should then craft a business plan. Although this seems a daunting task, there are many commercially available software programs to assist you with it.

Contact an established elevator repair and installation firm in a city that would not directly compete with you for business and ask for a few tips. The best answers come from those who are already doing the work.

Before you lay the cornerstone of your new business, however, you must first cultivate some business relationships with building owners and businesses in the city where you intend to do your work. Having the best business plan around and exceptional equipment and staff will be useless if there are no buildings that need your services.

To alleviate some of the tedium of pavement pounding looking for jobs, you might consider acquiring an existing, successful elevator business. If the business is successful, the current owner will have already done the legwork for you; you’d only have to change the sign over the door and the letterhead on the stationery. If you’re savvy enough, you might even leapfrog other elevator businesses with more experience. If the world of leveraged buyouts and takeovers isn’t your bag, then you might consider purchasing a franchise of a large-scale elevator business.

In all cases, unless you have a seven or eight-figure bank account, you’re going to need startup capital. Over the years, fledgling entrepreneurs have borrowed from family members, banks and any one of a number of different entities. It’s essential to have a first-rate business plan in place before going searching for money. Otherwise, smart investors will pat you on the head before showing you the door. One more thing to remember: When you hit it big, remember where you started. Write a check to the next starry-eyed entrepreneur who crosses your path. Paying it forward is its own reward, and network building is never a wasted activity.