How to Start a Fencing Company in 14 Easy Steps

1. Research the fencing market

Before you start a fence installation company, research the local market. This will help you identify potential customers and determine whether there’s enough demand in your service area to be profitable.

Consider the following:

• Target audience: Decide if you want to serve homeowners, commercial property owners, or both. Residential customers may need privacy fences or decorative fencing, while businesses often need chain link or steel fences. Knowing your audience will help you design services that meet their specific needs.
• Local demand: Look at your area’s demographics and property types. How many homes or businesses could potentially need fencing? High-growth residential neighborhoods may offer steady demand for fencing. On the commercial side, look for industrial parks or retail centers where fencing is often required for safety.
• Local regulations: Check local codes or regulations related to fencing. Your area could have rules about fence height, materials, or placement. Especially for properties near roads or shared boundaries.
• Customer pain points: Think about the problems your fencing services can solve. Homeowners may not have the time or expertise to install a fence, while business owners might need reliable contractors to meet regulations. Highlight how you’ll take the stress out of installing and maintaining fences.
• Pricing expectations: What are people in your area willing to pay for fencing? Some may simply want an affordable option, while others might value premium materials and craftsmanship. Tiered pricing—such as budget, standard, and high-end options—can help you cast a wider net.
• Customer priorities: What do your ideal clients care about most? Homeowners may want a fast installation and low-maintenance materials like vinyl. Commercial clients might care about features like high security and weather resistance.

2. Create a business plan

Start your fence installation company by writing a fencing business plan. This helps you identify your customers, figure out how to stand out from competitors, and create a game plan for your business.

Creating a business plan is also essential if you’re getting startup capital from an investor—they want to know their money is being spent wisely.

Make sure your fencing business plan includes:

• Cover page and table of contents showing what the document is and what it includes
• An executive summary that covers the business plan’s main points on a single page
• Business overview introducing and describing your fencing company
• Fencing services list that you plan to offer customers
• Pricing strategy that details how much you’ll charge for your fence installation services
• Target market analysis to identify and evaluate your service area, market opportunities and challenges, and ideal customers (i.e., age, income, family status, project size)
• Competitive analysis of other local fencing companies and competitive strategies to help you stand out (e.g., filling a specific niche like wrought-iron fencing)
• Marketing plan for advertising your fencing business and winning new customers
• Employee planning, including what roles you need to hire and when
• Financial projections and cash flow strategy for your first year of business, accounting for up-front and ongoing expenses

Get a more detailed guide to writing a fencing business plan from the Small Business Administration.

3. Choose a fencing business name

Your name is one of the most noticeable parts of your service business brand, so it’s important to get it right. Choose a unique name that tells customers what you offer and is easy to remember, like:

4. Register your business as a legal entity

Once you’ve chosen a name, you’ll need to register your fencing business to ensure you’re operating legally. The first step is choosing your business structure:

• A sole proprietorship allows you to own and run your business as an independent fence contractor.
• Register as a partnership if you’re running the business with one or more other people who are legally considered self-employed.
• Registering as a limited liability company (LLC) will protect your personal assets from liability in case you run into any legal situations.

READ MORE: Should I incorporate my small business?

Next you’ll need to register your company name. Here’s how that process looks in a few different countries:

• United States: If your fencing company name is available, register your entity name, buy a domain name for your business website, and register your DBA if needed. You can also trademark the name to keep anyone else from using it.
• Canada: Register the trade name and trademark it to protect your brand. (You can skip this step if your business name is the same as your personal name.)
• United Kingdom: You don’t need to register your business name in the U.K. However, check name availability and trademark the name to make sure it’s unique.
• Australia: Register your business name through the Business Registration Service, ASIC, or a private service provider. (Skip this step if the business name is also your personal name.)

Available business structures and registration requirements will depend on where you live and how you plan to run your company. Check with your government’s business registration division to see what’s required.

Pro Tip: Type “YOUR CITY NAME + business laws” into Google to find local, state, and federal regulations for fencing contractors.

5. Register for taxes

Plan to have employees or work with a partner? Apply for an employer identification number (EIN) so you can file taxes with the Internal Revenue Service (IRS).

There may also be requirements for state and local sales tax in your area, including added taxes in certain cities or counties. Double-check your state’s tax guidelines to make sure you’re compliant.

You can get added tax benefits if you registered your business as a corporation—for example, a C corp or S corp.

READ MORE: 30 small business tax deductions to save money when filing

6. Get the necessary fencing permits and licenses

You’ll most likely need a business license to legally work in your area. Check with your local Chamber of Commerce and the Small Business Administration to learn what type of license you need and apply for one.

You should also check to see if you need any extra licensing in your state. For example, if you’re in California and doing fence installation jobs worth over $500, you’ll need to register with the Contractors State License Board.

7. Get funding and open a business bank account

You’ll need capital to start your fencing business and get it off the ground. Figure out what you have to buy, including fencing equipment, and then figure out where that funding will come from.

These are just a few options for getting small business funding:

• Business loan: Apply for a small business loan or line of credit that you can pay back later.
• Credit cards: Get a business credit card with a low interest rate and reward points for every dollar you spend. Just make sure you pay it off every month.
• Personal loan: Ask friends and family for a small startup loan, either with interest or in exchange for a stake in your business.
• Government funding: If you’re in the U.S., apply for funding through the Small Business Administration or get business grants and financing from the Government of Canada.
• Jobber Grants: The Jobber Grants program spotlights small home service businesses that do great things for their communities. It offers $150,000 in available funding, distributed through 25 grants.

Once you’ve applied for funding, set up a business bank account for income and expenses.

This keeps your personal funds separate from business funds and shows potential investors you’re serious about your business’s financial health.

8. Define your services list

Decide which services you’re able and willing to provide to customers, like:

• Custom fence design
• New fence installation using a range of materials (e.g., wood fencing, vinyl fencing, chain link fence, aluminum fence, wrought iron fence)
• Coordinating local building permits as needed
• Calling utility locators to ensure safe fence installation
• Old fence repair or removal
• Privacy fence maintenance (e.g., staining, pressure washing)

Some customers have limited budgets and want to do as much work themselves as possible. So, you might be able to make extra money by selling your materials and labor separately.

By offering a range of options and services, you can attract a wider range of clients with diverse fencing needs and establish yourself as a reliable and reputable fence installer in your area.

9. Price your services

Have a detailed pricing model in place before you start reaching out to potential clients. That way you can create accurate fence installation estimates quickly and accurately.

Here’s a brief overview of how to price a fencing job:

• Add up material costs. Let’s say you’re building a wood fence. Between boards, nails, stain, cement, and other required items, you’ll need $4,000 in fencing material costs. Add a markup, too—at a 5% markup, this brings you to $4,200 for materials.
• Estimate labor costs. Estimate the number of hours the job will take. Say it’ll take 16 hours to erect this wooden fence. Multiply that by your hourly rate—say, $18—for $288 in labor costs.
• Calculate hourly overhead. Add up the monthly expenses involved in running your business, like your phone bill, marketing costs, and fence software. Divide that amount (we’ll say $1,000) by the number of hours you work each month (say 160) for an hourly overhead rate of $6.25. So, for a 16-hour job, overhead is $100.
• Factor in profit margin. Your profit margin is how much income your business keeps after you deduct all expenses. With a 25% profit margin, your profit for this job will be $1,147.
• Add in taxes. Find out your state’s sales tax percentage, as well as any local taxes, and multiply your subtotal by that total percentage. Assuming an 11% tax rate, that’s an additional $630.85.

Add it all up, and your fencing contractor rate is $6,365.85 for this fence project. Use our free service price calculator to add up these numbers for fast, easy, on-the-spot pricing.

Pro Tip: Be aware of what your competitors are charging for their fence installation services. Your prices don’t have to be cheaper, but they should be competitive in your local market.

10. Buy fencing equipment

Plan to spend $1,200–3,500 (USD) for fence installation, repair, and maintenance equipment. Bring this fencing tools list when you head over to your local fencing supply store.

You may not need all these tools for your first fencing job, so start with what you need—and get low- to mid-range items to start. You can always add to and improve your toolkit over time.

11. Get business insurance

Small business insurance for a fencing contractor costs upwards of $500 (USD) per year. At the very least, you’ll need a business owner’s policy that includes:

• General liability insurance in case of property damage or bodily harm
• Commercial property insurance for damage to your equipment or place of business
• Business income insurance to maintain cash flow after an incident or disaster

You can also get business insurance coverage for other situations that could harm your business, like:

• Commercial auto insurance for your company vehicle
• Workers’ compensation insurance in case an employee is injured on the job
• Professional liability insurance for claims and lawsuits over professional mistakes
• Employment practices liability insurance for worker-related claims
• Crime insurance in case of criminal activity (e.g., theft, vandalism)
• Cyber liability insurance in case of a security breach or data leak
• Key person insurance to keep the business open if you physically can’t work anymore
• Commercial umbrella insurance as extra coverage in addition to your other policies

You may also want flood insurance, tornado insurance, or other weather coverage, depending on where you live. Do your research, compare insurance providers, and choose the one with the right policy for your needs.

12. Hire fencing employees

Building a fence is a big job that’s difficult to do alone. When you start a fencing company, you’ll need extra hands to raise fences fast and keep your customers happy.

Here’s how to hire your first employee and build your fencing crew:

• Decide whether you need part-time or permanent employees to help build fences, or if you want to hire them as a subcontractor or employee.
• Create a job description for your new hire that includes job responsibilities, qualifications, working hours, and compensation.
• Share your job posting on online job boards like LinkedIn and Indeed so qualified job hunters can easily find it and apply.
• When you start getting applications, make a list of your top candidates, schedule interviews, and ask thoughtful interview questions.
• Make an offer to your top candidate. Then onboard and train them once they accept.

The hiring process could take a couple of days or several months, depending on how long it takes to find qualified fencers. Don’t rush into hiring just anyone—wait until you find the right person for the job.

13. Advertise your fencing services

You’re ready to get your first customers—but first you’ll need to find them and tell them what you offer. Do that by adding these low-cost fence company advertising ideas to your marketing plan:

• Word of mouth is the most effective marketing channel for a fencing business. Create a customer referral program and ask customers for a review after doing a great job.
• Print business cards, buy a vehicle wrap, and get branded uniforms. This makes your business look more professional and helps potential customers recognize your brand.
• Build a website where potential customers can find out more about your services, see photos of completed jobs in a range of fencing materials, and book services online.
• Create social media profiles like a Facebook business page or Instagram account. Share photos of your work and interact with your ideal customers on these platforms.
• List your business on Google Business, Yelp for Business, Bing Places, and other online directories. It’s also a good idea to create a listing on lead generation sites for contractors, like Angi and Thumbtack.
• Connect with your community by joining your area’s chamber of commerce, meeting other small business owners, volunteering at special events, and sponsoring local fundraisers.
• Invest in digital marketing using Google Local Services ads and search ads. This helps you reach clients who are looking for fencing services online.

14. Build strong customer relationships

Investing in customer retention and building relationships with customers will help you become a fencing installer who’s in demand. Here are a few ways to do it:

• Word of mouth is the most effective marketing channel for a fencing business. Create a customer referral program and ask family, friends, and prospective clients to tell others about your business.
• Hire the right employees with the right attitude who uphold your company’s values. One way to do that is with an employee referral program.
• Create standard operating procedures, systems, and processes. For example, follow up before, during, and after a job to make sure clients are happy.
• Offer a client hub where your customers can conveniently request work, approve quotes, double-check visit details, and pay invoices online.