How to Start a Building Material Business? [Investment, Profit]

. 7 min read
How to Start a Building Material Business? [Investment, Profit]

The construction industry has several money-spinning, unique business ideas, and supplying building materials is one of them. In the past few years, building and construction work has seen a steep rise in India. Resultantly, the building material business saw a huge upsurge, and the people supplying these materials are making huge profits.

You, too, can earn good fortune from this business. But, given, you start the business with proper planning and strategies. In this article, you'll learn everything about how to start building a material supplier business.

Hold on tight! It's going to be a long read but worth your time. Let's go.

Building Material Business – Overview

As the name says, Building Material Business is about trading the materials used in constructing a house or building. It may not necessarily be one of the new business ideas but has become highly prominent lately due to the profit return it offers to the traders.

People involved in the building material supplier business can earn up to crores depending on their network and capacity to do the business. The different building materials that the traders deal in include loose rock, sand, iron, bricks, cement, ladder, bamboo round poles, and construction equipment excavators, loaders, graders, bulldozers, backhoe, and others. Traders should have a perfectly strategised building material business plan to make the best out of the opportunity.

How to Start Building Material Business?

Follow the steps listed below to build a successful building material business -

1. Contact material suppliers or companies that can provide you with the building materials

Construction materials and equipment are sourced from the companies manufacturing them. If you have finally decided to get into the building material business, shortlist different companies such as iron-making companies, cement producing companies, brick manufacturing companies, and others. Crusher is the best place to source materials like sand, bamboo around poles, etc.  

It is best to list down all your material requirements and their quantity. Next, start contacting the suppliers and companies and place an order for all the materials. If need be, you may source some information from your competitors about how much material to buy, where to buy, etc. It will make things a little easier for you. However, there are several unique business ideas out there, but only a few of them are as promising as a building material business.

2. Select the right location for your building material business

To run a Building material supplier business, you'll require a large area. Therefore, it is best to choose where large vehicles like big tractors and trucks can easily move around. These vehicles transport the materials from one place to another.

You can start the business on your land (if you have any) or consider taking up space on lease or rent. If you are still wondering how to start building a material supplier business, you can help some experienced people in the market for guidance.

Also Read: Best Cement Brands in India

3. Arrange Transport for the Business

Hire a truck or tractor for arranging the transfer of materials from one place to another. You may either contact a reliable transport business company in your area or make arrangements for a rental vehicle, a more economical option in the construction supply business. Also, you'll get tremendous import and export opportunities in this business.

Whether you are an established building material supplier or starting, be sure you know the trade's know-how. Then, you can easily create a perfect building material business plan with the right set of information. Then, try new business ideas to grow your business far and wide.  

Also Read: AAC Blocks Manufacturers in India

4. Get a License before executing your building material business plan.

It is important to get a license from your state's authority before you start the business. Industry-based business registration is mandatory for Micro, Small, and Medium Enterprises. Apart from giving identity to a business, registration comes in handy when applying for a business loan.

Additionally, you will require GST registration and a trade license. After your construction supply business gets all the licenses issued in its name, it will be considered legal by law. Only then can you enjoy the privileges given to legal construction material suppliers.

5. Calculate the cost of setting up the business and prepare your budget accordingly

Before calculating the cost, determine the scale of your business. Decide whether you want to start small or big. Know that you'll need a minimum of INR 10 to 12 lakhs initially. However, it is considered one of the best business ideas. You can make good money only if you are smart with your strategies and planning.

It isn't mandatory to maintain stock of every construction material. Suppose you have a tight budget and choose to stock a limited number of materials with a higher demand comparatively. If you round off on starting a large-scale building material business, then you'll need at least INR 40 lakhs when starting up.  

6. Look for reliable and experienced employees for the business.

It is not practically possible to handle everything in the building material supplier business. Hence, it is important to hire people who can help you out in stocking, loading, and transporting the materials. They can be hired on a fixed salary according to their skills and job profile.

7. Focus on marketing your new venture  

The real game starts after establishing the venture. After creating a building material business plan, you need to promote and spread the word about your business. Even if you employ the best small business ideas, you won't get the desired results until you promote them so that more and more people can have information about it.

Therefore, advertising your new venture is highly important. You may advertise in the newspaper, distribute pamphlets, use social media to inform people and share the info with friends and family.

8. Ensure flawless customer services to attain success

Knowing about how to start building a material business isn't enough. You need to ensure flawless customer service to keep your business up and running. Take customer feedback and improve things accordingly so that you can meet their particular needs efficiently.


When you start building a material supplier business, it is ideal to sell the materials at the lowest possible price to attract more customers. Once your customer base increases, you can apply smart small-scale business ideas and generate good revenue.

We hope our article helped you with your research. You can also visit these linked articles if you're interested in starting such a business:
Dry fruit business Pani Puri business Car dealership Kirana business
Franchise business Medical store business Tea stall business Vegetable business

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Q. What are the first steps to starting a building material business?

Ans. First of all, you need to collect all the relevant details related to the business and plan out everything from location to marketing. Then, you'll need to contact the suppliers or material manufacturers in the next steps, get a license, arrange funds, and execute your business's marketing strategies.

Q. What are the different cost overheads of the construction materials business?

Ans. The major cost of building materials business goes into sourcing the materials from the distributor/manufacturer. Additionally, you'll need a storage house or warehouse for storing the surplus materials. Additionally, cost overheads involve arranging delivery trucks, flatbeds for delivering steel beams, trusses, and other similar items.

Besides, you'll need to build office space for managing logistics, receipts, and deliveries. And as your business grows, you'll be required to invest more in warehouse space and delivery vehicles fleet expansion.

Q. How will the OkCredit App help in the growth of my construction material supply business?

Ans. OkCredit is a one-stop solution for MSME and SME for managing payment, credit, and supply of materials to the customers. The app eliminates the need to note down all the relevant details of customers, sales, debt, and credit. Moreover, it also tracks and manages the payment status of the customers that take materials from the business on credit. All the details can be managed and accessed easily, in a simple way, in the OkCredit App.

Q. How can you make your business more profitable?

Ans. You can connect with building construction contractors or real-estate experts involved in constructing new buildings and reconstructing the old ones. Additionally, you may pull seasoned metal, lumber, and stone materials for resale and generate some extra revenue.

Q. Is it safe to use the OkCredit App for building a material supplier business?

Ans. Yes, OkCredit App is a 100% secure and safe option for maintaining transaction records, sending payment reminders, and receiving a real-time update of the payment.