20 Tips to Start Powder Coating Business

Powder Coating Business: Powder coating is the process by which certain types of metal are coated with paint in a powder form.

The part is sprayed with or dipped in the powder, which is electrostatically charged.

The parts are then baked in a convection or infrared oven to “cure” the coating.

Used mostly for coating aluminium, car and bicycle parts.

The surface is durable and produces thicker coatings than is possible using liquid paint.

For entrepreneurs and workers with special technical knowledge.

Starting a business is a way to potentially make money without allowing someone else to get rich from your efforts.

One option for a small or midsize business that takes advantage of a particular type of expertise is a powder coating business.

Powder coating is an electrical process for applying finish to metals as an alternative to painting.

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1. Powder Coating Business: Have The Needs

The question is why start a powder coating business?

Powder coating has increased in popularity in recent times.

The business is highly lucrative and easy to execute.

It is a process whereby powder is introduced to an object for beautification and protection.

The coating is applied electrostatically and does not require a solvent.

The thermoset polymer hardly emits any volatile organic compounds and comes in a verity of colors.

Powder coating finishes are durable and easy to apply hence the popularity.

The dry powder easily fuses with the object and heat is applied to cure the metal using a commercial oven.

It is applicable to different objects such as household equipment, machinery, metal and aluminum.

Although the business could be done from home, bigger operations require large premises.

See also; Top 40 Painting Tips in Nigeria

2. Powder Coating Business: Startup Costs

One of the key drawbacks to starting a powder coating business is the cost of startup.

You’ll need to secure a space, such as a commercial garage or warehouse, to house your operation.

You’ll also need to invest in equipment, including large curing ovens, a ventilation system and spray guns.

Marketing and employee recruitment.

Also add to the cost of getting your powder coating business off the ground.

However, startup costs can prove an advantage for a powder coating business compared to other,

More elaborate businesses.

If you specialize in powder coating you won’t need to buy conventional painting equipment

Or lease a large enough space to handle multiple services.

3. Powder Coating Business: Premises

You need to buy or rent suitable premises for the business.

You will require premises in an area zoned for industrial purposes.

As you will be working with powder coatings made from resins, curing agents, pigments and chemical additives.

You will have to find approved premises before you can apply for the business license.

And permit, as these applications require details of the location and facilities.

See also; 20 Tips to Start Powder Coating Business in Nigeria

4. Powder Coating Business: Business Requirements

You need a license and registration for your powder coating business.

Which you obtain through the office of your secretary of state.

If you plan to operate the business under a trading name, register a “doing business as”

Or DBA name with the Nigerian Small Business Administration.

Register with your state IRS office for business and sales tax.

And apply for the permit you need to work with chemicals.

Some states will only issue a permit once

An inspector approves the health and safety aspects of the premises.

The activity of applying paint in a powder form to metal is powder coating.

The process involves spray painting or dipping in a solution.

The coated metal undergoes heat treatment to cure the steel.

Baking is done through conventional oven.

Some finishers use modern technology such as infra red oven to carry out the process.

Powder coating covers a wide spectrum of applications such as motorcycle part spraying,

Automobile and many metallic and aluminum parts.

The effect of finish coating is durability, protection and beautification.

Listed are a few ideas on how to start a powder coating business

9. Powder Coating Business: Choose a Niche

Before launching the enterprise you need to choose a niche.

The niche would determine the type of equipment and manpower your need.

The three sectors are manufacturing, supplies and finisher.

The first two options are capital intensive while finishing is moderately challenging.

Once you have determined a course of action write a comprehensive business plan.

10. Learn the Powder Coating Trade

If you don’t have the perquisite skill you need to learn the trade.

Attend a technical school, trade centers, seminars and apprentice programs.

Study the techniques from books, manuals and online courses.

Use video tutorials, YouTube channels and practical experience to develop the talent.

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11. Powder Coating Business: Get the space

Once you have a clear definition of your operational direction.

Determine the amount of space required.

A hobbyist business could be done from home or small space.

However, if you want to powder coat full time you need appropriate working space.

The space should accommodate the equipment including storage and reception area.

The size of the powder containment, oven and power tools should be factored in the arrangement.

Powder Coating Business: 

12. Get the Spray Equipment

Finishing equipment are basic and durable.

There are different types of spray systems, guns, powder coating booths and applicators in the market.

Purchase only high quality products for your industrial powder coating business.

You need a powder containment unit, applicator gun, powder spray booth and curing oven.

Other equipment’s are bulk feed system, safety goggles,

Applicator, accessory kit and auxiliary equipment.

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13. Standard Safety Requirements

Coating booth should conform to basic health requirements.

Such as having exhaust ducts and vents.

Safety gear and goggles should be worn during spraying or coating.

You need a large solvent tank and waste disposal system.

Others are standardized oven specification, cleaning solvents and color mixing equipment.

Read also:7 Tips to Start Tank Construction

Business in Nigeria

Powder Coating Business:

14. Get the 17 Needed Equipment

• Spray Systems
• Hoses
• Reservoir
• Tanks
• Accessories Kit
• Spray/Powder Coating Booths
• Filters
• Applicators
• Tubing
• Dispensing Systems
• Bulk Delivery Systems
• Pumps and Pumping Systems
• Auxiliary Equipment
• Adhesives and Sealants
• Feed Centers
• Control System
• Nose mask

Powder Coating Business:

15. Permits and Licensing

You are dealing with chemical material so proper safety protocols should be observed.

You need a license to handle the coating pigments, spray and dispose of wastes.

Once you get your powder coating license you need a trade license.

Your business also needs to pass health and safety inspection.

Other requirements are registration of business name and tax consideration.

You need some form of insurance cover.

Powder Coating Business:

16. Coating Profit Margin

Powder Coating business is divided into manufacturing, supply and finishing powder coating.

Raw materials are subject to economic conditions in which they are manufactured.

The price differentiation in product is predicated on quality, cost and efficiency.

Due to advancement in experimentation and technology,

Manufacturers are able to optimize production and offer competitive prices.

Powder Coating Business

A problem manufacturer’s face during production is the price of raw materials.

Despite focusing on lower labor costs and production optimization the profit margin remains low.

This is because consumers consistently demand lower powder price.

Other problems are production over capacity, low market demand

And proliferation of cheap foreign products.

To breakeven and offer better prices and margins manufacturers,

Suppliers including finishers need to innovate.

Finishers should offer their clients high quality service with commensurate prices.

Offering rock bottom prices could be counter productive.

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17. Customer Acquisition

Powder coating attracts both commercial and individual clients.

This means your new powder coating business has the advantage of a large potential base of customers.

You can advertise at custom car and motorcycle.

Shows to interest auto enthusiasts and restorers in your services.

While, at the same time, lining up business clients with large-scale industrial powder coating needs.

18. Specificity

A powder coating business specializes in a single service.

Which can be both a benefit and a disadvantage.

If you plan to establish your business as a source of superior-quality powder coating.

The lack of other services will help increase your credibility.

And make it easier for you to work toward your single goal.

However, if you fail to stand out based on your powder coating work along.

You won’t have any additional services to offer.

Automotive or industrial finishing businesses.

Which combine powder coating services.

With conventional painting and other finishing processes.

Such as chromate conversion coating and Teflon coating.

Have multiple offerings to serve the needs of an even more diverse customer base.

19. Competition

Competition is a problem for any business that doesn’t have an exclusive hold over its market.

If you choose to start a powder coating business.

You’ll need to work toward distinguishing yourself from similar businesses in your region.

As well as multi-service businesses that offer powder coating as one of their services.

There’s also the trend of small-scale do-it-yourself powder coating and at-home finishing to contend with.

A strong marketing campaign and a diverse strategy for attracting customers will be a priority before you can turn a profit.

Read also:30 Tips to Succeed in Painting Business in Nigeria

20. Get The Benefits

There are plenty benefits to get into powder coating right now, but here are the best:

• The Finish Lasts – Powder coated items have a longer lasting, more durable finish. If you want your parts to look good for years, powder coat them.

• Easy To Apply – Even new powder coaters can get great results.

• Costs Less With Less Waste – Typically, powder coating is cheaper than other forms of finishing (like wet paint) and has less waste due to overspray.

• Better For You and The Environment – Powder coating is a safe and clean way to finish your parts, and doesn’t pollute your shop space like wet paint.

• Fewer Hassles – Because powder coating is safer and easier than wet paint, there are fewer government-imposed limitations to what you can do.
• People Want It – This is the best reason to start a powder coating business right now: the demand is high. Everyone wants it!  Powder coating is used everywhere — from hand rails to car parts to playground equipment — and there aren’t enough powder coating shops to meet the demand.