The right insulation can save building owners money on utilities by regulating the internal temperature of buildings and reducing the need for air conditioning and heating. People are always looking for ways to cut costs, which is why there will always be a need for an insulation business that can provide quality insulation at reasonable prices.

Things You Will Need
  • Liability insurance

  • License bond

  • Bid, payment and performance bonds

  • Safety equipment

  • Blower

  • Spray foam machine or insulation trailer

  • Insulation materials

  • Utility van or truck

Find a location for your business that is within your budget. Since the majority of your customers may never step foot in your warehouse, your location isn't nearly as important as your advertising. A warehouse on the outskirts of town may have significantly cheaper rent. Look for one that is located near a major road or easily accessible from town.

Obtain your insulation contractor's license. Submit an application to your contractors state license board. Once approved, take the business and law exam. You will also need to provide proof of financial responsibility in the form of a contractors license bond. You may be asked to provide proof of full-time employment for a specific period of time. Once you pass, you can expect to receive your license within 1 to 2 weeks. Regulations vary by state. Contact your contractors state license board for details.

Visit your county clerk's office to register your business and obtain a sales tax permit. Familiarize yourself with the building codes for your county. Visit the Internal Revenue Service website to apply for your employer identification number so you can hire employees and file your federal income taxes. You will also need to register with your state tax office.

Purchase at least $500,000 in liability insurance. Let customers know that you are insured and bonded by detailing this information on your van, business cards and website.

Purchase a utility van or truck and trailer for your business. Purchase a spray foam machine or blower, insulation, billing invoices, protective safety gear such as glasses, coveralls and dust masks, power tools, step ladders, cleaners, and sealants. Purchase business cards, fliers, signage for your van, magnets with your business logo, and a work polo with your business logo. Another option is to purchase an all-inclusive insulation trailer, such as those offered by Visit to find a spray foam machine best suited for your size, portability and financial needs.

Advertise your business. Wearing your business shirt, go door-to-door in neighborhoods with older houses, which are less likely to have adequate insulation, introducing yourself and the services you provide. Purchase a website where you can include some background about yourself, your guaranty, and your services and prices. Visit your local Chamber of Commerce to network with other local business owners and get your name out there. Ask customers to put your sign in their yards in exchange for a discount. Advertise in online directories.


Avoid surprises at tax time. Visit the IRS website to learn about your tax liabilities as a business owner.

Generally, insulation can be disposed of in landfills like other kinds of construction waste. Contact landfill operators before attempting to dispose of insulation to learn about environmental requirements.

Consider joining the Insulation Contractor's Association of America to boost your standing with consumers.