Growing Your Shed Construction Business to New Heights

You’ve got the carpentry skills. You’ve built decks, framed houses, maybe even worked for another shed company. Now you’re wondering if you could build your own shed business that actually makes money.

You can. The shed and outdoor storage market hit $7.2 billion in 2024 and keeps growing at 6% annually. Homeowners want backyard offices, she-sheds, workshops, and storage that doesn’t look like a metal box from the hardware store. The demand is there.

The construction part you’ve got. The business part is where most builders get stuck. That means understanding your costs, pricing for real profit, showing up where customers are actually searching, and building systems that don’t fall apart when you get busy.

Lawrence Shirk, owner and founder of Sunrise Structures, transitioned into shed building in 2008. Since then, he’s grown the company from a small operation into a multi-location business with his sons now buying in. His advice for builders looking to get started? Don’t think about what’s easiest to build, start thinking about what customers actually want.

“We are in the people making people happy business,” Shirk says. “We’re using sheds to do that.”

Here’s how to build something that lasts.

Pick the right business model 

Not every shed business looks the same. Your startup capital, skills, and local market should drive which model you choose.

Custom builder. You design and construct sheds in your shop or on-site, then deliver. This model offers the highest margins, but you need equipment, materials inventory, and skilled labor. This is where differentiation lives. Shirk grew Sunrise by moving past “the plain Jane four-cornered shed” into buildings with dormers, decorative windows, and architectural details that make customers say “wow.”

Prefab dealer. You partner with manufacturers who provide inventory on consignment or wholesale, then sell from a display lot. You’ll face lower startup costs and a faster path to revenue, but thinner margins and less control over the product. Your lot location becomes everything—high visibility near busy roads drives traffic.

Installation service. You assemble prefab kits and handle delivery for retailers, manufacturers, or homeowners who bought kits themselves. You need minimal equipment and basic construction skills, and overhead stays low. It’s a solid entry point that can fund your growth into custom building.

Most successful shed operations eventually blend models. You might build your own custom line while also offering installation services or selling through dealer partnerships. 

Start with the model that matches your capital and skills. Evolve from there.

What to do: Be honest about your starting capital and risk tolerance. Custom building offers the best margins but requires $30K+ to start properly. If you’re bootstrapping, installation services get you cash flow fast and teach you the market before you invest in manufacturing.

Invest in startup costs 

A shed business can launch for less than you’d think—typically $10,000 to $50,000—depending on your model. But undercapitalizing kills businesses. Know what you’re getting into.

The essentials:

• Business registration and licensing: $100–$500
• Contractor’s license (requirements vary by state): $500–$5,000
• General liability insurance: $1,000–$3,000/year
• Tools (saws, drills, compressors, nail guns, levels): $2,000–$10,000
• Truck or trailer: $5,000–$30,000 used
• Initial materials: $2,000–$10,000
• Website and basic marketing: $1,000–$5,000

Custom builders also need shop space, whether it’s your property, a leased warehouse, or even a large garage to start. Dealers need a display lot with signage and visibility.

Keep equipment lean early. Rent specialty tools until your volume justifies owning them. Stock your best-selling sizes and styles, not a full catalog.

What to do: Build a detailed budget including three months of operating expenses as cushion. Shed sales are seasonal so you’ll need cash reserves to survive slow winters.

Understand local permits 

Most jurisdictions use 200 square feet as the magic number. Sheds under that threshold typically need no permit or just a simple zoning permit. Larger structures like pole barns trigger building permits, plan reviews, and inspections.

Regulations you need to research for your service area:

• Size and height limits for accessory structures
• Setback requirements—typically 3 to 5 feet from side and rear property lines
• Foundation requirements for larger buildings
• HOA restrictions that go beyond municipal code
• Zoning for your own shop if you’re manufacturing

This knowledge becomes part of your value. Most homeowners have no idea they might need a permit—or that an unpermitted structure can derail a home sale. When you can walk a customer through requirements confidently, you stand out as more than a builder. You become a trusted advisor.

What to do: Call your local building department. Get the specifics for your area. Create a simple one-page guide you can share with customers. It positions you as the professional who knows what they’re doing.

Price for profit, not just sales

Here’s where most new builders get it wrong: They price based on what competitors charge or what feels reasonable, not on what actually makes them money.

Shed pricing varies widely—anywhere from $15 to $150 per square foot depending on materials, features, and complexity. A basic prefab kit assembly sits at the low end. Custom builds with dormers, electrical, insulation, and architectural details command premium rates. 

That range is your opportunity: Competing on price puts you at $15/sq ft with razor-thin margins, while competing on quality and experience positions you at $50+ with room to breathe.

Your target margins should also align with industry benchmarks. Builders average 20.7% gross margin and 8.7% net margin. If you’re below that, you may either be underpricing or leaking money somewhere in your operation.

What your pricing needs to cover:

• Materials: lumber, siding, roofing, hardware, doors, windows
• Labor: including your own time at a real hourly rate
• Delivery: truck costs, fuel, setup time
• Overhead: insurance, shop rent, tools, marketing, admin
• Profit: your margin above all costs

Shirk’s most profitable projects? Custom builds where customers care more about getting it right than getting it cheap. “Price is somewhat important,” he says, “but not as important as making people happy.”

When customers push back on price, financing changes the conversation. Acorn Finance lets you show payment options on the spot, turning a $12,000 quote into a monthly number that feels manageable. The customer gets the shed they actually want instead of compromising. You get paid in full.

What to do: Calculate your true all-in cost on your last five projects. Include every hour of your time. If your gross margin isn’t hitting 20%, raise prices or find the inefficiency.

Show up where customers are actually looking

Shed buyers search locally, visit a few lots or websites, and decide fast. Your marketing needs to capture people who are ready to buy right now.

James Charles, COO and co-owner of E-Impact Marketing, has worked with over 50 shed businesses. His advice: “Start near the bottom of the funnel and work backwards. Make sure you’re showing up for people searching ‘shed builders near me’—those low-funnel terms where they’re close to pulling the credit card out.”

75% of consumers regularly read online reviews when researching local businesses. And 88% would choose a business that responds to all its reviews—compared to just 47% for businesses that ignore them.

Your marketing priorities, in order:

1. Google Business Profile. Claim it, complete every field, add 10+ photos of completed work, list your services and service area. This is how you show up in “near me” searches.
2. Reviews. 71% of consumers regularly read online reviews when researching local businesses. Ask every happy customer for a review. Respond to every review within 48 hours—yes, even the negative ones. A professional response to criticism often impresses potential customers more than the complaint itself.
3. Local SEO. Build pages targeting “[your town] shed builder” searches. Get listed in directories with your business name, address, and phone number everywhere.
4. Display lot (if you have one). High-visibility location, clear signage, a few eye-catching builds. Foot traffic still converts.

Charles recommends investing 2% to 4% of gross revenue in marketing. “If you’re spending 1%, there’s probably growth potential you’re leaving on the table.”

And answer your phone: 35% of homeowners say getting their first call answered is the most important factor in choosing a contractor. Nearly 40% won’t hire someone who doesn’t respond quickly. Speed wins.

What to do: Search “shed builder [your town]” right now. If you’re not on the first page, you have work to do. Start with your Google Business Profile.

Turn every customer into a referral source

Sheds are a once-or-twice-in-a-lifetime purchase. You’re not building recurring revenue from repeat buyers. You’re building a referral engine.

“Referrals are huge,” Shirk says. “Word of mouth is worth way more than any marketing agency. When your neighbor says he wouldn’t go anywhere else for his building, they’re already sold when they come to buy.”

Sunrise pays for every referral through a structured program. And those referred customers close faster because they arrive already trusting the company.

Build your referral system:

• Formalize it. Offer $50, $100, or a percentage for referrals that close. Make it real.
• Ask at the right moment. Delivery day, when they’re standing in front of their new building, is when satisfaction peaks.
• Make it effortless. Give them a card or link to share. Remove friction.
• Track everything. Ask every lead how they heard about you. Double down on what’s working.

What to do: Before your next delivery, set up a simple referral offer. Even $50 cash for a closed referral beats what you’d pay for that lead through advertising.

Use your slow season to scale 

Growth creates new problems. The systems that worked when you built two sheds a month collapse at ten. Seasonality crushes your cash flow. Quality slips when you’re rushing to keep up.

Surviving seasonality. Summer is chaos. Winter is crickets. Shirk manages this deliberately: deplete inventory in fall to generate cash, offer winter discounts (5% off for payment in full), use the slow season for R&D and process improvement. “The off-season is utilized for research and development of new styles,” he says, “and for implementing new software or restructuring in the office to prepare for spring.”

Charles sees the same pattern with marketing: “If you start an SEO push in March thinking it’s going to be done in time for your April upswing, you’re going to be behind.” Build your marketing infrastructure during winter. Let it run at full force during peak season.

Expanding services. Look for problems you’re already solving informally. Shirk added site preparation—foundation leveling and gravel pads—after realizing that inadequate foundations caused most of his service calls. That problem became a profit center.

Other natural expansions for shed builders: delivery and setup services, electrical packages, interior finishing (shelving, workbenches, insulation), and maintenance plans. Each addition increases your average ticket and gives customers fewer reasons to hire someone else.

Expanding your marketing. Once you’ve nailed the basics—Google Business Profile, reviews, local SEO—look for channels where competitors aren’t showing up. Video content is a differentiator most shed companies haven’t figured out yet: job site walkthroughs, time-lapses of builds, customer testimonials.

What to do: Map out your slow season now. What projects will you tackle: new product development, marketing infrastructure, process improvements? Then identify one service expansion you could test in the next 90 days.

The bottom line

A shed building business can start in your garage and grow into a real company. Builders who make it work have business discipline on top of construction skills. They know their costs. They price for actual profit. They show up where customers are searching. They deliver experiences worth talking about.

“Anybody can build a shed,” Shirk says. Building a business around it takes more.

Start with the model that fits your situation. Get your numbers right. Make yourself findable. Then scale deliberately—investing in people, systems, and quality that hold up under pressure.

The demand is there. The opportunity is real. What you build next is up to you.

Ready to close more deals and increase your average ticket? Acorn Finance connects your customers with multiple lenders competing for their business. You get paid in full upfront while customers get manageable monthly payments. Learn how contractor financing can grow your shed business.