How to Start a Home Renovation Business
Start a remodeling business by following these steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your remodeling business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
- Luckily we have done a lot of this research for you.
What are the costs involved in opening a remodeling business?
If you are simply offering up your own skills and time as a part-time remodeler, the start-up cost will be around $50,000 to $75,000 as you will need a complete set of tools, a vehicle for transporting tools and supplies, and the proper licensing and insurance in order to operate in your state and locality. If you are looking to enter the business world offering major renovation services, expect to have start-up capital of $250,000 to $500,000 as you’ll need to be able to purchase your first few orders of materials and hire staff before your customer pays you for the completed job.
Get Your Finances in Order
As a new business owner, it’s important to ensure financial health from the start so you don’t find yourself in a cash flow crunch
There are two important steps to ensure your business is set up to monitor cash flow. One is to get an Employer Identification Number (EIN), which is required to open a business bank account, file taxes and hire employees.
It’s also important to choose a banking partner. A strong banking partner will help you manage cash flow, get a working capital loan, and plan for financial growth and success
Obtain Necessary Licenses and Insurance
Being properly licensed and insured is critical before opening your doors. It’s imperative that you have a license to do business – for instance, a contractor’s license and any other necessary certifications for your particular specialties. You’ll also need a business license for your city.
Moving Into Maintenance – A Key for Winning Long-Term Customers
Here is a great example of how one independent contractor created a steady, growing income through his home renovation business:
Jack T. specializes in indoor stone water fountains. He started out his home repair business creating stone fountains to ‘last forever’ but quickly discovered that the pumps operating the fountains would require biannual checkups. Customers who own one of Jack T.’s custom stone fountains now have the option to subscribe to his monthly low-cost maintenance plan, which includes twice-per-year pump checkups and on-call advice from Jack in the event of a malfunction. He has become the undisputed authority in indoor stone fountains in his state, and 95% of his fountain customers sign up for his monthly maintenance plan.
You will need hands-on technical skills to do home renovation, and these can be learned through internships on job sites as well as online courses in home remodeling. But while you build these skills, always remember that remodeling homes is all about working with the people who live in them. Trust and reputation are critical, and we recommend approaching the business from a ‘people-first’ perspective.
Market Your Services
This is where you will spend the majority of your time during the first couple of months in business. Just because you set up this awesome & well branded business doesn’t mean that phone calls are going to immediately start pouring in. People don’t know you exist and it’s time to let them know.So, whenever you aren’t working for a customer, you should be working on your marketing.
What’s the best way to market a business you ?
Well, the quickest way to get customers is probably Craigslist – but you’re not necessarily going to keep your schedule filled or even attract your ideal customers. In fact, you’ll mostly get lower paying customers. At first that’s okay, so Craigslist is a tool to consider. Online marketing will generate more leads and customers than any other method you could possibly consider. And, if done properly, it’s very cost effective.
The Unique Selling Point
The only factor which differences a company from its peers and competitors is their Unique Selling Point (USP). It is mandatory for the home improvement business to highlight this factor and include it in all their brand identity collaterals.
Some firms use creative graphic designers to embed and emphasise this message in their logo design and other graphic design materials. The unique selling point could be a small difference in service or value-add benefit or the customer service. This factor sometimes decides the success of the company in the industry.
The Value Offered
Quality Service at an economical cost is no longer a luxury; it has become a necessity. There are certain expectations from all the companies in a particular industry. Every company promises directly or indirectly to contribute to the welfare of the clientele.
These values -different differ for each brand for a specific sector. The variation distinguishes them from other home improvement businesses. It is vital to determine the benefits offered by the company and work toward the goal of excellence right from day one. In fact, even before starting the company would be an ideal choice.