Anyone who is looking to start a home remodeling business will have the opportunity to make a living while improving the lives of others. It’s a rewarding field, but also a competitive one. Let’s take a look at 5 tips that will help you along the way.
1. Focus On The Numbers
Stay abreast of your home remodeling business’s numbers, especially at the outset. Establish a budget and do your best to stick to it. You should also outline a business plan entailing cost and revenue expectations over the course of a calendar year. Even if you don’t have a long list of customers, your remodeling business can still survive if you exercise financial prudence. Never lose sight of your costs and revenue. Focus on marking up your work to a level that will keep you in the black. Oftentimes a markup of 60 percent or high will be necessary to stay in business.
2. Marketing Will Be Necessary
While it is nice to envision your home remodeling business taking off without a marketing budget, it likely won’t happen. Word of mouth referrals can only stretch so far. Determine which segment of the market you’d like to serve and pinpoint a niche that will generate ample revenue. Then sell yourself and your business.
3. Hiring Skilled Help Is A Challenge
The actual remodeling work will likely require more than your own two hands. Keep in mind that you’ll be managing the business while marketing it and performing all of the administrative and accounting functions. One man can only do so much. While you’ll be able to pitch in on projects, you’ll need help. Finding quality employees isn’t as easy as you might think. Recruit a solid lead carpenter and he’ll be able to handle a couple hundred thousand dollars worth of work in a year. A diminutive startup home remodeling business will require at least one or two lead carpenters. Always stay on the lookout for reliable and skilled help so that you can continue to grow your Home Remodeling business.
4. Demand Is Constant
Although the largest companies might hog market share, the remodeling industry will be open to new entrepreneurs for years to come. This is due to the fact that the ups and downs of the housing industry are irrelevant. People are almost always willing to spend money on home improvements, whether it is to make a home more salable or to better a recently purchased home. So don’t expect the workflow to slow down or grind to a halt. You’ll likely be busy year round. Plan accordingly.
5. Don’t Overlook The Red Tape
There’s plenty of paperwork required for new home remodeling businesses. You’ll need to register with the local government office and obtain a contractor’s license. You’ll also likely need to file a “doing business as” (DBA) certificate and set up bank accounts in the name of your business. There’s also the matter of obtaining liability insurance to work on specific projects and sites.
