Starting a home renovation business can be a good means to earn money. However, there are a few things that you need to know before starting your home improvement business.
Did You Know?
Many people want to opt for green remodeling of their houses, which implements energy-efficient components and green building materials for construction. If you specialize in such a domain, you will be able to make a lot of money.
With many homeowners preferring to renovate their homes to suit their requirement rather than buying new ones, starting a home renovation business has become a very lucrative option. If you are interested in venturing into the same, there are a few things you need to know. Start by conducting market research to see which type of renovations are preferred by people. You can then get experience and education in that particular field of expertise. Before initiating your venture, ensure that you have a complete business plan in place, which will help you take the right decisions. This is one business where you cannot work in isolation, as you will have to network with other contractors to gain raw materials, plumbing, electrical, painting services, etc. Remember that in the beginning, you can accept subcontracting work to build contacts; this will help you when you will start your own business. Opening a remodeling company is not difficult, provided you are aware about a few things, a list of which has been provided below for your perusal.
Find Your Niche
There are several specializations in this field. You can decide if you want to renovate commercial or residential properties. You may also get to remodel historically important old houses or new contemporary ones. Sometimes, due to the growing needs of the family, you will have to work to accommodate a children’s room or guest room in the existing structure. Based on your interest, you can decide which niche you want to adopt.
Haste is Waste
Many home renovation contractors commit the mistake of starting a business without prior experience in renovation. Remember, renovating a home can be complex, time-consuming, and expensive. A client will never allow you to experiment with his house on a trial-and-error basis. Also, you must have substantial work experience to show in order to win clients. Hence, it is advisable that you get the necessary hands-on experience by working with a renovation contractor. Also, try to get education in this field by pursuing various technical courses and programs.
It is advisable that you consult an insurance agent to know the insurance requirements for your business. In most cases, you will be advised to get bonded insurance. Also, it is best to get a liability insurance as it will protect your personal belongings if you face a problem in your business. You may also have to get worker’s compensation insurance if you are hiring or contracting labor.
Hire Experienced Partners
Remember that you will have to subcontract a number of other vendors like carpenters, electricians, plumbers, interior designers, engineers, roofing contractors, etc. Ensure that you hire experienced and licensed people for the job or you may be held responsible if they leave the work midway or do a shoddy job. Don’t forget to cross-check their credentials before you hire them. Try to look for professional listings that offer contacts of licensed individuals. Also, try to get contacts from your family and friends. This will help get a firsthand account of their strengths and weaknesses.
You will have to decide whether you want to incorporate your business as LLC, partnership, or sole proprietorship. You will also have to register your business as “doing business as.” You will also need to get the EIN number as you will hire employees. Apart from that, you may be required to get a construction license. Also, undertaking home improvement work in a house may require certain permits, so check with your local, state, and federal authorities about the same. Attempt the home improvement contractor license exam in your state to get the business license. You may also require to get the home improvement salesperson registration for negotiating with homeowners. The National Association of the Remodeling Industry (NARI) gives a voluntary certification for contractors with 5 or more years of experience. However, you will have to attempt and clear the certification exam for the same.
Create Your Website
Having a website for your business is indispensable. Prospective clients will be able to reach you through your website. Also, you can post before and after photos of some of your sample work to convince them of your expertise. You can also add a few client testimonials. Today’s smart homeowners are not going to go with the references that you provide to them. They will prefer to conduct their own research online before trusting the testimonials on your website. Hence, you must ensure that you have a squeaky-clean image on business review websites and a good rating on the BBB so that more and more people will hire you. If a review says that you leave your work midway and abscond or delay the work, then it will be very difficult for you to get any work. Try to get listing in online directories like Yelp and The Blue Book of Building and Construction.
Customer Satisfaction is the Key
Since word of mouth and referrals are ways to gain more clients, you must ensure that you enjoy good terms with your clients. For this, you must deliver the work as required by the clients. You must keep their preferences, tastes, schedule, and budget in mind before you start with the renovation. Also, you must ensure that you use good-quality materials for the renovation work so that people will recommend you to others, thus, offering you more business opportunities.
Finally, you must ensure you are completely aware about the tax-related formalities even before you start the business. Now that you have an idea about the requirements for starting up your business, hope you will implement the right strategies to expand it further.