Start a Successful Home Remodeling Business with This Guide
Today, achieving financial progress is not a big deal and as difficult as it used to be. This is because we now have an ocean of opportunities for making a decent amount of money. For example, one can use the internet to start an online job or create a new startup. In the past few years, people were not good at choosing the right profession; they only looked at earning money, which is where they were wrong.
Did you know that you can earn a substantial income when you choose a profession you are good at? You can uplift your business in less time when compared to those who are not skilled in their jobs.
There are countless options to choose from in creating your dream career. Sometimes in life, you have to make important decisions that will be wonderful for your future. For instance, if you are good at home remodeling and renovation, you can select this route for your business. You may have heard it often that every business requires experience, but you need your skills for this one. And if you are really good at it, then you are going to run a successful business.
Like all other businesses, you need a guide to give your new business a good start. For this, you can visit home remodeling companies’ websites to see what types of services they provide to their clients and what they charge for them. Moreover, you can set one-on-one meetings to learn how they work. Apart from your efforts here, below are a few points that would help you accelerate your new home remodeling business.
Make a Solid Business Plan
Since you are sure you are going to use your skills and are planning on starting a home remodeling business, you have to make a solid and reliable plan. Planning beforehand is key to your success and plays a crucial role in uplifting your business. Decide on your budget and determine the time you need to invest in order to establish your business.
Learn Marketing Rules
Like all other businesses, home remodeling also requires contractors or home designers to establish good relations in the market. You’ll always need labor to do the jobs. Moreover, you’ll always need the help of some companies to complete your projects. For instance, if you are dealing with home paint, you need to invest in the right company.
When starting a house renovation business, customers need to trust you. Your goal is to build a brand with a solid reputation that will have your customers raving about your work to their friends and neighbors. 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.
At the Beginning
Doing jobs for low-cost at the beginning is an excellent way to sharpen your skills as you ramp up. There is a huge marketing opportunity here, too-you can start building up your customer reviews and feedback to display on your website and social media long before ‘opening day’. Genuine reviews about your service from past customers is the best marketing strategy for dominating today’s home improvement industry. Remember to take (and post) pictures before, during, and after your home renovation work, always with your customer’s permission. For your potential customers, seeing is believing.
Marketing and Networking Ideas
Today, there are many easy and affordable marketing options to reach the customers who will be searching for your services online. For low-cost advertising, check out Google and facebook ads- both companies have been ramping up their efforts to serve local businesses.
Networking with other industry professionals, like wood, metal, glass, and paint suppliers, could be a great source of early referrals for your home renovation business. Make sure to invest in those relationships as you would with customers-they are key players to have on your team.
Starting a home improvement business is a big responsibility. Expectations are high, and you may have some competition at the beginning. But with a positive attitude and a professional approach, you can make a career out of doing what you love. Enjoy using your creative skills to improve the space that matters most to your customers-their homes!
Start out as a Subcontractor
Although the workload in the housing market is growing, the beginning will be all but simple. If you want to begin your business successfully, get ready for a multi-step process. First, start out as a regular worker in a home renovating business or a bigger (re)construction company. It will help you make connections in the field and gain some precious experience.
Then, learn the tricks of the trade regarding the financial side. As time goes by, start developing an exit strategy. For instance, start doing some less-challenging home renovation projects on your own as an extra job. If you’re good, you’ll get recommendations from your clients. As your workload keeps growing, hire assistants and increase the number of work hours. Finally, when your side job becomes your main source of income, leave your current position and launch a brand-new home renovation business.
Calculate Your Budget in Advance
As opposed to construction businesses, which are usually huge enterprises, home renovating ventures are managed more easily in financial terms. Nevertheless, don’t think it will be smooth sailing. With many entrepreneurs doing the same thing as you, the most important step is to ensure that you have enough budget to cover your initial expenses.
This budget should include your workers’ wages (direct labor), overhead expenses (the total cost of all the means you use to carry out the work) and direct materials (pretty self-explanatory)–read more about it here. When you’ve calculated all those initial expenses, it’s time to see what financing models you can apply for. Make appointments in several banks and check if they can offer you some affordable business loans. Also, do some research on government grants for small businesses. Even if you don’t qualify for one at the moment, it’s good to know what options you can count on in the future.
Know Your Numbers
For some time I’ve been giving a seminar aimed at smaller contractors — those under $600,000 — called “Small But Smart.” During the session, I always ask how many people in the room mark up their work 50% or more. Invariably, fewer than one out of 10 will raise his hand. The most common mistake made by newer remodelers is that they have no idea what the markup over cost must be in order to make a profit. As has been stated many times in this column, the minimum markup is 50%, and as a company grows, it is 67% and even higher. In the handyman business, the labor figure is over 100%. The biggest reason for this misunderstanding about markup is that most small company owners have never taken courses or attended seminars that show them how to break down job costs. Job cost is labor, including fringe benefits; materials, including sales tax and delivery; subcontractors; plans and permits; and cleanup. Overhead includes sales costs of 6% to 10%; production supervision of 4% to 6%; advertising; office management; tools and equipment; office equipment; and much more. Small companies have a minimum overhead of 26% to 30%, and larger companies range from 30% to 35%.