Nearly 20% of homeowners want to remodel their houses or put an addition on them.
Many people try to take on remodeling projects on their own, but quickly learn that help is needed.
If you want to start a remodeling business, there are a couple of steps you must follow.
Continue reading to discover the best way to starting a remodeling business that will be successful!
Develop Your Business Plan
Much like building any other company, if you want to start a remodeling business, you need to start with a good plan.
Some of the best businesses recommend taking time to write down your company goals and basic information. You will want to consider what your business will specialize in and who you will be marketing your services towards.
Many people include information about how much people should be charged for services and the types of services that you will provide. You should also start thinking of a unique name that will help you stand out.
Take Care of Legalities
The next step in starting your home renovating business is to take care of legalities.
You must identify what type of business you are starting. Whether it will be a proprietorship, limited liability company (LLC), or corporation.
From here, you can apply for an employer identification number (EIN) to get started with tax information. You will need to have your company name when handling this part. At this time, you should also look up local, state, and federal laws that you must abide by.
Focus on Budgeting & Finance
When it comes to starting a business, budgeting is an essential component.
Take time to evaluate how much capital you are starting with and look for investors if you don’t have enough money. You can also apply for a small business loan to get started.
Budgeting involves a lot of pieces, including how you will pay staff, take care of start-up costs, and pay for materials. Many professionals recommend using estimating software at costcertified.com to be best prepared.
It helps to look at what your competitors are charging for services in the local area. This will help you determine what prices you should set and what to expect when you start after opening.
At this point, you should have applied for your EIN, which is quick and free to complete.
You will need to also have the type of business you started identified so that you can discover which taxes you need to pay. Aside from federal taxes, you will get familiar with state taxes that will apply to your business. Franchise taxes are also something to consider at this time.
Once you begin hiring staff, have them complete W-4 papers, which will help you tax each person. This is an important step that will be checked when you start paying staff.
Get Your Permits & Licenses
If you want to start a business that doesn’t get shut down, you will need to apply for permits and licenses.
Making major changes to a home or building will require you to have special permits. Additions, decks, and plumbing all require specific permits that show that you can complete the jobs. Neglecting to obtain these permits can result in hefty fines and your business getting shut down.
Home improvement licenses are also important for larger jobs. You can get your license through the Department of Commerce and Insurance Board for contractors. To get this license, you must first pass an exam and then pay a standard state fee.
Market Your Brand
Opening a new business means that you are likely starting with nothing.
Marketing is an essential component of starting a business. Without branding and marketing, no one will know that your company exists. One of the best ways to get the word about your company out is to do so online.
Start by creating a legitimate company website that offers information about your services and how to contact you. Many people are also recommending that you create social media to be more relevant in today’s society.
By running ads in papers, online, and leaving flyers, you can quickly build brand awareness.
Build a Customer Database
Now that word has gotten out about your business, you can start building your customer database.
You can build this list by obtaining information from people who are interested in your services. Another way to get more customers is by going into businesses to speak to them about their needs. This can be very effective and help put a face to the company name for consumers.
As you get information from potential clients, be sure to get their contact information. You must also get details about what projects they want to be done so that you can begin the quoting process.
Start Making Appointments
At this point, it should be easy for consumers to contact you for services.
Once you start receiving calls, you can quote projects and get them on the books to be completed. Do your best to give realistic time frames to consumers and ensure that they won’t have to wait long.
The quicker you are at getting the project started, the more satisfied each person will be with your company. Don’t be surprised if some of the projects are planned out months in advance, this helps people budget for their remodeling.
Start Your Remodeling Business Today
There are many factors to consider when you go to start your home remodeling business.
By utilizing this guide, you can cover the basics and know that you are on the right track. A strong business plan will get you started but you must also take care of finances and legalities. You must account for permit expenses and materials when planning out your budgeting.
Don’t be afraid to think outside of the box when it comes to branding. Marketing will help get the word out about your company and you will stand out from competitors.
Be sure to check out our blog for more articles about home remodeling and starting a business!