If you are thinking of starting a home renovation business, now is a great time. Lots of people are thinking about increasing the value of their property right now, either for an immediate or future sale. It is still a somewhat competitive business, but the demand is also high. Just like any business, those who come with the right strategy always have an edge. This is why you need to get everything right from the beginning. Let’s take a look at how you can start a home renovation business.
Start as a Subcontractor
We would first suggest that you start working under another contractor, or even as an employee. This will give you much-needed experience, and could also allow you to start building a network. Then, we suggest you start working on smaller, less challenging jobs so you can start figuring out the financial side of the business. This will also allow you to get references. Once your workload grows, you can start hiring people to help you and move to starting your own business when it becomes your first source of income.
Register Your Business
You will then need to start looking at the legal side of things. You will need to register your business, usually as an LLC. You will also need to start looking at things such as licensure in your state and insurance. Most people decide to use an LLC because it allows them to separate their personal finances from the business without the complexities and obligations of a corporation.
You will also need to start looking at things like DOT regulation if you intend to be using heavy vehicles. If you intend to buy a dump truck, for instance, a DOT compliance checklist will ensure that you’re always in compliance with their regulations and that you’re keeping everyone on the road safe.
You also need to check with local authorities to see if you will need a formal license or simply need to register as a home renovator. Rules vary from state to state, so make sure you know what they are in your jurisdiction.
Keep Things Simple
One of the most important things for contractors who are just getting started is to keep their scope of service narrow at the beginning. You want to start making a name as a specialist. If you go too wide, you might start to lose focus. This can then lead to delays or you missing payments, for instance. You could concentrate on doing carpentry or bathroom remodels at first. Then you can start looking at more projects as you start honing your skills and are better at managing projects.
Working with Suppliers
Suppliers will play a very important role in the success of your business, which is why you need to treat them right. Once you establish a good relationship with one, you might be able to get privileges like more credit or better prices. We also suggest you consider teaming up with other contractors when buying material so you can increase your purchasing power and lower prices.
These are the steps needed to start a successful home renovation business. The most important tip is to be thoroughly prepared and consider building your experience first.
