4 tips how to start and manage home remodeling business

Written by Posted On Thursday, 26 November 2020 05:08
A kitchen remodeling A kitchen remodeling

If you’re handy around the house, a task that many people view as an impossible could be something that comes to you naturally. Replacing kitchen cabinets, upgrading bathroom plumbing fixtures, or adding a back deck can seem like difficult and strenuous work, but for those with the talent, the know-how, and an eye for breathing new life into a property, the very act of home remodeling  can present a home craftsman with a great opportunity to start their own business.

Nearly a quarter of construction workers in the U.S. are self-employed, allowing them to pursue their own business opportunities using their particular trade skills. Whether it’s turning a hobby into a side hustle or embarking on a career without the typical corporate structure, starting a renovation business can be the perfect match for do-it-yourselfers seeking to head out on their own. 

That’s not to say the journey to launch a remodeling and design business will be an easy one — as the old construction maxim goes, “measure twice, cut once.” Taking proper steps to organize, strategize, and market a new home renovation business requires just as much care as the effort that goes into a new building design. 

If you're ready to start venturing out on your own, here are four tips to consider before starting a successful remodeling business:

Branch off from an existing renovation business

Understanding your market, how to navigate the construction business, and what it’s going to cost to launch your own home renovation business requires on-site, in-person experience. Building relationships with suppliers, seeing how to navigate difficult contracts, and problem-solving on-the-fly can’t all be processed through a book or online course. Starting off as an employee of an existing home renovation company can provide you the opportunity to gain valuable hands-on experience that demonstrates precisely what to do (and perhaps, more importantly, what not to do) when you ultimately embark on your own business journey. 

Determine your niche

Owning your own remodeling business means you’re your own boss — but that doesn’t mean you should just do whatever you want. Stepping out as a “jack of all trades, master of none” can deprive you of the specialized skills, areas of interest, or more lucrative avenues afforded by carving out your own specific niche. Carefully consider the kind of house renovation business you’d like to run, whether it’s focused on improving kitchens and bathrooms, transforming outdoor spaces, or creative interior designs. You shouldn’t feel like you’re painting yourself into a corner — figuratively and literally — but rather that you’re pursuing a path that aligns with your skills, desires, and financial goals. 

Create a business plan

Whether you’re establishing a full-time endeavor or setting out to find part-time home remodeling work, you’ll need a solid business plan to serve as a strong foundation. Begin by identifying financial goals, potential challenges, and points of differentiation that will enable your home remodeling business to thrive in the marketplace. Become familiar with invoicing, payment collection, and other crucial accounting practices to stay on top of your cash flow. And before you move forward with signing your first contract, be sure you have the proper licensing, insurance, and other legal documents as required by your state or local government.  

Enlist modern business software

Today’s professional remodelers shouldn’t rely on back-of-the-envelope calculations, estimates, and other manual processes. From distributing sales materials to signing contracts, automated document management makes it easier than ever before to collaborate and communicate with customers, clients, and employees. Unlike legacy remodeling businesses that may still rely on paper pamphlets and carbon copies, your new remodeling company can stand out as a digital-first business that saves money and maintains streamlined operations from day one. 

Establish and market your brand 

As soon as you’ve got the right experience, you’ve carved out your niche, and your business plan is ready to go, it’s time to let the world know you’re ready to remodel by choosing a name and brand identity for your remodeling company. Whether you want to craft under a catchy title or trade under your own name, conduct research to ensure your ideal business name is available and be ready to register it with your local government. Once you’ve got your name, be prepared to set up a website, print marketing materials, and create additional marketing collateral to inform your market that it’s time to start building.

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