How to Start a Remodeling Business
There is so much more to a remodeling business than just screwdrivers and hammers; a perfectly done remodeling job can change people’s lives. If you’re thinking about starting a remodeling business, you might finally make up your mind immediately after reading this. All the things you need to know and the most important steps to take will be revealed here.
The average remodeling agent charges between $50 and $85 per hour and it costs at least $40,000 to kick start a remodeling business which makes it one of the least expensive businesses to start.
There are quite a number of conditions that make the remodeling business profitable and this should encourage you as you intend to get in on the action:
Home owners prefer to call an expert
Do-it-yourself renovation and repair work does not apply to most home owners; corporate organizations won’t even give it a second thought. This is good news for anyone who wants to go into a remodeling business because it means that there is so much potential in the industry. Whenever there’s a fire or a burglary incident, and sometimes natural disaster, property owners would rather leave it to the experts because the job requires skill, experience and safety measures only an expert would know about, not to talk of the time it would take to get it done. These jobs could also prove dangerous just by looking at the amount of climbing, heavy-lifting, type of equipment, chemicals and sharp tools involved.
The stress of getting a renovation permit
Paperwork can be a drag! That’s why many industries sprung up in the first place and that’s what makes many businesses thrive today. Everyone would love to have someone take care of the paperwork because they can be time consuming, irritating and a lot- literally, lots of them keep coming in. In renovating homes and buildings, there are certain rules that must be adhered to.
There are standards in place to make sure that the quality of construction or materials in use do not pose a threat to lives and property in the future. So, even if home owners wanted to do the job themselves in the first instance, the fact that there are permits to get and paperwork to go through just makes them give the job to a remodeling expert who would not only do the remodeling job but also be responsible for the quality of materials and the overall outcome of the renovation and not the owner.
It’s a cheaper alternative
Whenever damage is done to a property or there is a need to change the look and possibly the structure of a building, the amount that would be spent on reconstructing would be as much as what it cost to get everything set in the first place but with skilled remodeling agencies, it would cost them only a fraction of that amount. The majority would easily choose a much cheaper alternative than the expensive one.
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Why do people hire remodeling agents?
Knowing who your clients are has many benefits because it will help you plan your marketing strategy. Knowing their reasons for the renovation process will also give you a hint on how best to satisfy them. Here are tips on the reasons why people need to renovate:
A new identity
Sometimes, a good way of announcing your “new self” to the world is by changing your environment. While some may prefer to relocate to a new place, others would rather change where they live, which is a cheaper and more convenient alternative. A good example would be someone who just “came out of the closet”, and in trying to announce that to the world and getting more comfortable being their new self, changes everything that reminds them of their former sexual orientation.
To get over a loss
One of the worst rookie mistakes you could ever make when you are starting a remodeling business is to make assumptions. Some of these changes could be hurtful and the client might have some emotional attachments to what they are trying to let go. Saying the wrong thing, using the wrong colors, throwing away the wrong frame could be a big mistake for you. Some who lost kids or partners see a renovation as a way to get over the grief and if you don’t ask them their reasons, you might end up setting up a real work of art but that could just be a reminder of what they had lost. The house or building could have been the actual death or crime scene and a little detailed information here and there would help you to possibly change the person’s life.
Increase real estate value
Property owners who would like to sell their property will need you to help renovate. As always, you must ask why they need a remodeling service to guide you on the quality of materials to get, how soon it has to be done, and what’s at stake for the owner. The information your client gives you will determine how much you should consider for the budget, that way you get to do a great job that would both increase the value of the property and also be cost effective for the client.
The right attitude to starting a remodeling business
The way you see things and how you attempt to go about running your business can only lead to success if you take on the right attitude:
An opportunity to change lives
Remodeling could change the whole scenery of a place; the atmosphere, people’s perception and it could also be a healing process for many. See your remodeling business as an opportunity to change lives or give people their lives back. Many satisfied customers have given remodeling agents touching reviews of how the renovations changed their lives. There are reality TV shows about remodeling services and how they have changed businesses, lives and communities through their work. What’s more rewarding than seeing a satisfied client is a grateful one.
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Understand your clients
You could do a fantastic, picture perfect work of art that and the client asks you to take it all down. All the effort and joy you derived from getting all that work done gets thrown out the window. Understanding your clients would help you get more insight into what more they would love to see from what they told you. It would also help you know what details to include or leave out during the whole renovation process. People seek remodeling services for many reasons best known to them from recovering from a tragedy to simply wanting to have a total makeover.
Choose an area of specialization
There are different aspects of remodeling that you can choose from. You could choose to focus on offices or homes or just focus on specific areas like living rooms only. When you are starting your own business, you will most likely not be able to take on every kind of job you find. Some jobs demand that you know how to use some special equipment, other jobs would demand a special type of skill or a number of workers on ground to see it done and you might not have that manpower or skill. Clients would also be willing to give you jobs relating to that field because most clients prefer to give jobs to specialists. With time, more money and resources, you could expand and develop your skills enough to take on more jobs in different fields.
Treat your team with love and respect
It does not matter whether you are starting your remodeling business alone or you’ll be employing people, a remodeling job is a team effort. Understanding this will lead to the success of the business. The suppliers and dealers you get your equipment and other materials from must be treated like family because you are in the same industry and you need them to survive. These people go overboard sometimes to make sure that you get the supply on time, they give you industry advice and they ensure that you get the best quality at affordable rates, so imagine running a remodeling company without all that benefit. Your workers, when you finally start recruiting, will be the faces and hands of your business, literally. They have to be treated with respect so that they will do all they can to protect your business.
Pay when it’s due
Getting a bad reputation in the remodeling industry is a terrible way to start and that can come easily if you don’t pay on time. When you start running a remodeling business and everyone is still pretty new to you, you will certainly have to pay before you get your supplies but as time goes on, your suppliers might think of you as part of the “family” and they could even start letting you get supplies before you pay. That takes trust and the moment you abuse it, there might be no going back. Always make sure that your suppliers are paid on time and your workers as well. Pay your workers on time and they will smile to the office.
Know the whole process
Remodeling is a unique and rewarding business which anyone could start and hand it over to some expert to run, but it would do you a lot of good to know the processes involved in remodeling before you start your own business. The best way to do this is by learning the tricks of the trade from someone in the industry. How to get supplies, respond to clients, get good deals on materials, get referrals, balance the books, and doing the actual renovating job will be useful as you run your own business.
The remodeling business can be unpredictable sometimes. You could get an urgent call from a potential client when you least expect it. These are what you need to have on standby:
A reliable source of communication: This goes in two ways; the first is for your clients to find it easy to reach you, while the second is for communicating with your team members. Clients should be able to reach you when they need your services. If you know that you would not always be available to respond to calls, let them know when they can call you and make sure that you are available when they do. On the job site as well, you will need to communicate with your team with communication systems like a walkie talkie so that you can know how well the work is going.
Subcontractors on standby: In a case whereby you get a huge contract that requires lots of hands see the job through, it would be difficult to get everyone you need at once. Have a network of experienced subcontractors who will most likely be available at your beck and call whenever you need them. It will make you save face and your clients will be impressed by how you managed to get what you needed in a short time.
Equipment and a truck: Your workers have literally nothing to work with without the right equipment. Different equipment serve different purposes and depending on the magnitude of the project, the equipment could be even heavier. Your equipment could range from screwdrivers to bulldozers. Get the necessary equipment you can afford and be on the lookout for where you can rent or lease heavy machinery or any other tool that you might need later. You cannot do without a truck; it is what takes you to and fro. A truck is one of the most important equipment you need and you must treat it as such. It must be serviced regularly and tested even before you need it.
Trusted place to get supplies: As important as remodeling equipment are, where to get them is equally important. You would want a reliable supplier who you can trust to deliver quality materials on time. You may not be there in person to check the materials out but with reliable supply partners, you would not have to worry about that. When the partnership between your business and suppliers blossoms, they could start giving you discounts and other special offers.
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What will you do as a business owner?
Supervise
The least you will do when you start your business is supervise the work of those you have hired. Even if you are not involved in the heavy lifting, you will be doing yourself a lot of good by making sure the workers are doing the job the way the client wants it. Supervising takes experience in the field, especially in the actual renovation process.
Advise clients
A remodeling business owner’s responsibilities involve advising clients on the best ways to carry out their plans. Your experience, skill and resources will be some of the things that you will count on to be able to advice clients on the best things to do. Clients will have their opinions, yours is not to necessarily change them but to let them know how or why they should consider other alternatives.
Order materials
In most cases of remodeling, the remodeling agent will have to order the materials needed, get the workers, and bear all other costs before the client pays for the service. You will be in charge of almost (if not) everything that is related to the business. Ordering materials to be used for the project will involve specific details of what is needed, how much you will pay and how soon you want them delivered.
Make transactions
The way your clients pay for your services, the best way to handle their orders, what to do when a transaction fails and how to give a refund in case there is a need for that are part of your responsibilities as the owner of the business. You will need to know how payment systems work, software to help you keep the books and the right persons to meet or complain to should an error occur regarding transactions. The payment of workers and suppliers, including subcontractors you hire from other remodeling companies, will be handled by you.
How should you start?
Make a realistic business plan
The complete structure of your business must be defined, including how you would like to run it. You must take all the necessary steps to protect your business as well because a decade of hard work can be ruined in just one day. Find out about the laws governing remodeling business where your business is situated and do all that is required to have a license to operate. Be realistic about your expectations, especially at the early stage of your business, and prepare a reasonable budget to guide your spending.
Market your business
You are not ready until you figure out what you need to to be comfortable enough to start the business. Once you have a registered business, get all the tools, manpower and office you need to function properly. It all depends on your budget and in what area you choose to specialize in.
Market your business the most cost effective way possible. That means you will have a lot to do in this regard. You could offer to give large discounts to your first clients and also encourage people in the neighborhood to help you talk to their colleagues and acquaintances for a commission. Marketing is never cheap and if you want to see your business take off, you must devote time and money to it. You could also advertise through social media or direct mail.
Another thing you could consider is cutting a deal with organizations like charities, religious bodies or even influential people in the area where your business is sited. Offer to make renovations and in return, they would make sure to refer you to sponsors, associates and other members.
Be an opportunist
There are periods when most people would easily consider renovating their homes or offices. Sometimes it may be due to something positive, while in some cases it may be negative, either way you have to seize the opportunity. Natural disasters will definitely cause lots of damage, some reparable, others irreparable, but in any case many buildings will be in need of major or minor lifts. Look out for such areas and offer a good rate. Check social media to see how you can improve people’s homes and offices, pitch the idea to them and offer to make renovations at a reduced price.
What other ways can you make money?
Reality TV shows
The remodeling industry is a big one. These days remodeling business owners are becoming celebrities and they are making a ton of money off it. This is another highly effective way of making more money while advertising your services to the world. TV shows dedicated to the lives of people in the remodeling industry and how they go about their daily duties are everywhere and they have a healthy following. They show how they inspect the premises, see what and where changes need to be made, discuss design and strategy with the client and their team, go through the budget before going through the process of renovation. It usually ends with grateful clients who cannot hold back their emotions.
Reselling items for clients
Most clients just want to get rid of old stuff and you could make extra money on the side by helping them sell those items for a commission. You could even use some of the proceeds to cover for the cost of the new furniture and other things brought in to replace the old ones. There are different ways of helping a client sell their used items:
- Online
Ebay is one of the first places online you think of when you want to get used items. That is a good reason why you should know how to use these kinds of websites. You will be able to put up your client’s used items for sale on websites like Ebay and make money for them.
- Yard sale
Offer to help your client with a yard sale. With a few capable hands, you could organize a yard sale where old furniture, appliances, pieces of art, collections, clothes and other accessories will be sold to the public at a cheaper rate.
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Outsourcing
Whenever you have lots of people calling for your services and you are either busy with some other client’s project or maybe you just don’t have enough hands, let another business owner have the job for a commission. Outsourcing is a great way to win both clients and contemporaries in the business over.
Conclusion
A remodeling business is rewarding in a number of ways and your business could touch lives. Start as soon as you have all you need and make sure to let the clients know all there is to about the project before you commence, if they are up for it, go ahead.