Starting out a business is one of the most difficult tasks to undertake. It would require a feasible business idea and a concrete plan to successfully execute. Nowadays, coming up with a solid business idea is like finding a gem in a haystack, what with the fierce competition nowadays. One industry that offers one of the biggest opportunities is through home remodel and real estate services.
The number of companies offering home remodeling services have grown in the past couple of years, and the market is now estimated to be around $450 billion. This alone is enough reason why many people have started business in the home remodeling industry.
If you are one of those planning to start a home remodeling service company, here are some tips on how to successfully start and build one:
Careful and thorough planning
It goes without saying that for any business plan to succeed, careful and thorough planning is needed. Without a well thought-out plan, any business startup will surely fail. You have to know the costs involved in the home remodeling business and the possible ongoing expenses to plan out effectively how the operations will go.
It is also important to plan who your target market is, and how to effectively promote your business to your targeted audience. Making a checklist on tasks and duties for the company to do at a given period of time will help pace the growth of the business properly.
Determine how you will charge your clients
Starting a business means having to figure out how to properly charge your customers to sustain the operations. Home remodeling service costs vary greatly depending on the experience, portfolio, and included services a company can offer. Make sure to familiarize yourself on what the going rate is for home remodel services in your area and charge fairly and accordingly depending on the scope of the entire remodeling project.
In charging for your home remodeling services, aside from covering materials to be used and operation costs, profit is also an important factor to be taken into consideration. Putting a markup that’s too steep will make your prices too high that people might not avail of your home remodel services outright, especially if you’re a new company. The typical markup for a one-man company is usually 15%, and you can see this grow bigger as your company grows.
Make sure all legal requirements are accomplished
One common cause of delays of problems when starting a home remodeling service business is acquisition of legal permits and tax registration. Make sure you research beforehand what permits and documents your business will need and accomplish any registrations needed for your business. Having a dedicated legal team to take care of these things will be of great help.
It is also important to open up a bank account under the company’s name for accounting purposes. This will make sure that all transactions concerning the company operations and all the income can be put in record efficiently. Having a company credit card will also help track operational and material expenses of the company.
Get a Business insurance policy
Starting up a business in any industry have some risks involved, that’s why it’s always best to have an insurance to keep yourself and your company covered should everything go south. Additionally, a worker’s compensation insurance is highly recommended if you plan on hiring employees for your new home remodel service company.
