Did you know that the US remodeling industry is worth a staggering $112 billion and shows massive potential for growth?
The new year presents the perfect opportunity to hop on the home remodeling bandwagon and make some good money doing what you love. If you don’t know how to start a home remodeling business, we’re here to help.
In today’s post, we’ll outline the steps you need to start your own home remodeling business.
Decide What You Want to Specialize In
Home remodeling is pretty broad, and the first step to establishing your remodeling business is picking a specialty.
For instance, you can specialize in kitchen and bathroom remodeling for a start. Alternatively, you can focus on interior decor and subcontract the rest of the work.
You have the choice of going full-on into your specialization or specializing until you get your remodeling business off the ground.
Create a Business Plan
After deciding on a specialty, the next step is to create a business plan. This plan lays out all the particulars of your business and gives room for discovery. A typical business plan consists of:
The Startup Costs and Funding Options
Starting a remodeling business can be quite expensive, depending on the scope of work you want to cover. You’ll need to factor in the cost of equipment, marketing, and hiring remodeling contractors (if you’re not remodeling solo).
Once you have a good idea of your startup costs, it’s time to start looking for funding options. There are several ways to finance your remodeling business. You can use your savings, take out a business loan, or look for investors.
The funding option you choose will likely depend on the amount of money you need and your credit score.
Your Target Market
Your target market is the group of people you want to sell your remodeling services to. When creating your business plan, it’s important to understand who your target market is. This way, you can create a marketing strategy that will reach them effectively.
Some factors to consider when defining your target market include their location, income level, and home types. After identifying your target market, you can create a remodeling business that satisfies their specific needs.
How Much You’ll Charge Customers
The amount you charge your remodeling customers will depend on several factors. These include the size and scope of the remodeling project, your remodeling specialty, the remodeling materials you use, and your experience level.
It’s important to do some market research before settling on a price point. Find out how much other remodeling businesses in your area are charging for similar services. With this information, you can price your remodeling service at a fair price for both you and the customer.
If you’re new to renovating homes, you might have a hard time, estimating how much you should charge your customers. Thankfully, platforms like costcertified.com help you do just that. It provides accurate estimates for construction costs you can charge accordingly and make proper financial arrangements.
The Business Name
You’ll need a snappy and creative name for your home remodeling business. This is the first thing potential customers will see, so it’s important to make a good impression.
Your remodeling business name should be easy to remember, spell, and pronounce. It’s also a good idea to make it reflective of your remodeling specialty.
Create a Legal Business Entity
The third step involves putting your business on the legal business map. You’ll have to choose a business structure and register your business with the state. There are three types of business structures, limited liability companies, sole proprietorships, partnerships, and corporations.
Find a reputable lawyer to help you register your business as a legal entity. Remember to choose the right business structure, depending on how you organize your remodeling business.
Register for Taxes
After your business is legally registered, you’ll need to obtain a tax identification number from the IRS. This number is used for filing and paying taxes.
You will also need to obtain a state tax identification number if you’re remodeling in more than one state. Once you have your tax identification number, you can register for state and federal taxes.
Most remodeling businesses are required to pay quarterly taxes. This involves estimated taxes, which are based on your remodeling income and expenses.
Obtain the Necessary Permits and Licenses
The final step is to obtain the necessary permits and licenses for your remodeling business. The permits and licenses you’ll need will vary depending on your business location and remodeling specialty.
You can typically obtain the necessary permits and licenses from your local government office. Remember to renew your permits and licenses as needed to keep your remodeling business up and running.
Get Insurance for Your Remodeling Business
Insurance helps protect your remodeling business from liability in case of any property damage or if one of your workers gets injured at work. Home remodeling can be a risky business. There’s always the potential for accidents, injuries, or damage to property.
With proper insurance, you won’t have to pay any out-of-pocket costs for damage or injuries. Plus, most clients won’t hire a remodeling business that doesn’t have proper insurance coverage. Ensure your remodeling company has general liability and workers’ comp insurance, at the very least.
Promote Your Business
Now that you’ve set up your business, the last piece of the puzzle is to promote your business. There are many ways to do this, including online and offline marketing.
Some remodeling businesses choose to invest in traditional marketing, such as TV, radio, or print ads. Others prefer to focus on digital marketing, such as SEO, content marketing, or social media marketing.
The best way to promote your business is to use a combination of both online and offline marketing techniques.
How to Start a Home Remodeling Business Made Easy
Now that you know how to start a home remodeling business, our work here is done. Spring into action and start a thriving home remodeling company today! We wish you nothing but the best of luck.
For more informative content, be sure to check out the other posts on the site.