How to Start a Home Restoration Business in 8 Easy Steps

 How to Start a Home Restoration Business in 8 Easy Steps

Are you a do-it-yourself kind of person who likes working with your hands? Are you looking to find some freelance work that allows you the flexibility to set your own hours? A home restoration business might be just what you’re looking for. Home restoration services are growing in popularity as people look to save money on major repairs, renovations, and construction projects in their homes. Here’s how to start a home restoration business of your own!

Step 1: Determine why you want to start this type of business

Restoring old homes is a fulfilling way to earn money. This type of job allows you to be creative, and it’s not as stressful as running your own company. But it isn’t for everyone; restoration work has its challenges, including long hours and tight deadlines. Before starting a home-restoration business, ask yourself if you can handle these factors. If so, read on! You’ll need: passion, a love of history, an eye for detail and artistic talent. You will also need to know how to do basic carpentry, plumbing and electrical work. Make sure you are up-to-date with all building codes before getting started. If any renovation involves heating or air conditioning, you will need a permit from your local city hall or zoning department. The permit should cost less than $100 but may take several weeks to process.

Step 2: Research what you need and what it will cost

You’re going to need insurance, licenses and permits. Be sure you understand what each will cost. Some municipalities also require mandatory training for contractors of various stripes; check with your city hall and local contractors for more information. If you’re setting up as an LLC, be sure you register your business name, and find out if it needs to be federally trademarked too. All of these steps can take time—don’t expect to start doing any actual work until about three months after you first decide to get into home restoration. And that doesn’t include getting ready for projects—you might want tools or materials that aren’t currently available (or at least not easily) before starting on a job.

Step 3: Get all your licenses

Depending on what you want to do, your business may require licenses from your local government. For example, a home restoration business will probably need licenses related to plumbing and painting; if you plan on having employees, you’ll likely need an Employer Identification Number (EIN) and tax identification number; and if you plan on hiring workers, they’ll each need their own Social Security number. Be sure to check out IRS Form SS-4 for details about getting an EIN. And don’t forget that you might also need insurance! Here are some more resources: 

Insurance Information Institute – Learn about types of insurance, how much coverage costs, and where to get it. 

Business Insurance Association – A great resource for information about different types of insurance. 

Department of Labor – The Department of Labor offers tips on starting a small business as well as information about how many employees your company needs before it becomes subject to federal employment laws like minimum wage requirements and overtime pay laws.

Step 4: Find a contractor insurance policy

A good contractor policy will protect you from losses and claims that may result from work performed by subcontractors or from on-the-job accidents, like slips and falls. This isn’t standard coverage—most business owners are surprised when they learn how easy it is for their insurer to deny a claim under these circumstances. Learn more about contractor insurance in our post, What You Need To Know About Contractor Insurance. If you have employees, make sure your policy covers them as well. Be sure to get a quote from at least three different insurers before making your decision. Remember: Getting quotes is free and only takes a few minutes; getting denied later might cost thousands of dollars in legal fees if you choose not to purchase an adequate policy up front.

Step 5: Find your suppliers

When you’re ready to start accepting online orders, it’s time to find suppliers. If you can get your hands on them, buy sample products before committing wholesale. That way, you can make sure what you’re buying is right for your business and your customers. You should also price shop. Don’t be afraid to negotiate with suppliers if they give you a good deal. Just remember that they are not obligated to give you any discounts or deals—you are asking them for one! Don’t take no for an answer, but don’t be pushy either. Make it clear you want to work with them, and ask when they’ll have more inventory available. If they say no, ask when their next shipment will arrive so you can call back then.

Step 6: Price out jobs

To figure out how much you’ll need to charge for your services, put together an estimate of how much time each job will take, along with materials needed. Then check out home renovation pricing guides—such as Angie’s List—to get an idea of what other professionals are charging for similar work. Figure 10-15% over their price for your profit margin and make sure you include these additional costs insurance, permits, advertising, marketing (if necessary), and licensing fees. Now you have a ballpark figure for how much it will cost to start your business. Add up all those numbers and divide by 12 to come up with an average monthly cost of doing business; then add that number to your overall startup budget.

Hiring employees and contractors can become an all-consuming time suck. To minimize headaches, keep your company small and work with experienced professionals when hiring. As an example, if you plan on doing a lot of home renovations yourself, it might be wise to hire help with carpentry tasks that you aren’t strong at. Don’t be afraid to ask friends or family for recommendations; they’ll likely have experienced other work from professionals they trust. And lastly, don’t forget about taxes! If you’re going to hire employees, make sure you consult a tax professional first.

Step 8. Create a marketing plan

Marketing is one of those things that’s easy to neglect, but that’s critical for your company. Whether you’re starting from scratch or have been in business for a while, there are many aspects of your marketing plan that can be improved—and it will only get more important as you scale and target larger markets.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *