Becoming a home improvement contractor can be a profitable business opportunity. Regardless of the current state of the housing market, individuals who are offering home remodeling services will do well.
When residential properties are in demand, sellers will spend more to make their houses more appealing to prospective homebuyers. During the off-peak season, homeowners who have money to spare may choose to customize or upgrade their houses.
If beautifying a home sounds like an awesome business idea, you could consider pursuing a home remodeling venture. Before you do this, however, you need a guide to help you get your home improvement business on the right foot.
Here are six points to help you successfully run your new business:
1. Come up with a Solid Business Plan
You need a reliable and solid plan if you want to become a successful home improvement contractor. A well-written business plan serves as a roadmap to help you structure, run and expand your new business.
What’s more, a business plan can help you bring on or obtain funding from investors. People investing in your company need assurance that they’ll get a return on their investment. Your business plan is a powerful tool that you could use to convince individuals that collaborating with you (or investing in your business) is a wise choice.
2. Use Technology to Your Advantage
Home improvement contractors need to take advantage of technology to make projects more profitable and efficient. If you’re starting your home remodeling business, you’ll want to invest in the right inventory software that can manage the accuracy of your inventory and keep your workshops updated on component availability.
Apart from that, you should purchase a cost estimating tool, a project management platform, and task management software to help you run your home improvement business smoothly and efficiently.
3. Identify the Services You Are Going to Offer
As a contractor, you need to provide home remodeling services that you love doing and provide you with the best profit. Some contractors focus their services on a particular area, such as the bathroom, kitchen and dining area. Others provide all-around home improvement services. Whatever services you go with, make sure that they are something you enjoy and will help you increase your bottom line.
4. Promote Your Services
Your business will require stellar marketing, so that people will learn more about the home remodeling services you offer. Promotional work is among the many tasks that you should do during the first few months of your business.
You’re spoiled for choice when promoting your business. You could do social media marketing, put up billboards, hand out flyers and pay for TV and radio ads to make your business known to your target market.
5. Expand Your Network
Joining an industry association is beneficial for you and your business. You may meet mentors who can hone essential business skills, such as creating contracts and knowing what and how to charge your customers. What’s more, you may meet fellow contractors who could recommend products that you could use to improve your service offerings.
When you are expanding your network, don’t forget to establish relationships with subcontractors and home material suppliers. Doing so will allow you to obtain discounts and minimize your business expenses.
6. Obtain Necessary Licenses and Insurance
Having the necessary insurance and licenses is crucial before you open the doors to your customers. You’ll need to secure a contractor’s license together with certifications required for your particular specialties. You will also need to obtain a business license for your location.
Besides licenses and certifications, you should obtain the appropriate insurance coverage for your home remodeling business. One of the policies you should purchase is general liability insurance. This will cover you should one of your employees sustains an injury at a job site (or if they damage a client’s house).
You will also need to secure workers’ compensation. This pays for the medical bills of your employee should they get hurt on the job.
Apart from that, you could get optional but highly recommended insurance policies. Auto insurance can cover your company vehicles. Commercial property insurance covers your property, including furniture and equipment. Even getting some form of data breach insurance is encouraged. Having this type of policy will cover you if there’s a breach of any sensitive client data.
You can increase your chances of succeeding as a home improvement contractor when you take note of these six suggestions. When you offer your services to clients, make sure that you and your employees go the extra mile. Satisfied customers can turn into loyal customers (which translates to repeat business for you) and even recommend your brand to others.