A home renovation business remains fairly profitable irrespective of the state of the economy. During an economic downturn, owners undertake improvements to increase the home value. On the other hand, during an economic upswing, homeowners opt to renovate their homes instead of buying new plastering and mudding, high-priced ones.
Individuals desiring to start a home improvement business need not necessarily be experts or qualified home building professionals. The actual renovation work can be outsourced to other professionals and skilled laborers. Nonetheless, home renovation owners need to possess the skills necessary to supervise the work. What to do:
• Forming the business – A person wanting to commence a renovation business needs to decide on the form and structure of the company. The business owner can hire a lawyer to prepare a draft of the company’s articles of ownership or visit a legal site online and draft the articles. These have to be filed with the state office where the business is formed.
• Getting the license – The licensing laws are different for each state. However, a general applicable law is to procure a general contractor license or a license as a home renovator/remodeler. For exact details, contact your state’s local business department that provides all the relevant information and the applicable fees.
• Procuring the insurance – A licensed insurance broker can provide all the relevant and applicable insurance laws for a property renovation business. Generally, insurance coverage for any liabilities arising during the renovation is required. Additionally, the home renovation business owner may be required to have a bond to operate.
• Liaison with sub-contractors – Renovating a home requires professionals with numerous technical skills. To offer a complete home renovation package, owners need the services of technicians, such as plumbers, electricians, HVAC consultants, masons and carpenters. Checking the local telephone directory to find suitable contractors to sub-contract the work can be an option. Additionally, the business owner can contact the state’s professional licensing division to procure information on the registered service providers within the area.
• Acquiring the equipment – A property improvement business requires a substantial investment in various equipment such as saws, routers, ladders, levers, extension cords and many others. Procuring these supplies or contracting an equipment provider is crucial for the timely completion of the work.
• Materials procurement and scheduling – The business owner should open a credit line with material suppliers to ensure a continuous and timely supply of building materials. Another important aspect is to schedule deliveries from various sub-contractors onsite as required. Material delivery can affect the renovation time frame.
Once you have done the necessary leg work to set-up a home renovation business, marketing the business is the next important part. Contacting local home inspectors, architects, insurance providers and lenders can assist owners to gain projects. Advertising in various media like print, radio or online is also beneficial.