Home renovation business overview:
A key function in this business is being able to transform existing homes into something that is attractive, flows well, and is better than what the owner expects.
There are many hidden problems in the home renovation business, because you won’t be able to see certain problem areas until you tear down the old construction.
Another problem is that you have to be precise when giving a quote. You need to account for the unseen, or you will have many unhappy customers and potential lawsuits.
In addition to the unseen, when giving a quote, you can not only consider the money involved – you must indicate the time required. You are better off taking longer and finishing early to realize the invisible than promising a two-week job and finishing after four weeks.
Plan right, create beautiful renovations at affordable prices, and you can become very successful with this type of business.
Skill Set and Traits:
- An eye for design
- Excellent planning skills
- Excellent programming skills
- Effective skills to safely tear down old buildings
- Effective skills in construction, new additions, walls, etc.
- Problem solving skills
- Excellent personal skills
- List of common business skills
Consideration of Employee and Work During the Initial Phase or In the Future:
- General work
- Floor and tile specialists
- Common Staff Positions Needed to Run Some Businesses
Approximate daily hours required:
Working hours are generally 9 a.m. to 5 p.m., but keep in mind that you will come to the days when you are falling behind and may need to work longer hours, such as 7 a.m. to 11 p.m.
Equipment and supplies during the start-up phase or in the future:
- Transaction – Pickup & amp; trailer
- Power Tools – Drill / Driver, Circular Saws, Routers, Routers, Jig Saws, Reciprocating Saws, Miter Saws, Portable Table Saws, Sanders, Portable Planers
- Electric generator
- Air compressor and accessories
- Pneumatic nail gun
- Pneumatic Staple Gun
- Hand saws
- Tool belts, tool chests and a variety of portable tool boxes
- Measuring tapes
- Speed square
- Frame square
- Woodworking pencils, chalk and crayons
- Hammers – framed, finished
- Utility knives
- Retractable chalk line
- Pliers, jaws, wrenches and socket wrench sets
- A variety of levels
- A variety of chisels
- A variety of lights and lanterns
- A large assortment of nuts, bolts, nails, bits, saws, sandpaper, glue, screws, etc.
- Rods and Nail Pullers
- A variety of clamps
- Stairs of various sizes
- Cable extensions of various sizes
- PPE – gloves, steel toe shoes, goggles, hard hats, sanding and fiberglass respirator.
- Clean Tools – Magnetic Wheel, Brooms, Trash Cans, Heavy Duty Trash Bags, Wet / Dry Vacuum
- Pickaxes, shovels, rakes, wheelbarrow
- Various hand tools
- Specialized tools that you will acquire as you gain more experience and needs for those tools
Monthly expenses and operating costs to consider:
- If you leave home, you won’t have many monthly expenses other than your salary, fuel, maintenance, and repairs. On the other hand, if you have an office, you will have additional expenses, such as utilities and lease or mortgage payments.
- List of common business skills
- Every country, state, and province have different laws – you will need to check with the correct authority to make sure you have the correct license. For business licenses, we have a wealth of information on our Licenses and Permits Page
- The best type of marketing you can do is word of mouth in your area. To have good word of mouth, you need to make extraordinary renovations.
- To start your business, you may need to do a few small non-profit jobs. Even better, find a project where you can renovate for public use – this way, you contribute to society and get a free press and radio exposure, which works better than advertising.
- You could do a radio show or monthly column for homeowner renovation tips. This type of exposure will build confidence, authority, and experience as a home renovator.
- Create agreements with local vendors who sell the material you use. For example, here is a “no money” joint venture – You will use their materials, and they will send you clients who need installation. Business is not easy to do – for it to work, both parties must benefit. Also, keep in mind that you won’t do a deal with all providers, you only need one to get started.
- Give free estimates. People who want a quote usually don’t waste time, they want to get the job done, but they probably just want to see if it’s affordable.
- Create an alliance with a lender so that you can help your clients acquire credit so that they can have monthly payments. You probably want a low-interest provider for clients with good credit, and you’ll want to deal with a lender that provides high-interest, high-risk loans for people with bad credit.
Pros and cons:
- Allows you to unleash your creativity
- Can be highly profitable when you give accurate quotes
- It is a stable industry with little room for change in the foreseeable future.
- There are invisible problems behind the old construction that will not appear until the old construction is torn down.
- With invisible problems, it is difficult to meet deadlines.
- Many of the older homes have mold and asbestos that you need a specialist to come in and remove the unsafe material. This costs time and money.
- Deadlines are difficult to meet in unseen circumstances.
- Staying on budget is difficult with unseen circumstances.
Profitability and income considerations:
Your profitability depends on how accurate your quotes are, the type of work you do, and whether you are doing the work yourself or getting help.
Profitability also depends on how quickly the work gets done. If you’ve quoted a flat rate and it takes you longer than you expect, you can’t charge more – but if you complete the job sooner, it’s more in your best interest.
Start-up cost considerations:
- When starting out, it would be wise to use subcontractors for a large part of the work that you do not specialize in. For example, you may need a plumber, but instead of hiring one up front, you could outsource that part of the job. Keep in mind when working with specialized trade people that the price you pay is discounted, because they expect much more business from you.
- Especially when you start out, be sure to specify in your quote and remind the customer that you cannot quote the invisible and make sure they are prepared for any issues that may appear, such as asbestos, mold, plumbing issues, wiring, structural issues, etc.
- At first, you can do all the work yourself, but as time goes on you may need to create work teams to take on jobs that arrive at the same time.
Full or part time business:
- This type of business can be a part-time business that can grow into a full-time business.
- You can easily run this business as a home based business, although it is recommended to have a separate area for meeting clients and planning jobs.