Have you ever thought about starting a renovation business? In terms of popularity, home-grown renovation companies are incredibly popular because they can generally be started with very little investment. This is because it’s a service that often involves the purchase of materials, and this can often be one of the most expensive parts of a project. However, if you’re offering renovation services, then the customer is usually expected to pay the cost of the materials. In other words, most of the projects are funded already and you only need to invest in labour and equipment costs.
It’s also something that you can learn through self-obtained experience, and there are lots of courses available for renovations, electrician work, plumbing, and so on. This makes it one of the most unique home-grown business opportunities available. But what does it take to build a renovation business from scratch? What challenges can you expect to face in the future?
Where do you even begin?
First thing’s first; learn about setting up your own business. There is a couple of formal steps that you need to keep in mind, but it’s certainly possible to get started with just a website, a brand name and some power tools. For instance, you could get started by helping people fix their shelves and curtains.
You don’t really need a formal business in this case, but it does help if you have a phone number and some kind of listing in a local directory. This will help you get discovered and can even open you up to subcontracting opportunities where you work with a larger team to get something done.
Decide what your target market is going to be
In most cases, a home-grown renovation company will be relying on local customers within their reach. This limits the type of people that you can work with, but it doesn’t limit the type of work you can do.
For example, you can still do renovations for both residential and commercial customers if you have the skills and tools available. You could also specialize in something specific, such as working with windows, landscaping, or even electronics.
How much do you have to spend on your business?
Securing funding for your business idea is difficult, especially if it’s a home-grown business with local customers. You’re probably not going to have much luck when it comes to banks and investors, so you’re most likely going to be funding it yourself. This isn’t a massive problem for most people, but it certainly does help if you have a few friends or family members that are willing to chip in a bit. Of course, you could always get a personal loan for a small business idea, but you should only do this if you’re confident that you can see some returns.
Before you ask for funding from anyone, make absolutely sure that you’ve calculated your budget correctly so that you don’t need to borrow again in the future or from someone else.
Does your local area need a new renovation or construction business?
Before you start a business, it’s important to consider doing market research to see if your local area is already oversaturated. If you can find a gap in the market, then you could turn it into your own personal niche. Just make sure you look around for competitors to see where you stand.
Could you pivot your original plan to fit current needs?
If you’ve realised that your local market is already filled with similar renovation businesses, then you may be able to pivot your services. For example, if you notice that there’s a gap in interior design services, then you could package your renovation offerings with interior design consultations. This is a great way to put a spin on your services so you can attract new customers.
Forming a legal business entity
When it comes to your legal commitments, it’s important that you think about choosing the right business structure for your needs. As we mentioned before, it’s entirely possible to start a relatively small business on your own without much help or the need to define your business. However, if you want to do things properly and are looking to eventually grow your company, then you’ll need to do things formally to ensure that you don’t waste time and money solving these problems in the future.
Choosing a name for your company
Picking a name for your company is not going to be easy, but you can usually get inspiration from competitors in your local area. You could also look at the location of your business for a bit of inspiration, such as naming it after your town or stress.
Don’t forget about staff safety and site security
A renovation business is quite difficult to operate because you need to focus on staff safety and site security, especially if a product is going to last several days. This is something you can learn when working as a subcontractor for a larger firm, but you should also look into safety and security for your own company as well.
For example, you may need to carry out scaffold inspections if you ever need to work on a home exterior, or if it involves climbing up to the roof of a property. There are lots of different safety and security concerns when it comes to renovations, so make sure you don’t neglect your responsibilities.
Know who your suppliers and collaborators are
Lastly, make sure you find out who your local wholesale suppliers and collaborators are. The last thing you want is to accept a project but give your customers the wrong quote because you couldn’t find a local supplier for certain materials. Make absolutely sure that you have several suppliers in the local area or across the country so that you can source materials, equipment and other necessities to run your business.
Without your supplier and collaborators, you’ll have an extremely hard time running a successful renovation business.
Nb. Collaborative post.