Starting a Business as a Remodeling Contractor
Many people think that you can become a remodeling contractor no matter how much experience you have. And that may be true, but only when planning to remodel your own garage and build your dog a new home. However, if you’re serious about contracting, you have to know how to turn your skills into profit and make a living this way. Here are a few tips for new remodeling contractors just starting their own businesses.
Do the Work!
When starting a company, decide who’s going to do the actual work – you or someone you hire. If you want to earn more money, negotiate better conditions, have less expenses and stop depending on other people, do the job yourself. But, make sure you know how.
Being handy is vital for a contracting job and knowing absolutely everything from carpeting to fixing walls will separate you from the competition. Nevertheless, if that’s not who you are, at least learn other aspects of the job – finding the best materials, hiring trustworthy people, managing your crew and dealing with the clients.
Get Your Finances in Order
Starting a business is never easy, and it can take a while until you see some revenue. Therefore, you need to have lots of money prepared in advance and, most importantly, know how to use it. And unless you have a large trust fund or a banking account packed with numerous zeroes, you’ll probably need some kind of a loan.
Most people getting into the contracting business want a traditional bank loan which they’ll be paying off for the years and decades to come. Others, however, speak to institutions like credit unions, the SBA and even small community banks, trying to get better conditions there. Since these sources can be more sustainable, invest your time in them and get your finances in order before starting the company.
You can’t do any contracting work without proper licenses and permits, from a general business license – it varies from state to state and from one type of business to the next – to several more specific ones that allow you to handle different aspects of the job. If you want to fix someone’s plumbing or electrical problems, you need a tradesman license, for example, but if you want to demolish a client’s wall, you’ll have to own a building license.
Only with proper licenses can you do everything you want as they enable you to cover all areas of the contracting business. Finally, get security bonds, business insurance and permits, and you’re good to go!
Advertise Your Business
Having a company and not being hired by clients is the same as not having a company at all – you’ve invested a lot of time, money and effort into it, and yet have nothing in return. Therefore, you have to advertise your services.
Luckily, in today’s world of online marketing, there are more and more opportunities for you, and you just have to find the most suitable way to reach clients. Some of the best home improvement contractors even have their own mobile apps that allow clients to reach them instantaneously! While they appreciate paid marketing, most contractors still prefer a more personal touch and being referred to by their clients. That’s why you should always try to make your clients happy and thus bring more attention to your business this way.
These aren’t the only things you have to keep in mind when starting a remodeling business – don’t forget to purchase all the tools you’ll need, hire people you can trust and make a viable business plan. Once you complete all these steps, you’ll be on the way to the top!