If you are a handy person, starting a home improvement business can be an excellent way to commence your entrepreneurial journey. Given the sudden influx of homeowners opting to improve their homes through renovation instead of buying new homes altogether, this venture can be very lucrative if approached with the right strategy. That said, here are some key things you should know before starting a home improvement business.
Are You Suitable For This Venture?
Although a good business plan and having the right expectations are crucial for succeeding in this field, your ability to get things done and your level of motivation will ultimately determine your business’s success down the road. If you do not enjoy your entrepreneurial journey, your enthusiasm will dwindle, and so will your business’s profits.
Do You Have the Right Training and Experience?
A common mistake among most new home improvement contractors is diving into this field’s deep end without any prior training or experience. Home improvement can be very time consuming, mentally draining, and complex.
Most clients will not allow you to work on their houses if you do not possess the appropriate credentials. Besides, performing a home improvement exercise without the right training could expose you and other people on site to injury.
Therefore, you should take an accredited home improvement course and work with a seasoned renovation contractor to acquire hands-on experience. You can participate in OSHA training online or in-person to learn more about workplace safety.
What Services Will Your Business Offer?
There are multiple areas of specialization in the home improvement field. For instance, you can choose to specialize in renovating residential or commercial properties or even remodeling old houses with sentimental or historical value.
Start by analyzing your portfolio of handy skills and experiences, then determine your areas of competence and the services you would be delighted to provide. The laws governing home improvement businesses vary by state, and licensing may be required for specific trades. Ensure you are familiar with your state’s laws regarding home improvement before advertising or providing any services in your niche of choice.
Who Is Your Ideal Client?
Narrowing down to a specific customer base is among the most crucial steps you can take for your business. When choosing a customer base, focus on people who are likely to need home repair and can afford it. For instance, single women above the age of 50 are more likely to have the money and will to hire a genuine home improvement contractor if it means improving their living conditions.
Choosing a target market and understanding their habits will come in handy when advertising your services. Try figuring out what your target customers do when they need home improvement services, how they look for contractors, and the type of work they frequently request.
What Type of Insurance Does Your Business Need?
The home improvement process has its inherent risks, from property damage to financial loss and even bodily injury. You must determine your business’s insurance requirements under the guidance of a competent insurance agent.
In most instances, your agent will recommend getting bonded insurance and liability insurance since they can protect your assets should any problems arise in the course of business. Worker’s compensation insurance is a must-have if you intend to hire or contract labor.
The soaring demand for home improvement services makes this venture a worthwhile endeavor for skilled handymen. Having the right knowledge beforehand can make the process of starting a home improvement business a lot smoother. Use the ideas mentioned above and many more to avoid common mistakes and set your business up for success from the get-go.