If you do not want the cut-throat competition involved in selling houses, the next best thing for you is to tap into the renovation side of the industry. You have the flexibility to either run a full-time operation or make it your part-time job and accept projects as your side gig. Either way, you will do good with this specific type of service as long as you have the talent for redecorating or rebuilding things to make them even more beautiful than their original state.
Start With the Basics
The first thing you need to consider when starting any business is this: are you ready to be your own boss? Remember that you are starting this business from scratch, and a majority of the responsibilities of building it from the ground up falls on your shoulders. If done correctly, being self-employed reaps many rewards, but if not, it could cause disappointment and hurt your finances.
Speaking of finances, you have to expect that the first few months will be difficult. You have just started your business and still don’t have that many clients and content in your portfolio. Many business experts suggest against quitting your day job, especially if it is your first time running your own business.
If you do not have other work commitments and are planning on committing your time to this 100%, you need to make sure that you have savings to back you up personally and keep your business operational for the first 6 months. That savings will help get you through the early phases of being a first-time entrepreneur.
Determine Your Area of Specialty
The home renovation business encompasses many things, and as a beginner, you should start on a specific type of service. You have to determine the types of renovations you’re offering, what you will sub-contract, the size of the project, and the types of residences you are willing to take on. You can specialize in kitchen remodeling or living room renovations.
The important thing is, you are laser-focused on one type of service to make sure you’ll be able to deliver. It may be tempting to be a jack-of-all-trades but not necessarily advisable for start-up companies. Once you have built a stable client pool, you can always add more services to your portfolio.
Get the Necessary Permits
In Arkansas, renovation companies should have a license if you plan to take a project worth more than USD 2,000. You are also required to have a Residential Remodeler Limited License for projects that cost up to USD 50,000 and a Commercial License if your job is worth more than USD 50,000.
In California, the set amount is lower. You are required to have a renovation or construction license for any project worth more than USD 500. Minnesota, on the other hand, requires a license only for residential projects.
As with all other businesses, permits differ based on where you will operate and your type of industry. Some states would require you to have a carpentry or construction license, while others would only ask you to register with the State Contractors’ Board or the local Department of Labor. Either way, you need to make sure you have a business permit to avoid fines and legal consequences. Some requirements are posted on the website of the US Small Business Administration. Other basic documents that you should have during application are:
- A minimum of 2 to 7 years of work experience
- Certificate or proof that you have passed a law or business exam
- Proof of Education
- Proof of Financial Capability like savings or bank statements
- Proof that you have a general liability insurance
Find Contractors and Suppliers
A renovation business can not be a one-person team. This type of venture needs the help and service of several people from different types of industries and specialties. In a way, your job is to act as a middle-man between the property owners and the companies, like yours, who will do the job.
When it comes to renovating, you can keep up with today’s smart-home trend and work in partnership with home automation companies. Your supplier could also be the local hardware store or a furniture shop you have made a deal with. You can also collaborate with different individuals like interior designers, architects, plumbers, electricians, and landscapers.
As long as people need a shelter and place that they can call ‘home,’ there is a need for services in the real estate market. Just continue working and building your brand, and eventually, your passion will turn into the business of your dreams.
