Irrespective of how the economy performs a home renovation enterprise is always a great way to earn a living. When the economy is doing well most people would rather renovate their homes than buy new ones at exorbitant prices and when it is down most homeowners will try to boost the value of their property through renovations. The advantage of establishing a home renovation business is that you do not have to be an expert in renovations, you can do the business administration, client meetings and hiring of the construction experts to carry out the renovations.
Most small home renovation companies do not make it past 5 years. A majority of entrepreneurs launch a home remodeling business but lack the management skills to run the business. According to this St Louis Kitchen Remodeling company, there are four areas of concern for those who would like to start a home renovation business. The first is the amount of capital required to start and the money you actually possess. The second thing is your level of experience in running a business. The third concern is whether you will be able to put in extra hours in the initial stages to see the business become profitable. Lastly, determine your target market and what particular jobs will you specialize in.
- Business Registration
Come up with a business structure and find a professional lawyer to handle the legal work for you. Ensure you meet all the state requirements. A home renovation business must be registered with an official name by the state. The business will be issued with a special identification number.
The regulations may differ from one state to another however, you must obtain a license to operate. This could be a home renovation license or a general contractor’s license. The licenses will attract certain application and licensing fees.
A renovation business must have some sort of liability insurance or bonding to operate. This is an important and mandatory requirement, therefore, contact an insurance company and find out the kind of insurance products they offer to renovation companies.
- Hire Licensed Contractors
Through the state business department, you can find all the information regarding licensed and qualified electricians, plumbers, ventilation experts, carpenters etc. Ensure that you verify their licenses with the state department of licensing before you hire or subcontract any of them.
Even though the large market share has been taken by the large companies which keep multiplying, there are still opportunities for the small entrepreneurs to succeed not only now but also in the future. This is one of most promising areas for anyone who wishes to become an entrepreneur.