If you're great at DIY or have been trained as a plumber, gas installer, electrician, builder, or any of the other associated trades in the construction industry, you might have considered starting a home renovations business. There are many benefits to striking out on your own. You will be your own boss. You can set your own hours and can choose which projects you take on.
As attractive as these are, there are also risks involved. You may struggle to generate enough work to pay the bills, you might face late payment and the resulting cash flow problems. Coupled with that is how much time and effort is involved in getting the business off the ground. This deters many potential entrepreneurs from taking the plunge. If you're determined to give it a go, then it's worth doing right.
How do you start a home renovations business that's set for success? There are a few steps involved.
Form a legal entity
While you might think that you can start working straight away, that isn't the case. When starting a home renovations business, you'll need to establish a legal entity. This will be the official company that all of your work is done through.
There are several options available, each with their benefits. These include:
- Sole trader
- Limited Liability Company
You'll need to determine which of these is most appropriate for you. Much will depend on your appetite for risk, whether you will be working alone or with a business partner. Once you have decided on the legal form, you need to register with the relevant government bodies. Once that's done, it's you can open a bank accounts in your business' name.
Get the relevant licenses and insurance
Before you can start working on any projects, you'll need to get the proper licenses, certificates, and insurance. For example, all businesses and workers working on gas appliances are legally required to be registered with Gas Safe. As obvious as this is to many, the number of people who overlook this is surprising.
In many cases, you will require some form of formal qualification to carry out certain works safely and to the required standards. These will depend on what kind of construction you're involved in. If you know what you're doing, however, you should breeze through these.
Insurance is also mandatory in some cases. For example, you will need insurance if you have a work van. There are other types of insurance that can also cover you in the event of an employee or other person getting injured on the job.
Determine your speciality
There are quite a few home renovations companies that offer general construction services. Few provide specialised services. Narrowing down the services that you offer, such as house extensions, can help your company develop a reputation for that specific service.
When choosing your specialism, you should lean toward your skills. What areas do you excel in most? Are there ways that you can become more skilled or certified in it? Focusing on these means that you will end up offering a much better service in those areas than your competitors.
This should have a domino effect on your business; customers talk, and word-of-mouth marketing can be your company's best friend. Lean into this and ensure that you're outperforming competitors in your specific niche.
Naturally, there are other steps involved in starting a home renovations business. These are identical to the steps involved in setting up any other type of company. For instance, you'll need to write your business plan, develop sales and marketing strategies, get your finances in order, and multiple other things if you want to start your business on a sure footing.
These can seem overwhelming when you first start out. Sitting down and taking a methodical approach will make the process much faster - and much easier - than you might anticipate. Before you know it, your home renovations company, will be taking the market by storm.
Copyright 2021. This article was made possible by Jeremy Bowler.