If you are thinking about starting a home improvement business, you may be wondering if it is worth your time and effort and how to ensure you create the best one. You’ll want to consider the initial steps you will need to take. You also want to take time to estimate your start-up costs and think about how much you’ll get out of owning your own business.
Starting a Home Improvement Business
The good news about starting your own home improvement business is that start-up costs tend to be low. If you already have all of the tools and a vehicle, you may be able to start for only the cost of liability insurance (see more below). If you need to purchase tools and equipment, you may be looking at prices upwards of $75,000.
You may be able to start with just one person and the equipment you have on hand. To determine if it is worth it, consider these vital first steps:
- Opening a bank account
- Hiring staff (if you’ll employ others besides yourself)
- Marketing and creating a website
- Paying for liability insurance
Best Home Improvement Businesses
Generalists – seem to make less money than specialist (unless you scale your business much bigger than the average, or specialize in high-end homes etc.) That being said – here are 7 of the best home improvement businesses to consider starting.
- Plumbing
- HVAC
- Electrician
- Roofing
- Windows & Doors
- Garage Doors
- Remodeling (Specialized in a certain style or niche.)
As far as being an actual technician – check out this gem from Quora user, Louise Mack “Plumbers, electricians, and HVAC technicians are no different. For all of these jobs, the median annual pay is above $45,000. … A plumber earns just a little less, with a median annual salary of $50,620. HVAC technicians earn the lowest wages of the three, with a median annual income of $45,110. The BLS reports that employment of electricians is projected to grow 10% from 2018 to 2028 — faster than the average for all occupations. The shortage is due to more than the number of retiring electricians outpacing that of new electricians.”
If you are doing Handyman services – here are 5 of the most profitable / common needs from homeowners:
Marketing Your Business
Marketing your home improvement business is one of the essential first steps. To determine if this step is worth the time and energy you’ll put into it, you should think about how much you need or want to do. This step can be as cheap as ordering a case of business cards if you’re already well connected or as expensive as creating a website and taking out multiple advertisements on lots of platforms to get your name out there.
Think about how you will get business, then develop a marketing plan to generate leads. Once you have a plan in place, price out various advertising options. This will help you decide if the cost and effort of marketing yourself are worth it for you. The best home improvement companies come out of the gate with solid marketing efforts.
Purchasing Equipment
One of the highest start-up costs is purchasing tools and equipment. If you already have the tools and equipment you need on hand, this will be a low cost. However, if you need to purchase a lot of tools and equipment, this may have an impact on determining if starting a home improvement business is worth the money for you.
If you have the funds on hand and enough prospective jobs to cover your costs, it will likely be worth it to purchase the tools and equipment you need to start. However, if you’re lacking in funds or are not sure how you will get your first job, it may not be worth it to begin a home improvement company.
Getting Liability Insurance
Another expense to consider when starting a home improvement business is purchasing liability insurance—a business owner’s policy costs on average $500 annually (or $42 per month). Most insurance carriers will give you the option of paying all at once or amortizing payments out each month. Consider the cost of liability insurance when determining if it is worth it for you.
Getting Enjoyment from Your Business
Perhaps the most critical question to answer to help you decide whether or not starting a home improvement business is worth it for you is: do you enjoy home improvement? If you’ve considered the expenses above and know you’ll enjoy the work, it is likely worth it to start your own business. If, however, home improvement is not a job you enjoy doing, no matter how low your start-up costs, it’s probably not worth it for you.
Wrap-Up
There is a lot to consider when deciding if starting your own home improvement business is worth it. The best companies take all necessary first steps before start-up. You’ll want to consider all expenses involved in starting, including marketing, equipment, and general liability insurance.
Deciding if it’s worth it for you is about more than expenses, though. It’s also about your peace of mind and the enjoyment you get from your work. If you genuinely enjoy home improvement and you have the start-up funds, you should seriously consider starting your own business. After all, isn’t having a job you love what we’re all after?
