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Im starting a home improvement business.?

Question by aklover: Im starting a home improvement business.?
I m looking into starting a home imporvement business. I would need the services of some contractors and maybe a full time bookeeper / receptionist. I needing help on maping out my business start up plan. Does any one have any ideas for me?

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  1. blinkenlights7

    If you are even asking this question, it indicates you are not ready to be starting your own business.

    Don’t even think about doing renovation work unless you are an experienced carpenter. You will rapidly go bankrupt because you will have to pay the people you hire, and your clients will not pay you because they are disatisfied in some way. Even minor screw-ups could lead to a client suing you. People don’t like mistakes being made when it comes to their house. You could easily find yourself bankrupt AND in court paying a lawyer $ 400 an hour to defend you from lawsuits. Just one small claims case could cost $ 5,000 in legal fees. A trial case starts at $ 50,000 in fees and goes up from there.

    Stick to a business you understand.

  2. Starting any business from scratch takes a lot of preparation and some money. A home improvement business is one of the easier to start because you can actually do it while still working another job. If you are good at what you do and have the ability to get the word out, you’ll be quitting that other job in no time. Advertising can be very expensive, so this article will focus not only how to start but on some lower cost ways to let people know you are in business. Read on to learn how to start a home improvement business.

    1. Name your company. You will have to register your name with the state where you will be working and the state where you live, if they are not the same. You can operate as a sole proprietor or form a corporation or form a LLC. There are some tax and liability advantages with some forms over others, depending on your situation and should be discussed with an accountant.

    2. Apply for your license. In most counties, you will have to be licensed. Depending on how much you do will decide the license you need to have. Some counties even require you to take a test. Most will require you pay workman’s compensation insurance. You can get all this information from your counties building and zoning office.

    3. Set up your bookkeeping. You should get a software program like QuickBooks and set it up to your type of business. If you plan on using an accountant to do your quarterly and end of year taxes, ask them how they would like it set up. That will make your and their job easier at the end of the year. Keep all of your receipts and record every dime you spend, including your licenses, advertisements and tools. If you are working out of your home, their are certain deductions for the room and electric you use, but be careful here, this often triggers an audit.

    4. Start advertising. Most people, when they need a repair job done, look in the phone book. Get a separate line for your business and get in the next phone book. Try to budget for a small box ad in the yellow pages and make sure they report to yellow Word-of-mouth is the next strongest way to get you name out. Have some business cards made up and give a bunch to all your friends and family to hand out for you. Take some to the Realtors’ offices and ask if you can leave them for the agents or people buying fixer-uppers. Restaurants usually have a place for business cards, gas station bulletin boards, fire stations, anywhere you think someone will let you leave them. Make up fliers and door hangers and hand them out or put them on doorknobs. You can even make postcard on your computer. Go to the tax rolls of a certain area and print out address labels. Stick them on the postcards and mail them out. You can also advertise on Craigslist. If you’re not stretched for money, take out some ads in your local newspaper and real estate magazines.

    5. Schedule your jobs. Find out how quickly your customers wants their jobs done and schedule them accordingly. Do free estimates and price your jobs fairly or slightly under the competition. Always act professionally and ethically. Do the job better than any one else would to gain trust and repeat business. Soon, you’ll be busy and successful and customers will be calling you around the clock.

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