With predictions of a growing remodeling industry, many are thinking about starting their own business. Before taking the plunge and starting something new, you must take the steps necessary to set your new business up for success.
The first step to any business is to have a plan. But it doesn’t end there. Here’s what a remodeling pro needs to know before starting a business.
If you’re ready to start winning more remodeling jobs for your new business, sign up with CraftJack today and start receiving leads in your area.
Create A Business Plan
If you’re ready to start a new business, before you do anything else, create a business plan. This will be your roadmap as you move forward. This business plan should include a summary of who you are, your goals, what will make your company different, financial information and marketing information This document is a working document that can be changed as you discover more about what you want your company to look like and new goals you may have. However, it will be helpful moving forward.
Develop A Name & Brand
To make your business really stand out, you’ll need a name and an image that will catch your customers’ attention. This is no small task, as your company name will be the way you introduce yourself. While many choose to go by their first and last name, others have decided to get more creative. A few tips to remember when coming up with your business name:
- Keep it short and sweet.
- Research to see if anyone else has that name.
- Match your name to your service.
- Make it memorable.
Once you’ve determined a business name, think about what you want you want your logo and colors to look like. This will help as you move forward with marketing materials like business cards, fliers and company wear to further develop your brand.
Register Your Business
Now that you’ve developed a name and a plan, you’ll need to register your business. You need to register your DBA or “doing business as” name with your local government. However, you’ll need to check with your state to see what is required to register, as each region is different. If you plan on expanding your business, you’ll need to register for a Tax ID number. For more information, see the IRS website.
Insure Your Business
Remodeling pros can do various types of work. For that reason, it’s important you get licensed, bonded and insured. Regulations for this vary by state and by trade, so research to see what is necessary for you. Often, general contractors need a business license and general liability insurance. If you plan on having employees, you may want to look into a small business policy that can include workers compensation coverage.
If you intend on hiring subcontractors for any projects, be sure they are also licensed for their specific trade, especially plumbers, electricians and HVAC contractors. It’s a good idea to check that your subcontractor has insurance as well, as your policy will not cover them.
Hiring & Training Employees
Now that you have your own business, you can hire employees to help with the work. This can be an exciting time for all. You’ll need to register the new hire with your state and follow proper protocol depending on your region.
Once the paperwork is complete, train them in your company policies and help them understand the work they’ll be doing. It’s likely a new hire will have many questions so do your best to answer them as they come up. It helps to prepare an employee handbook ahead of time so there’s a written record of all the company policies. This can include:
- Dress code
- Sick days
- Job site protocol
- Safety information
Refresh yourself on leadership basics as well, as you are now leading a team of employees who represent your business. A good leader wants success for all and knows how to communicate that with his team. You’ll need to be an effective communicator both on and off the job site to ensure employees feel valued and appreciated. Read 5 Interpersonal Skills Every Business Owner Should Possess to see how you can improve your communication with your employees.
Plan For Subcontractors
Remodeling pros will likely need to call in a subcontractor to help with work at one time or another. These subcontractors are especially skilled in their trade. It’s important that your agreement with the subcontractor for the work being done is clear and in writing. Consider including the scope of work they are responsible for, policies you have regarding subcontractor and client work and inspection of work when completed. You’ll also want to plan financially for subcontractors so you can still make a profit.
Generate New Leads
For a new remodeling business, lead generation is highly important. There are many ways to go about finding jobs in your area. Here are a few to consider:
- Sign up with a lead gen service
- Using social media to market your business
- Creating an email newsletter
- Utilizing referrals from past customers
- Leaving behind fliers and business cards in local spots
Continue Your Education
Even as the day ends, your work isn’t quite done yet. As a small business owner, there is always more things to learn. Whether it be a new trade or growing your leadership skills, remember to continue educating yourself so you can produce the best work possible. This can be done through networking with others, taking a course through a remodeling trade organization or simply listening to a podcast. The results will show as your business grows.
Starting a remodeling business is no easy task. However, with proper preparation and becoming aware of what to expect, you can set your new business up for success.
Looking to grow your small business? Read Successful Sales Tips For Small Business Owners to see how you can start winning more jobs.