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How to Start a Home Remodeling Business 1-2-3

Starting a remodeling business does not require a large investment or even much overhead to operate. You can also cut costs by working out of your home. You'll need tools and a vehicle, and you can rent larger equipment until you can afford to purchase (if you decide to).

First, select a remodeling niche in which you want to specialize. Will you do the work yourself, or do you prefer to sub-contract the work out? Do you want to hire employees?

Put together a remodeling business plan to help you figure out start-up and operating costs and to give you a roadmap to follow as you grow your business.

Steps to Start a Home Remodeling Company

1. Decide on a name for your remodeling company. Then register your business with your county clerk's office.

2. You will need to get a business license from your local city or county office. If you don't already have one, you'll need a contractor's license as well. Although not necessary, the National Association of the Remodeling Industry also offers certification programs to professional remodeling contractors who work in the field full-time.

3. If you are not using your personal name as your business name, register business name with the county clerk. If you want to incorporate your business, you can review information online to see how incorporating may benefit your remodeling company. Get a business tax ID from the IRS website. You can also get information at the website about business income tax, self-employment tax and estimated taxes.

4. Open a business bank account to write checks to vendors, accept payments from clients and to keep business and personal finances separate.

5. Meet with an insurance agent to find out the exact insurance you are required to have and additional options you may want. Want to learn more on your own and get an idea on rates? Check out NetQuote.com, which offers free quotes from multiple insurance providers so you can comparison shop.

6. In order to make the most of the tax benefits your remodeling business offers, set up a meeting with a local tax accountant. This doesn't obligate you to use their services, but you can get a better understanding of what tax and accounting tasks need to be done, and if you'd prefer to do them yourself. If you decide to do your own business bookkeeping, pick up some business accounting software like Quickbooks Pro. See also: small business tax deductions.

7. Give your customers a professional first impression of your business when they initially contact you. If you have internet service, you can use a virtual phone and fax service with voicemail and lots of other features included for less than $10 a month. Month after month, this can add up to a substantial cost savings.

8. Get business cards and other promotional materials you'll need for your business like brochures or postcards. Hand them out to people you know and include them in all correspondence. Business cards can also bring you more business when you include additional information on the reverse side of your card (ie. special offer for new clients, how to get on your VIP customer list at your website, your website address, unique services you offer that competitors don't, etc..).

9. Set up a website. A website can help you advertise your remodeling services by showing your previous remodeling work, including photos, providing contact information, offering discounts and detailed information that potential customers want. 

Spend less money by building a website yourself. There are website templates that make it simple to create a basic site. Don't have time? Hire a professional website designer for as little as $499.95.

Getting started:

Linda Case has worked in the remodeling industry for over 30 years. She also writes for Remodeling Magazine and has coached hundreds of remodelers on their businesses. Along with industry expert Victoria Downing, she's put together an Action Plan for Profit, specifically for people wanting to start their own remodeling businesses.

Find out:

  • How to Land Profitable Jobs: How to sell yourself and your services so that you get the work you want and you don't spend a lot of time marketing.
  • As seen on AmazonHow to Make Clients Happy... so they will refer more business to you and hire you for more jobs.
  • How to Find Awesome Workers: How to find great people to work for you so that you can make more money and spend less time working.

Go!Start a Remodeling Business


Marketing Your Remodeling Services

Make sure your company is listed in your local phone book and also in online directories. Many homeowners look in these places for contractors, and the more exposure your give your business, the better.

Many consumers also use sites such as MiNeeds, BidClerk or ServiceMagic to find home contractors because they are trusted third party websites. You can list your business and pay for leads when consumers contact you.

Increase awareness of your business and professionalize your van or truck with magnetic signs. These are extremely cheap considering you get year round advertising. The way to save money is to design the signs yourself. Make sure they are easy for people to read and understand - making them memorable is also a plus.

Remodeling Business Associations:

National Association of the Remodeling Industry
NARI offers continuing education and training and promotes professional conduct within the industry.

Building Trades Association
The Building Trades Association is made up of thousands of companies involved in all phases of the building and construction industries.

2014 Home Business Start-up Checklist!

Home Business Start-up ChecklistGet the complete checklist free! Follow step-by-step ...from choosing your niche to bringing in customers.

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