Starting your own remodeling or home improvement company can be an exciting career move. Maybe you were previously a successful salesperson or passionate installer who wanted to embark on your own journey toward entrepreneurship. Chances are, you will be able to do reasonably well in your business, and you'll have the pride of achieving this goal.
However, this endeavor is not always easy. Even if you are an incredibly talented salesperson or installer, there are likely some aspects of running a business that are foreign to you. It's important to give some thought to these potential hurdles and devise a strategy that will help you overcome them.
Here are three things to keep in mind as you plan out your new business:
Perhaps you intend to keep your company small, doing much of the hands-on work yourself. This is fine with the right business model, and will give you the opportunity to continue to do what you love while working for yourself. But it's not easy to find work if there is no one marketing your business.
Chances are, even if you limit hiring, you will still need to bring some people onto your team that are experts in areas you are not. One of these will likely be marketing. Getting the word out about your business, especially when it's new, is critical. Hiring a marketing professional will help immensely.
If you intend to keep your business small, it may help to decide on a niche market to specialize in. This will not only allow you to position yourself as an expert in that area, making you a good choice for someone looking for a home improvement company on a unique job, but it will also give you a better idea of who your audience is and how to market to it.
Entrepreneur noted there is a plethora of ways you can specialize and differentiate yourself. For instance, you can decide to only work on residential properties, or exclusively on commercial ones. Beyond that, you can determine if you are going to focus your work on repairing fire damage, retrofitting historic buildings or homes to meet modern standards, or upgrading buildings to be more eco-friendly.
While you may work hard to organize your personal finances, once you go into business for yourself, you'll quickly realize that budgeting for a company is a whole different experience. Qualified Remodeler pointed out that someone who opens his or her own remodeling or home improvement business often does not know much about what goes on in the back office. Managing the company's expenses can be difficult, especially in the first few years, and can take some time to get a hang of.
"Financing benefits your business by increasing your cash flow."
Entrepreneurs can take several approaches to this problem. They might consider attending a few business courses to learn best practices, or doing research on their own. They can also hire a professional accountant that can lend his or her expertise to the money management aspect of the business. Remodeling Magazine pointed out that many of these small businesses are operated by a married couple, where one partner takes up the office and administrative duties. Of course, any professional partnership where both people agree on how to divide up the responsibilities of running the business will be just as effective.
While learning the financial ropes is critical to keeping your new company afloat, it is also worth considering some common tips remodeling and home improvement companies use to maximize or better exercise their cash flow. You may even be familiar with some from your previous work at another company.
Qualified Remodeler suggested offering financing for a portion or all of your customers' projects. Financing helps in two ways. First, it can bring in more business. When offered a financing option, customers who might otherwise decide that a project was too expensive to pursue may change their mind and put an order in with you. Or, someone who decided a renovation was too important to put off - but is trying to keep costs low - may end up realizing they can afford to spend a little more with you. Many businesses that offer financing find it increases project spend in many cases.
Plus, once you begin to offer financing, your customers will learn that you are dedicated to the work you do, and to them. Offering these programs can help your reputation, and increase customer loyalty and referrals.
The other way financing benefits your business is by increasing your cash flow. When you begin working with a company like Aqua Finance, you will receive funding that goes right into your bank account. This can help tremendously when just beginning your journey to becoming a successful remodeling or home improvement business owner.