sample business plan for home renovation

Remodeling Business Plan Template

Written by Dave Lavinsky

Remodeling Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their remodeling businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your remodeling business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a Remodeling business, or grow your business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your remodeling business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Remodeling Businesses

With regards to funding, the main sources of funding for a remodeling business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for remodeling businesses.

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How to write a business plan for a remodeling company.

If you want to start a remodeling business or expand your current one, you need a business plan. Below we describe what should be included in each section of a business plan for your remodeling company:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of remodeling business you are operating and the status. For example, are you a startup, do you want to grow your business, or are you operating remodeling businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the remodeling industry. Discuss the type of remodeling business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of remodeling company you are operating.

For example, you might operate one of the following types of remodeling businesses:

• Residential Remodeling : this type of remodeling business focuses on renovations strictly for home-based projects, such as kitchens and bathrooms.
• Design-Build and Whole House Remodeling: this type of remodeling are residential general contractors that are responsible for the architecture, design, and construction management of major home remodeling projects.
• Restoration: Restoration contractors specialize in working with insurance companies, and focus specifically on fire, wind, or water damage to restore the home to its original condition before the occurrence.

In addition to explaining the type of remodeling company you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of projects completed, number of positive reviews, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the Remodeling industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the remodeling industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your remodeling company business plan:

• How big is the remodeling industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your remodeling company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners looking to add on or update their home, those who have suffered a recent weather damage occurrence, and new homeowners who have purchased an older home that is in need of updates.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of remodeling company you operate. Clearly, homeowners would respond to different marketing promotions than help those affected by weather-related incidents, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target market. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other remodeling businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes new home builders and large construction general contractors. You need to mention such competition as well.

With regards to direct competition, you want to describe the other remodeling businesses with which you compete. Most likely, your direct competitors will be remodeling businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of remodeling businesses are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide shorter project times?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a remodeling company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of remodeling company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to temodeling, will you provide call design and architecture, project management, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your remodeling company. Document your location and mention how the location will impact your success. For example, is your remodeling business located in a high traffic area, a business district, a standalone office, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your Remodeling marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites 
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your remodeling business, including offering free remodeling quotes, sourcing materials and labor, organizing subcontractors, client communication, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your remodeling business to a new city.  

Management Team

To demonstrate your remodeling business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing remodelings. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your management team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a remodeling businesses or successfully running a construction company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client at a time or multiple new clients ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Remodeling business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing your business:

• Cost of contracting licenses and permitting.
• Cost of equipment and supplies.
• Payroll or salaries paid to staff and subcontractors .
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include past remodeling projects or project quotes of client projects you are working on.  

Putting together a business plan for your remodeling business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the remodeling industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful remodeling business.  

Remodeling Business Plan FAQs

What is the easiest way to complete my remodeling business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Remodeling Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of remodeling business you are operating and the status; for example, are you a startup, do you have a remodeling business that you would like to grow, or are you operating a chain of remodeling businesses?

Don’t you wish there was a faster, easier way to finish your Remodeling business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Home Improvement Business Plan

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How to Write A Home Improvement Business Plan?

Writing a home improvement business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the home improvement services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of home improvement company you run and the name of it. You may specialize in one of the following home improvement businesses:

• General home improvement business
• Kitchen and bathroom remodeling specialists
• Painting contracting
• Flooring Companies
• Home automation contracting
• Describe the legal structure of your home improvement company, whether it is a sole proprietorship, LLC, partnership, or others.Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established home improvement service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your home improvement business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the home improvement services your business will offer. This list may include services like,

• Design Consultation
• Project planning & management
• Installation and Remodeling Services
• Repair & maintenance

Home improvement products

: List down home improvement products offered by your business. This list may include,

• Building materials
• Hardware & tools
• Fixtures and fittings
• Paint and coatings

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your home improvement plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your home improvement business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your home improvement business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for home improvements, such as hand and power tools, power generators, air compressors, ladders, safety equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your home improvement business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your home improvement services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the home improvement industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your home improvement business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample home improvement business plan will provide an idea for writing a successful home improvement plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our home improvement business plan pdf .

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Frequently asked questions, why do you need a home improvement business plan.

A business plan is an essential tool for anyone looking to start or run a successful home improvement business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your home improvement company.

How to get funding for your home improvement business?

There are several ways to get funding for your home improvement business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your home improvement business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your home improvement business plan and outline your vision as you have in your mind.

What is the easiest way to write your home improvement business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any home improvement business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

Can a good home improvement business plan help me secure funding?

Indeed. A well-crafted home improvement business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start a Home Renovation Business

If you are passionate about home improvements, starting a home renovation, repair, or re-construction business can be an exciting and rewarding venture. There’s nothing quite like being your own boss while doing something meaningful and fulfilling. Play your cards right, and you’ll also get to make a decent income and career out of it. 

The home renovation space is teeming with lucrative opportunities. Many homeowners will pay top dollar for room additions and improvements, bathroom and kitchen makeovers, landscaping , roofing and flooring, décor, HVAC services , and more. The US home remodeling market grew to $340 billion in 2020. And it could reach $450 billion by 2027, with the Do-It-For-Me (DIFM) segment taking a 60+ percent market share.

So, where do you begin? Starting any business calls for careful planning and finessing. Even a small contracting business has several moving parts. And it’s your job to put everything together that makes the business work.

This is more than a guide on how to start a home renovation business. It will take you through all the necessary steps, worthy considerations, and pitfalls to avoid when establishing a home remodeling business.

Let’s get started.

Step-by-Step Guide to Starting a Home Remodeling Business

Before you make any moves toward starting your own home contractor business, it’s important to understand what you’re getting into. Get the lay of the land and learn what to expect. So, take a step back and ask yourself the following questions:

• Why am I getting into the business?
• How will I be involved in the business?
• What will I sell?
• Where will I sell and to whom?
• What unique value does the business bring to the market?
• Who are my potential competitors?
• Is my idea financially feasible?
• What will it take to make the venture work?
• How big can the business really get? 
• What challenges lay ahead? 

Conduct some rough preliminary research into the home remodeling scene in your target area or market. You need a good picture of the market’s size, dynamics, and potential competitors. Find out what consumers want, what they’re getting, and how much they’re paying for it. After that, you can identify the market holes or niches that your business could fill. Then build your business model and unique selling points from there.

Going into any business also requires the right mindset. For starters, check your expectations, anticipate challenges, and set realistic and achievable goals.

With that in mind, here are steps to start a remodeling business.

Draft a Solid Business Plan

A business plan is a formal document that serves as a roadmap for your new business. It’s a dynamic guide that describes how to structure, run, and grow the enterprise. Business planning essentially fleshes out your business idea and represents it as a digestible and actionable blueprint. This should help you get an overview of the renovation business and spot its potential strengths and challenges.

There are generally two ways to write a business plan. One, you can draft a comprehensive traditional business plan detailing every aspect of the business. But for a small home improvement business, it’s better to keep things simple at first with a lean business plan. This type of business plan is more compact and concise. It covers just the core business elements in a few short pages.

These are the key components you should include in your lean business plan:

• Business overview – Give a general description of the business model.
• Key activities – Outline the home renovation services you’ll be offering and your role in the business. Will you be doing the work yourself or contracting outsourced professionals?
• Resources available – What key resource will your home renovation business leverage? It could be your skills and expertise in the home improvement industry, a capable labor force, construction/renovation equipment, or a proprietary asset.
• Value proposition – Explain the unique value your business brings to the consumers. These are your unique selling points (USP), the attractive qualities that distinguish you from competitors.
• Customer segments – Narrow down your target customers. Your ideal customer might be a fresh homeowner looking to turn their new house into a home. Or anyone wanting to raise their property’s value for an upcoming appraisal or sale.
• Revenue streams – Paint a picture of how the business will make money remodeling homes.
• Cost structure – Design a cost structure fitting your business model and its services. More importantly, set an affordable and competitive price point.
• General financial plan – Work out what it’ll cost to launch and run the business, how you’ll get the money, and what the cash flow will look like.
• Goals and objectives – You should have a clear vision for your new business. How far do you want to take it?

Pick a Name and Get Registered

Choose a catchy name for your business and get it registered in your state. However, there’s much more to registering a new business than simply picking a killer name.

First, you have to choose a business structure under which to register your home remodeling venture. There are several business structures to choose from. But sole proprietorship and LLC (limited liability company) are the best structures for a small home renovation business.

Registering a Sole Proprietorship

A sole proprietorship is a business that’s owned and controlled by one person. It’s also the simplest of all business structures. To register a sole proprietorship, you can either put up your own name or pick a fictitious name by filing a DBA (“doing business as”). Registering an LLC

Unlike a sole proprietorship, an LLC separates your personal and business identities, legally speaking. That means you won’t be personally liable for the business’s legal or financial obligations, such as debts and lawsuits. However, registering an LLC is a lot more involved than a sole proprietorship.

With an LLC, you’ll have to nominate (depending on your state) a “registered agent” to submit and receive legal papers on your behalf. You’ll also have to file two documents: Articles of Organization (also known as Certificate of Formation or Certificate of Organization) and an LLC Operating Agreement, though this is not required in every state.

In either case, you also need an Employer Identification Number (EIN) to hire workers, file federal taxes, open a business bank account, and apply for business permits. The federal government also requires every business with employees to have unemployment, workers’ comp, and disability insurance. Remember, business insurance laws vary from state to state. But compulsory or not, insurance is essential in the home renovation business. So, consider insuring your business anyway.

Learn more about business structures and registration in this article by the SBA.

Secure the Necessary Permits and Licenses

Every business needs a license in order to operate anywhere in the country. Business licenses are issued by local government agencies, usually the city or municipal office. But a license only allows you to do business. You’ll also need various business permits to carry out home renovation projects in specific states, cities, municipalities, or zones.

The permit requirements for your home contractor business will depend on its specialization and location. You may also need temporary work permits for specific projects. But generally, most states and cities require builders and contractors to have a professional license/certificate, health and safety permits, and general contractor permits. Check with your local industry and government authorities to see the permits you’ll need.

Nail Down the Business Logistics and Resources

By this stage, you already have a fundamental business framework. Now is the time to gather all the resources you’ll need to get going. This will obviously depend on your business model, size, and service scope. Top-of-the-list items might include:

• Funding – Get the funds to start and run the business until it can stand on its own. You can bootstrap the venture or apply for financing from banks or alternative lenders.
• Labor – Start hiring subcontractors, handypersons, project managers, etc., if needed. But you don’t have to make permanent hires right away. It’s safer and more cost-efficient to hire staff on a contract basis at first.
• Suppliers – Find the best suppliers for any construction, plumbing, or electrical materials you’ll need for various home renovation projects. Remember to consider reliability and quality above pricing when selecting suppliers.
• Assets – Acquire all the equipment, machinery, and tools you’ll need to start work (specialized construction equipment, vehicles, hand tools, etc.). Buy what you can afford and hire the more expensive machinery, such as trucks and power tools, only when needed. These assets can also include the tools needed to run a business, like an estimating and invoicing app, or setting up a template in Excel.

Define Your Remodeling Business Brand

Branding is a way of setting your business apart from its competitors. It’s a means for customers to identify and associate with your business. Branding also forms the basis for marketing. Anything that identifies your business is part of your branding, from its name and logo to USPs.

However, there’s more to branding than just the business name and logo. Branding extends beyond mere recognition to the customers’ perception of the business. Customers prefer to engage with the businesses they trust, and you can build that trust through strong branding.

Your brand should represent what your renovation business stands for, expressing its qualities, strengths, values, and personality. In other words, instill customer confidence through your business’s presentation. Make assurances, quality guarantees, and value-added advantages part of your business identity.

Start Marketing

Once everything is set up, you can start a rigorous marketing campaign. Focus your marketing efforts on spreading brand awareness and generating leads to score your first customers. That means presenting your brand to the relevant audiences and getting people excited about signing up for your home remodeling services. You can do this in any number of ways.

Here are some proven marketing ideas worth trying out:

• Create a website and optimize it for local search within your service area.
• Get your business on social media: Facebook, YouTube, Instagram, Nextdoor, Twitter, and LinkedIn.
• Involve yourself in local community activities.
• Brand your vehicles, machinery, and work sites.
• Cold pitch to homeowners using direct mail.
• Hand out flyers and branded merchandise at local gatherings and events.
• Get your business listed in local and online directories.
• Join various home remodeling and construction groups/associations to build your credibility and leverage their advertising muscle.
• Consider taking out paid ads in local publications and on the internet.
• Entice first-time customers with irresistible home renovation discounts and offers.

Avoid These 8 Rookie Mistakes

Fundera calculates that about 20% of small businesses fail in their first year. Meanwhile, about half never make it past five years. Worryingly, start-ups in the construction industry have relatively low survival rates. Only 35% of small construction businesses make it through their fifth year.

These grim figures are not meant to scare or discourage you from starting your home renovation venture. In business, failure is always an opportunity to learn, even the failures of others. And there’s a lot you can learn from failed businesses when starting your own. On that note, here are some of the costly mistakes that can easily run you out of business as a home improvement contractor:

Starting with Too Little Cash

Running out of cash is one of the top reasons many small start-ups fail. Don’t underestimate your business’s financial needs. Ensure you have enough capital to begin with and avoid unnecessary purchases or drawing money out of the business during its infancy.

Underestimating the Competition

Understand your competitors before going up against them. The home improvement sector is often a highly crowded commercial space. So, carefully gauge the possibility of carving out a niche for your business. Check whether your value proposition and unique selling points are a match for what’s already available in your target market.

Lacking a Solid Business Plan

Starting any business without a solid plan is like wandering blindly into dangerous waters. A good business plan lays out a clear path to your goals, sets up contingencies around potential obstacles, and puts guardrails to keep the business on track to success.

Ignoring Customer Satisfaction

Praise for home renovation businesses largely spreads through word of mouth and referral from past clients. Therefore, customer satisfaction is a big part of passive marketing. Plus, happy customers are more likely to contract your business again in the future. The rules of customer satisfaction are pretty simple: work on customer service, promise and deliver, and never compromise quality.

Doing Everything Yourself

A contractor business doesn’t have to be a one-man show. Besides, you surely can’t expect to juggle every aspect of the business yourself. Don’t hesitate to seek wise counsel, outside financing, subcontractors, and labor whenever you need it. Surround yourself with people and resources that support your enterprise.

Setting the Wrong Price

Writing price estimates for home renovation services is a delicate balancing act between competing and profiting. The trick is to set a price that not only best represents the value of your services but also fairs well against competitors’ benchmarks.

Poor Project Management

Develop an efficient project management strategy that prevents delays, cost overruns, and poor-quality delivery even when handling multiple projects at a time. Also, accept only the projects you’re sure can be completed in time and within budget.

Focusing on Rapid Growth

This may seem counterintuitive, but rapid growth can lead to all sorts of problems. Expanding too fast can deplete your cash reserve faster than the business can replenish it and introduce sudden risks, choices, or opportunities you were not prepared to handle. Aim for homogenous and organic growth that’s more sustainable and manageable.

Wrapping Up

Running your own home renovation business can be rewarding and liberating. However, these rewards and freedom come with great responsibility. It takes a lot just to start a business, let alone run it for years and years. But although it may be challenging, it becomes easier once you break everything down and take it one step at a time.

Once you’re ready to get started, use this guide for help and let Joist save you time, win more jobs, and get paid faster with quicker remodeling estimates , professional invoices, and payment tracking.

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How To Start A Home Remodeling Business: A Comprehensive Guide

In 2022, the home remodeling industry saw a staggering growth of 5.5%, with homeowners spending more time indoors and looking for ways to enhance their living spaces. If you’ve ever considered diving into this lucrative market, you might be wondering How To Start a Home Remodeling Business . This comprehensive guide is here to illuminate the path for budding entrepreneurs like you. Dive in to discover the essentials of setting up, running, and growing a successful home remodeling venture. Let’s embark on this transformative journey together!

Essential Skills and Qualifications

Necessary Skills for Starting a Remodeling Business

Beyond the hammer and nails, a successful remodeling business owner needs a keen eye for design, strong project management skills, and a dash of salesmanship.

Training and Certifications to Consider

While a degree in construction might give you a head start, various certifications, like the Certified Remodeler (CR) designation, can boost your credibility.

Importance of Hands-on Experience

There’s no substitute for getting your hands dirty. Before diving in, consider working on a few projects or shadowing a seasoned pro. It’s the best way to learn the ropes and avoid rookie mistakes.

Crafting a Business Plan

Importance of a Well-Defined Business Plan

A business without a plan is like a house without a foundation. Wobbly and risky! Crafting a solid business plan is the first step to ensure your remodeling business stands tall and sturdy.

Key Components to Include

From financial projections to marketing strategies, your business plan should cover all bases. And don’t forget to include an analysis of your competition. Knowledge is power, after all.

Setting Clear Objectives and Goals

Where do you see your business in 5 years? Whether it’s opening a showroom or expanding to multiple cities, setting clear objectives will keep you on track.

For more insights on designing the perfect spaces, check out How to design floor plans . And if you’re looking for a deeper dive into starting a remodeling business, this guide on How to start a remodeling business is a goldmine.

Legal Considerations and Licensing

Choosing a business structure.

So, you’ve decided to take the plunge and How To Start a Home Remodeling Business . First things first, let’s talk structure. Whether you’re leaning towards an LLC for its liability protection or considering the simplicity of a sole proprietorship, your choice will have tax implications and determine your level of personal liability.

Obtaining Necessary Licenses and Permits

No one likes red tape, but it’s a necessary evil. Depending on your state, you’ll need specific licenses to operate legally. And remember, working without the required permits can lead to hefty fines. So, always better to be safe than sorry!

Importance of Insurance for Remodeling Business

Accidents happen! Whether it’s a misplaced hammer or an unexpected plumbing issue, having the right insurance can save you from a financial nightmare. Consider general liability and workers’ compensation as your safety nets.

Building a Brand and Online Presence

Crafting a memorable business name and logo.

Your brand is more than just a name; it’s the first impression you make. So, choose a name that resonates with your target audience and a logo that’s as unique as your services.

Setting Up a Professional Website

In today’s digital age, if you’re not online, you’re invisible. A sleek, user-friendly website can be your most potent marketing tool. And hey, while you’re at it, check out these Best free home design apps to give your site that extra oomph!

Utilizing Social Media for Marketing and Engagement

From Pinterest boards of dream homes to Instagram’s before-and-after shots, social media is where your audience is. Engage, inspire, and watch your client list grow!

Financing and Budgeting

Initial investment and startup costs.

Starting a business isn’t cheap. From tools to advertising, the costs add up. On average, initial investments can range from $10,000 to $50,000. But remember, every penny you put in is a step towards building your empire.

Securing Loans or Grants

Unless you’ve got a money tree in your backyard, you might need some financial help. Research loans tailored for small businesses or grants that support local entrepreneurs.

Importance of Budgeting and Financial Planning

A successful business is as much about smart spending as it is about earning. Budgeting isn’t just about cutting costs; it’s about maximizing profits. For more insights, this guide on How to start a home renovation business is a treasure trove of information.

How To Start Home Remodeling Business: Marketing Strategies

Traditional vs digital marketing.

In the age of TikTok and Instagram, it’s easy to dismiss traditional marketing methods like billboards and radio ads. But guess what? They still pack a punch! However, combining them with digital marketing strategies can give your business the edge it needs. Think of it as a PB&J sandwich – classic yet timeless.

Importance of Word-of-Mouth Referrals

Ever heard the saying, “A happy customer tells a friend; an unhappy customer tells the world”? Word-of-mouth referrals are the gold standard in marketing. Happy clients become your brand ambassadors, and their recommendations are worth their weight in gold.

Collaborating with Real Estate Agents and Contractors

Real estate agents and contractors can be your ticket to a steady stream of clients. Build strong relationships with them, and watch your client list grow faster than you can say “remodel”!

Building a Portfolio and Client Testimonials

Importance of showcasing your best work.

Your portfolio is your business card. It’s what potential clients will judge you on. So, make it count! Showcase a variety of projects to demonstrate your versatility and expertise.

Collecting and Displaying Client Testimonials

Nothing screams trust like genuine client testimonials. Encourage your satisfied clients to leave reviews. And for the love of all things DIY, please don’t be tempted to fake them!

Leveraging Before-and-After Photos

A picture is worth a thousand words, but a before-and-after photo? That’s priceless. It not only showcases your skills but also gives potential clients a tangible sense of what you can achieve. For more insights, check out Surviving a major home renovation .

Challenges and Solutions in the Remodeling Business

Common challenges faced by new businesses.

From managing client expectations to navigating the maze of permits, starting a remodeling business isn’t a walk in the park. But hey, if it were easy, everyone would do it!

Strategies to Overcome These Challenges

Knowledge is power. Stay updated with industry trends, attend workshops, and never stop learning. And when in doubt, seek advice. There’s no shame in asking for help.

Importance of Continuous Learning and Adaptation

The remodeling industry is ever-evolving. What’s trendy today might be passé tomorrow. Continuous learning and adaptation are not just buzzwords; they’re your ticket to long-term success. For a deeper dive into the world of home renovation, this guide on How to start a home renovation business is a must-read.

Frequently Asked Questions

What do i need to start a home remodeling business.

Starting a home remodeling business requires a combination of skills, certifications, a well-defined business plan, and the necessary licenses and permits.

How much capital is needed to begin?

Typically, the initial investment can range from $10,000 to $50,000, depending on the scale and location of your business.

Is experience in construction necessary?

While having construction experience is beneficial, it’s not mandatory. Many successful entrepreneurs start with a passion for design and then acquire the necessary skills.

How do I market my home remodeling business?

Marketing strategies can include digital advertising, word-of-mouth referrals, collaborations with real estate agents, and showcasing a strong portfolio.

What challenges can I expect in this business?

Common challenges include managing client expectations, staying updated with industry trends, and handling unexpected project complications.

How long before I start seeing profits?

Most businesses take about 1-2 years to break even and start seeing consistent profits, depending on their strategies and market conditions.

How can I ensure the growth and sustainability of my business?

Continuous learning, adapting to market needs, and focusing on customer satisfaction are key to ensuring the growth and sustainability of your home remodeling business.

Embarking on the journey of How To Start a Home Remodeling Business can be both challenging and rewarding. With the right strategies, dedication, and this comprehensive guide at your side, you’re well-equipped to carve a niche for yourself in this booming industry. Ready to transform homes and lives? Dive deeper into our guide and take the first step toward your entrepreneurial dream today!

Thank you for reading!

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Remodeling Business Plan Template

DEC.21, 2020

Remodeling business plan for starting your own building company

Whether it’s about increasing one’s property value or boosting one’s lifestyle, remodeling is the way to go. Remodeling is a type of business that can be started with simple services at the residential level. And can be expanded to performing complicated renovations needed by commercial buildings and businesses.

No matter how large or how small your startup is, you would have to create a remodeling business plan for remodeling. Creating a comprehensive business plan before you open a remodeling business will help you in:

• Recognizing the latest trends
• Acquiring the right expertise
• Avoiding troublesome situations
• Efficiently manage finances

To help you in creating a business plan that covers all the essential aspects, we’re providing a sample business plan of a startup ‘Model-It Solutions’.

Executive Summary

2.1 the business.

Model-It Solutions will be a registered, licensed, and insured remodeling business startup based in Buffalo, New York. The business will comprise expert contractors, architects, and engineers to enhance the aesthetic and comfort level of residential as well as commercial structures.

Simply put, we build what you dream!

2.2 Management of Remodeling business

As a business owner, you can’t rest after setting up a remodeling company. You have to be proactive in organizing and analyzing various business operations. In the case of a remodeling business, you need efficient management to complete given projects in time. To make sure that clients get the work done according to their expectations, you have to properly manage communication, finances, and resources among various channels.

2.3 Customers of Remodeling business

Exploring who are going to be your customers is extremely important. Before you search for how to start a remodeling company, you should identify your customers.

The target customers of Model-It Solutions will be the homeowners, construction firms , contractors, and government agencies. To turn them into our potential customers, we will be taking effective steps.

2.4 Business Target

Our major targets are:

• To maintain a customer return rate of 20% throughout our service years
• To maintain a CSAT score of above 85%

Company Summary

3.1 company owner.

Anna Huston will be the owner of Model-It Solutions. Anna is an MBA. After completing her education at Stanford University, she started working in Skanska.

But 5 years into the service, she decided to start a remodeling business of her own.

3.2 Why the remodeling business is being started

Anna always remained a woman of creative ideas. After serving in a multinational firm, she decided to move to her hometown and serve people with her talent. She realized that the remodeling business has never-ending scope in the years to come as people keep thinking of bringing improvement to their property.

3.3 How the remodeling business will be started

Step1: Plan your business

As the first step, Anna studied various business plan examples for remodeling company to make a business plan for remodeling. From analyzing the market shares to creating a financial plan, Anna put everything on her business plan.

Through this remodeling business plan sample you can study the business’ requirements, balance sheets, personnel plan, and other aspects of Model-It Solutions.

Step2: Define your brand

The second step after creating a remodeling business plan is to get your business registered. You will have to acquire the required licenses and permits. Moreover, this is the time when you have to physically establish your business office.

Step3: Hire the staff

The third step is to conduct interviews and tests to hire the most competent employees.

Step4: Get ready to promote & market

The next step is to promote your services and competitive aspects to reach your target customers. This step also involves the strategy you will adopt to gain and retain your client base.

Step5: Establish a web presence

In this age, people use Google to find the right service provider whenever they need any service. Therefore, it has become essential that you establish a strong social media and web presence.

Anna decided to hire a professional IT expert to create a website for Model-It Solutions. The website will also enable users to make online bookings. Moreover, the website will also keep a record of repeat customers so that Anna could evaluate her business performance time-to-time.

Our startup expenses including costs of all the things we could need for the startup are given below:

Before exploring how to start your own remodeling business, you should decide your services. Deciding your services even before the launch can help you in identifying the ways through which you can facilitate your customers.

To give you a notion of services you can provide as a remodeling firm, we are enlisting the services provided by Model-It Solutions in this remodeling business plan template.

• Full House Remodeling: Our primary service will be to do the whole house remodeling. In this, we will work to redesign an old building to fulfill modern needs such as increasing the living space or making the interior/ exterior more appealing.

Depending on the clients’ needs we will remodel their kitchen, laundry, bath, deck, and more. We also install sidings, flooring, new windows and doors, cabinets, and whatever else our customers would need.

• Handyman Remodeling: This service will include doing minor changes in homes such as installing a modern lighting system, carpeting, painting the walls and cabinets, installing wallpapers, and doing small repairs.
• Historic Home Remodeling: Our third service will be to remodel historic and significant architectural buildings without affecting their historic aspects.
• Individual Structural Re-design: We will offer the services of adding/ removing the bathroom, room, kitchen, and laundry, installing a staircase, modern roofing, etc.

Marketing Analysis of Remodeling Business

Marketing analysis is an important part of a remodeling contractor’s business plan as it enables the business owner to keep pace with the demands of their customers. Through efficient marketing analysis, you can recognize remodeling domains that have high demand. Moreover, this part also gives you a clear idea of your customers before you open a remodeling business.

5.1 Market Trends

According to a report by IBISWorld, remodeling businesses have seen a growth rate of 1.7% in the past five years. More than 455 thousand remodeling companies are operating throughout the United States. The market size, according to the same outlet, is reported to be $97 billion.

The market stats are quite satisfying and the growth rate also indicates that there is still room for other startups to join the venture. If you want to ensure that you get customers from the very beginning of your startup, you should study the market trends of individual locations. That will help you locate an area where competition is low and people who need remodeling service are greater in number.

5.2 Marketing Segmentation

Identifying your customers before investigating how to write a business plan for remodeling is necessary. Dividing the wide populations into distinct groups can help you in recognizing their demands. And thus enabling you to plan ways to fulfill their expectations.

The groups that were identified by Model-It Solutions as potential customers are given below:

5.2.1 Real Estate Owners: Our primary customers will be the people who own any sort of building. They can need our services in two cases:

• They want to enhance the interior design / exterior for themselves.
• They want to remodel the property to increase its value so that it could be sold at a greater price.

In any of the cases, we’ll go to all extents to make sure they are happy and satisfied with our remodeling services. For them, we’ll provide full property remodeling services as well as individual services like installing new cabinets and remodeling the kitchen, etc.

5.2.2 Contractors & Construction Companies: The second group of our target customers will include contractors and construction companies. They will need our services whenever they get some project or even when they are building some structure from scratch.

5.2.3 Government Agencies : Our third category comprises government agencies who will be needing us to remodel structures of historic, artistic, and cultural importance – in a way that their integrity and historic aspects are maintained.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Anna set her business financial and other goals before starting a remodeling company. She realized that by doing so, she would be able to provide a direction to her resources and talent.

The business targets of Model-It Solutions are

• To earn a net profit of $24k per month by the end of the first year
• To lower the costs of our operations by 5% by the end of the 3 years by improving our techniques and methods

5.4 Product Pricing

The prices of our services will be lesser than those of our competitors. It is because we want to capture as many customers as possible in the initial phases of our startup.

Marketing Strategy

A remodeling business plan is incomplete unless you include in it, the ways to capture the attention of your target audience. In this marketing plan for remodeling business we are enlisting the exclusive sales strategy plan of Model-It Solutions.

6.1 Competitive Analysis

Anna realized that hundreds of remodeling firms are already operating in Buffalo. Therefore, she decided to come up with distinct features to outperform her business rivals.

The competitive aspects of Model-It Solutions are:

• We are highly client-oriented. We will always be willing to amend the remodeling designs as per our clients’ wants and needs.
• Our workers are highly skilled and highly collaborative.
• We provide online booking and payment facilities to our customers.
• Our repeat customers will be offered several discounts.
• Our prices are lower than our competitors, so you can easily try our services for a minor/ major task.

6.2 Sales Strategy

To get introduced to our target customers, we will:

• Advertise our startup through local newspapers, Google Local ads service, and social media
• Keep our prices lower than our competitors
• Establish a strong web presence using SEO techniques
• Provide a 25% discount to our repeat customers on every second visit

6.3 Sales Yearly

6.4 Sales Monthly

6.5 Sales Forecast

Personnel plan

While writing a business plan for remodeling, you should also define your employees, their job responsibilities, and requirements. It will enable you to judge the applicants on a definite criterion when you are going through the hiring phase.

7.1 Company Staff

Anna will manage the business herself. However, she’ll hire the following staff:

• 1 Co-Manager
• 1 Architect to design/ remodel complicated projects
• 2 Contractors to implement remodeling designs
• 5 Field Workers to work as laborers
• 1 Accountant to maintain financial records
• 1 Technician to maintain the machinery
• 1 IT Expert to manage the company’s website, online record, and social sites
• 1 Driver to provide transportation

7.2 Average Salary of Employees

Financial plan.

In the last part of your business plan, you should analyze your estimated cash flows. Before you make a remodeling business plan, you should have a clear idea of how much amount you intend to spend on which aspect of your business. Moreover, you should also have a plan to achieve your business goals by optimizing your profits.

In this business plan sample, you can explore the financial projections, break-even analysis, business ratios, gross margins, and other financial estimations done by Model-It Solutions to gauge its progress and business value.

However, while you go through this financial plan, remember, its projections are based on the assumption that there will be no major recession in the coming 5 years.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Remodeling Business Plan Template in pdf

OGS capital professional writers specialized also in themes such as engineering consulting , HVAC business plan, real estate flipping business plan ,  architecture firm business plan etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Construction Business Plan Template

Written by Dave Lavinsky

Construction Business Plan

You’ve come to the right place to create your construction business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their construction companies.

Sample Construction Business Plan Outline

Below is a construction business plan example to help you create each section of your own construction business plan:

Executive Summary

Business overview.

VB Residential Construction Company is a startup construction company located in Milwaukee, Wisconsin. The company is founded by two cousins, Victor Martinez and Ben Schmidt. Together they have over 20 years of experience in constructing homes from design concept, remodeling and renovating homes. They are highly skilled in all aspects of construction and have garnered a positive reputation in the local construction community for their ethical practices and competitive skill set. Now that Victor and Ben have an extensive network of clients and contacts, they have decided to begin their own residential construction company.

Product Offering

The following are the services that VB Residential Construction Company will provide:

• Custom home building/design build
• Home remodeling and renovation
• Project Management
• Kitchen and bath construction

Customer Focus

VB Residential Construction Company will target those individuals and industry professionals requiring home construction services in Milwaukee, Wisconsin. Those individuals are landowners looking to develop homes on their lots, architects who have clients needing homes built, developers who have the vision but need a company to make it a reality, and households needing home remodeling services.

Management Team

VB Residential Construction Company will be led by Victor Martinez and Ben Schmidt. Together they have over twenty years of construction experience, primarily in residential builds, remodeling, and renovation. They both started at a young age working and learning from their fathers. When they graduated from high school, their fathers got them jobs at the construction company they were employed at. The four family members worked together for ten years at the construction company. The fathers recently decided they were going to retire from the industry which prompted Victor and Ben to branch out on their own and start their own residential construction company.

Success Factors

VB Residential Construction Company will be able to achieve success by offering the following competitive advantages:

• Friendly and knowledgeable contractors who are able to take any project from concept to reality.
• Unbeatable pricing – Clients will receive the best pricing in town for services on any project while maintaining the best quality and customer satisfaction.

Financial Highlights

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, working capital, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

• Trucks: $40,000
• Construction equipment, supplies, and materials: $100,000
• Advertising agency in charge of promotions: $10,000
• Three months of overhead expenses (rent, payroll, HR and accounting firms): $40,000
• Working capital: $10,000

Company Overview

Who is vb residential construction company.

VB Residential Construction Company is a newly established contracting company located in Milwaukee, Wisconsin. Founded by cousins, Victor Martinez and Ben Schmidt, they have over 20 years experience in the construction industry. VB specializes in residential remodeling, kitchen and bath construction, as well as custom home building. VB Residential Construction Company also offers residential design, construction, and project management services. VB prides itself in delivering a level of expert craftsmanship to fulfill the vision for the client while exceeding expectations at exceptional value.

Company History

VB comes from the initials of the owners, Victor Martinez and Ben Schmidt, two cousins who have been working in the construction industry most of their lives. Both of their fathers spent decades as contractors and raised their sons working and learning the construction trade. The four have been working for another residential contractor in Milwaukee and have built and remodeled numerous homes for multiple builders and clients. Now that both of their fathers are retiring from the construction industry, Victor and Ben have decided to start their own residential construction company and use their years of experience, expertise, and contacts to be an independent residential contractor.

Since incorporation, VB Residential Construction Company has achieved the following milestones:

• Registered VB Residential Construction Company, LLC to transact business in the state of Wisconsin.
• Located a small office space to have a physical address for the company as well as a receptionist.
• Reached out to their numerous contacts to include real estate agents, developers, architects, and landowners to advise them on their upcoming construction company in order to start getting construction contracts.
• Began pricing out costs for trucks and necessary construction equipment.
• Began recruiting a team of contractors that cover different areas of construction to include mechanical, plumbing, electricians, and roofing.

The following will be the services VB Residential Construction Company will provide:

Industry Analysis

Revenue for the Construction industry is expected to continue growing over the five years as demand for new housing expands. Revenues are expected to reach $107 billion.

Relatively low interest rates, coupled with rising per capita disposable income, is expected to support individual investment in new homes, providing an opportunity for industry revenue growth over the next five years.

Per capita disposable income is expected to rise steadily over the next five years, while concurrently, unemployment will drop, proving favorable conditions for industry growth.

Housing starts are expected to rise an annualized 2.9% and this growth is projected to stem partly from forward-looking consumers that choose to purchase homes while interest rates are low. Relatively low housing stock and relatively low interest rates are expected to lead demand for industry services to increase over the next five years.

Customer Analysis

Demographic profile of target market.

The precise demographics for Milwaukee, Wisconsin are:

Customer Segmentation

VB Residential Construction Company will primarily target the following customer profiles:

• Households in search of home remodeling services
• Landowners who would like to build homes on their lots
• Architects who have clients that need home building or remodeling services
• Developers who have already partnered with landowners and/or architects and are in search of a residential contractor

Competitive Analysis

Direct and indirect competitors.

VB Residential Construction Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

JM Remodeling

JM Remodeling has been in business in Milwaukee, Wisconsin since 1990. They are a full-service design and build company. JM Remodeling specializes in residential and commercial restoration and renovation including custom carpentry, kitchens, bathrooms, roofing, siding, dormers, additions, home gyms, home offices, porches and decks, and mechanical services. JM Remodeling carries a staff of plumbers, electricians, journeymen carpenters, restoration specialists, roofers, siders, sheet metal workers, and expert estimators. JM Remodeling also has an apprenticeship program to train employees within the company. They are licensed, bonded and insured and also part of the National Association of Remodeling Industry (NARI). JM Remodeling also provides warranties on all their services. The work is guaranteed by labor warranties, factory warranties, and extended warranties.

Cream City Construction

Cream City Construction has more than 50 years experience in home design, remodeling and renovation in the Greater Milwaukee area and Southeastern Wisconsin. The home remodeling services they provide are additions, whole house remodeling, kitchens, bathrooms, lower levels, master suites and historic renovations. Cream City Construction is a design build company that works with the client to create the design plans, generate project costs, and build the project.

Cream City Construction is owned and managed by Todd Badovski and Jim Grote. Together they have decades of experience and have spent years refining the skills required to run a high end, quality driven remodeling company. The majority of their projects come from repeat business or referrals from clients delighted with their previous service. Cream City Construction is also a member of the National Association of Remodeling Industry (NARI) as well as the Historic Milwaukee Incorporated.

Sazama Design Build Remodel, LLC

Former restaurant owner Don Sazama established Sazama Design Build Remodel, LLC in 1987 after becoming a Master Carpenter. He wanted to merge his passions of business and design and expand his skills in carpentry and architecture. Don’s firm has completed over 700 homes and won 11 awards from the Milwaukee Home and Living magazine. Sazama Design Build Remodel builds homes that are modern and luxurious and have completed many large remodels of bathroom and kitchen renovations. Sazama likes to collaborate with firms such as Ivy Interiors and an award-winning landscape designer, Gingko Leaf Studio. Sazama Design Build Remodel can build and design all aspects of a home – from a home office, outdoor entertaining area, serene spas, and inviting kitchens. The team at Sazama is able to do a historic renovation, build or renovate into something modern and posh, or keep it traditional.

Competitive Advantage

VB Residential Construction Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

VB Residential Construction Company will offer the unique value proposition to its clientele:

• Highly trusted and professional contractors with over 20 years of experience remodeling, renovating, and building homes.
• Unbeatable pricing to its clients – VB Residential Construction Company does not mark up its services at a large percentage. They will offer the lowest prices in town.

Promotions Strategy

The promotions strategy for VB Residential Construction Company is as follows:

Word of Mouth/Referrals

Victor and Ben have built up an extensive list of contacts over the years providing home construction services for numerous highly satisfied clients. Most of the clients are repeat customers and have also referred them to other associates for home projects. These referrals and repeat customers are very likely to use VB Residential Construction Company instead of the previous construction company Victor and Ben were employed at.

Professional Associations and Networking

VB Residential Construction Company will become a member of construction and professional associations such as the National Association of Remodeling Industry (NARI) and the Milwaukee Chamber of Commerce. VB will also become a member in associations where other builders, developers, and architects are a part of. They will focus their networking efforts on expanding their client network.

Print Advertising/Billboard

VB Residential Construction Company will invest in professionally designed print ads to display in programs or flyers at industry networking events. They will also invest in two billboards to display in highly trafficked areas of town.

Website/SEO Marketing

VB Residential Construction Company will utilize the same advertising company that designed their print ads and billboards to also design their website. The website will be well organized, informative, and list all their services that VB is able to provide. The website will also list their contact information and a gallery of pictures that show their previous projects. The advertising company will also manage VB’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Milwaukee residential contractor”, “contractor near me”, or “residential contractor near me”, VB Residential Construction Company will be listed at the top of the search results.

The pricing of VB Residential Construction Company will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for VB Residential Construction Company.

Operation Functions:

• Victor Martinez and Ben Schmidt will be the owners and managers of the company. They will oversee all staff, contractors, and subcontractors. They will also act as project managers for every job they receive and handle all pricing and bids to the client.
• Victor and Ben will employ a team of contractors under them that will have an array of skill sets. The contractors will be trained and experienced either in plumbing, mechanical, electrical, roofing, or siding. Not all contractors need to be certified in all trades, but they need to be certified in at least one of the trades.
• Office manager/assistant to be located at the small office. This person will handle all incoming calls, assist with visiting clients, bookkeeping and maintain files.
• Victor and Ben will utilize a third-party human resources company to handle all hiring, onboarding, payroll, and benefits for the staff. The HR company will also handle all employee issues.
• Victor and Ben will also pay a third-party accounting firm to manage all the high level accounting and tax payments.

Milestones:

VB Residential Construction Company will have the following milestones complete in the next six months.

3/1/202X – Finalize contract to lease small office space

3/15/202X – Execute advertising agency contract 4/1/202X – Begin networking and placing bids for construction jobs

5/1/202X – Begin recruiting and hiring team of contractors

5/15/202X – Purchase all necessary construction equipment, supplies, and trucks

6/1/202X – Start on first official job as VB Residential Construction Company

Victor and Ben are highly skilled at project management and residential construction. They are also both certified in plumbing, electrical, and mechanical. In the next few years, they will be certified as Master Carpenters.

Financial Plan

Key revenue & costs.

The revenue drivers for VB Residential Construction Company are the upcharge they will charge to the clients for their services. VB will purchase or subcontract a service at cost and will charge a 15% markup in order to obtain the markup fee. 15% is below the normal 25%-30% that other competing residential contractors charge.

The cost drivers will be the overhead costs required in order to maintain a construction company. The expenses will be the costs to purchase and maintain construction equipment and trucks, payroll and overhead costs for the staff, and rent and utilities. Other expenses will be the cost for the advertising agency, accounting firm, human resources firm, and membership association fees.

Funding Requirements and Use of Funds

VB Residential Construction Company is seeking $200,000 in debt financing to launch its construction business. The funding will be dedicated towards securing a small office space, purchasing two trucks, and purchasing all the construction equipment and supplies. Funding will also be dedicated towards the advertising agency and three months of overhead costs to include payroll of the staff, rent, and monthly fees to the accounting and human resources firm. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Initial Monthly Average Contract Amount: $20,000
• Growth in Average Monthly Contracts: 10%

Financial Projections

Income statement, balance sheet, cash flow statement, construction business plan faqs, what is a construction business plan.

A construction business plan is a plan to start and/or grow your construction business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your construction business plan using our Construction Business Plan Template here .

What Are the Main Types of Construction Companies?

Construction companies can be classified according to the type of constructions that they perform. Some are small renovation contractors, others are new home builders and others are commercial construction companies.

What Are the Main Sources of Revenues and Expenses for a Construction Company?

Construction companies get their primary source of revenue from individual contracts for new homes, remodeling projects or commercial projects.

The key expenses for construction companies are office space rent, salaries and wages, and equipment costs. 

How Do You Get Funding for Your Construction Business Plan?

There are many options for financing a construction company like SBA loans, commercial loans, personal loans, or line of credit. There are also equipment funding opportunities that cover expenses associated with necessary tools, machinery and other equipment. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Construction Business?

Starting a construction business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Construction Business Plan - The first step in starting a business is to create a detailed construction business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your construction business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your construction business is in compliance with local laws.

3. Register Your Construction Business - Once you have chosen a legal structure, the next step is to register your construction business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your construction business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Construction Equipment & Supplies - In order to start your construction business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your construction business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful construction business:

• How to Start a Construction Business

Where Can I Get a Construction Business Plan PDF?

You can download our free construction business plan template PDF here . This is a sample construction business plan template you can use in PDF format.

Other Business Plan Templates

Food Truck Business Plan Template

Event Venue Business Plan Template

How To Start a Home Renovation Business

Main Sections In This Post Steps To Starting A Home Renovation Business Points to Consider Resources Knowledge Is Power Featured Video

Introduction

Are you thinking about starting a home renovation business?

This overview will provide you with essential information to help you get started. We’ll give you numerous examples of successful businesses to inspire you.

You can expect an overview of the key things you should anticipate when embarking on this journey.

We’ll cover important issues you need to consider, and we’ll provide valuable resources and information that you can use during the startup phase and throughout the operation of your business.

Now, let’s dive into the steps! There’s a lot of information to cover, so you may want to bookmark this page for future reference. And if you find this post helpful, please share it!

Steps to Starting a Home Renovation Business

1. gaining an overview, a.) is starting a business the right step for you.

Starting your own home renovation business can be an exciting opportunity. You can be in charge, make important decisions, earn good money, and live your dream. But it’s important to remember that success doesn’t come easy.

Before jumping into this venture, take a moment to consider if it’s the right fit for you and if you have the right reasons for starting a business.

I recommend reading my article below to help you make an informed choice and identify essential factors. It will provide valuable insights to guide you in the right direction before you move forward with your home renovation business.

See Considerations Before You Start Your Business to identify key points for a new business owner.

b.) A Quick Overview of Owning a Home Renovation Business

Running a home renovation business can be both rewarding and challenging. As the owner, you’ll have various responsibilities.

You’ll need to manage projects, coordinate with clients, and oversee a team of workers. Your tasks may include estimating costs, creating project timelines, and ensuring quality workmanship.

Additionally, you’ll handle administrative duties like budgeting, marketing, and maintaining client relationships.

Challenges in this industry can arise from unexpected delays, managing client expectations, and dealing with unforeseen issues during renovations.

It’s important to be adaptable, organized, and have excellent problem-solving skills to navigate the demands of running a successful home renovation business.

There are different types of setups and business models you can consider. Here are a few examples:

• General Contractor: This setup involves offering a wide range of renovation services, such as kitchen remodeling , bathroom renovations, and whole-house makeovers. As a general contractor , you oversee the entire project, including managing subcontractors and handling permits.
• Specialized Renovator: This type of business focuses on specific areas of expertise, like flooring installation, painting, or electrical work. Specialized renovators typically work as subcontractors or niche service providers for larger renovation projects.
• Design-Build Firm: In this setup, you provide both design and construction services. From conceptualizing the renovation plans to executing them, design-build firms offer end-to-end solutions to clients, streamlining the process.
• Home Improvement Retailer: This business model involves operating a retail store that sells renovation products, such as appliances, fixtures, flooring, and cabinets. Alongside product sales, some home improvement retailers also provide installation services.
• Home Staging and Styling: This type of business focuses on preparing homes for sale by enhancing their visual appeal. Home stagers and stylists rearrange furniture, add decor elements, and make other improvements to create an inviting atmosphere for potential buyers.
• DIY Consultancy: Rather than performing the renovations themselves, DIY consultancy businesses provide advice, guidance, and resources to homeowners who prefer to tackle their own renovation projects. They offer expertise on design, materials, and techniques.

Remember, these are just a few examples, and there may be other variations and combinations of home renovation business setups and models.

Choose the one that aligns with your skills, interests, and target market to start your own successful venture.

Pros of Running a Home Renovation Business:

• Opportunity for high income potential
• Flexibility in choosing projects and clients
• Creative and fulfilling work
• Ability to see tangible results of your efforts
• Variety of tasks and projects
• Potential for business growth and expansion

Cons of Running a Home Renovation Business:

• Requires substantial initial investment and ongoing expenses
• Seasonal fluctuations in demand
• Competitive industry with many competitors
• Managing multiple projects and deadlines can be challenging
• Dealing with unexpected issues and delays during renovations
• Need for continuous learning and staying updated with industry trends

Note: Each individual’s experience may vary, and it’s important to carefully consider these pros and cons before starting a home renovation business.

2. Research

Home renovation business research.

Before diving into the world of the home renovation business, it’s crucial to do thorough research to make informed decisions.

Gathering quality information is essential to understand if this business is the right fit for you. One great way to acquire reliable information is by connecting with professionals already working in the industry.

Their expertise and experience can be invaluable. I’ve written an article that provides ideas on finding the right people to talk to and how to approach them.

I highly recommend reading the article through the link below before starting your business to gain a solid understanding of what you’re getting into.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target market is essential for a home renovation business. Knowing your potential customers, you can tailor your services to meet their specific needs and preferences. This involves researching demographics, psychographics, and consumer behavior related to home renovation.

Potential customers who might be interested in what you offer include:

• Homeowners looking to update or modernize their living spaces
• Real estate investors seeking to renovate properties for resale or rental purposes
• Individuals purchasing older homes and in need of remodeling
• Business owners or organizations requiring commercial renovation services

You can greatly enhance your advertising and sales strategies by deeply understanding your customers. For more insights, check out my article, How To Understand Your Target Market.

3. Looking at Financials:

When starting a home renovation business, you must clearly understand your startup costs, monthly expenses, revenues, and profits. Here’s an overview:

Startup Costs:

• Accurately estimate your startup costs to ensure a successful launch.
• Make a list of everything you’ll need and research their prices.
• Consider factors like the size of your operation, hiring employees versus doing the work yourself, and the impact of location on costs.
• Decide whether to purchase new or used equipment.

For more detailed information, refer to Estimating Startup Costs.

Sales and Profit:

• Your sales depend on factors such as the popularity of your products and services.
• Effective marketing is essential to bring awareness to your business among the right audience.
• Calculate the profit per sale and aim to generate enough sales to cover expenses and have additional profit left over.
• Ensure your sales and profit exceed your monthly expenses and living costs.

For More, See Estimating Profitability and Revenue

To get a better understanding and ideas, refer to the lists below.

Sample Lists

SAMPLE Estimated Costs for a New Home Renovation Business

• Business registration and licensing fees: $500
• Tools and equipment purchase: $15,000
• Vehicle purchase for transportation (used): $15,000
• Renovation materials inventory: $10,000
• Computer and software (accounting, scheduling, design): $2,000
• Marketing materials for launch (business cards, website, local ads): $1,000
• Professional services (accountant, lawyer for startup advice): $3,000
• Training and certification courses: $1,000
• Business insurance: $2,500

Grand Total: $50,000

SAMPLE Estimated Monthly Expenses for a Home Renovation Business

• Rent for storage/workshop: $2,000
• Business insurance: $200
• Utilities (electricity, water, internet): $200
• Vehicle costs (gas, maintenance): $500
• Tools and equipment maintenance: $100
• Salaries (Assuming a small team of 4 people): $10,000
• Employee benefits: $1,000
• Office supplies: $100
• Marketing and advertising: $500
• Professional services (accountant, lawyer): $300
• Renovation materials: $5,000
• Miscellaneous expenses: $500

Grand Total: $20,400

SAMPLE Revenue and Profit Projection for a Home Renovation Business

Assumptions:

• An average project brings in revenue of $10,000.
• The business will complete an average of 3 projects per month in the first year.
• Total Revenue: $10,000/project * 3 projects/month * 12 months = $360,000
• Total Expenses: $20,400/month * 12 months = $244,800
• Profit before taxes: $360,000 – $244,800 = $115,200

(Assuming a 10% increase in the number of projects due to business growth)

• Total Revenue: $10,000/project * 3.3 projects/month * 12 months = $396,000
• Total Expenses: $20,400/month * 12 months = $244,800 (assuming expenses stay roughly the same)
• Profit before taxes: $396,000 – $244,800 = $151,200

These are just sample calculations. Real-life figures can vary based on numerous factors, including the scale of projects, local market conditions, business growth, and more.

4. Choosing The Right Business Location

For more about business locations, see Choosing The Best Location for Your Business.

5. Choose a Business Name

Selecting the right name for your home renovation business is crucial. You want a name that is catchy, suitable, and easy to remember.

Remember, once you choose a name, it’s unlikely to change, so take the time to find one that perfectly represents your company and that you will be happy with in the upcoming years.

Additionally, having a matching domain name for your online presence is important. Make sure the name you desire is not already registered by another business to avoid confusion and legal issues. Name Ideas for a Home Renovation Business:

• DreamHome Renovations
• PerfectPatch Home Services
• MasterCraft Remodeling
• ProRenovate Solutions
• FreshStart Home Improvements
• RenovateRight Contractors
• EliteBuilders and Remodelers
• PrimeChoice Renovations
• HomeRevive Renovations
• SuperiorCraft Home Makeovers
• TopNotch Renovation Experts
• ReNewHome Remodeling
• A+ Renovations and Restorations
• ModernLiving Renovations
• PrecisionPro Home Renovations
• Timeless Transformations
• CreativeConstruct Remodeling
• SignatureSpaces Renovations
• QualityCraft Home Services
• CustomRevive Renovations

Remember, the provided names are meant to inspire your creativity and help you develop an original name that is not already used by another business.

Conduct proper research and ensure the chosen name is available for registration before finalizing your decision.

For this important step, see How to Choose a Business Name.

6. Register Your Company

The importance of registering your home renovation business:

Registering your home renovation business is crucial for several reasons.

First and foremost, it establishes your business as a legal entity, allowing you to operate within the bounds of the law.

Registration provides credibility and professionalism to your business, which can attract more clients and help you build a positive reputation.

It also enables you to open a business bank account and obtain business insurance, protecting you and your clients in case of unforeseen incidents.

Moreover, registering your business allows you to take advantage of various tax benefits and deductions available exclusively to registered businesses.

Considerations for registering a home renovation business:

Before registering your home renovation business, there are a few considerations to keep in mind.

You should choose an appropriate business name that reflects your services and is not already in use.

It’s also important to determine the legal structure of your business, such as whether you want to operate as a sole proprietorship , partnership , or limited liability company (LLC).

Additionally, you may need to apply for a federal employer identification number ( EIN ) if you plan to hire employees.

Finally, you should familiarize yourself with your local jurisdiction’s specific registration requirements and procedures, as they can vary.

Permits and licenses to consider for a home renovation business:

• General Contractor License: Depending on your location, you may need a general contractor license to legally operate a home renovation business.
• Trade-specific Licenses: Some jurisdictions require trade-specific licenses for specialized tasks such as plumbing , electrical work, or HVAC installation.
• Building Permits: When undertaking major renovations or structural changes, you may need to obtain building permits from your local government to ensure compliance with safety and building codes.
• Business License: In addition to construction-related permits and licenses, you may need a general business license to operate legally in your area.
• Insurance: While not a permit or license, it’s essential to consider obtaining liability insurance and workers’ compensation insurance to protect yourself, your employees, and your clients.

Note: The specific permits and licenses required can vary depending on your location, so it’s crucial to research and comply with the regulations in your area.

See, How to Register your Business for more.

7. Create Your Corporate ID

A logo is a special design that represents your home renovation business.

Having a good logo is important because it creates a positive first impression!

You should aim for a consistent and professional logo design that impresses new and returning customers.

A Corporate ID consists of various components such as your logo , business cards , website , stationary, business sign , promotional items, etc.

See A Complete Introduction to Corporate Identity Packages for more.

8. Writing a Business Plan

A business plan is a very important document for your home renovation business. It serves two main purposes: securing funding and attracting investors. It’s like a roadmap that guides you from the beginning of your business to its full operation.

Writing a business plan requires time and effort because you’re creating a vision of what your business will look like when it’s up and running. It’s important to include all the details and carefully consider each aspect.

All the hard work will pay off because once your business plan is complete, you’ll clearly understand what you need to start and run your business successfully.

There are different options for creating your business plan. You can write it yourself, hire a professional, use a template, or use specialized software.

Regardless of your chosen option, it’s important to actively participate in the process. If you hire a professional, make sure to collaborate closely with them. You want your business plan to stand out and effectively communicate the nature of your home renovation business.

Remember that your business plan can change and improve as you gain experience. It’s a good idea to review it periodically and make necessary adjustments. During a review, you might also need to adapt how you operate your business to better align with your goals.

Sample Business Plan for a Home Renovation Business

1. Executive Summary:

At ReNew Home Solutions, we aim to provide high-quality home renovations, remodeling, and repair services. We specialize in transforming existing residences into beautiful, new living spaces. We serve homeowners throughout the region, focusing on customer satisfaction, timely completion, and superior quality.

2. Company Description:

Founded in 2023, ReNew Home Solutions is a licensed and insured home renovation company based in Dallas, Texas. We offer a range of services, from kitchen and bathroom renovations to exterior improvements and whole-home remodels.

3. Market Analysis:

The home renovation market in Dallas and its surrounding areas is growing, driven by an aging housing stock and a rise in disposable income. Our primary target market includes homeowners who wish to improve the functionality, comfort, and aesthetics of their homes.

4. Organization and Management:

ReNew Home Solutions is owned and operated by John Smith, a seasoned contractor with over 15 years of experience in the construction industry. We employ a dedicated team of professionals including project managers, skilled tradespeople, and customer service representatives.

5. Services:

Our services include but are not limited to:

• Kitchen and bathroom renovations
• Basement finishing
• Additions and expansions
• Exterior improvements
• Home repair services

6. Marketing and Sales Strategy:

We will primarily rely on word-of-mouth referrals, social media marketing, search engine optimization (SEO), and partnerships with local real estate agencies. Our website will feature before-and-after photos of our projects, customer testimonials, and a blog with home renovation tips.

7. Financial Projections:

In Year 1, we project a total revenue of $360,000 with expenses of $244,800, yielding a pre-tax profit of $115,200. By Year 2, with a projected 10% increase in projects, we expect a revenue of $396,000 and a pre-tax profit of $151,200.

8. Funding Request:

To start the business, we are seeking a $75,000 small business loan. These funds will be used for purchasing equipment, initial marketing, business registration and licensing, and maintaining an inventory of renovation materials.

9. Exit Strategy:

In the event of a business sale, ReNew Home Solutions will seek to be acquired by a larger home renovation or construction company. Alternatively, the business could be passed on to a trusted, capable employee or family member.

10. Conclusion:

ReNew Home Solutions is poised to meet the growing demand for quality home renovation services in Dallas. We believe our commitment to customer satisfaction and superior craftsmanship set us apart. We appreciate your consideration of our business plan and look forward to the possibility of working together.

For information on creating your business plan, see, How to Write a Business Plan.

9. Set up Your Banking

When starting your home renovation business, it’s a good idea to choose a local bank that specializes in serving business owners.

Opening a business account is important because it allows you to keep your business expenses separate from your personal spending. This makes it easier to keep track of your expenses and provides evidence in case you need to show it for taxes.

Building a professional relationship with your banker is beneficial. They can offer assistance and advice if you need funding, and they can also help speed up the loan process.

Another consideration is applying for a merchant account so that you can accept credit and debit card payments from your clients. Having a good rapport with your banker can make this process smoother and more efficient.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

10. Getting the Funds for Your Operation

Funding for your home renovation business is an important step in starting and operating your venture.

There are various options available to secure the necessary funds.

• Traditional Lenders: Banks and credit unions are common sources of business loans. They typically offer competitive interest rates and repayment terms.
• Private Loans: Private lenders or online lending platforms provide alternative options for financing. These lenders may have different eligibility criteria and interest rates compared to traditional lenders.
• Investors: Seeking investors for your home renovation business involves pitching your idea to individuals or groups who are willing to provide funding in exchange for a share of the business or a return on their investment.
• Selling Assets: If you have valuable assets not essential to your business, you can consider selling them to generate funds.
• Collateral: Some lenders may require collateral, such as property or equipment, to secure the loan. This assures the lender in case of default.

Considerations when meeting with a loan officer:

• Understand your financial needs and how the funds will be used.
• Prepare a solid business plan that outlines your goals, market analysis, and financial projections.
• Demonstrate your expertise and experience in the home renovation industry.
• Have a clear repayment plan and show how you will generate revenue to repay the loan.

Sample list of documents needed to apply for a business loan for a NEW home renovation business:

• Business plan
• Personal and business tax returns
• Financial statements (income statement, balance sheet, cash flow statement)
• Proof of collateral, if applicable
• Legal documents (business licenses, permits, registrations)
• Personal and business bank statements
• Resume or bio highlighting relevant experience
• Sales projections and marketing plan
• Credit history and credit score information

See, Getting a Small Business Loan for more.

11. Software Setup

It’s important to make informed decisions when it comes to software for your home renovation business.

Here are some key points to consider:

• Research: Take the time to research different software options. It’s easier to start with the right software from the beginning rather than switching to a new system later when your data is already in another program.
• Demo and Reviews: Look for software providers that offer demos or trial versions. This allows you to test the software and see if it meets your needs. Additionally, read reviews and explore forums to see what other users have experienced with the software. Their feedback can provide valuable insights.
• Financial Management: Consider software that helps track expenses and prepares financial documents for tax filing. Consulting with a bookkeeper or accountant can provide guidance in selecting the right accounting software for your business.

List of Software to Consider for a Home Renovation Business:

• Project Management Software (e.g., BuilderTrend, CoConstruct)
• Estimating and Quoting Software (e.g., ProEst, Clear Estimates)
• Accounting and Financial Management Software (e.g., QuickBooks, Xero)
• Customer Relationship Management (CRM) Software (e.g., Salesforce, HubSpot)
• Design and Visualization Software (e.g., SketchUp, AutoCAD)
• Communication and Collaboration Software (e.g., Slack, Microsoft Teams)
• Time Tracking and Scheduling Software (e.g., TSheets, Deputy)

Remember to assess your business needs and consider software aligning with your goals and workflow processes.

Check out Google’s Latest Search Results for Software Packages for a home renovation business.

12. Get The Right Business Insurance

Regarding insurance for your home renovation business, there are important factors to consider. Here are some key concerns:

Adequate Coverage:

Ensure that the insurance policy you choose provides sufficient coverage for potential incidents at your business.

This includes protecting customers, employees, yourself, anyone on the premises, and your property.

Professional Liability Insurance:

Consider obtaining professional liability insurance, also known as errors and omissions insurance.

This coverage can protect you in case of lawsuits or claims arising from professional mistakes or negligence.

Home-Based Business:

If you plan to operate or manage your business from your home, it’s crucial to inform your home insurance agent.

Failure to do so could nullify your existing home insurance policy or result in inadequate coverage for your business activities.

Seek Guidance:

Working with a competent insurance broker specializing in business insurance is advisable.

They can guide you through the process, help assess your specific needs, and ensure you have the appropriate coverage for your home renovation business.

Remember, each business is unique, and insurance needs may vary. It’s essential to consult with professionals and carefully review policy terms and coverage options to protect your business and mitigate potential risks.

For more, see What to Know About Business Insurance .

You can also browse the latest Google Search Results for home renovation Business Insurance .

13. Physical Setup

If you plan to have a shop, warehouse, or customer area for your home renovation business, creating an organized and visually appealing layout is important. A well-organized space shows professionalism and helps you stay efficient and organized.

When displaying your products, make sure to organize them in a way that allows customers to easily find what they need. Highlight popular items in prominent areas to boost sales.

Installing a business sign is crucial to attracting customers to your location. Additionally, make sure to install any required signs in different areas, such as doors, waiting areas, and parking spaces.

Your office will be the central hub for managing your business. Keep your office well-organized and equipped with all the necessary tools and supplies to maximize productivity.

Remember, a clean and organized workspace improves efficiency and creates a positive impression on customers and helps you manage your home renovation business effectively.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

14. Creating a Website

Having a website for your home renovation business offers several benefits.

It provides a platform to showcase your services, previous projects, and testimonials, helping build credibility and trust with potential customers.

A website lets customers easily contact you and request quotes, increasing convenience and accessibility.

Additionally, it expands your reach beyond local areas, allowing you to attract clients from wider regions.

With a website, you can establish an online presence, enhance your professional image, and ultimately grow your home renovation business.

For more, see How to Build a Website for Your Business .

15. Create an External Support Team

Having an external support team for your home renovation business means having a group of professionals you can rely on for advice and services.

It’s important to note that these individuals are not your employees but are hired based on their expertise, either on a contract or hourly basis.

You don’t need all the team members in place from the beginning. Building professional relationships and finding reliable people takes time.

However, it’s essential to continuously work on expanding and strengthening your team.

When you have a strong support team, they can assist you when you need them.

Your team may include professionals such as an accountant, a lawyer, a financial advisor, a marketing specialist, technical advisors, or consultants.

They bring their specialized knowledge and skills to help you make informed decisions and grow your home renovation business.

For more, see, Building a Team of Professional Advisors for Your Business.

16. Hiring Employees

At the beginning of your home renovation business, you might consider running it independently without hiring employees.

Managing costs can be a good idea since payroll is a significant expense, especially in the early stages.

However, as your business grows, you may find it challenging to handle all the management and operations on your own.

Hiring employees can greatly enhance productivity, provided you hire the right people.

The following is a list of job positions or outsourced services you may want to consider as your home renovation business grows and becomes successful:

• Project Manager
• Construction Supervisor
• Skilled Tradespeople (Carpenters, Electricians, Plumbers, etc.)
• Office Administrator
• Marketing Specialist
• Sales Representative
• Customer Service Representative
• Accountant or Bookkeeper
• Legal Advisor
• IT Support (for website maintenance and technology needs)
• Subcontractors (for specialized tasks like roofing , flooring, etc.)

Remember, this list will vary based on your specific business needs, but these positions or outsourced services can support the growth and success of your home renovation business.

For more, see, How and When to Hire a New Employee.

Points To Consider

Getting customers through the door.

In a home renovation business, having customers is essential for success. To thrive, you need to attract customers, but it can be challenging at the beginning when your business is new and not well-known.

Over time, attracting customers will become easier, especially if people appreciate the services you offer and as you gain more marketing experience.

To help you in this initial phase, I recommend reading the following article for ideas on bringing customers to your new home renovation business.

The article can provide valuable insights and strategies to get customers through the door and grow your business.

See our article How To Get Customers Through the Door ; you’ll find a few ideas you can use.

Marketing Ideas

Marketing is a continuous effort for your home renovation business.

The more you invest in effective marketing strategies, the more money you can make.

You don’t need to hire an expensive marketing agency. Instead, consider it as spreading the word about your business, which you can do whenever an opportunity arises.

See our marketing section for articles that will provide ideas to bring awareness to your home renovation business.

Focusing on your skill set is crucial when considering running a home renovation business. It’s important to evaluate if you possess the necessary skills to succeed in this field.

If you lack a particular skill, you can learn it or hire someone who possesses it.

Essential Skills for a Home Renovation Business Owner:

• Construction and Renovation Expertise
• Project Management and Organization
• Communication and Interpersonal Skills
• Problem-solving and Decision-making
• Attention to Detail and Quality Control
• Time Management and Scheduling
• Financial Management and Budgeting
• Customer Service and Relationship Building
• Creativity and Design Sense
• Business and Marketing Acumen

Note that this list is not exhaustive, and the required skills may vary based on your home renovation business’s specific nature and scope.

Hours of Operation:

Hours of Operation to Consider for a Home Renovation Business:

• Regular Business Hours: Monday to Friday, from 9:00 AM to 5:00 PM.
• Extended Business Hours: Offering service beyond regular hours, such as opening early or closing late to accommodate clients’ schedules.
• Weekend Availability: Operating on weekends, particularly on Saturdays, to cater to clients who may not be available during weekdays.
• Emergency Services: Being available for emergency calls or urgent repairs outside of regular business hours.
• Appointment-Based Schedule: Implementing an appointment system to ensure dedicated time slots for client meetings and consultations.
• Seasonal Adjustments: Modifying hours of operation based on seasonal demand or industry trends.
• Online Presence: Maintaining an online presence to receive inquiries, schedule appointments, and provide information even outside of operating hours.
• Flexibility: Being open to flexible hours or customizing schedules based on client needs, especially for larger projects.
• Public Holidays: Determining if the business will operate on public holidays or have specific policies in place regarding closures or reduced hours.
• Communication Channels: Offering various communication channels like phone, email, or online chat to address customer inquiries and provide support during operating hours.

Remember, the hours of operation can be customized based on your business’s specific needs, target market, and industry practices. It’s important to balance meeting customer needs and ensuring your team’s efficiency and well-being.

A List of Equipment You May Need for a Home Renovation Business:

• Power Tools:
• Circular saw
• Impact driver
• Reciprocating saw
• Angle grinder
• Hand Tools:
• Screwdriver set
• Tape measure
• Utility knife
• Safety Equipment:
• Safety glasses
• Work gloves
• Ear protection
• Safety harnesses
• Steel-toed boots
• Ladders and Scaffolding:
• Step ladder
• Extension ladder
• Platform ladder
• Scaffolding system
• Painting and Finishing Tools:
• Paint rollers and brushes
• Paint sprayer
• Putty knives
• Caulking gun
• Sandpaper and sanding blocks
• Paint trays and liners
• Measuring and Layout Tools:
• Laser level
• Measuring tape
• Carpenter’s square
• Marking tools (pencils, markers)
• Plumbing Tools:
• Pipe wrench
• Adjustable wrench
• Pipe cutter
• Pipe and tubing benders
• Electrical Tools:
• Wire cutters
• Wire strippers
• Voltage tester
• Circuit breaker finder
• Electrical tape
• Demolition Tools:
• Demolition hammer
• Sledgehammer
• Bolt cutters
• Material Handling Equipment:
• Wheelbarrow

Remember, the specific equipment needed may vary based on the scope of your home renovation business and the type of projects you undertake.

It’s important to assess your requirements and invest in high-quality equipment that meets safety standards and ensures efficiency in your work.

In this post’s section, you will discover resources for your business that you can use while it is running.

These resources will help you better understand the industry and provide tips for improving your business.

Industry Trends and Statistics

In this section, you will find helpful resources for your home renovation business that you can use while running it.

These resources will provide valuable insights about the industry and offer tips to enhance your business operations.

See the latest search results for trends and statistics related to a home renovation business.

Top Home Renovation Business

Exploring established home renovation businesses can inspire ideas to fill gaps in the industry or identify areas overlooked in your own business.

It offers an opportunity to learn from successful practices and make improvements that can enhance your own business operations.

See the latest search results for the top home renovation businesses.

The Future of the Home Renovation Industry

Researching the industry’s future provides valuable insights for those starting a home renovation business.

It helps anticipate trends, identify emerging opportunities, and make informed decisions.

Understanding the industry’s direction can increase the chances of success and stay ahead of the competition.

See the search results for the future of the home renovation industry.

Researching industry prices offers benefits for someone starting their own home renovation business.

It helps understand market rates, set competitive prices, and ensure profitability.

By analyzing industry pricing, one can make informed decisions to attract customers and manage costs effectively.

See the latest Home Renovation Prices.

Home Renovation Businesses for Sale

When considering buying an existing home renovation business, there are advantages and disadvantages to consider.

Benefits of purchasing an established business compared to starting from scratch:

• Immediate Revenue: You start earning income from the day you take over.
• Skipping the Startup Phase: You bypass the challenges and time-consuming tasks of starting a business.
• Proven Success: The business has a track record indicating that it works and generates profit.
• Financial Visibility: You have insights into revenue, profit, and expenses, helping with financial planning .
• Existing Customer Base: The business already has a customer base, providing a head start.
• Established Reputation: The business has built a reputation, which can attract more clients.

Disadvantages to consider:

• Higher Cost: Buying an established business often comes with a higher price due to the goodwill and existing customer base.
• Potential Customer Loss: Changing the way the business operates may result in losing some customers, presenting a challenge.
• Reputation Inheritance: When purchasing a business, you acquire the good and bad aspects of its reputation.

It’s important to carefully evaluate the pros and cons before deciding whether to buy an existing home renovation business or start from scratch.

See Home Renovation – Businesses for sale to browse the latest listings.

Home Renovation Franchise Opportunities

A home renovation franchise has advantages and disadvantages, but it’s worth exploring before starting a business.

• Proven Business Model: You can simply follow the plan established by the franchise’s corporate office.
• Established Reputation and Marketing: Benefit from the franchise’s reputation and marketing efforts.
• In-depth Knowledge: Gain a comprehensive understanding of the business before diving in.
• Corporate Support: Receive support from the franchise’s corporate office.
• Costly Investment: Purchasing a franchise can be expensive.
• Limited Autonomy: Major changes require approval from the corporate office.
• Restricted Products and Services: You can only offer approved products and services.
• Operational Constraints: Business operations are bound by the terms of the franchise agreement.
• Ongoing Franchise Fees: Regular payments are required as part of the franchise agreement.

Before deciding, carefully weigh the pros and cons of buying a home renovation franchise to determine if it aligns with your goals and resources.

See Home Renovation franchise opportunities to browse the latest listings.

Knowledge Is Power if You Use It!

There’s a wealth of information available online about your industry.

Check out the provided links in the following sections for valuable insights to support your research, startup phase, and ongoing operations of your business.

A Day in the Life

A Day in the Life of a home renovation business owner provides valuable tips and insights from industry professionals, offering an overview of what to expect.

It offers a glimpse into the experiences and challenges of running a home renovation business.

See the search results for a day in the life of home renovation business owners.

Home Renovation Business Owners Interviews

Interviews with business owners in the home renovation industry provide valuable information and insights.

Spending time on this section can offer different perspectives, helping you gain a deeper understanding of the industry and providing insights into what to expect.

See the search results for Interviews of home renovation business owners.

Publications

Publications are valuable for staying updated with the latest information about a home renovation business.

They offer a great way to access relevant and current insights, trends, and best practices in the industry.

See the search results for publications related to a home renovation business.

Visiting home renovation forums provides an opportunity to engage in relevant and trending discussions.

Active participation in forums helps build relationships with industry members and allows you to share knowledge and experiences.

See the latest search results for the top home renovation forums.

Courses related to a home renovation business offer a valuable opportunity to learn, enhance skills, and stay updated with industry trends.

They provide a structured and comprehensive approach to acquiring knowledge and improving your abilities in the field.

See the latest courses related to running a home renovation business.

Subscribing to home renovation blogs is useful for gathering ideas and staying current with the industry.

You can subscribe to multiple blogs and filter out those lacking updates or value.

This curated collection will provide steady information to keep you informed and inspired.

Look at the latest search results for home renovation blogs to follow.

Books are a valuable source of information for starting a home renovation business.

Exploring relevant books can provide insights and guidance to support your entrepreneurial journey in the industry.

The latest books about starting a home renovation business, listed on Amazon

Keeping up with the news is a great way to stay informed about the home renovation industry.

Setting up alerts ensures you receive timely notifications whenever there’s new coverage in the media.

See what’s in the news related to a home renovation business?

Watching videos about the home renovation industry provides valuable tips and insights.

Additionally, exploring related videos recommended by YouTube can introduce new topics and perspectives that you may not have considered before.

See the links to YouTube Videos Below.

• Videos related to starting a home renovation can be found here.

Privacy Overview

Sample Home Improvement Business Plan

Home improvement company business plan sample.

Home improvement is also known as renovation or remodeling has to do with the alteration of an existing structure by adding extra features to the building.

Like gardens, garage or even extra rooms. It also involves upgrading the interior of the house, the HVAC, electrical and so on.

These projects are undertaken for repair and maintenance of the house, for additional spaces and then for aesthetics.

Here are some business plans for starting a home improvement contractor and referral business.

• Housekeeping business plan
• Interior design business plan
• Lawn care business plan
• Pest control business plan

Business Name:  Home Heaven Ltd

Executive Summary

Our Products and Services

• Vision Statement
• Mission Statement

Business Structure

Market Analysis

Sales and Marketing Strategy

Financial Plan

Competitive Advantage

Home Heaven Ltd is a Malibu-based company that specializes in home remodeling, renovation and interior design and decoration of homes. This company is run by Engr Willis Swanhaim, he has a degree in civil engineering and another in interior design and decoration. On graduation from the university in 97, he got a job working for Albert

Construction limited where he worked for 10 years as a design manager.

Home Heaven Ltd is a startup, and it has fulfilled all the legal requirements for setting up a business in California, the necessary permits have also be gotten so from the required bodies.

Home Heaven Ltd specializes in giving your structure a new look. We do the renovation of dilapidated buildings and also remodeling of old buildings. We add improvements to the home, both structurally and aesthetically. We also deal with the mending of the plumbing, HVAC, and electrical works.  Whether in the interior of the building or the exterior, we have got you covered.

Home Heaven Ltd also specializes in erecting residential concrete structures, and also residential structures from other materials.

Our vision is to leave every house that we remodel much better than we met it both structurally and aesthetically. We also have the vision to make the work so good that it won’t need any more work in a long time.

Our vision is to construct buildings of top quality will providing this services at very competitive prices.

Our Mission

Our mission is to provide great home improvement services to the residents of Malibu California, promptly and at market favorable prices. This we hope to do by hiring professionals for the various services which we offer.

Home Heaven Ltd is run by Mr. Wullis Swanhaim, who happens to be an engineer. He has two other financial partners, though they are not exactly part of the day to day running of the business. At this company, we take the jobs of our clients very seriously.

Therefore, we have hired interior decorators, HVAC experts, masons and stone cutters, tillers, painters and a host of other technical staff. We have Engr Swanhaim as the director, Miss Pat Jon as the human resource manager and Mr. Derek King as the foreman for our structure jobs. In the business are also accountants and much other staff playing administrative positions.

According to the Bureau of Labour Statistics of the U.S. over a ten percent growth is to be expected in the real estate industry for the next for the next 10 years. This prediction is actually very good news especially for those who are already in the business.

Any company which positions itself rightly will make a lot of profit. And with our company being in Malibu where there are rich folks with a lot of disposable income, we see our business profiting greatly.

We will be putting up billboard advert in the Malibu and Beverly Hills region of California. We’ll also be using the internet a lot for an advert. First, we will use Google ads, and then Microsoft Bing for internet adverts. Plan to start up a blog which will teach people various DIY ways for fixing minor issues in their homes.

$5 million is needed for this business to kick off fully. Engr Swanhaim and his associates have provided half of the money. And the remaining funding will be sought through the bank in form of a loan.  Some more investors are also expected to come on board with the funding. These are three ways we hope to finance this business.

We operate out of the Malibu area, therefore there are more than enough rich folks willing to remodel and restructure their houses. With Mr. Swanhaim being very popular amongst the privileged class due to his family background. We will actually get clients very fast.

Our prices are very competitive and we over a wide range of services. Apart from structural and aesthetically remodeling a house, we also construct residential blocks from the ground up.

This is a Home Improvement Business Plan sample, for a business owned by Engr Swanhaim and associates. With this plan sample having an idea of what it entails to start up a home improvement is as easy as ever.

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Property Maintenance and Renovation Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Real Estate Sector

Are you about starting a property maintenance & renovation business? If YES, here’s a complete sample property maintenance & renovation business plan template & feasibility report you can use for FREE to raise money. Okay, so we have considered all the requirements for starting a property maintenance & renovation business.

We also took it further by analyzing and drafting a sample property maintenance & renovation marketing plan template backed up by actionable guerrilla marketing ideas for property maintenance & renovation businesses. So let’s proceed to the business planning section.

Why Start a Property Maintenance & Renovation Business?

As a property manager, your core business responsibility is to maintain and renovate building facilities and to liaise with landlords, tenants and in some cases various contractors. For you to effectively conduct your business, you are expected to have a full grasp of the law when it comes to landlord and tenant relationships.

As a property manager, it is your responsibility to create efficient and effective protocols that will make you relate well with your clients (landlords, tenants and contractors).

For example, you are going to be responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due. If you can get that aspect of your job/business right, you will surely enjoy your business.

Interestingly, the minimum educational requirement for anyone that wants to start his or her own property management cum property maintenance and renovation business is a High School Diploma and hands on the job experience.

It is one of the many businesses that an individual can start with from his or her home and basically with just a business card. Since property management business is all about managing property/properties on behalf of your clients, then you may not need a huge financial base to be able to launch the business except you just want to start pretty big.

The truth is that it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business plan to translate to money (profits) that is why it is important to assemble a team of experts to work with if you want to be successful with your property maintenance and renovation company.

You can hardly run this type of business alone especially if you want to operate a standard property maintenance and renovation business as against running a one man show.

Below is a sample property maintenance and renovation company business plan template that will help you successfully launch your own business;

A Sample Property Maintenance and Renovation Company Business Plan Template

1. industry overview.

Property maintenance and renovation or better still property management business which is a subset of the real estate industry is perhaps one of the easiest and affordable real estate businesses to start; it is basically about lease contracting or accepting rent using legal documents approved for the area in which the property is located.

In a nutshell, property management companies are responsible for taking care of and managing buildings and other real estate properties for individuals (landlords) or for groups of owners.

In the united states, states such as Texas, New York and Colorado make it mandatory for property management companies to be licensed real estate brokers if they are going to be involved in collecting rent, listing properties for rent or helping negotiate leases and doing inspections as required by their business.

Although a property manager may be a licensed real estate salesperson but generally they must be working under a licensed real estate broker. A few states such as Idaho, Maine and Vermont do not require property managers to have real estate licenses.

Other states such as Montana, Oregon and South Carolina, allow property managers to work under a property management license rather than a broker’s license. Washington State requires property managers to have a State Real Estate License if they do not own the property.

Landlords who manage their own property are not required by the law to have a real estate license in many states; however, they must at least have a business license to rent out their own home. It is only landlords who do not live close to the rental property that may be required by local government to hire the services of a property maintenance and renovation company.

As a property manager, your core business responsibility is to liaise with landlords, tenants and in some cases various contractors; and for you to effectively conduct your business, you are expected to have a full grasp of the law when it comes to landlord and tenant relationship.

Property maintenance and renovation companies are also involved in mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

In fact, there are numerous aspects of the profession and some of them include helping clients in managing the accounts and finances of the real estate properties and participating in or initiating litigation with tenants, contractors and insurance agencies.

No doubt, if an aspiring entrepreneur who intends starting his or her own property maintenance and renovation business has the right connections, networks, managerial skills, and takes delight in managing real estate for clients, then he or she is going to find the property maintenance and renovation business very rewarding and lucrative.

2. Executive Summary

Crystal Property Maintenance & Renovation Company is a licensed property management company that will be based in Palm Beach – Florida but will operate in all states in the United States of America.

We are in the business of property maintenance and renovation to be able to help our clients meet their needs and achieve their goals with little or no stress on their part because our role is to take the stress off them and deliver to them what they want.

We have been able to build a robust list of landlords and property owners in the whole of the United States and we look forward to helping a larger percentage of them manage their properties in any part of the United States of America.

Crystal Property Maintenance & Renovation Company will ensure that every property that is kept within our care are properly managed in terms of maintenance and renovation because we are in business to deliver excellent services to both landlords and tenants.

We have been able to acquire all the relevant training and certifications in the field of property maintenance and renovation (management) so as to enable us perform excellently.

Crystal Property Maintenance & Renovation Company will strive to minimize the risk of litigation and damage to rental units and also, we have perfected strategies to maximize profit by simply slashing vacancy rates, repair and maintenance costs of all properties under our care.

Much more than renting our properties out to tenants, we intend to build a loyal customer base and part of the plans that we have put in place to achieve this is to offer incentives to law abiding tenants under our care. Part of what we intend doing is to offer lower rent for tenants who agree to enter long term lease agreements with us and also to create a system where points will be awarded to loyal tenants.

As a property maintenance and renovation company, we are going to abide by the Fair Housing Act, which means not singling out one particular demographic group when sourcing for tenants for our properties. We will leverage on all available means to advertise our vacant properties and will not restrict our properties to any group of tenants but to anyone who is qualified and can afford the rent.

Crystal Property Maintenance & Renovation Company will be owned majorly the Mr. Pearson Wilberforce and his immediate family members. Pearson Wilberforce is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting his own business. He has a degree in estate management from University of Florida.

3. Our Products and Services

Crystal Property Maintenance & Renovation Company is set to run a standard and profitable property maintenance and renovation business within the scope of the real estate industry in the United States of America. Our intention of starting a property maintenance and renovation business is to make profit from the industry and we will do all that is permitted by the law in the United States of America to achieve our aim and ambition.

Our business offerings are listed below;

• Collecting rent
• Managing facilities, maintenance and renovation services
• Managing security
• Managing trash and recycling collection
• Property accounting
• Legally representing property owners
• Finding and screening tenancy applicants
• Coordinating repair contractors
• Residential property management
• Nonresidential property management
• Land management
• Real estate brokerage
• Construction
• Property Management Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our Vision is to become the preferred choice for landlords and tenants when it comes to property rentals, property maintenance and renovation in the whole of the United States of America.
• We are a company that is established with the aim of helping tenants (people and businesses) get the properties of their choice and to help property owners (landlords and group owners of properties et al) effectively manage (maintain and renovate) and maximize their properties in the United States of America.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry, as a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

Crystal Property Maintenance & Renovation Company is fully aware of the modus operandi in the real estate industry, hence adequate provision and competitive packages has been prepared for independent sales agents and contractors. Our marketing department will be responsible for managing this aspect of our business structure.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer

Project Manager

• Company’s Lawyer/Secretary

Admin and HR Manager

• Head of Construction and Renovation
• Head of Assets Management
• Head of Acquisition and Disposition
• Business Developer/Sales and Marketing
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling and disciplining managers; communicating values, strategies and objectives; assigning accountabilities; planning, monitoring and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
• Creating, communicating and implementing the organization’s vision, mission and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise projects
• Ensures compliance during project executions
• Providing advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied

Company’s Lawyer/Secretary/Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develop company policy and position on legal issues
• Research, anticipate and guard company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Play a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities

Head, Acquisitions and Dispositions

• Manages overall acquisitions and dispositions
• Identifies and analyzes acquisition opportunities; negotiates acquisitions
• Responsible for identifying opportunities to acquire properties, possibly within a designated geographic region
• Assists in the sourcing and acquisition of property for development; conducts market research; contacts brokers and owners about property acquisition opportunities; assists in negotiations with sellers and other parties.
• Identifies and analyzes disposition opportunities; negotiates dispositions
• Responsible for identifying opportunities to dispose of properties, possibly within a designated geographic region.
• Assists in the disposition of property; conducts market research to determine the value of properties; contacts brokers and potential buyers; assists in structuring sales transactions and negotiations with buyers

Head of Asset Management

• Oversees the company’s portfolio of real estate assets (which are owned and managed) through acquisitions, dispositions, and day‐to‐day operations, including management of revenue and expense items; works to maximize the portfolio’s performance
• Provides strategic oversight of existing and potential real estate assets within a designated geographic area
• Manages business plans and budgets for properties
• Reviews the condition and maintenance of assigned properties; manages their bookkeeping and cash flow accounting; handles rent reconciliation; prepares property financial reports and annual budget forecasts

Head of Renovations/Construction

• Establishes and enforces company’s engineering and construction standards
• Ensures that construction work meets or exceeds standards within a designated geographic area
• Enforces and construction standards; ensures that construction work meets or exceeds standards within cost estimates; monitors quality of work in progress; supervises regional construction heads
• Ensures that construction work in a particular product line, such as office building, meets or exceeds standards within cost estimates; provides technical input on the feasibility of proposed projects; monitors quality of construction work
• Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.

Business Developer

• Identify, prioritize and reach out to new partners and business opportunities
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects
• Responsible for supervising implementation, advocate for the customer’s needs and communicates with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Sales and Marketing Officer

• Lists the property for rent/lease to the public
• Markets space; finds tenants; participates in lease negotiations
• Provides property owners with a real property condition disclosure (if required by law) and other necessary forms
• Prepares necessary papers describing the property for advertising, pamphlets, open houses, etc.
• Holds an open house to show the property.
• Serves as a contact available to answer any questions about the property and schedule showing appointments
• Ensures that tenants are pre-screened and financially qualified to rent/lease the property
• Negotiates price on behalf of the property owners (Our Clients)
• Acts as a fiduciary for the landlord, which may include preparing a standard real estate rental contract
• Lease contracting or accepting rent using legal documents approved for the area in which the property is located
• Responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due
• Responsible for preparing financial reports, budgets and financial statements for the organization
• Provides managers with financial analyses, development budgets and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting and financial reporting for one or more properties
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

• Receives Visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distributes mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

The fact that property maintenance and renovation business is a very rewarding business does not mean that there are no challenges in the industry. Starting a property maintenance and renovation business in the United States of America comes with its own challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the real estate business value chain who also are interested in making a living and building a business in the United States.

In order to compete favorably in the real estate industry as a property maintenance and renovation company, we have been able to hire the services of tested and trusted business and HR consultants to help conduct critical SWOT analysis for us.

We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Crystal Property Maintenance & Renovation Company;

Some of our strengths that we will be bringing to the table in the real estate industry is our robust relations with properties investment moguls in the whole of the United States of America. Our access to funding and also, we have a team of experts who have cut their teeth in the industry. Our commission structure and relationship with freelance real estate agents in Palm Beach – Florida and other state in the US will also count in our advantage.

As a newbie in the property maintenance and renovation (property management industry)/real estate industry, we might have some challenges competing with big time property management companies and other property maintenance and renovation companies that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

The opportunities in the real estate industry especially as a property maintenance and renovation company in the United States of America is massive and we are ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely to face as a property maintenance and renovation company are unfavorable government policies and global economic downturn; global economic downturn usually affect spending power and the real estate industry is known to encounter decline in sales and profits during this period. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The market trends as it involves the property management (maintenance and renovation) business is indeed dynamic and at the same time pretty much easier for a newbie to come in and still make money from the industry. All that is needed for any property management company to do well in the industry is to have good managerial skills and healthy relationship with landlords (property owners).

Some of the factors that count positively in this line of business are trust, honesty and relationship management and any property maintenance and renovation company that has this will indeed do pretty well in the industry. Landlords and property owners ensure that they put their properties under the care of someone they can trust.

One thing is certain for every property maintenance and renovation company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

Our target market as a property maintenance and renovation company cuts across people of different class and people from all walks of life. We are coming into the industry with a business concept that will enable us work with highly-placed people in the country and at the same with lowly placed people who are only interested in putting a roof under their head at an affordable fee that won’t be so much of a stress to raise.

Although finding tenants is relatively easy, but the truth is that finding qualified and law abiding tenants can be somewhat challenging. It is important to note that the target market for those who are into property maintenance and renovation business goes beyond those who make use of the internet (Craigslist to search for properties; some of them only rely on the print media (local daily or weekly newspaper both in English and in Spanish for the Spanish community in the US), some on word of mouth adverts and others on street to street search. The bottom line is that the market trend for property maintenance and renovation business is indeed a dynamic one.

In other words, our target market is the whole of the United States of America, and below is a list of the people and organizations that we have plans to do business with;

• Families who are interested in renting/leasing or acquiring a property
• Corporate organizations who are interested in renting/leasing or acquiring their own property/properties
• Land owners and landlords who are interested in renting/leasing out their properties
• Corporate organizations (real estate agencies, property development companies et al) who are interested in renting/leasing out their properties
• Foreign investors who are interested in owning properties or leasing properties in the United States of America
• Managers of public facilities

Our competitive advantage

Crystal Property Maintenance & Renovation Company might be a new entrant into the real estate industry in the United States of America, but the management staff and board members are considered gurus. They are people who are core professionals and licensed property managers in the United States property market. These are part of what will count as a competitive advantage for us.

Another competitive advantage that we are bringing to the industry is the commission model (our commission structure). We know that freelance (licensed) brokers and contractors would work for the highest bidder which is why we designed a commission structure that will be a win – win for all parties involved in any deal undertaken by us.

Lastly, our employees will be well taken care of and their welfare package will be among the best within our category (startup property maintenance and renovation companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Crystal Property Maintenance & Renovation Company is established with the aim of maximizing profits in the real estate industry via managing houses / properties, renovating and maintenance.  Although we are a property maintenance and renovation company but part of our workforce are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Crystal Property Maintenance & Renovation Company;

• Managing facilities maintenance and renovation services

10. Sales Forecast

The fact that the property market is indeed a booming market means that investors are always going to be attracted to the industry. No doubt it is difficult to see multi-millionaires who don’t have interest in investing in properties; real estate investment is one business portfolio that is common to all multi – millionaires in the world.

In essence, the more people acquire properties, the higher the chances that property management companies will secure business deals. Also, as long as tenants are always in search of accommodation, there will always be business for property management companies.

We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set target of generating enough income/profits from the first month of operation and grow the business beyond Palm Beach – Florida to other states in the United States of America within record time.

We have been able to critically examine the real estate market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions as well;

• Rent/lease a minimum of 30 housing units to clients (flats, duplexes, studio apartments et al) within the first 6 months of operation
• Rent/lease a minimum of 20 office facilities to clients within the first 6 months of operation
• Manage a minimum of 20 properties for clients within the first 6 months of operation
• Sell a minimum of 20 hectares of land within the first 12 months of operation
• Provide advisory and consultancy services for a minimum of 10 clients per month
• Handle a minimum of 20 building makeover projects within the first 12 months of operation

N.B:  Please note that we could not put a specific amount to the projection because the prices and commissions vary for different properties and for different clients. Part of our business strategy is to work within the budget of our clients to deliver quality property/properties hence it will be difficult to project what we are likely going to make from such deals.

But the bottom line is that we are definitely going to make reasonable profit from any business deal that we execute since we work based on commissions. The property management market is structured in such a way that property managers will always make profit from any deal they handle as long as they conduct due diligence before signing the deal.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiff competition in the real estate market in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over the United States of America.

Our goal is to become one of the top 5 leading property maintenance and renovation company in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the industry.

Crystal Property Maintenance & Renovation Company is set to make use of the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochure to stakeholders in the real estate industry and also property owners and potential clients through the United States of America
• Promptness in bidding for acquiring homes/properties that are put up for sale
• Advertise our business in real estate magazines and websites
• List our business on yellow pages (local directories)
• Attend real estate related expos, seminars and business fairs
• Create different packages for different categories of clients in order to successfully sell our homes/properties to them
• Leverage on the internet (social media platforms) and our official website to promote our business
• Places highly visible “For Sale” sign on any property that we put up for sale
• Encourage word of mouth marketing especially when we have a home for sale

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us work our way into the hearts of our target market. We are set to take the real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our company.

Below are the platforms we intend to leverage on to promote and advertise our property maintenance and renovation business;

• Place adverts on both print and electronic media platforms
• Place our flexi banners with our company’s logo and contacts in every property we put up for lease or rent or sale
• Sponsor relevant TV shows so as to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like Instagram, Facebook ,Twitter, LinkedIn,  Badoo, Google+  and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease
• Install our billboards in strategic locations
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our clients to deliver excellent properties to them. The real estate industry is based on commissions and properties are valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry, we can only abide by what is obtainable when it comes to pricing structure. Part of what we intend doing that will help us cut cost is to reduce to the barest minimum all maintenance cost by renting/leasing any property under our care to responsible tenants who won’t cause damage to our facility.

• Payment Options

At Crystal Property Maintenance & Renovation Company our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them, but at the same time we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions. Real estate deals usually involve huge amounts of money.

Here are the payment options that we will make available to our clients;

• Payment via bank transfer
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Any agent who intends paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.

13. Startup Expenditure (Budget)

Starting a property maintenance and renovation business is indeed capital intensive hence an entrepreneur would have to pool cash together or welcome investors to partner with you. Although the capital needed to set up an office structure for such business might not be expensive, but the running capital of the business is always the real deal. You would need huge capital base to be able to maintain and renovate properties.

Here are the areas we intend spending our start – up capital on;

• The total fee for incorporating the Business in the United States of America- $750
• The budget for permits and license – $2,000
• The cost for hiring business consultant – $2,500
• The cost for the purchase of computer software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400
• Cost for payment of rent for a suitable office facility with enough space in Palm Beach – Florida for 12 months at $1.76 per square feet in the total amount of – $105,600
• Cost for office remodeling (construction of racks and shelves) – $20,000
• The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The Cost of Launching our official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from our research and feasibility studies, we will need about $500,000 to set up a standard property maintenance and renovation company in Palm Beach – Florida. Please note that the cost for payment of employees is part of the total budget.

Generating Funds/Startup Capital for Crystal Property Maintenance & Renovation Company

Crystal Property Maintenance & Renovation Company is a private business that is solely owned and financed by Pearson Wilberforce and his immediate family members. They do not intend to welcome any external business partners for the first 3 years which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B:  We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Crystal Property Maintenance & Renovation Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to maintain and renovate properties a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Crystal Property Maintenance & Renovation Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All forms of Insurance for the Business: Completed
• Renting of Office Facility in Palm Beach, Florida: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO/President and Business Partners: Completed
• Application for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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Home Improvement And Repair Services Business Plan

People in the home renovation business can use this free, printable business plan to break into the custom renovation housing sector and draw in more clients for safe and affordable buildings.

Sample text from Home Improvement And Repair Services Business Plan:

1.0 Executive Summary

Financial Consideration

In addition to diligently following this Business Plan to maintain the safeguards for successful business operations and achieve the financial projections herein, the current financial plan of [Company Name] includes obtaining a capital injection through one of many financing programs in the amount of $311,000. The Company hopes to secure the requested funds sometime in the second or third quarter of 2011. It will use the funding to purchase long-term assets, expand the business, and hire employees. The Company's revenue is projected to increase during the next three years, from $125,118 to $226,776, while its monthly break-even stands at $6,912.

1.1 Objectives

[Company Name] has three main objectives:

1. To provide quality housing for the handicapped, elderly, and poor.

2. To provide good jobs for several quality employees as well as provide excellent training to improve employee's ability.

3. To rebuild a derelict house into a loving home.

1.2 Mission

[Company Name]'s mission is to provide safe and affordable housing customized for each and every customer without regard to income, race, or disability. The Company thrives on making once derelict properties into newly renovated homes for those who need them.

1.3 Keys to Success

[Company Name]'s philosophy is that "no job is too small or too large". The Company will gladly do any job as small as installing a door stop or switch plate, or as large as the customer may need. With the Company's experience and training, it can resolve any issue that needs to be resolved. Additionally, [Company Name]'s prices are lower than its competition, the quality of its materials is much higher, and its workmanship is always above code.

2.0 Company Summary

Company: [Company Name]

Contact: [Name]

Phone: XXX-XXX-XXXX

Address: [Address]

[City, State ZIP]

Email: [Email Address]

[Company Name] is a multi-faceted company formed in 1979 (listed on [ADDRESS]). The Company began as a basic home repair business. Over the past 32 years, [Company Name] has also moved into the home renovations arena by purchasing abandoned properties and converting these properties into affordable housing for families. [Company Name] operates as a sole proprietorship and presently includes advanced services including; architectural design, structural design, disaster recovery, property management, plumbing, carpeting, electrical, and mold and mildew restoration.

With the demand for affordable rental housing increasing in the present economy, [Company Name] is intent on expanding the home renovation portion of its business. Specifically, [Company Name] is planning on purchasing vacant, structurally sound, plumb, level and square properties that will be renovated for low-income and special needs families including; the poor, handicapped, and the elderly. Along with this undertaking, [Company Name] desires to hire and train additional employees as the Company grows in the renovation portion of its business.

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Rental Remodeling Business Plan

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Victorian Renovations

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Victorian Renovations (VR) is a start-up company that is being formed to meet the growing need for unique restored vintage homes in downtown Portland, Oregon.  The company is initially focused on one building, located on Fifth and Pearl, which it is in the process of purchasing.  The house will be renovated by the two owners of the business, Doug Machen and Sarah Renner, both of whom are experienced in house renovation and both of whom have graduated from the MBA program at the University of Portland.  External contractors will also be used for the larger jobs, but most of the work will be completed by Doug and Sarah.

After completion, the house will be rented out, and the income stream will be used to pay the mortgage on the house and to finance the purchase of another property in downtown Portland.  Due to the rising demand of unique homes in this area, it is believed that the property at Fifth and Pearl will be rented out for a high price and will produce substantial cash flow to finance future projects.

1.1 Mission

The mission of VR is to develop rundown houses in the Portland area, to improve the look and financial viability of downtown Portland, and rent those properties out to provide a stream of income for future investments.  The company will develop unique homes targeting the discriminating renter who is willing to pay more for a top quality home.  VR seeks to be viewed as a highly visible company in the property development market.

1.2 Objectives

The following are the main objectives for VR:

• To obtain investor funding to purchase and renovate a four bedroom residence on Pearl and Fifth in the Hawthorne District of Portland, Oregon.
• To complete renovations on the four bedroom victorian residence, to convert it into two 2-bedroom units by October 2001.
• To rent out that residence to provide an income stream enough to pay the mortgage and provide additional income for future projects.
• To purchase another residence for renovation immediately thereafter.

1.3 Keys to Success

The keys to success for this project will be:

• To complete the renovation work within the scheduled time and within the budgeted amount.
• To find rental occupants for the building before renovations are completed or as soon as possible after completion.
• To maintain an average 80% occupancy rate each year.

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Victorian Renovations is a vintage house renovator based in Portland, OR. We purchase dilapidated buildings at low cost and renovate them in vintage Victorian style, they are then rented to young families and couples. We are a privately-owned Oregon corporation. We are relatively small, but have a good understanding of the market, a background in this industry, and a great passion for our work.

2.1 Start-up Summary

The company was started when these two business colleagues realized the number of old dilapidated homes in Portland in need of repair and correspondingly the growth in popularity of older restored homes. 

They have recently located the house on Pearl and Fifth and are in the process of obtaining a loan.  Each partner will contribute investment which will be used to cover the down payment of 20%, the mortgage payments for the first six months while the house is being renovated, and the materials and labor to develop the building.  Much of the work will be done by Doug and Sarah, since they are both owners of older homes and have completed much of the renovation and repair to those homes themselves.

Other costs associated with start-up are the legal costs of incorporating the business and building insurance.

2.2 Company Ownership

Victorian Renovations is a privately-held Oregon corporation.  It is jointly owned by friends and business partners, Sarah Renner and Doug Machen.

Currently the company has just one product, which is the house on Pearl and Fifth.

Market Analysis Summary how to do a market analysis for your business plan.">

Housing exploded into the 21st century on a high note, breaking records for home sales, home ownership rates, and the value of residential construction. Buoyed by the longest economic expansion in history, these residential real estate indicators all set records in 1999.

While Portland is occasionally an enigma when stacked next to national trends–mostly because its urban growth boundary demands greater infill development–a report released this summer is nonetheless likely to raise some eyebrows.

“The State of the Nation’s Housing: 2000,” prepared by Harvard University’s Joint Center for Housing Studies and funded by the Ford Foundation, found that Portland’s housing prices leaped 44% over the past decade–and even rivaled its neighboring peers, Seattle and San Francisco, by substantial percentage points.

This summer, metropolitan Portland’s median sales price for homes rose above the $170,000 mark–and the Lake Oswego/West Linn market soared above the $290,000 mark–according to the Residential Multiple Listing Service’s Market Action.

Crunching numbers adjusted for inflation and factoring out rises in home size and quality, the Harvard University report concluded that Portland had the third-largest leap in housing prices out of 35 U.S. cities. The heftiest increases were tallied by Salt Lake City, with 60%, and Denver, with 49%. One of the largest dips in housing prices affected another West Coast neighbor, Los Angeles, which saw prices slump 18%. Metro Councilor Rod Park attributes much of Portland’s home-pricing increases to the influx of out-of-state workers. Intel Corporation, for instance, recently announced plans to expand facilities in Hillsboro’s high-tech Sunset Corridor. Park said the global chip maker plans to fill many new jobs with out-of-state employees.

The trend with Intel snagging local tax breaks and then bringing in workers from elsewhere ought to raise the eyebrows of local officials, and especially local colleges and universities, he added.

“What we view up here as expensive has a lot to do with people with more earning potential coming in and bidding the prices up,” Park said.

According to an affordability index prepared by the National Association of Home Builders, Portland recently ranked as the 25th least affordable of 192 major U.S. cities.

(Source: The Portland Business Journal , Brian J. Back Business Journal Staff Writer.)

4.1 Market Segmentation

Victorian Renovations will be targeting upper income couples to rent its properties.  Currently, although the labor market is buoyant in Portland, there is some uncertainty ahead, meaning that there are many people moving into the area who are unsure whether they will be staying for more than a couple of years.  In addition, there are a large number of people moving to Portland from out of state who do not know the city as yet, so would rather rent a home than commit to a purchase.

The largest population group in Portland is 20-44 year olds and VR will be targeting the 25 to 30 year olds within this group.  They have been out of college for a few years and have established careers, but may not be ready to settle down yet with a home purchase.  In addition, many of them are earning high wages with high tech companies.  It is estimated that this group makes up 5% of all people in the 20-44 year old age group in Portland.

Portland Community Age Groups  

(Source: US Census. Median value is the middle value, not an average.)

4.2 Service Business Analysis

Below are the most recent figures we are able to find on the Portland housing market.  If trends in the housing market have remained similar, the vacancy rate of 5.59% looks very promising for VR, since the target is to have the building occupied 80% of the year.

City of Portland 1990 Housing Breakout:

(Source: US Census.)

4.2.1 Competition and Buying Patterns

Competition comes in a number of forms in the portion of the housing market which VR will target.  There are a large number of housing options in the Portland market, however we believe that there are very few houses that have been renovated in a unique Victorian style that are for rent.  For this reason, although this house will be converted into two 2-bedroom apartments, we will be able to charge a premium price for rental.  Where the average price for a 2-bedroom apartment in downtown  Portland is $850, we will charge $900 per unit.  We believe that there is room in the market for this vintage and quality of building in the rental market.

Strategy and Implementation Summary

Our strategy is based on the fact that there is a large portion of people in the Portland area who value comfortable, vintage living with all the modern conveniences.  The homes that we develop will be targeted towards people who are in the market for a rental property and are willing to spend more on their homes to have authentic, classic surroundings.  These people are willing to pay more for this unique property.

5.1 Competitive Edge

The company’s competitive edge is the expertise of the two owners in renovating and restoring older homes.  Both currently own vintage homs and have done much of the renovation themselves, only bringing contractors in to do very large jobs.  In addition, both have strong business backgrounds, one in marketing and one in finance and accounting.

5.2 Marketing Strategy

The marketing for VR will be limited, since the company simply needs to rent out two apartments for one year leases.  A full color leaflet will be developed that will be posted outside the property near the end of the restoring process.  In addition, newspaper advertisements will be placed in local newspapers and on rental websites.

5.3 Sales Strategy

Because these apartments will be high quality, VR will be choosy about who they will accept as tenants.  References and proof of employment or ability to pay the rent will be needed.  Also, one month’s rent will be requested as a deposit on signing of the lease.

5.3.1 Sales Forecast

The following is the sales forecast for VR’s first apartment building on Fifth and Pearl. 

5.4 Milestones

The following Milestones table illustrate the key steps that Victorian Renovations must achieve in order to ensure the success of this venture.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Victorian Renovations will be wholly owned and managed by Doug Machen and Sarah Renner.  Both have MBA degrees from the University of Portland and both are experienced home owners and renovators.  Victorian Renovations will be a side business for them, since they currently work time.  They will be working on renovating the building on Fifth and Pearl at night and on weekends.

Doug works for an accounting firm and deals with many real estate transactions for his clients.  This experience makes him perfect to negotiate the sales price and mortgage on the house.

Sarah works as a marketing specialist for an interior design firm that focuses on high end reproductions of antique era household items, such a victorian style sinks, taps, wall paper, tiles, and furniture.  Most of the products are sourced from overseas, so the company works on big margins.  As a result, employees can get good discounts on products from the company.  Sarah will be purchasing most products for the house renovation directly from her work.

6.1 Personnel Plan

The owners will be working on this project alone, though they will be bringing in contractors to do some of the heavier renovation work.  For the first couple of years, neither will be taking a salary.  Instead, they will be plowing profits back into the business, with the aim of buying other properties.

Financial Plan investor-ready personnel plan .">

The following financial information shows the assumptions and outcomes of the purchase, renovation, and rental of the first property on Fifth and Pearl.  No attempt has been made to discuss the implications of purchasing other buildings, since these will happen on a more ad hoc basis.

7.1 Important Assumptions

The following are conservative assumptions that will influence our financial projections.

7.2 Break-even Analysis

The regular Break-even Analysis is not appropriate for this project, but the following text explains the Break-even chart.

Investors will receive 66% of the rental income from the property.  It is estimated that this property will produce $2400 per month of rental. At maximum occupancy, the payout to investors will be fixed monthly cost of $1,600.  The remaining $800 per month will be kept in a savings account to pay for general upkeep of the building and any unexpected repairs.  It is estimated that routine bills and maintenance will be no more than $400 per month.

7.3 Projected Profit and Loss

The following Profit and Loss table illustrates that VR will lose money in the first year, but in the second year, on this single property, the company will make a healthy return of 10% in 2002 and 15% in 2003.

7.4 Projected Cash Flow

The following Balance Sheet shows healthy cash flow that will enable VR to maintain the existing location at Fifth and Pearl and allow Doug and Sarah to purchase a second property in Portland in year two of the operation.

7.5 Projected Balance Sheet

The Balance Sheet shows a healthy company with a positive net worth that will ensure future financial stability and the ability to grow through investment in other properties in the future.

7.6 Business Ratios

The following table contains important ratios for the Single-family housing construction industry, as determined by the Standard Industry Classification (SIC) Index Number 1521.

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Home Renovation Project Plan

Doing your own remodeling is, to say it lightly, a big job. There are many things you need to get done, details that need to be finalized, and materials that need to be acquired. The whole process is already a confusing mass of loose ends, and jumping straight into it without first deciding on what to do will only make the task more difficult.You may also check out  advertising plan examples.

One of the biggest remodeling mistake homeowners make is skipping the planning phase and rushing straight into the project. Before starting any home remodeling project, you need a plan. While it’s a tedious process, it will help you make the most out of your time and money.You may also like  job plan examples.

Home Renovation Project Planner Template

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Project Plan for Home Renovation Table Example

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Home Remodeling Project Plan for Kitchen and Bathroom

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Kitchen Remodeling Project Costs Worksheet

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Four Steps to a Foolproof Home Renovation Project Plan

Below are four easy steps that will help you ensure that your remodel meets and exceeds even your highest expectations, while successfully avoiding making all those often inescapable annoying little mistakes along the way.

1. Decide on what you want.

A big part of planning a home project is deciding what look you will try to achieve for your home. Having a clear mental picture of the end product that all the hard work should result in is a great way to make sure that, from the first day to the last, all of the smallest decisions you will make will move you closer to your desired result.You may also like  simple business plan examples .

Whether you’re simply converting a bathtub into a walk-in shower or building an in-law suite, having a better understanding of how you want your house to look and feel after all the remodeling will help you decide on budget, design, and materials more easily.

2. Create a realistic budget.

The next step in your home remodeling project is to create a budget. Redesigning a house can be expensive. Deciding on a budget will help you make sure that you don’t spend more than you should, and that you achieve everything you want to get done with enough to spare. You may also see  daily plan examples .

Once you’ve decided on the scope of your project and what features and finishes you want, figure out how much money you have available to spend on your remodeling. A little spoiler though, often what you want and how much you can afford aren’t always the same things.

The best thing you can do is to be smart with your spending. After all, there is nothing that a frugal pocket can’t do. Keep in mind that renovations don’t always guarantee returns and that spending more on an upscale renovation isn’t necessarily a better investment than spending less on a mid-range project.You may also see  transition plan examples .

How to Budget for a Home Remodel

You don’t have to cut a big hole from your savings just to make your house prettier. There are several money-saving tips you can follow to make sure you get a lot without having to spend too much.

1. Figure out how much you have to spend. After you’ve decided on what you want, determine whether or not you have enough money to cover the costs to achieve it. Look at your wish list and prioritize needs versus wants. For example, instead of setting aside a budget for garden gnomes, why not spend that money fixing the fence instead? It will make your lawn prettier, the same way that lawn gnomes will, while also ensuring that your house is safely boxed in from unwanted strangers.You may also like  simple business plan examples

2. Assess the present condition of your home. As a general rule, the older the home, the more hidden costs you’re likely to find behind your doors and walls. You don’t want to focus on renovating your home office while your attic’s floors are nearly collapsing. Make sure that you don’t have more pressing structural issues to focus on.You may also see  territory sales plan examples .

3. Check what permits your city requires. Unfortunately, we are not allowed to randomly break walls for beautification purposes. Which is why, in addition to protecting your home and family, getting the necessary permits will ensure that you won’t have to redo any of the work. The last thing you want is to run out of money in the middle of the project.You may also see  weekly plan examples .

To avoid spending more than what your budget allows you to, try adding up a close estimation of all of your expenses before you start. This can help you get a rough guess on how much the remodeling will cost you. Add a little few extra dollars in there for miscellaneous expenses and you’re good to go.You may also see  legal strategic plan .

Free Home Renovation Project Plan Template

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Example Project Plan for Building a House

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Home Construction Budget Project Plan

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C. Get written estimates.

Planning a home remodeling project involves getting estimates from remodeling companies or general contractors unless you’re doing all this on your own. Chances are you’re not, so before you start researching for available, not to mention affordable, contractors, get recommendations from family and friends about who they hired for their own remodeling project.

You can never go wrong with tried and tested workers. Start compiling a list of several contractors you may want to hire, but don’t let the price be the deciding factor. We are often attracted to the cheapest. It’s one of man’s greatest weakness. However, the cheapest often won’t give you a result you can be happy with.

So instead of focusing on that sole factor, try considering these several others before hiring a contractor:

1. Years of experience.

Honestly, if you are looking for an inexperienced newbie, why don’t you just go ahead and do the job yourself? But you won’t because remodeling your home is important to you, and you want to entrust the job to someone who’s actually capable of doing it. A contractor who has been doing business for a long time makes them a safer bet than one who is fairly new to the business.You may also see  project plan examples .

2. A contracting license.

Make sure that your contractor has gone through all of the steps needed to obtain any required certifications specific to their line of work. Why? Would you trust an unlicensed, although just as qualified, doctor to conduct a sensitive operation on you when the medical field is brimming with licensed and qualified doctors? Although a contractor and a doctor are two very different things, the point remains: we only want someone who has been given the right to perform the job. You may also see  catering company business plan .

3. Certificate of insurance.

Contractors should have workers’ compensation and liability insurance for the type of work they perform. Yes, you’re just redesigning your house. But these people deal with machines and equipment, and insurance is not an option. It should be a necessity.

4. Timeline for completion.

It’s important to know when the contractors will start and complete a project, and if there are any circumstances that may affect that schedule. Yes, you want your house to look prettier, but you can’t have strangers banging around your walls and making loud noises with their machines for too long. You need to know exactly when you can enjoy the results of your money and effort.You may also see  marketing plan examples .

5. Payment schedule.

If knowing when you’ll enjoy your home’s new look will give you some peace of mind, knowing when they will get paid will do the same to your contractors. But, of course, a reputable contractor won’t ask you to pay the full price upfront, and the entire business world advises everyone not to. However, it’s important to discuss payment terms before construction begins. In some cases, it’s even better to spend a little extra to get someone you’re comfortable working with.

D. Map out your schedule.

Depending on the scope of your project, a home renovation can run anywhere from a few days to a few weeks. As a result, you can expect your day-to-day life to be impacted in some capacity. If you’re remodeling your kitchen, don’t expect your breakfast to be peaceful for a while.

If you’re getting your living room done, move your guests somewhere else. Renovating the master bedroom? You’ll have to make temporary sleeping arrangements. Whether or not you should live in your home during construction depends on what work is being done.You may also see  social media marketing plan examples .

If the contractor you hire doesn’t provide their own timeline or project plan for your home renovation, you should make your own and share it with them. It’s best that both parties are in agreement regarding this aspect. Generally, the bigger the project, the longer it will take.You may also see  food catering business plan examples .

Example Project Management Plan for House

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Project Management Planning for Home Remodeling

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Renovation 101: Helpful Reminders

Now that we are through discussing the basics of a renovation project, let’s delve deeper into the different factors that you also need to consider before pushing through. Do you need to tap an architect and an interior designer, or your wild mind enough? Do you need a permit before you begin, or are you conducting minor conditions that nobody needs to concern themselves with?

Know the answers to these questions and a couple more helpful tips below.

Always take your budget into consideration. Major renovations are more complicated and may cost more. If you are working with a limited budget, make sure that you use that money to alter a more significant portion of the house.

It’s important to decide which space or spaces need to be prioritized. This will help you stay within your practical working budget. Instead of doing the kitchen and the living room at the same time, choose which one among them must be remodeled first, and go back to the other one next time you become less short on cash.You may also see  self-catering business plan examples .

What can I do with my old furniture? This one is a really good question and one that is frequently asked by those who have remodeled their houses. Of course, the renovations would also include purchasing a new set of furniture to go with the new design you are trying to achieve. So what will you do with the old ones?

Once you’ve identified the areas for renovation, inspect the spaces and check pieces that can be reused or repurposed. Reusing the materials will help you keep the cost low. Instead of buying a new table for your office, why not keep that gorgeous old mahogany table for after the remodeling?

Or that sturdy plywood from an old built-in cabinet can be used to make a new center table if it’s still in good condition. If you have pieces of broken ceramic tiles chipped off from the floor, you may use it on kitchen splashboards in place of expensive mosaic tiles by laying it out in a random pattern.You may also see  e-commerce project plan examples .

By using your imagination, unleashing your creativity, and focusing on what will help you save money the most, you won’t need to throw away old furniture.

Do I need to enlist the services of an architect or an interior designer?

Commissioning the services of an architect or an interior designer will immensely help you maximize a limited renovation budget as design mistakes and unconfident quality estimates will be kept at a minimum, and specifications will be cost-sensitive. However, you don’t  need to enlist the services of any of these professionals if you think you can do a perfectly good job yourself. You may also see  hotel marketing plan tips .

Can I work on a renovation project without professional help?

Yes, of course you can. But it is undeniable that you can benefit from having a sketch or a guide of a general layout of the desired final outcome of the renovation. Having a plan will help you define the renovation direction and avoid unexpected changes mid-construction that may have serious cost implications.

Other valuable tips to keep in mind:

1. Diligent supervision during construction is important, especially when trying to keep within a budget without professional design assistance. Yes, your contractors are professionals who will do their best in doing their tasks, but with you there, they’ll try to make an even better one. This will also ensure that all materials are used correctly and that the workers are working to achieve the needed output.You may also see  restaurant event proposal examples .

2. Renovations can be complex and costly, but if you’re armed with proper planning and practical prioritization, you can go through the fun and exciting experience without having to break the bank.

3. After the renovations are completed, it is necessary to inspect the correctness of the construction work done and determine if the new space is safe for occupancy. Keep in mind that it would be an expensive inconvenience to spend more on trying to fix unsafe work.You may also see  annual marketing plan examples .

Now that you are equipped with the necessary knowledge to do your own remodeling, bear in mind the important tips we’ve discussed. You don’t have to spend a lot to make your home more comfortable and more attractive. You’d be surprised at the amount you can save, while still receiving the same results, if you plan wisely.You may also see  business plan profit and loss template examples .

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