Starting a restoration business is a significant undertaking, but it doesn’t necessarily mean that you can’t do it and do it well.
In this short blog we’ll look at the first three steps to starting your business. They might not be the same first steps as others would recommend, but these should be part of the first few things you do.
1) Ask yourself if there’s enough business to go around – This might seem like an easy decision, but you should look at the referrals you give to others and the jobs you know that you could get. Can you make a complete business out of that? The issue is that if you own a carpet cleaning business, you have a lot of referrals, but are they enough to sustain a whole new business with whole new crew and new equipment?
Too often, people start a business without really looking at how well they can do. They go with their gut, but this part of the decision-making process requires that you take out paper and pencil and crunch some numbers. Can you hire a crew, buy new equipment, afford the insurances, etc. with what you can see from where you are right now?
This part might seem like a downer, but it’s necessary. You shouldn’t start a business until you know you can get the work.
2) Licensing and insurance – Start your business completely covered with the legal stuff first. You can’t (or shouldn’t) take on work without the right licenses and insurance in place. If you don’t get that part done, nothing else matters. In most cases, you can do these things right on your computer without a lot of effort. Pay for them and they’ll get you set up. If you already have a business license, you might be able to do a DBA. If you have business insurance, you might only need to contact your insurance agent and expand it to the new business.
3) Figure out what you want to do and what you’ll give to others – Consider if you want to do things like plumbing or roofing as part of your restoration business. It can take a lot of planning to add these large services on, but they might be profitable. In many cases, you need to find a qualified specialist to work for you. Having a plumber, an electrician, and a roofer on staff can make your team seasoned and able to handle almost any development.
The first few steps to starting any business are planning and paperwork. They aren’t the exciting “go out and get work” part, but if you start by planning well, you’ll have your business up and running in no time.
If you need help starting your restoration business or expanding your current business, contact us at the Restoration Entrepreneur. That’s what we do.