What Services Should a Startup Restoration Company Provide?

Restoration Companies are made up of three major divisions of work:

  • Mitigation
  • Rebuild
  • Roofing


To mitigate means to “reduce or limit the severity of something.” The primary components of mitigation are:

  • Water mitigation
  • Mold remediation
  • Fire cleanup and odor control

80% of the 25,000 restoration companies in the US provide mitigation services only. The average size of a water damage job is $3,500 and generally produces a 75% profit.


Whenever building materials and personal contents are discarded due to water, mold, or fire damage, someone has to do the rebuild. Whatever comes out must be put back. The average size of a rebuild is 3 to 4 times larger than its mitigation job. Rebuild work can easily range from $10,000 to hundreds of thousands in value. With profit margins that exceed 40%, it’s easy to see this is a restorer’s most significant money-making opportunity. 50% of US States don’t require a General Contractor’s license to perform this work, making it easier to offer these services.


There are a lot of geographic areas that encounter hail storms, tornados, hurricanes, and other severe weather outbreaks. Every time one occurs, it creates damage of catastrophic proportions and a high volume of insurance claims for repair. My restoration company received over 200 hail claims and millions in revenue from a single small storm in my city several years ago.

For both rebuild and roofing, the restorer manages the job and subcontracts all the labor to professional trade people.

You don’t have to be an expert to perform mitigation., rebuild, or roofing service. If you can manage systems and processes well, you can sub the labor to experts.

A contractor could perform any one or all of these services in the insurance damage and repair industry.

This is an industry that provides a broad scope of work, high revenue and highly profitable jobs, and a never-ending source of new work from manmade products that break and weather that never takes a break!

Below are the postings of the How to Start a Restoration Company Series. I hope together they will answer most of the critical questions you have. Afterward – give me a call, and let’s talk about how to put it all together! Click on the title to view.

For more information or help to start your restoration business contact me at https://www.growmyrestorationbusiness.com/contact-us

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