Starting a home renovation business can be a daunting prospect, but there’s never been a better time to do so. The housing market has experienced unprecedented growth over the last year, pricing many out of moving home – and having a knock-on effect on demand for renovation work as a result. But how exactly should you go about starting such a business?
Determine Your Business’ Specialty
Before you take any major steps towards beginning your business journey, you should have a firm idea of your business’ niche. What are your skills, and what specialties would you like your business to offer? You might want to focus on offering bathroom renovations owing to prior experience as a tiler, or you might have the construction experience necessary to effect more significant changes to a property. With a clear notion of your business’ direction, you can have conviction in the steps you need to take to get there.
Create a Robust Financial Plan
With your business model firmly in mind, you should draw up a fully costed business plan. How do you intend to charge for your services? Will it be a flat fee for a completed job, or will you offer yourself or a team for a daily fee? How many projects do you expect to be able to take on in a given month, and how much do you expect to bring in? Consider your potential outgoings as well, in order to predict your profits. This information can be useful in securing loans for equipment or other forms of business expansion, as well as for your personal records.
Register Your Business
Next, you will want to ensure your business is registered with HMRC. If you intend to operate alone, you can classify yourself as self-employed and register as a sole trader. If you intend on hiring staff, you may want to register as a limited company. Doing the latter costs money, but also means your staff can be enrolled in PAYE – and that your personal assets are protected in the event that the worst happens to your business.
Invest in Tools and Equipment
With the vast majority of your initial administration behind you, you can begin to look at tangible ways to build up your business – starting with the procurement of the right tools. You may already have tools you use on a regular basis, but new purchases can be written off as a business expense, and also improve the quality of your work. A good new set of Milwaukee drill drivers will go a long way, as will an outlay of other power tools like jigsaws and angle grinders – depending, of course, on your line of work.
Open Relationships with Potential Clients
At this point, you are in a position where you can begin trading – but rather than jumping straight in at the deep end, you should consider a soft open for your business. Reach out to friends and acquaintances, and begin to expand your contact list. Opening up relationships with potential clients can lead to repeat work via word of mouth, and be a more effective way of starting out than shouting into the void of online advertising spaces.