How to Open a Home Improvement Business that Profits
Looking to open a home improvement business? Here’s what it takes to succeed in the industry, and how to get started while staying on track financially.
THE TIME IS NOW
While many industries suffered in 2020, the home improvement market surpassed $762.9 billion and is estimated to exhibit a CAGR of over 4.3 percent over the next six years. A combination of shifting homeowner priorities, government initiatives to incentivize green building construction, and the advancement of different technologies has set the market on an upward course for the years to come.
FOCUS YOUR BUSINESS
Homeowners are always looking for new and exciting ways to improve their spaces, so it’s up to you to decide where to focus your efforts to maximize profits. Because home improvement business is booming, any special features or underrepresented skills you can bring to the table deserve to be highlighted.
What is your company going to offer to the market? Choose a specialty or a customer base that will help you stand out from the competitors. If you’re located near the beach, perhaps your business specializes in weather-proof decking. If you’re in an area with rising property values, consider offering high-end aesthetic upgrades. Or, focus on neighborhoods populated with growing families who are looking to enhance their homes’ organizational capabilities.
INSURANCE, LICENSES & CERTIFICATIONS
General liability insurance (also referred to as commercial general liability insurance or business liability insurance) is essential for all home service businesses to acquire and maintain. Your business may have a working office, but you will perform the majority of your work offsite, so the right insurance will need to extend to other people’s property. Take all of these factors into consideration when picking your plan.
While not legally required in all states, obtaining various licenses and certifications to legitimize your credentials and specializations will open you up to a larger customer base. For example, the National Association of the Remodeling Industry offers a course in universal design. This addresses the need to make living spaces accessible to people with disabilities, an appealing certification to a growing number of our aging neighbors.
Between office space, employees, equipment, materials and transportation, the costs of running a home improvement business can add up fast if you aren’t paying attention. While the industry is inherently at the hands of some global economic factors beyond your control, there are some practical measures you can put in place to protect yourself and optimize your profits.
In order to keep your costs down and offer fair pricing to your customers, maintaining solid relationships with your vendors is of the utmost importance. Keep on top of competing vendors’ rates and ensure that your vendors are providing you with the highest quality materials, at the best prices, at all times.
Ensuring quality work that completely satisfies your customer is the number one means of generating more business, and therefore additional profit.
FRANCHISE WITH A PROVEN BRAND
With a home services franchise like The Tailored Closet, you are buying into an award-winning brand, and your business will benefit from the glowing reputation that has been years in the making.
The Tailored Closet focuses on improving homeowners’ lives by organizing and optimizing nearly every part of the home: closets, pantries, home offices, laundry rooms, craft rooms, and more. Our adaptive product lines are designed to suit every specification and lifestyle.
The Tailored Closet is not a manufacturer, which gives our franchisees the freedom to provide a greater selection of products and services than many of our competitors. Our cutting edge proprietary design software allows us to collaborate with customers to make their home improvement dreams a reality.
Little to no previous home improvement experience is required to become a franchise owner. The Tailored Closet provides its franchisees with comprehensive training, business coaching, and ongoing marketing and operational support to set them on the course for success.
Offering prospective franchisees a home improvement business opportunity with low overhead, high margins, and a large territorial footprint, The Tailored Closet is perfect for motivated entrepreneurs who are ready to join this booming industry.
Visit us to learn more about starting your own franchise with The Tailored Closet.