Can I start a home renovating company with $15,000?
So I’m 19, and interested in opening a home renovating company. Reason is my dad has had 20 years experience with renovating houses and knows a lot of people that also works as that. My dads friends son has opened a moving company and is super successful, owns multiple moving trucks, invested in a lot of property etc, and he is only in his early 30’s. Can anyone briefly explain to me how I don’t fail at the beginning? My advantages are that I still live with my parents, and my dad has told me numerous times that I can easily open a business and even if it fails I can still fall back on them. So yeah, can I do it with $15,000? If more is needed tell me, I know I need tools, a work car, etc.
Lots of things to look at here. For example how are you going to get material to the site? Pick it up yourself or delivery? Pick up requires a truck/trailer which costs a lot up front, and delivery is a reacquiring cost. Are you going to specialize in something ( I mean bathrooms, kitchens, closets etc) or just general renovation? Are you going to get a business license and insurance? Just some of the things you need to consider.
I don’t recommend not getting a license but if you can get away with it go for it (wish I could lol would save me over $3k a year) but I would definitely get insurance if your working on people’s homes. As for the delivery cost I would spread it evenly throughout the bill by marking every item up, don’t just put a delivery fee on at the end of the job.
Do good work, take pride in it and make sure the customer is happy before you get paid. Take the time to explain things to them and as soon as you find any issue, big or small, notify your customer. We get most of our referrals due to us taking these steps.
I’m in a related business that my father started 30 years ago without a lot of money. We work with flooring and wall coverings mainly. One thing I have learned in this business is that you only need a car, tools for measuring and to execute your tasks (depending on the job) and people skills. Invest your time in building relations with suppliers ,finding clients and having people you trust in your team. This is a business that runs on people’s money, you ask for some money upfront to cover most of the material and then ask for payments.
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July 14, 2020, 12:19:17 AM
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Startup Lingos To The Point
How to turn an interest into a money maker. How to attract people, how to stimulate people to pay, how to make profit, how to make relations, how to keep relations.
How much do I have to give my audience so they can pay me something in return? What do they value? what problem do they search for answers on your own? I want to solve that problem.
Brand means name recognition. A lot of people knows what your company does and what you stand for. Brand is result of long campaign of consistent value provision and media cultivation. Brand helps a company reduce marketing cost.
Whether there are buyer willing to pay or not. For that to happen you must provide extreme value. The entire startup process would be based on guess before the validation. Validation happens in a market, not on the street.
Value is what you give customers beyond the price you charge. Value is effective solution to a problem. The price your customer pays reflects whether the problem is big for them and whether your solution is uniquely effective. Value stems from quality and detailed work.
Marketing means bring your product to the market and bring your message to your customer. Marketing is not salesmanship. Marketing is to penetrate the world of commerce through many barriers and existing networks.
Minimally viable business, or MVC, minimally viable company. A company that scrapes by, full of guess and hope and no traction and sales. When you give your customers things for free they all take it. But they never pay and you can never rent a table at the market.
Minimal viable product. A full artifact of a real product. Something that works ALL THE TIME. You can demonstrate the real effect on real people - not to sell hope. The MVP may not have certain non-essential bells and whistles, but it needs to have appeal value.
Customer is king
A business lives at the mercy of its customers. You provide your customers 10 dollars worth of value and they pay you 1 dollar, not knowing that your company only costs 99 cents to provide the item. The value is not the item - the value is what is attached to the item.
Company culture is based on a company making money. Once your workers are paid, they need to have a mission and aspiration so they are not bored everyday and make trouble in the work place.
A company valuation is cash investment divided by the percentage. As long as your story is good, the valuation will keep coming, and the investors will keeping falling into the line.
Return on investment
Investors are either behind family fortune (never work with them) or for rich clients as investment vehicle. Both need returns 2-3 times better than stock market darlings.
Having found what people want, not just what people may need. Your offering and their acceptance is sure, no longer a guess. You can provide it for profit, and you can indeed making living on it. Traction is sometimes called validation. You are no longer a theater. You have touched nature, and found cash vein.