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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