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How To Start A Remodeling Business

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Kick Start Your Remodelling Journey

Remodeling can be a lucrative and rewarding industry to venture into. If you have a passion for transforming spaces and the desire to run your own business, starting a remodeling business might be the right path for you. Ready to transform homes and make your mark on the world of design? 

Take these essential steps to launch your very own remodeling business! First, you must decide on the remodeling services you plan to offer. Will you specialize in bathroom or kitchen remodels? 

Do you wish to tackle exterior projects such as decks or patios? Or will your focus be on interior projects like painting and wallpapering? This article will guide you through the essential steps to get your remodeling business up and running. Read on!

What is Remodeling?

Remodeling involves making significant changes to an existing structure to improve its functionality, aesthetics, or both. It can include projects such as renovating kitchens, bathrooms, bedrooms, or even entire houses. Remodeling goes beyond simple repairs and focuses on transforming spaces to meet the specific needs and preferences of the clients.

What is a Remodeling Business?

A remodeling business is a company that offers professional remodeling services to homeowners, businesses, or other clients. As a remodeling business owner, you will strive to oversee projects, manage a team of skilled workers, acquire clients, and deliver high-quality results that exceed your customers' expectations.

Benefits of Starting a Remodeling Business

Starting a remodeling business can bring numerous benefits and rewards. Here are a few key advantages:


As a business owner, you can make your own decisions and set your own course. You are in control of your destiny and have the opportunity to build something meaningful.


Remodeling allows you to express your creativity and turn your clients' visions into reality. Each project is unique, allowing you to showcase your design and craftsmanship skills.

Lucrative industry

The remodeling industry continues to thrive, driven by homeowners' desire to improve their living spaces and increase property values. With the right approach, a remodeling business can be financially rewarding.

Job satisfaction

Seeing the transformation of a space and the joy it brings to your clients can be incredibly satisfying. Knowing that you've positively impacted someone's life through your work can be highly rewarding.

Launch Your Remodeling Business With Our Guide

Before diving into the world of remodeling, it's essential to equip yourself with the necessary knowledge and skills. Here are the key steps to follow when starting your remodeling business:

Find your niche

Remodeling encompasses a wide range of projects, so defining your specialty is essential. Do you excel in kitchen renovations, bathroom makeovers, or whole-house remodeling? Identify your strengths and interests to focus your business on a specific niche. This will help you target your marketing efforts and establish yourself as an expert in that area.


Before taking the plunge, research the remodeling industry and study successful remodeling businesses. Familiarize yourself with the latest trends, materials, and techniques. Additionally, evaluate your skills and determine if there are any areas where you need to improve.

Know the business

Understanding the ins and outs of the remodeling business is crucial for your success. Learn about estimating costs, managing budgets, creating project timelines, and coordinating subcontractors. Familiarize yourself with local building codes and regulations to ensure compliance.

Develop the right skills

It would be best if you had a solid foundation of skills to run a successful remodeling business. These may include carpentry, plumbing, electrical work, painting, and project management. If there are any gaps in your skill set, consider taking courses or partnering with skilled professionals who can complement your expertise.

Get your finances in order

Starting a remodeling business requires an upfront investment. Create a comprehensive budget that covers equipment, tools, licensing fees, insurance, marketing, and initial working capital. Determine whether you have the necessary funds or if you'll need to secure financing.

Know your numbers

Understanding your costs and profit margins is essential for running a successful business. Calculate the costs of materials, labor, overhead expenses, and other factors involved in each project. Ensure that your pricing strategy allows for a healthy profit margin while remaining competitive.

Know your limits

While it's essential to be ambitious, it's equally crucial to know your limitations. Taking on projects beyond your capabilities can result in subpar work and damage your reputation. Start with projects that align with your skill level and gradually expand your capabilities as your business grows.

Create a business entity for remodeling services

Selecting the right legal structure for your business is crucial. It can affect your liability, taxes, and even your ability to secure financing. Consult with an attorney or business advisor to determine whether a sole proprietorship, partnership, LLC, or corporation best fits your remodeling business.

Acquire the required licenses & insurance

Ensure that you comply with all local, state, and federal regulations by obtaining the required licenses and permits. Licensing requirements vary, so research the specific permits necessary for your location, and the type of remodeling work you intend to undertake. Acquire adequate liability insurance to protect your business and clients in case of accidents or property damage.

Marketing, selling, hiring

To attract clients and grow your business, you must focus on marketing, selling your services effectively, and building a reliable team. Here are a few essential tips to consider:

Become a better marketer

Develop a strong marketing strategy that includes online and offline tactics. Create a professional website, leverage social media platforms, and establish partnerships with local suppliers or real estate agents.

Network like a boss

Attend industry events, join professional associations, and engage in community activities. Networking can help you build valuable relationships with potential clients, suppliers, and subcontractors.

Open for opportunity

Actively seek out new business opportunities by contacting homeowners, property managers, and real estate investors. Develop a compelling sales pitch that highlights your unique selling points and previous successful projects.

Pros and Cons of Starting a Remodeling Business

As with any business venture, starting a remodeling business has its pros and cons. Let's take a closer look at both sides:


  • Independence and the opportunity to be your own boss.
  • The chance to express your creativity and turn clients' visions into reality.
  • A financially rewarding industry with potential for growth.
  • The satisfaction of seeing the positive impact of your work on clients' lives.


  • High competition within the industry requires strong marketing and differentiation strategies.
  • Seasonal fluctuations in demand, which may affect project availability and cash flow.
  • The physical demands of the job and the potential for encountering unforeseen challenges during remodeling projects.
  • The need for continuous learning and staying up to date with industry trends and building codes.

3 Tips For Successful Home Services Franchising

If you're considering joining a remodeling franchise, keep these three keys in mind:

Develop and stick to a marketing plan

A well-executed marketing strategy is crucial for generating leads and establishing your brand locally. Use digital marketing techniques such as search engine optimization (SEO), pay-per-click advertising, and social media marketing to effectively reach your target audience.

Network with peers

Joining professional associations and networking groups can provide valuable opportunities to connect with industry peers, learn from their experiences, and potentially collaborate on larger projects. Building relationships within the remodeling community can lead to referrals and partnerships that can benefit your business.

Build long-term customer relationships

Customer satisfaction and positive referrals are essential for a thriving remodeling business. Focus on delivering exceptional service, maintaining open lines of communication, and exceeding customer expectations. Providing warranties or guarantees on your work can also help instill confidence in your clients and foster long-term relationships.

Upgrade your remodeling business with nine tips

Once your remodeling business is established, you'll want to focus on growth and expansion. Here are nine tips to help you achieve that:

Hold on to your cash

Effective cash flow management is crucial for sustaining and growing your business. Monitor your expenses, collect payments promptly, and negotiate favorable terms with suppliers to maintain a healthy cash flow.

Protect your lien rights

When working on projects, it's essential to understand your lien rights and protect yourself from non-payment. Familiarize yourself with the lien laws in your area and consider using tools like mechanics lien filings to secure your right to payment.

Be clear about payment expectations (and consequences)

Clearly communicate your payment terms and expectations upfront with your clients. Provide written estimates and contracts that outline the project scope, timeline, and payment schedule. Include consequences for late or non-payment to ensure a smooth payment process.

Choose remodeling customers wisely

Not all clients are a good fit for your business. Select clients who value your expertise, respect your work, and are willing to pay a fair price. Working with clients who align with your business values will lead to smoother projects and better customer satisfaction.

Bid accurately

Accurate bidding is crucial for profitability. Thoroughly assess project requirements, labor, material, and overhead expenses when preparing your bids. Avoid underbidding to secure a project, as it can lead to financial strain and compromised quality.

Automate your processes

Streamline your operations by leveraging technology and automation tools. Use project management software to track progress, manage budgets, and communicate efficiently with your team and clients. Automating administrative tasks can free up time for more critical aspects of your business.

Monitor your assets

Keep track of your equipment and tools to minimize losses and ensure they are adequately maintained. Implement a system for inventory management, regular maintenance, and equipment replacement when needed.

Track financial performance

Regularly review your financial statements and performance metrics to gain insights into your business's health. Identify areas of strength and weakness, and make data-driven decisions to improve profitability and efficiency.

Protect against profit fade

Profit fade occurs when project costs exceed initial estimates, leading to reduced profitability or losses. Mitigate profit fade by conducting thorough project assessments, closely monitoring expenses, and implementing effective project management strategies.

FAQs For Starting a Remodeling Business

Here are answers to some frequently asked questions about starting a remodeling business:

Do you need a contractor license to start a remodeling business?

Licensing requirements vary by jurisdiction. A contractor's license is necessary in many areas to legally operate a remodeling business. Check with your local licensing board or contractor's board to determine the specific requirements in your area.

How much does it cost to start a remodeling business?

The costs of starting a remodeling business can vary widely depending on factors such as the scale of your operations, location, equipment needs, and marketing strategy. It's essential to create a detailed business plan and budget to estimate your startup costs accurately.

How much can you earn from a remodeling business?

The earning potential of a remodeling business can vary depending on factors such as the size and complexity of projects, the number of projects undertaken, and your pricing strategy. Successful remodeling businesses have the potential to generate significant profits.

What barriers to entry are there?

Common barriers to entry in the remodeling industry include:

  • Obtaining the necessary licenses and permits.
  • Building a reputation and client base.
  • Securing financing.
  • Acquiring the required skills and knowledge.

How much should you charge for remodeling services?

Pricing for remodeling services depends on various factors, such as the project scope, materials used, labor costs, overhead expenses, and your profit margin. Conduct market research to determine competitive pricing while ensuring your rates cover all costs and provide a reasonable profit.

What marketing approach should I use?

Utilize a combination of online and offline marketing strategies to reach your target audience. This may include creating a professional website, leveraging social media platforms, attending industry events, and developing partnerships with local businesses or suppliers.

What should my warranty be?

Establishing a warranty policy is essential to provide assurance to your clients. The specifics of your warranty will depend on the type of work you do and local regulations. Consult with a legal professional to determine the appropriate warranty terms for your remodeling business.

How much do average remodeling jobs cost?

The cost of average remodeling jobs can vary significantly depending on the project's size, complexity, and location. It's essential to conduct a thorough cost analysis for each specific project to provide accurate estimates to your clients.

How much should I charge for labor?

Labor charges should consider factors such as the complexity of the project, the skill level required, and the local labor market rates. Research the average labor rates in your area and calculate your costs, including employee wages, benefits, and overhead expenses, to determine appropriate labor charges.

What website should I use?

Building a professional website is crucial for establishing your online presence. Consider using website builders like WordPress, Wix, or Squarespace to create a visually appealing and user-friendly website that showcases your work, services, and contact information.

What should my company look like?

The appearance of your company should align with your target market and brand identity. Design a memorable logo and develop a cohesive visual identity that reflects the professionalism and quality of your work. Consistency in branding across all marketing materials and online platforms is essential.

What happens after I file my LLC paperwork?

After filing your limited liability company (LLC) paperwork, you will receive a certificate of formation or articles of organization, depending on your jurisdiction. This document confirms the creation of your LLC. You may also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes.

How can I make sure my workers are insured?

It is essential to have proper insurance coverage for your workers. Consult with an insurance professional to obtain the appropriate workers' compensation and general liability insurance policies to protect your employees and your business in the event of accidents or injuries.

What should my business cards look like?

Design business cards that reflect the professionalism and style of your remodeling business. Include your company logo, contact information, and a brief description of the services you offer. Consider using high-quality materials and professional printing services to make a positive impression.

What should my bidding process look like?

Develop a structured bidding process that includes thorough project assessments, accurate cost estimates, and precise project scope and deliverables documentation. Communicate your bid clearly to clients and provide them with a detailed breakdown of costs and timelines.

How do I keep my customers happy?

Customer satisfaction is crucial for the success of your remodeling business. Maintain open and transparent communication with your clients throughout the project, deliver high-quality workmanship, and address any concerns or issues promptly. Providing excellent customer service and going the extra mile can help build long-term relationships.

Are there any rules I should keep in mind?

Familiarize yourself with local building codes, safety regulations, and licensing requirements to ensure compliance. Adhere to ethical business practices, such as providing accurate estimates, honoring contracts, and delivering projects within agreed-upon timelines.

What other factors should I consider?

Factors to consider include market demand for remodeling services in your area, competition analysis, availability of skilled labor, supplier relationships, and ongoing professional development to stay updated on industry trends and techniques.

What are some other skills I should have?

In addition to technical skills in remodeling and construction, it's crucial to develop skills in project management, communication, problem-solving, customer service, and business administration. Continuous learning and improvement in these areas will contribute to the success of your remodeling business.

Who works in remodeling?

Who works in remodeling? The answer varies greatly depending on the size and scope of the project. Generally, remodeling projects require multiple skilled workers, including general contractors, carpenters, plumbers, electricians, painters, flooring installers, tile setters, roofers, landscapers, and masons. In addition to skilled labor and tradespeople, a successful remodeling business may employ a project manager, estimator, office staff, and administrative personnel.

Remodeling Business Plan

Developing a comprehensive business plan is essential for the success of your remodeling business. Here's a breakdown of the critical components to include:

Executive summary

Provide an overview of your business, its mission, vision, and key objectives.

Company analysis

Describe your remodeling business, including its legal structure, location, history, and ownership.

Industry analysis

Conduct a thorough analysis of the remodeling industry, market trends, target market demographics, and competitive landscape.

Customer analysis

Define your target market and identify your ideal clients, their needs, and preferences. Outline your strategies for attracting and retaining customers.

Competitive analysis

Assess your competition, including other remodeling businesses in your area, their services, pricing, and reputation. Determine your unique selling points and strategies for differentiation.

Marketing plan

Detail your marketing strategies, including online and offline tactics, branding, advertising, and promotional activities. Outline how you will generate leads and convert them into paying clients.

Operations plan

Describe your operational processes, project management approach, procurement of materials, subcontractor relationships, and quality control measures.

Management team

Introduce the key members of your management team and their roles, qualifications, and responsibilities. Highlight any relevant industry experience or certifications.

Financial plan

Include financial projections, such as startup costs, operating expenses, revenue forecasts, and profitability analysis. Outline your pricing strategy, budgeting, and funding sources.


Attach any supporting documents, such as permits, licenses, contracts, and market research data.

Ready to Kick Start Your Remodeling Business?

At Periscope Media, we understand that starting a remodeling business can be an exciting but challenging endeavor. That's why we're here to help kick-start your remodeling business with our expertise and comprehensive services. 

With careful planning, dedication, and our strong understanding of the industry, we can guide you through the crucial steps outlined in this article. We'll conduct thorough research to ensure you lay a solid foundation for your business, increasing your chances of success. 

As you gain experience and grow your client base, we'll be by your side, helping you adapt and evolve in this ever-changing market. Our customer-centric approach and hard work will ensure your remodeling business thrives in a competitive landscape. 

Trust Periscope Media to be your partner in building a successful remodeling business. Good luck on this exciting journey!

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