home improvement business plan pdf

Remodeling Business Plan Template

Written by Dave Lavinsky

Remodeling Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their remodeling businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a business plan template step-by-step so you can create your plan today.

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What Is a Business Plan?

A business plan provides a snapshot of your remodeling business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a Remodeling business, or grow your business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your remodeling business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Remodeling Businesses

With regards to funding, the main sources of funding for a remodeling business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for remodeling businesses.

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How to write a business plan for a remodeling company.

If you want to start a remodeling business or expand your current one, you need a business plan. Below we describe what should be included in each section of a business plan for your remodeling company:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of remodeling business you are operating and the status. For example, are you a startup, do you want to grow your business, or are you operating remodeling businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the remodeling industry. Discuss the type of remodeling business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of remodeling company you are operating.

For example, you might operate one of the following types of remodeling businesses:

• Residential Remodeling : this type of remodeling business focuses on renovations strictly for home-based projects, such as kitchens and bathrooms.
• Design-Build and Whole House Remodeling: this type of remodeling are residential general contractors that are responsible for the architecture, design, and construction management of major home remodeling projects.
• Restoration: Restoration contractors specialize in working with insurance companies, and focus specifically on fire, wind, or water damage to restore the home to its original condition before the occurrence.

In addition to explaining the type of remodeling company you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of projects completed, number of positive reviews, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the Remodeling industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the remodeling industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your remodeling company business plan:

• How big is the remodeling industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your remodeling company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: homeowners looking to add on or update their home, those who have suffered a recent weather damage occurrence, and new homeowners who have purchased an older home that is in need of updates.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of remodeling company you operate. Clearly, homeowners would respond to different marketing promotions than help those affected by weather-related incidents, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target market. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other remodeling businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes new home builders and large construction general contractors. You need to mention such competition as well.

With regards to direct competition, you want to describe the other remodeling businesses with which you compete. Most likely, your direct competitors will be remodeling businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of remodeling businesses are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide shorter project times?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a remodeling company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of remodeling company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to temodeling, will you provide call design and architecture, project management, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your remodeling company. Document your location and mention how the location will impact your success. For example, is your remodeling business located in a high traffic area, a business district, a standalone office, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your Remodeling marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites 
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your remodeling business, including offering free remodeling quotes, sourcing materials and labor, organizing subcontractors, client communication, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your remodeling business to a new city.  

Management Team

To demonstrate your remodeling business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing remodelings. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your management team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a remodeling businesses or successfully running a construction company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client at a time or multiple new clients ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Remodeling business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing your business:

• Cost of contracting licenses and permitting.
• Cost of equipment and supplies.
• Payroll or salaries paid to staff and subcontractors .
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include past remodeling projects or project quotes of client projects you are working on.  

Putting together a business plan for your remodeling business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the remodeling industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful remodeling business.  

Remodeling Business Plan FAQs

What is the easiest way to complete my remodeling business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Remodeling Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of remodeling business you are operating and the status; for example, are you a startup, do you have a remodeling business that you would like to grow, or are you operating a chain of remodeling businesses?

Don’t you wish there was a faster, easier way to finish your Remodeling business plan?

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Other Helpful Business Plan Articles & Templates

Home Remodeling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting a home remodeling company ? If YES, here is a complete sample home remodeling business plan template & feasibility report you can use for FREE .

If you are thinking of starting a business with huge returns on investment, then one of your best bets is to venture into the real estate industry. Of course, there are several money spinning business opportunities in the real estate industry and one of them is to start a home remodeling company.

Just like all other investment vehicle, there are potential down sides that you need to look out for as a home remodeling agent. One of the major risks in home remodeling business is a sudden downturn in the economy.

A Sample Home Remodeling Business Plan Template

1. industry overview.

The real estate industry of which home remodeling line of business is sub set of is indeed one of the many industries that are a major contributor to the growth of the economy of many nations of the world; there is hardly any country where the real estate industry is not pretty active.

Players in the Home Remodeling industry primarily engage in the remodeling and renovating the interiors and exterior of residential buildings ( i.e. single-family homes and multifamily apartment building units ). Remodeling consist of additions, alterations, reconstruction, maintenance and repair work.

General contractors, operative remodelers, remodeling design-build firms and remodeling project construction management companies are all part of the home remodeling industry while commercial building remodeling is not included in the industry.

If you are a closer watcher of the Home Remodeling industry, you will agree that the industry’s foundation shook as the housing bubble burst, with several factors contributing to discourage consumers from spending on home improvements.

Experts projected that the home remodeling industry recovery will be driven by improvements in employment and per capita disposable income.

In the united states and in most countries of the world, home prices are expected to continue to rise, facilitating growth in demand for home remodeling industry services because homeowners often leverage the value of their homes through loans to fund remodeling projects.

The Bureau of Labor Statistics (United States of America) projects 11.1 percent job growth for real estate industry between 2012 and 2022, which is about as fast as average.

During that time, an additional 38,000 jobs will open up in the industry. Hence any home remodeling company that is well equipped and positioned will sure rakes in huge revenues from this industry within this period and of course the future is bright.

The Home Remodeling cum Real Estate industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, Germany, France, Italy, Holland, Switzerland, Australia and Canada et al.

Statistics has it that in the United States of America alone, there are about 415,994registered and licensed home remodeling companies scattered all across the United States responsible for employing about 652,647and the industry rakes in a whopping sum of $75 billion annually.

The industry is projected to grow at 4.2 percent annual growth within 2011 and 2016. It is important to state that there is no establishment in this industry that has a lion market share.

A recent report published by IBISWORLD shows that the Home Remodeling industry is very labor-oriented, as it relies on employees to carry out most industry activities. Therefore, the industry requires a low level of capital investment and instead allocates much of its cost structure to labor payments, which accounts for 23.1 percent of revenue.

Purchases account for 56.9 percent of industry revenue. The report further stated that these costs are largely related to materials, components and supplies used during service requests as well as the costs associated with contracting work out to third-party subcontractors.

Depreciation absorbs only 1.0 percent of industry revenue, and capital purchases are largely limited to vehicles and computers used in sales offices.

The home remodeling cum real estate industry is highly regulated in the United States of America and anyone who aspires to start a home remodeling company must apply and obtain a license before they can legally operate in the industry.

Lastly, as a home remodeling professional, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to properties; you should be able to convert a slum into a beautiful city if indeed you want to become a major player in the house remodeling cum real estate industry.

2. Executive Summary

Zoe McLaurin® Home Remodeling Company is a U.S. based and licensed home remodeling company. Our head office will be located in a standard and centrally located office facility in the heart of Annapolis – Maryland.

Although our Head Office will be located in Annapolis – Maryland, but we will open our branch offices in major cities in all regions of the United States of America – within the first two years of operation we would have set up our offices in the following locations; New York City, Los Angeles, Florida, North Dakota, Boston, Dallas and Washington.

Zoe McLaurin® Home Remodeling Company is going to be a self-administered and a self-managed real estate investment trust (REIT).

We will engage in home remodeling services such as residential additions, alterations and renovations, construction management for residential remodeling, fire and flood restoration, home improvement, porch construction, sunroom additions, kitchen and bathroom upgrades, systems and equipment, disaster repairs and other remodeling projects.

We will work towards becoming one of the largest home remodeling companies in the United States of America with active presence in major cities.

We are quite aware that home remodeling business requires huge capital base, which is why we have perfect plans for steady flow of cash from private investors who are interested in working with us. We can confidently say that we have a robust financial standing and we are ready to take on any opportunity that comes our way in the real estate industry.

As part of our plans to make our customers our number one priority and to become one of the leading home remodeling company in the United States of America, we have perfected plans to adopt international best practices that can favorable compete with the best in the industry.

Zoe McLaurin® Home Remodeling Company have overtime perfected plans that will help us to become a specialist in turning slums into beautiful cities and turning a run –down and dilapidated building into a master piece and that hopefully will be our brand and signature.

Zoe McLaurin® Home Remodeling Company will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Zoe McLaurin® Home Remodeling Company will be owned majorly by Zoe McLaurin and her immediate family members. Zoe McLaurin has a Degree in Building Engineering and she is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting her own business.

Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business especially as it relates to pooling cash together for property acquisitions, renovations and beautification.

3. Our Products and Services

Zoe McLaurin® Home Remodeling Company is going to offer varieties of services within the scope of the home remodeling industry in the United States of America. Our intention of starting our home remodeling company is to favorably compete with leading players in the home remodeling cum real estate industry both in the United States of America and in the world at large.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offerings are listed below;

• Residential additions, alterations and renovations
• Construction management for residential remodeling
• Fire and flood restoration
• Home improvement
• Porch construction
• Sunroom additions
• Kitchen and bathroom upgrades
• Other remodeling projects
• Systems and equipment
• Disaster repairs
• Real estate consultancy and advisory services

4. Our Mission and Vision Statement

• Our vision is to become one of the top 10 home remodeling companies in the United States of America within the first 10 years of starting Zoe McLaurin® Home Remodeling Company.
• Our mission and values are to help people, businesses and property owners and clients in the United States of America and throughout the world remodel their homes to fit into the ideal mental pictures they have of how a world – class home should be.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry, as a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our home remodeling company on the right business foundation. We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

Zoe McLaurin® Home Remodeling Company is fully aware of the modus operandi in the real estate industry cum home remodeling line of business, hence adequate provision and competitive packages has been prepared for independent sales agents. Our marketing department will be responsible for managing this aspect of our business structure.

Below is the business structure we will build Zoe McLaurin® Home Remodeling Company on;

• Chief Executive Officer

Project Manager

• Company’s Lawyer / Secretary

Admin and HR Manager

• Head of Construction and Renovation
• Business Developer / Sales and Marketing
• Customer Service Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise renovation projects
• Ensure compliance during project executions
• Provides advice on the management of projects
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.

Company’s Lawyer / Secretary / Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develops company policy and position on legal issues
• Researches, anticipates and guards company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Plays a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.

Renovations / Construction Engineers

• Responsible for handling home remodeling services such as residential additions, alterations and renovations, construction management for residential remodeling, fire and flood restoration, home improvement, porch construction, sunroom additions, kitchen and bathroom upgrades, systems and equipment, disaster repairs and other remodeling projects
• Establishes and enforces company’s engineering and construction standards
• Ensures that renovation / construction work meets or exceeds standards within a designated geographic area.
• Provides overall direction on assigned construction projects; reviews and makes recommendations on planning and design of projects; negotiates contracts or participates in contract negotiations; monitors day‐to‐day progress and activities on project construction sites.

Marketing and Sales Executive / Business Developer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk / Customer’s Service Officer

• Receives Visitors / clients on behalf of the organization
• Receives parcels / documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distributes mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put – up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

The fact that home remodeling business is a very rewarding business does not mean that there are no challenges in the industry. Starting a home remodeling business in the United States of America comes with its own fair share of challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the real estate business value chain who also are interested in making a living and building a business in the US.

In order to compete favorably in the home remodeling cum real estate industry as a home remodeling company we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis for us.

We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Zoë McLaurin® Home Remodeling Company;

Some of our strength that we will be bringing to the table in the home remodeling cum real estate industry is our robust relations with home owners and properties investment moguls in the whole of the United States of America.

Our access to funding and also, we have a team of experts who have cut their teeth in the real estate industry cum home remodeling line of business. Our commission structure and relationship with freelance real estate agents in Annapolis – Maryland and other state in the US will also count towards our advantage.

As a newbie in the home remodeling line of business cum real estate industry, we might have some challenges competing with big time property developers and other home remodeling companies that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

The opportunities in the home remodeling cum real estate industry especially as a home remodeling company is massive considering the numbers of home owners who have the financial capacity to renovate their homes as at when due. We are well – positioned and ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a home remodeling company are unfavorable government policies , and global economic downturn; global economic downturn usually affect spending power and the real estate industry cum home remodeling line of business is known to encounter decline in sales and profits during this period.

Selling properties could take a period of two to three years from conception to completion depending on the size of the project and the cash flow. As a matter of fact, some home remodeling projects could even take much longer than that.

Because of the time frame involved in renovating and decorating a property from start to finish, loads of un – anticipated things could crop up and it fall in the thick of property cum economy downturn which is not good for the business considering the investment that has gone into the project.

Another factor that is of major concerns and a threat to home remodeling business generally could be cost increase as a result of inflation, currency devaluation and economic challenges. Unforeseen delays from the part of government agencies, litigation and also delays from contractors could lead to substantial cost increase especially if the project is heavily dependent on bank loans.

If perhaps during this period, there is a change in the supply and demand dynamics of the property sector the project could be affected negatively. There is hardly anything we could do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The market trends in the real estate industry or within home remodeling companies are that, there are no fixed profits projections when engaging in a home remodeling deal.

The profit you stand to gain depends on loads of factors amongst which are your attention to details, ability to turn a slum or a ransack facility into an edifice and knowing exactly when to seal a home remodeling deal, the kind of renovations and decoration to be done on the property.

If you are able to get all the above stated factors right as a home remodeling company, your gains will always be far more than your loss.

Another obvious trend that is common with home remodeling companies in the United States of America is that most of them are improvising on more means of making money in the real estate industry and as matter of fact they are also acting as property developers and home staging agents amongst many other functions that they are involved in.

Lastly, one thing is certain for every home remodeling company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits from all business deals that they are involved in.

8. Our Target Market

As a home remodeling company, our target market cuts across people (home owners) of different class and people from all walks of life.

We are coming into the home remodeling cum real estate industry with a business concept that will enable us work with the highly – placed people in the country and at the same with the lowly placed people who are only interested in renovating their homes at an affordable price.

As a matter of fact, our target market is the whole of the United States of America and we have put plans in place to recruit freelance agents (brokers) nationally to represent our business interest wherever they are located in the United States of America.

Below is a list of the people and organizations that we have specifically design our products and services for;

• Families who are interested in acquiring a decent and well renovated home
• Corporate organizations who are interested in acquiring their own property / properties
• Home Owners who are interested in remodeling and selling off their home
• Properties Owners who are interested in remodeling and selling off their properties
• Foreign investors who are interested in owning properties in the United States of America and remodeling the property
• The government of the United States of America (Government contracts)
• Managers of public facilities who would want to engage home remodeling companies to help them remodel properties under their care.

Our competitive advantage

No doubt, the home remodeling cum real estate industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can successfully help them remodel their homes to fit into the picture of the ideal home they have in mind.

We are quite aware that to be highly competitive in the home remodeling industry means that you should be able to deliver consistent quality home remodeling jobs and you should be able to meet the expectations of your clients at all times.

Zoe McLaurin® Home Remodeling Company might be a new home remodeling company in the home remodeling cum real estate industry, but the management team and the owner of the business are considered gurus in the industry, professional who have what it takes to grow a business from scratch to become a top brand within the shortest time possible.

They are people who are core professionals, licensed and highly qualified, people that can successfully help her clients remodel their homes to fit into the ideal picture of a 21 st century home. These are part of what will count as a competitive advantage for us.

Aside from our robust experience and expertise of our team of experts, we have a very strong online presence that will enable us attract clients from all across the United States of America. Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups home remodeling companies in the United States) in the industry.

It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives. We will also engage freelance marketing agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Zoe McLaurin® Home Remodeling Company is established with the aim of maximizing profits in the home remodeling cum real estate industry. Although we are a home remodeling company, but part of our work force is also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Zoe McLaurin® Home Remodeling Company;

10. Sales Forecast

It is a known fact that as long as there are homeowners in the United States of America, there will always be need to for them to remodel their homes from time to time to conform with the trends in the neighborhood or city. Hence the demand for the services of home remodeling companies to help them solve these needs.

We are well positioned to take on the challenges that are synonymous to home remodeling businesses in the United States, and we are quite optimistic that we will meet out set target of generating enough income / profits from the first month or operations and grow the business beyond Maryland to other states in the United States of America within record time.

We have been able to critically examine the real estate market cum house remodeling line of business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions peculiar to similar start – ups in Maryland;

Below are the sales projections for Zoe McLaurin® Home Remodeling Company. It is based on the location of our business and the home remodeling and related services within the real estate cum home remodeling industry that we will be offering;

• First Fiscal Year-: $500,000
• Second Fiscal Year-: $1.2 million
• Third Fiscal Year-: $1.7 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same additional services as we do within the locations where we have a strong business presence.

Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

• Marketing Strategy and Sales Strategy

We quite mindful of the fact that there are stiffer competitions in the home remodeling cum real estate market in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but also all our freelance brokers that are scattered all over the United States of America.

Our goal is to become one of the leading home remodeling companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force in the industry.

Zoe McLaurin® Home Remodeling Company is set to make use of the following marketing and sales strategies;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the real estate industry and also property owners and potential clients through the United States of America
• Promptness in bidding for homes / properties that are put up for remodeling
• Advertise our business in real estate / properties magazines and websites
• List our business on yellow pages (local directories)
• Attend real estate related expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to successfully remodel their homes / properties
• Leverage on the internet (social media platforms) and our official website to promote our business
• Encourage word of mouth marketing especially when we have a home for sale.

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the home remodeling cum real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our company. Below are the platforms we intend to leverage on to promote and advertise our home remodeling business;

• Place adverts on both print and electronic media platforms
• Place our flexi banners with our company’s logo and contacts in every property we put up for sale
• Sponsor relevant TV shows so as to be able to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter, LinkedIn,  Badoo, Google+  and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business.
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our potential clients to help them remodel their homes to meet their expectations. It is the practice in most parts of the world for properties to be valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry we can only abide by what is obtainable when it comes to fixing a price for a home remodeling contract. But one thing is certain, we will ensure that we deliver excellent jobs when have we are contracted to do so.

Lastly, we will ensure that we keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to our clients from time to time especially when they recommend clients to us.

• Payment Options

At Zoe McLaurin® Home Remodeling Company our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Real estate deals usually involves huge amount of money. Here are the payment options that Zoe McLaurin® Home Remodeling Company will make available to her clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

Any agent who intend paying with cash will be directed to deposit the money into our corporate account and then present their payment tellers to us.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a home remodeling company; it might differ in other countries due to the value of their money However, this is what it would cost us to set up Zoe McLaurin® Home Remodeling Company in the United States of America;

• The total fee for incorporating the business in The United States of America – $750.
• The budget for permits and license – $2,000
• The cost for hiring Consultant – $2,500.
• The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
• Cost for payment of rent for a suitable Office facility with enough space in Annapolis – Maryland for 12 month at $1.76 per square feet in the total amount of – $105,600.
• The cost for office remodeling (construction of racks and shelves) – $20,000.
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost of Launching our official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from the market research and feasibility studies conducted, we will need over two hundred and fifty thousand ( 250,000 ) U.S. dollars to successfully set – up a small scale but standard home remodeling company in the United States of America. Please note that the salaries of all our staff members for the first month are included in the expenditure.

Generating Funds / Startup Capital for Zoe McLaurin® Home Remodeling Company

Zoe McLaurin® Home Remodeling Company is a business that will be owned and managed by Zoe McLaurin, her immediate family members and other business partners. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Zoe McLaurin® Home Remodeling Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our home remodeling services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Zoe McLaurin® Home Remodeling Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Renting of Office Facility and remodeling the facility in Annapolis – Maryland: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO / President and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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Remodeling Business Plan

No matter how beautiful a building design is, there will always come a time that the owners of that building will decide to have it remodeled, not because it is bad or ugly, but it is just a human nature to be always changing, to always look for something fresh, something new. If you are a remodeler – a remodeling business agent, you will likely have a good chance of getting a lot of clients.

Remodeling Contractor

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There is a niche in remodeling business transaction that is more frequent than the others, and that is the remodeling business in interior designing. And that probably will get you to the busy world of remodeling. Imagine how many boutiques are there in a mall. There are restaurants, there are cinemas, there are staff offices, and there is the whole building itself. In short, this is big business. This is money. If, and that is a big if, you can propose to them with a business plan.

In this article, let us use architectural design to demonstrate our purpose here. The word remodel can be understood to mean remodel a business. But remodeling a house, office design is the easiest way to demonstrate the point.

Remodeling harvard

Preliminary Steps to a Business Plan

Client Connection

They say, a business plan is a “documented set of business goals, objectives, target market information and financial forecasts that you are aiming to achieve over a certain period of time.” This is only attainable when you can reach out to the audience, to the prospective clients. But getting connected to the clients should be part of the whole business plan. That should be the start of it. That is an unwritten section of the business plan – establishing connection with the clients.

Prioritization

Now, you have a rough idea of who these prospective clients are. You need to look for clients whose place, boutiques, office, needs some restoration, modification. You need to prioritize these business establishments. Imagine yourself as a doctor, and these are your patients. Your patients, your clients are the ones that needs your service, not the healthy ones, and not the newly build, decorated places.

Remodeling Building Business

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Familiarization

So you have your target already. You have found your prospective clients. Your next step is to zoom in your lens, to get closer to the subject, to get familiar with these prospective clients. remember, your selling point is that you can make ugly beautiful. You need to check the following:

• The kind of business establishment or institution.  Like a doctor, you make sick people healthy. You need to check what is it that these establishment needs help.
• The kind of clients.  What do you think these clients are looking for. What do they want? Do they want to have a clean office? Do they want to make their rooms look like new ones.
• The kind of operators or owners.  You also need to know who their clients are. Who are their frequenter.

This is the stage where you need to tabulate your clients’ strengths and weakness. You have not made a business plan yet. But making notes is very useful when you intend to make a business plan. This is your draft to making a business plan.

Now you already have a rough idea on which office, place to remodel. Your next step is to make a proposal. And your proposal may already include an abstract of your business plan. The proposal is somehow the serious of them all before making a business plan. This is where you ask from your clients to be considered in your business plan. This is where you introduce yourself either as a document or in person.

So now you have the proposal, what should your business plan be like? What is a business plan?

Planning and Managing Construction Renovation Project

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Business Plan

A business plan, they say “is a written document that describes in detail how a  business , usually a new one, is going to achieve its goals, or a written document that describes your core business objectives and how you plan to achieve them over a set period of time.”

In a remodeling business plan, your goal is to demonstrate to the clients (as well as your self, if you are to remodel your own) that you can improve the current situation.

Business-like Problematization

Before starting your business plan, you probably will start with some questions in your head, such as:

• How will I be able to change the current situation?
• What solution will I give to the current problem?
• Do I have the best program to beautify a place, to improve a business, to solve team problem?
• Will I be able to do it in time?
• Will I be able to provide what my client is looking for?

Remodeling Start up

Steps in Making a Business Plan

Research, research, research.  Any plan requires a lot of research. Even your plan to go to another country, that requires research. We made mentioned earlier, you need to study, research, be familiar with the subject that you want to do something about. In an exam, if you want to pass, all you do is study and research. The same case with a business plan.

Determine the purpose of your plan.  You do need to do a lot of research because you want to know what you want to do, you want to be clear with your purpose, you want to visualize what needs to be done. You need to know what you want to offer to your client. And you also need your client to know what you can offer to them. They need to know your plans.

Create a company profile.  But they also need to know you what you are as a businessman, or as a company. So make a profile about you as a remodeler.

Document all aspects of your business.  That includes the projects you have done. This will strengthen your credibility as a remodeler. Show to the clients how you have transformed one thing to another for the good of the company.

Have a strategic marketing plan in place.  The marketing plan will define in specific details on how you will realize you whole business plan. This is how you state your proposal.  And this is how you specify your action. This is where your blueprint is for remodeling an institution.

Make it adaptable based on your audience.  Your plans may be good, and impressive, but are they realistic? Here, you consider the cost, the time table, the people involved. How much will it cost for the whole business plan to realize? Is the time table practical? How many people does it require to re organize the team.

Explain why you care.  It is a good thing to admit that you are doing this for money. But for the clients, they would love to imagine that you are doing the project because you care, that it is your passion. Let them feel that you love what you are doing, that you love to be of help to others.

Kinds of Remodeling Business

There are many kinds of remodeling. Earlier, we made use of the physical remodeling, that is remodeling of a building’s interior design.

Physical Interior Remodeling.  This is an interior remodeling, that is basically the job of an Interior Designer. The job is simple but it requires creativity. You need to be able to transcend in the world of beauty, without compromising the practical and functional aspects of designing.

Structural Building Remodeling. Like in a physical interior building only this is an engineering aspect of remodeling. This is usually done by an Architect, with an Engineer.

Staff or Personnel Remodeling. It is a remodeling of the team, a restructuring of the members. This is done when something is wrong with how the business is done, and there might be a need to reorient the members of the company. There is a preventive way of doing this, and that is team building.

Why use an Interior Designer for Remodeling?

Unlike architects and engineers, and including the building owner, interior designers focus less about everything. In short they can focus on not so many things, and with only one thing in mind, designing the interior of a building. An architect may focus bigger things of the building, from the inside and outside of the building, as well as it design in general. An engineer may focus too much on the planning, the calculation of plans, and all kinds of mathematics. And the owner may have the best ideas for everything, but he may not be able to put it in actuality. That is where you need an interior designer.

An interior designer will try to understand what is in your head, what you want to show in your building, office. He can bring what it is that you want to portray in a room.

And all this he can do artistically. Because there is nothing too much technical about interior designing, he can do anything about it artistically as per the client requires, or suggested.

• Avoid the costs of moving. Instead of building a new one, why not renovate an old one.  The old saying goes, why fix if ain’t broke. In a remodeling, you do not actually fix something, you just make something beautiful. There may be changes, but it is more of a superficial change. Something new for the eyes to see. If ain’t broke, why make a new one. How about a little cleaning, polishing, “rejuvenating” of your house instead of making a new one.
• Enhance the returns on an investment property. If you are a business – minded person, you will always think of your unit as an investment. And you can do this by making it look good.
• Increase your property’s value. If your building looks good, chances are, it will retain its value when appraised. And it is a matter of maintenance. If you neglect it, it will rot. If you maintain it, you can demand a higher resale price. If you like, you can hire an interior designer. An interior designer can make something cheap look expensive. And that is always part of a marketing. To make something look great, at the eye level.
• Achieve a higher sale price for your property. This is only possible if you can maintain your unit, plus some regular care from the owner.
• Restore a character home. Or if you want to change mood, your best option is to renovate, remodel.
• Make your home more eco-friendly. You do not just maintain your home, you make an update. Updating your home means to be sensitive with the things around it

There are some other kinds of remodeling. When you decide to make some changes of yourself, either physically (that is done by work out) or spiritually, when you improve and change how you make relationship with the Supreme Being. Whatever remodeling you are into, having a business plan will make the job simpler. It will make it easier for you to realize your goals. You can visualize it. But also, if you have a team, the members of the team will be able to know what they need to do. You can prioritize things according to what the business plan has indicated.

Remodeling a building or its interior is a good example of a remodeling because it is a very physical example. You can always expect to see a physical change. But remodeling does not always have to be a physical one, just like the remodeling of the personnel and staff in a company. The change of oneself from a normal to a better person is also a remodeling.  But the keyword is always to use a business plan. No matter how you remodel something if it is not part of a bigger plan, if it has not business plan, and if it is not intended for business, the remodeling may just become a waste.

wafed remodeling book

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Remodeling Business Plan Template

DEC.21, 2020

Remodeling business plan for starting your own building company

Whether it’s about increasing one’s property value or boosting one’s lifestyle, remodeling is the way to go. Remodeling is a type of business that can be started with simple services at the residential level. And can be expanded to performing complicated renovations needed by commercial buildings and businesses.

No matter how large or how small your startup is, you would have to create a remodeling business plan for remodeling. Creating a comprehensive business plan before you open a remodeling business will help you in:

• Recognizing the latest trends
• Acquiring the right expertise
• Avoiding troublesome situations
• Efficiently manage finances

To help you in creating a business plan that covers all the essential aspects, we’re providing a sample business plan of a startup ‘Model-It Solutions’.

Executive Summary

2.1 the business.

Model-It Solutions will be a registered, licensed, and insured remodeling business startup based in Buffalo, New York. The business will comprise expert contractors, architects, and engineers to enhance the aesthetic and comfort level of residential as well as commercial structures.

Simply put, we build what you dream!

2.2 Management of Remodeling business

As a business owner, you can’t rest after setting up a remodeling company. You have to be proactive in organizing and analyzing various business operations. In the case of a remodeling business, you need efficient management to complete given projects in time. To make sure that clients get the work done according to their expectations, you have to properly manage communication, finances, and resources among various channels.

2.3 Customers of Remodeling business

Exploring who are going to be your customers is extremely important. Before you search for how to start a remodeling company, you should identify your customers.

The target customers of Model-It Solutions will be the homeowners, construction firms , contractors, and government agencies. To turn them into our potential customers, we will be taking effective steps.

2.4 Business Target

Our major targets are:

• To maintain a customer return rate of 20% throughout our service years
• To maintain a CSAT score of above 85%

Company Summary

3.1 company owner.

Anna Huston will be the owner of Model-It Solutions. Anna is an MBA. After completing her education at Stanford University, she started working in Skanska.

But 5 years into the service, she decided to start a remodeling business of her own.

3.2 Why the remodeling business is being started

Anna always remained a woman of creative ideas. After serving in a multinational firm, she decided to move to her hometown and serve people with her talent. She realized that the remodeling business has never-ending scope in the years to come as people keep thinking of bringing improvement to their property.

3.3 How the remodeling business will be started

Step1: Plan your business

As the first step, Anna studied various business plan examples for remodeling company to make a business plan for remodeling. From analyzing the market shares to creating a financial plan, Anna put everything on her business plan.

Through this remodeling business plan sample you can study the business’ requirements, balance sheets, personnel plan, and other aspects of Model-It Solutions.

Step2: Define your brand

The second step after creating a remodeling business plan is to get your business registered. You will have to acquire the required licenses and permits. Moreover, this is the time when you have to physically establish your business office.

Step3: Hire the staff

The third step is to conduct interviews and tests to hire the most competent employees.

Step4: Get ready to promote & market

The next step is to promote your services and competitive aspects to reach your target customers. This step also involves the strategy you will adopt to gain and retain your client base.

Step5: Establish a web presence

In this age, people use Google to find the right service provider whenever they need any service. Therefore, it has become essential that you establish a strong social media and web presence.

Anna decided to hire a professional IT expert to create a website for Model-It Solutions. The website will also enable users to make online bookings. Moreover, the website will also keep a record of repeat customers so that Anna could evaluate her business performance time-to-time.

Our startup expenses including costs of all the things we could need for the startup are given below:

Before exploring how to start your own remodeling business, you should decide your services. Deciding your services even before the launch can help you in identifying the ways through which you can facilitate your customers.

To give you a notion of services you can provide as a remodeling firm, we are enlisting the services provided by Model-It Solutions in this remodeling business plan template.

• Full House Remodeling: Our primary service will be to do the whole house remodeling. In this, we will work to redesign an old building to fulfill modern needs such as increasing the living space or making the interior/ exterior more appealing.

Depending on the clients’ needs we will remodel their kitchen, laundry, bath, deck, and more. We also install sidings, flooring, new windows and doors, cabinets, and whatever else our customers would need.

• Handyman Remodeling: This service will include doing minor changes in homes such as installing a modern lighting system, carpeting, painting the walls and cabinets, installing wallpapers, and doing small repairs.
• Historic Home Remodeling: Our third service will be to remodel historic and significant architectural buildings without affecting their historic aspects.
• Individual Structural Re-design: We will offer the services of adding/ removing the bathroom, room, kitchen, and laundry, installing a staircase, modern roofing, etc.

Marketing Analysis of Remodeling Business

Marketing analysis is an important part of a remodeling contractor’s business plan as it enables the business owner to keep pace with the demands of their customers. Through efficient marketing analysis, you can recognize remodeling domains that have high demand. Moreover, this part also gives you a clear idea of your customers before you open a remodeling business.

5.1 Market Trends

According to a report by IBISWorld, remodeling businesses have seen a growth rate of 1.7% in the past five years. More than 455 thousand remodeling companies are operating throughout the United States. The market size, according to the same outlet, is reported to be $97 billion.

The market stats are quite satisfying and the growth rate also indicates that there is still room for other startups to join the venture. If you want to ensure that you get customers from the very beginning of your startup, you should study the market trends of individual locations. That will help you locate an area where competition is low and people who need remodeling service are greater in number.

5.2 Marketing Segmentation

Identifying your customers before investigating how to write a business plan for remodeling is necessary. Dividing the wide populations into distinct groups can help you in recognizing their demands. And thus enabling you to plan ways to fulfill their expectations.

The groups that were identified by Model-It Solutions as potential customers are given below:

5.2.1 Real Estate Owners: Our primary customers will be the people who own any sort of building. They can need our services in two cases:

• They want to enhance the interior design / exterior for themselves.
• They want to remodel the property to increase its value so that it could be sold at a greater price.

In any of the cases, we’ll go to all extents to make sure they are happy and satisfied with our remodeling services. For them, we’ll provide full property remodeling services as well as individual services like installing new cabinets and remodeling the kitchen, etc.

5.2.2 Contractors & Construction Companies: The second group of our target customers will include contractors and construction companies. They will need our services whenever they get some project or even when they are building some structure from scratch.

5.2.3 Government Agencies : Our third category comprises government agencies who will be needing us to remodel structures of historic, artistic, and cultural importance – in a way that their integrity and historic aspects are maintained.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Anna set her business financial and other goals before starting a remodeling company. She realized that by doing so, she would be able to provide a direction to her resources and talent.

The business targets of Model-It Solutions are

• To earn a net profit of $24k per month by the end of the first year
• To lower the costs of our operations by 5% by the end of the 3 years by improving our techniques and methods

5.4 Product Pricing

The prices of our services will be lesser than those of our competitors. It is because we want to capture as many customers as possible in the initial phases of our startup.

Marketing Strategy

A remodeling business plan is incomplete unless you include in it, the ways to capture the attention of your target audience. In this marketing plan for remodeling business we are enlisting the exclusive sales strategy plan of Model-It Solutions.

6.1 Competitive Analysis

Anna realized that hundreds of remodeling firms are already operating in Buffalo. Therefore, she decided to come up with distinct features to outperform her business rivals.

The competitive aspects of Model-It Solutions are:

• We are highly client-oriented. We will always be willing to amend the remodeling designs as per our clients’ wants and needs.
• Our workers are highly skilled and highly collaborative.
• We provide online booking and payment facilities to our customers.
• Our repeat customers will be offered several discounts.
• Our prices are lower than our competitors, so you can easily try our services for a minor/ major task.

6.2 Sales Strategy

To get introduced to our target customers, we will:

• Advertise our startup through local newspapers, Google Local ads service, and social media
• Keep our prices lower than our competitors
• Establish a strong web presence using SEO techniques
• Provide a 25% discount to our repeat customers on every second visit

6.3 Sales Yearly

6.4 Sales Monthly

6.5 Sales Forecast

Personnel plan

While writing a business plan for remodeling, you should also define your employees, their job responsibilities, and requirements. It will enable you to judge the applicants on a definite criterion when you are going through the hiring phase.

7.1 Company Staff

Anna will manage the business herself. However, she’ll hire the following staff:

• 1 Co-Manager
• 1 Architect to design/ remodel complicated projects
• 2 Contractors to implement remodeling designs
• 5 Field Workers to work as laborers
• 1 Accountant to maintain financial records
• 1 Technician to maintain the machinery
• 1 IT Expert to manage the company’s website, online record, and social sites
• 1 Driver to provide transportation

7.2 Average Salary of Employees

Financial plan.

In the last part of your business plan, you should analyze your estimated cash flows. Before you make a remodeling business plan, you should have a clear idea of how much amount you intend to spend on which aspect of your business. Moreover, you should also have a plan to achieve your business goals by optimizing your profits.

In this business plan sample, you can explore the financial projections, break-even analysis, business ratios, gross margins, and other financial estimations done by Model-It Solutions to gauge its progress and business value.

However, while you go through this financial plan, remember, its projections are based on the assumption that there will be no major recession in the coming 5 years.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Remodeling Business Plan Template in pdf

OGS capital professional writers specialized also in themes such as engineering consulting , HVAC business plan, real estate flipping business plan ,  architecture firm business plan etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to write a business plan for your home renovation company.

Starting a home renovation company is a great idea as it allows you to offer professional renovation services to homeowners, updating and refreshing the look of their homes.

It also provides an opportunity to increase the value of their homes, making it a great investment for them in the long run.

However, prior to launching your home renovation company, you must have a comprehensive business plan.

Creating a business plan before starting a home renovation company can help ensure that your venture is successful by providing a clear outline of your company's goals, budget, timeline, and resources needed. Additionally, it can help identify potential risks and ensure that your projects are completed within the allocated budget.

In short, a good business plan will help ensure the profitability of your home renovation company .

What should be included in the business plan of a home renovation company? What's the ideal arrangement for the structure? What metrics should be considered for the financial assessment? What strategies can I use to expedite the creation of a comprehensive business plan?

The article you're reading will cover all these questions and provide answers!

One last thing: starting your business plan from scratch is not required.

Instead, you can download our business plan for a home renovation company and adapt it to suit your business needs.

Preparing a business plan for a home renovation company

Do you require a business plan for your home renovation company.

Yes, you need a business plan for your home renovation company.

Establishing a strong business plan will afford you the chance to:

• get familiar with the home renovation market
• grasp the pulse of the industry's new trends
• highlight what makes a home renovation company viable
• understand homeowners' renovation goals and design preferences to create personalized and stunning living spaces
• find a unique value proposition for your house remodeling endeavors
• examine competitor market share
• identify strategic advantages for your home renovation company
• find a business model that will make you profitable
• design and implement a robust and strategic action plan for business advancement
• identify and manage risks specific to a home renovation company, including construction delays, budget overruns, and contractor reliability
• establish the solid business case of your company

Our team has created a business plan for a home renovation company that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a home renovation company?

A business plan includes a wide array of relevant data and metrics. It must be presented in a structured format, to make it easy to read and digest.

When we designed our business plan for a home renovation company , we made sure to set it up correctly.

The structure is divided into 5 sections: Opportunity, Project, Market Research, Strategy, and Finances.

1. Market Opportunity

The opening section is referred to as "Market Opportunity."

Discover important data and figures about the home renovation market in this section, helping you understand market trends and consumer preferences.

We keep this section updated to ensure fresh data.

2. Project Presentation

In the "Project" section, you can present your home renovation company, describing the types of renovations you specialize in (e.g., kitchen, bathroom, whole-house), design and remodeling expertise, quality materials, project management, client collaboration, and the unique value proposition that transforms houses into dream homes with functional and aesthetic enhancements.

At the end of this section, provide a brief introduction about yourself and your expertise in home renovations.

Explain your commitment to transforming living spaces, your range of renovation services, and how you plan to provide exceptional home renovation solutions to clients. Highlight your attention to detail, your skilled team of contractors, and your dedication to delivering beautiful and functional homes that exceed clients' expectations through your home renovation company.

Our business plan has written material. Adapt it to suit your concept precisely.

3. Market Research

Then, we reach the "Market Research" section.

This section describes the target audience for your home renovation company.

It includes a comprehensive analysis of competitors in the home renovation industry and emphasizes your company's unique renovation services and competitive advantages.

A tailored SWOT analysis is provided as well.

4. Strategy

Within the "Strategy" section, a 3-year development plan is outlined, specifying the necessary initiatives to make your home renovation company highly profitable.

Additionally, you'll find a marketing strategy, a risk management approach, and a Business Model Canvas tailored to a home renovation company in this section.

5. Finances

Finally, you'll arrive at the "Finances" section, which presents the financial metrics and calculations for your company.

How to make the Executive Summary for a home renovation company?

The Executive Summary provides a condensed preview of the business plan of your home renovation company.

Keep it short and clear, with a maximum of 2 pages. Focus on the key aspects.

The purpose of this document is to make the reader want to read your business plan.

In the Executive Summary of your home renovation company, provide answers to these questions: what is your company about? who is your target market? are there other home renovation companies in the area? what funding do you require ?

How to do the market analysis for a home renovation company?

The market study of your home renovation company helps you understand external factors such as homeowner demands for remodeling services, competition within the construction industry, and emerging trends in home improvement.

By conducting a thorough market study, a home renovation company can understand homeowner preferences, offer professional renovation services, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased project contracts, and a prominent position in the local home renovation industry.

Here is what we've put in the "Market Research" section of our business plan for a home renovation company :

• interesting data points and market insights about home renovation projects, including popular remodeling trends, home improvement costs, and ROI
• a list of potential audiences for a home renovation company
• the competitive analysis
• the competitive advantages to target for a home renovation company
• the SWOT analysis for a home renovation company

The key points of the business plan for a home renovation company

What's the business model of a home renovation company, business model of a home renovation company.

A home renovation company involves improving or remodeling existing residential properties. The business model can vary depending on the scope and scale of the projects undertaken. Revenue is generated through project contracts or fees charged based on the complexity of renovations and materials used.

The business model focuses on assessing client needs, providing design and construction expertise, sourcing quality materials, managing project timelines and budgets, and ensuring client satisfaction with the completed renovations. Success depends on building a strong reputation, establishing relationships with suppliers and subcontractors, delivering high-quality work, and effective project management.

Business model vs Business plan

Please don't mix up the terms "business plan" and "business model."

A business model is a blueprint for how a company operates and makes money.

In a business plan, you articulate your business model through a framework known as the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a home renovation company .

How do you identify the market segments of a home renovation company?

Segmenting the market for your home renovation company involves dividing your potential customers into different groups based on their renovation needs, project scope, and preferences.

These categories may include factors such as kitchen renovations, bathroom renovations, full house remodeling, or customers seeking specific design styles or features (e.g., eco-friendly, smart home technology).

By segmenting your market, you can offer a range of renovation services and solutions that cater to each segment's specific requirements. For example, you might specialize in kitchen renovations and offer design and installation services for customers looking to transform their kitchen space, provide bathroom remodeling solutions that cater to different design preferences and functional needs, offer comprehensive services for customers seeking full house renovations or additions, or focus on incorporating eco-friendly and sustainable features or smart home technology into renovation projects.

Market segmentation allows you to effectively target your marketing efforts, showcase your expertise in specific renovation areas, and deliver personalized and high-quality renovation experiences that meet the unique needs and preferences of each customer segment.

In the business plan for a home renovation company , you will find a complete market segmentation that allows you to identify your potential customers effectively.

How to conduct a competitor analysis for a home renovation company?

Undoubtedly, you won't be the only home renovation company in your market. There are other contractors and companies offering renovation services to homeowners.

Include a thorough evaluation of your competitors' strengths and weaknesses in your business plan to gain an edge.

Recognize their weaknesses (such as poor project planning, inadequate contractor management, or limited construction expertise).

Why should you focus on these elements? Well, these weaknesses can hinder the success of home renovation projects. By addressing these aspects, you can offer comprehensive renovation services, provide skilled contractors and designers, and deliver quality workmanship and timely project completion, establishing your home renovation company as a trusted and preferred choice for transforming and enhancing living spaces.

It's what we call competitive advantages—focus on nurturing them to gain a competitive edge.

Here are some examples of competitive advantages for a home renovation company: innovative and creative designs, efficient project management, skilled and reliable contractors, quality materials and finishes, personalized customer service, positive client reviews and satisfaction, on-time and on-budget completion.

You will find all these elements in our business plan for a home renovation company .

How to draft a SWOT analysis for a home improvement company?

A SWOT analysis can help identify internal strengths and weaknesses, as well as external opportunities and threats, to create a plan for successful home renovation.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a home renovation company .

The strengths for a home renovation company

S represents Strengths in SWOT, referring to the company's internal factors that contribute to its positive performance.

For a home renovation company, potential strengths could include budgeting, organization, communication, and problem-solving.

The weaknesses for a home renovation company

When we use the "W," we mean Weaknesses, which are the areas or aspects of the company that can be improved.

For a home renovation company, potential weaknesses could include inadequate budgeting, lack of skilled labor, inadequate materials, and poor communication.

The opportunities for a home renovation company

When we refer to the "O" in SWOT, we mean Opportunities, which are the external chances or possibilities for the company's success.

In the case of a home renovation company, potential opportunities could include replacing outdated appliances, remodeling a kitchen or bathroom, adding a deck or patio, and installing new flooring.

The threats for a home renovation company

The letter "T" in SWOT signifies Threats, highlighting the potential roadblocks or harmful factors that the company needs to consider.

When it comes to a home renovation company, potential threats could include budget overruns, delays in construction, unsatisfactory workmanship, and unexpected costs.

How to elaborate a marketing strategy for a home improvement company?

Creating a marketing strategy allows entrepreneurs to identify their unique selling points and communicate them effectively to their target audience.

A home improvement company can connect with homeowners in need of renovation or remodeling services by developing an effective marketing approach that showcases the company's expertise in various home improvement projects, high-quality craftsmanship, and satisfied customer testimonials.

Homeowners won't choose your home improvement company without effective marketing; showcasing your expertise in renovations, quality craftsmanship, and customer satisfaction is necessary.

Have you considered implementing creative marketing initiatives for your home improvement company? Organize home renovation seminars or DIY workshops, showcase before-and-after transformations on your website or social media, and partner with local home decor or hardware stores for cross-promotion.

Don't stress if you're not naturally inclined towards marketing and communication.

Actually, there is an exhaustive marketing strategy, tailored to the industry, in our business plan for a home renovation company .

How to build a solid financial plan for a home improvement company?

A solid business plan must include financial data to provide an accurate assessment of the company's potential success.

When constructing your business plan, it is crucial to incorporate revenue projections for your home renovation company.

The revenue forecast needs to be coherent and easily understandable.

Our financial plan for a home renovation company is straightforward and equipped with automated checks, enabling you to validate and adjust your assumptions easily. This way, we make sure you're building solid financial projections.

Without a doubt, you'll need to come up with a basic budget for starting your home renovation company. Make certain to include all expenses without exception - you can find them all listed in our financial plan!

The break-even analysis is an essential component of your financial plan, as it provides an indication of whether your home renovation company will be profitable or not.

Make this exercise 10x easier by using our financial plan for a home renovation company .

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Remodeling Business Plan Template

Written by Dave Lavinsky

Remodeling Business Plan

You’ve come to the right place to create your Remodeling business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Remodeling companies.

Below is a template to help you create each section of your Remodeling business plan.

Executive Summary

Business overview.

Eternity Remodeling and Renovations is a new residential remodeling business located in Sacramento, California. We can remodel any part of a home, including bathrooms, kitchens, interiors, and exteriors. We also provide services to update homes so that homeowners can age in place safely. Eternity Remodeling and Renovations strives to be the best remodeling business in the area, focusing on customer service and maintaining long-term relationships.

At Eternity Remodeling and Renovations, we believe that every customer deserves to live in their dream home. Our expert contractors will work with customers to design and create the perfect spaces that will make their current home their dream home. With 20 years of experience, we can take on any remodeling project and create any space that our customers desire.

Eternity Remodeling and Renovations is led by Luke Johansson, who has been a contractor for 20 years. Throughout this career, he has overseen a variety of remodeling projects and worked for hundreds of customers. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, Luke is ready to officially incorporate his business and hire several other contractors who can help expand the business and clientele. His experience, education, and initial list of loyal clients will ensure that Eternity Remodeling and Renovations is a success.

Product Offering

Eternity Remodeling and Renovations offers a variety of residential remodeling services. Some of these services include:

• Kitchen and cabinetry remodeling
• Bathroom remodeling
• Interior remodeling
• Roof remodeling
• Exterior remodeling
• Whole house remodeling
• Aging-in-place remodeling

Customer Focus

Eternity Remodeling and Renovations will primarily serve homeowners, home buyers, and landlords in Sacramento, California. The Sacramento area has a booming population, with millions of people who own their own home. Sacramento also has a large population of middle and upper class residents who have the disposable income to invest in remodeling services. Therefore, we have a large target demographic to work with and are assured to be successful in this industry.

Management Team

Eternity Remodeling and Renovations is led by Luke Johansson, who has been a contractor for 20 years. Throughout this career, he has worked on and overseen a variety of remodeling projects for hundreds of customers. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, Luke is ready to officially incorporate his business and hire several other contractors and employees who can help expand the business and clientele.

Luke has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). He also already has a starting customer base to provide revenue for the company. The combination of his education, skills, experience, and loyal clientbase will ensure that Eternity Remodeling and Renovations is a success.

Success Factors

Eternity Remodeling and Renovations will be able to achieve success by offering the following competitive advantages:

• Customer-Focus: Eternity Remodeling and Renovations’ contractors provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the process, from the initial inquiry to the follow-up once the project is completed.
• Management: Luke Johansson has been extremely successful working in the remodeling industry and will be able to use his previous experience to help clients with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of Eternity Remodeling and Renovations’ competitors.
• Relationships: Having lived and worked in the community for decades, Luke knows many of the local residents and has already established a loyal clientele from his years as a solo contractor. These relationships will provide the company’s initial clientele and help our business through word-of-mouth marketing.

Financial Highlights

Eternity Remodeling and Renovations is currently seeking $550,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:

• Store design/build: $150,000
• Vehicle purchase and maintenance: $100,000
• Equipment and initial supplies: $150,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing costs: $30,000
• Working capital: $25,000

The following graph below outlines the pro forma financial projections for Eternity Remodeling and Renovations.

Company Overview

Who is eternity remodeling and renovations.

  At Eternity Remodeling and Renovations, we believe that every customer deserves to live in their dream home. Our expert contractors will work with customers to design and create the perfect spaces that will make their current home their dream home. With 20 years of experience, we can take on any remodeling project and create any space that our customers desire.

Eternity Remodeling and Renovations’ History

Luke Johansson recently began researching what it would take to incorporate his business and expand his client base. He has analyzed the costs, market, demographics, and local competition. Luke has compiled enough information to develop his business plan in order to approach investors.

Once his research was complete, Luke incorporated Eternity Remodeling and Renovations on May 1st, 2023 as an S-Corporation. The business is currently being run out of Luke’s home, but once the lease on Eternity Remodeling and Renovations’ office location is finalized, all operations will be run from there. He currently uses his personal vehicle to drive to clients’ homes but will purchase a vehicle that will be used specifically for the business.

Since incorporation, the company has achieved the following milestones:

• Found a commercial space and signed a Letter of Intent to lease it.
• Developed the company’s name, logo, and website.
• Planned the suite of services to be offered.
• Determined equipment, supplies, and materials needed.
• Begun recruiting key employees

Eternity Remodeling and Renovations’ Services

Industry analysis.

No home is perfect. Many homeowners find that they need to make updates or changes to their homes at some point in their ownership. These projects can either be purely aesthetic or improve the functionality of the home (such as for those wishing to age safely in place). Common remodeling projects include repairing broken structures and fixtures, improving the aesthetics, adding more space, and improving the safety of the structure. Since many of these projects can be extensive, homeowners depend on professionals to get the job done. Therefore, contractors and remodeling businesses will always be in demand as long as people own their own homes.

According to research, the home remodeling market is currently valued at $852 billion and is expected to grow at a compound annual growth rate of 4.3% over the next five years. This growth rate shows that remodeling services are still needed and the industry will continue to grow and expand. Though the remodeling industry suffered losses during the pandemic years, the current project growth rate shows that people are ready to spend money on extensive remodeling projects again. Therefore, now is a great time to start a new remodeling business.

Customer Analysis

Demographic profile of target market.

Eternity Remodeling and Renovations will serve the community residents of Sacramento, California and its surrounding areas.

The area we service is suburban, with 50% owning homes. This means a sizable portion of the local population will require our services at some point.

A demographic profile of the Sacramento area is as follows:

Customer Segmentation

Eternity Remodeling and Renovations will primarily target the following customer profiles:

Competitive Analysis

Direct and indirect competitors.

Eternity Remodeling and Renovations will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mountainside Remodeling Services

Established in 1979, Mountainside Remodeling Services has been a popular local commercial remodeling business. They help offices and other establishments update their spaces to improve their office environment. Many businesses have sworn by Mountainside’s services, and the company’s reputation has skyrocketed simply through word-of-mouth marketing.

Though Mountainside Remodeling Services will continue to thrive, the company primarily works with local businesses and, therefore, will be a minor competitor for Eternity Remodeling and Renovations.

John’s Remodeling Inc.

John’s Remodeling Inc. has been a profitable small remodeling business for over a decade. This small business helps with a variety of residential remodel services, including remodeling bathrooms, kitchens, and exteriors. John’s small team has gained a great reputation for their friendly customer service and the professional quality of their work.

Though John’s Remodeling Inc. has gained a positive reputation, its scope of work remains small, even after a decade. They can only help with small projects and generally don’t sign up for larger-scale services. As Eternity Remodeling and Renovations grows, we will take on larger projects and aim to be the primary remodeling company that the residents of Sacramento, California can rely on.

Carpentry And More LLC

Established in 2005, Carpentry And More LLC set out to be the best local business for all carpentry-related needs. Customers can expect high-quality carpentry work paired with excellent customer service. Carpentry and More’s most popular services include deck and fence installation, remodeling, and door replacement.

Though Carpentry And More offers a variety of services, they primarily focus on and make revenue from their carpentry services. Therefore, they are a minor competitor when it comes to remodeling projects.

Competitive Advantage

Eternity Remodeling and Renovations will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Eternity Remodeling and Renovations will offer the unique value proposition to its clientele:

• Client-focused remodeling services, where the company’s interests are aligned with the customer.
• Service built on long-term relationships and personal attention.
• Professional industrial experience in a small business setting.

Promotions Strategy

The promotions strategy for Eternity Remodeling and Renovations is as follows:

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. Eternity Remodeling and Renovations will use social media to develop engaging content in terms of sharing renovation and remodeling ideas and posting customer reviews that will increase audience awareness and loyalty.

Word of Mouth Marketing

Eternity Remodeling and Renovations will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers.

Website/SEO

Eternity Remodeling and Renovations will invest in developing a professional website that displays all of the services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Advertisement

Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. Eternity Remodeling and Renovations will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Eternity Remodeling and Renovations’ pricing will be estimated on a project basis drawing on Luke Johansson’s deep expertise in remodeling services. The pricing will be determined by the materials needed and the amount of labor required to complete the job. Pricing will be moderate and less expensive than our competitors, but more expensive than lower-quality, efficiency-driven remodeling businesses.

Operations Plan

Operation Functions: The following will be the operations plan for Eternity Remodeling and Renovations.

• Luke Johansson will be the owner of Eternity Remodeling and Renovations. He will oversee the general operations of the company and manage the staff. He will also conduct all work on the remodeling and renovation projects for his clients until he can hire several more contractors to keep up with demand.
• Luke will hire an Administrative Assistant to help him with all the administrative tasks.
• Luke will also hire a Marketing Manager to manage all of the marketing and advertising functions.
• As the business grows, Luke will hire other contractors to keep up with client demand.

Milestones:

Eternity Remodeling and Renovations will have the following milestones complete in the next six months.

• 06/202X – Finalize lease agreement
• 07/202X – Design and build out Eternity Remodeling and Renovations
• 08/202X – Hire and train initial staff
• 09/202X – Kickoff of promotional campaign
• 10/202X – Launch Eternity Remodeling and Renovations
• 11/202X – Reach break-even

Financial Plan

Key revenue & costs.

Eternity Remodeling and Renovations’ revenue will primarily come from charging homeowners for completed remodeling services. Pricing will be determined by the services required, materials and tools needed, and scope of the project.

The main cost drivers for Eternity Remodeling and Renovations will be labor expenses, materials and equipment, marketing, and the lease for the office space.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Year 4: 100
• Year 5: 130
• Annual lease: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, remodeling business plan faqs, what is a remodeling business plan.

A remodeling business plan is a plan to start and/or grow your remodeling business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Remodeling business plan using our Remodeling Business Plan Template here .

What are the Main Types of Remodeling Businesses?

There are a number of different kinds of remodeling businesses , some examples include: Residential Remodeling, Design-Build and Whole House Remodeling, and Restoration.

How Do You Get Funding for Your Remodeling Business Plan?

Remodeling businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Remodeling Business?

Starting a remodeling business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Remodeling Business Plan - The first step in starting a business is to create a detailed remodeling business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your remodeling business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your remodeling business is in compliance with local laws.

3. Register Your Remodeling Business - Once you have chosen a legal structure, the next step is to register your remodeling business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your remodeling business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Remodeling Equipment & Supplies - In order to start your remodeling business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your remodeling business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Remodeling Business Plan

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Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Introduction Comgate is a custom mill house specializing in creating architectural woodwork in the form of wall paneling, custom cabinets, and other products for the local residential market. After initial losses and several thin profit years of competitive bidding construction projects, Comgate is creating this business plan in order to bring its mission statement into clearer focus. Prior years were characterized by hectic efforts to bid as many jobs as possible. Margins were thin as pricing policy was “flexible” for fear that there would be insufficient work for production staff.

However, with the growth of sufficient sales, Comgate has the opportunity to  create greater margins, increase efficiency, and improve overall profitability through long-overdue restructuring and focusing on our target market. These changes will assure more accuracy in pricing, billing, and tracking of costs for comparison purposes. Profits are expected to increase.

The Company Comgate’s mission is to compete profitably in the high-end residential market for custom woodwork within the state of Connecticut. It will emphasize custom work of the highest quality, and specialize in the most demanding needs of new and remodeled designer homes in the $3 to $15 million price range.

Products Comgate is engaged in custom architectural woodwork in the form of wall paneling, custom cabinets, molding, pilasters, radius units, circular staircases in special woods, elaborate dressing rooms, specialty kitchen work, etc. The recent addition of state-of-the-art CAD capability will help substantially to increase sales of higher-end products by targeting design professionals who are in a position to influence choices of subcontractors building “trophy” homes costing over $3 million. “Custom” is the key word at Comgate. The average home would not use our products. Custom woodworking of the type carried out by Comgate is made to order only. No finished goods are made up for stock. For this reason, there are rarely very long production runs.

The Market The industry is mature and well-represented. There are many mill shops in the same market area which are focused on specialty areas. One mill shop may concentrate on custom furniture and form special alliances with upholstery shops. Other mill shops may specialize in standard kitchen cabinetry. Comgate is targeting the highest end of the residential market ($3-$15 million homes). This work is less price-sensitive and relatively steady, even during economic valleys. The most critical competitive weapon which the company holds at the moment is its CAD capability. The program is especially formulated to suit the custom woodwork market, and is expected to make substantial in-roads into the chosen highest end residential market. Comgate should be able to set itself apart from the competition, and be able to fully utilize its recently expanded production capacity.

With greater and greater demand for high-end trophy home construction, coupled with the increasing difficulty of attracting and keeping skilled workers, Comgate is moving toward linking its CAD capability with the practices of design professionals that will allow the company to out-source certain simpler parts in a project to other mill shops, while keeping the more demanding work for itself. Being able to present another mill shop with exact detailed CAD drawings, together with precise dimensions and material lists, will allow Comgate to increase sales and profits, and to concentrate on the more challenging custom woodwork products.

Financial Projections The recent addition of over $110,000 in advanced new Computer Numerical Control (CNC) machinery, coupled with the building of an in-house industry-adapted Computer Aided Drafting (CAD) capability, will propel sales to nearly $800,000 by the end of Year 1, and $1.2 million by the end of Year 3. Profits will grow as well. A desire to shorten accounts payable in Year 2 to take advantage of all available trade discounts, together with rising receivables, will result in a short-term need for increased bank lines of credit of approximately $30,000.

1.1 Mission

Comgate’s mission is to compete profitably in the high-end residential market for custom woodwork within the state of Connecticut. We will emphasize on custom work of the highest quality, and specialize in the most demanding needs of new and remodeled designer homes in the $3 to $15 million price range.

1.2 Keys to Success

The most important keys to success in the contractors’ mill shop industry are:

• Avoid bidding projects which are likely to be awarded based primarily on price, projects being undertaken by those who are disreputable (no matter how badly the company needs work), projects which are too big (more than 20% of last year’s sales), or projects which do not fit the company’s niche market and thus unlikely to advance the company’s marketing strategy.
• Accurate take-off and listing.
• A clear understanding between the company and the client, in reference to quality and terms of payment.
• Correct calculation of material (including wastage) and labor required to complete the project.
• Correct application of overhead factors and profit margins, plus any special considerations.
• An administrative system supported by operating procedures that accurately tracks the job costing and compares the job as bid with the actual costs of completing the job. Constant adjustments to bid formulas.
• Reliable production staff that communicates well with administration to assure that the job is produced on time and as bid, making maximum efficient use of labor, materials, and available machinery.

1.3 Objectives

Comgate’s major objectives are:

• Increase production. Given the new machinery and four production staff, full productive capacity has been carefully measured. The goal is to reach, on a monthly basis, 80% of this capacity in the last quarter of Year 1, 85% in Year 2, and 90% in Year 3. This 80% of capacity translates into monthly production of 342 feet of crown molding, 22 pilasters, 54 doors of various grades, and 77 linear feet of cabinets (or some equivalent combination of these items). This will result in monthly sales of $60,816.
• A much simpler task is to maintain site contract workers (six) at present, full employment levels will generate monthly revenue of $34,623 which (after expenses) nets the company $21,794.
• Continue efforts to bring the company’s in-house CAD capability to the attention of more design professionals, especially those in Hartford, New Haven, Stamford, Norwalk, and Shelton, as these are the areas with the greatest concentration of the chosen $3 to $15 million residential homes.
• Join the Connecticut Chapter of the American Society of Interior Designers (ASID) as an industry partner as well as the Connecticut Society of Architects (CSA). Get listed in their resource directories.
• Complete the planned administrative changes to ensure that all work is properly billed, in a timely manner, and to ensure that jobs are correctly tracked so as to facilitate later cost comparisons with bid prices.
• Work to complete an operations manual that has been started.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

After initial losses and several thin profit years of competitively bidding construction projects, Comgate has brought its mission statement into clearer focus. Prior years were characterized by hectic efforts to bid as many jobs as possible. Margins were thin as pricing policy was “flexible” for fear that there would be insufficient work for production staff. Now, the situation has changed. Now there is some fear of accepting too much work. This is a result of the company’s newly installed CAD capacity which melds nicely with the needs and realities of present day design professionals. Offering this service helps to channel the work to the company and pricing tends to be less cut-throat. With the increasing business, some long-overdue restructuring needs to be done in the administrative machinery. These changes will free up time so that the office manager can attend to more important administrative matters, and hopefully will assure more accuracy in pricing, billing, and tracking of costs for comparison purposes. Profits are expected to remain in the black and increase.

2.1 Company Ownership

Comgate is a limited liability S corporation wholly-owned by Andrew Comins. It was incorporated in 1996.

2.2 Company History

This chapter includes a standard chart and table of the company’s performance over the past few years.

Since a banker may wish to see more in-depth analysis of past performance, a copy of an Excel spreadsheet has been included in Appendix A. Analysis has been provided in five basic areas – Liquidity, Safety, Profitability, Balance Sheet and Operations Management. This compares Comgate’s 1999 financials with the results of all similar mill shops responding to a survey (October, 1999) conducted by the Architectural Woodworking Institute (AWI) in Reston, Virginia.

See Chapter 7.2 Key Financial Indicators for further analysis of past financial results.

Note: appendices A – K have been omitted from this sample plan presentation.

2.3 Company Locations and Facilities

The company is located in New Haven, Ct. in rented facilities. Total area is 2,500 square feet of which about 100 square feet is taken up with administration. Some expansion in the present facilities is possible by renting another 1,600 square feet of adjoining space. This plan assumes that this additional space will be added in January, 2000 at an increase of $2,000 in monthly rent.

A diagram of the production hall showing the location of the various major pieces of machinery is given in Appendix G.

Products and Services

The products used in this plan were limited to only five items to simplify calculations. “Custom” is the key word. The average home would not use these items. Custom woodworking of the type carried out by Comgate is made to order only. No finished goods are made up for stock. For this reason, there are rarely very long production runs.

3.1 Product and Service Description

Comgate is engaged in custom architectural woodwork in the form of wall paneling, custom cabinets, molding, pilasters, etc. Although by nature of the word “custom” the milled products can be totally unique, the vast majority of products milled to date fall into only these few general categories. However, assuming success with the company’s marketing strategy, Comgate will move more up-market within the high-end residential market (see Chapter 4.0, Market Analysis Summary). Rather than produce ordinary high-quality casework, the company, for example, might produce a custom casework item in soft maple with an antiqued crackle finish designed to hide a stereo system. Radius units, circular staircases in special woods, elaborate dressing rooms and kitchens with a lot of curves would be further examples of challenging work that would be in line with stated strategy goals. More ordinary jobs would be accepted only if the jobs fit into the company’s out-sourcing guidelines. The recent addition of state-of-the-art CAD capability will help substantially to increase sales of higher-end products by targeting design professionals who are in a position to influence choices of subcontractors building “trophy” homes costing over $3 million.

3.2 Competitive Comparison

Performing a competitive comparison with products produced by other mill shops is not a simple task as the products are custom. There are no price lists. Financial comparisons can be made, however, with a group of mill shops (see Architectural Woodwork Institute AWI survey results in Appendix A). There are 12 mill shops in the New Haven area including Comgate. There may be one or two that are not members of AWI and therefore not listed in the membership directory. It is also known that some very large construction companies have their own in-house mill shops (see chapter on Industry Participants). Their present combined sales of all products sold to all home markets are approximately $12-$14 million annually. The market study estimates the total trophy home renovation and new construction market in Greater New Haven to be $127 million of which at least 10% is made up of custom wood millwork. This 10% or $12.7 million would seem to indicate that the demand from this market sector alone is equal to the total supply available to all market sectors. The demand clearly outstrips supply in respect to suppliers in New Haven for the demand in the area. Obviously, part of the demand must be being met by suppliers of high-end woodwork located outside New Haven.

Comgate is targeting the highest end of the residential market ($3-$15 million homes). This work is less price-sensitive and relatively steady, even during economic valleys. The most critical competitive weapon which the company holds at the moment is its CAD capability, which was developed by the person who is on contract to the company. The program is especially formulated to suit the custom woodwork market, and is expected to make substantial in-roads into the chosen highest end residential market.

3.3 Sales Literature

At the present time no sales literature is available. Brochures of high quality will only be produced after production capacity has been expanded and success has been reached in filling the stated management teams gaps.

3.4 Fulfillment

All materials used in the company’s production are available from a number of local suppliers (primarily lumber dealers). Sourcing has never been an issue of concern.

3.5 Technology

Technology does play a part in this industry. Major custom woodworking machinery has incorporated time and labor-saving advantages of the computer age. Precision digital settings and the use of lasers make measurement faster and more exact. Comgate has added over $110,000 in new CNC equipment this year, which will allow the company to substantially increase production despite the limitations imposed by its rather small production hall. Comgate’s CAD department is an attractive addition which is already demonstrating success in image-building with interior designers and architects to the wealthy.

3.6 Future Products and Services

In the past, Comgate has produced custom wood products and has bid competitive jobs. The stated marketing direction of the company (see chapter on Target Market Segment Strategy) will move the product line more up-market by producing more challenging items, such as radius units, staircases, elaborate kitchens and libraries in exotic woods, etc. Some of the more mundane sections of a job will be out-sourced to other mill shops (simple paneling, etc.). Any profits from out-sourcing have not been reflected in the financials of this business plan.

Market Analysis Summary how to do a market analysis for your business plan.">

The highest end of the residential market is represented by the new construction and the renovation of “trophy” homes in the $3-$15 million price range. These homes, within the 781/617 area codes, have an annual need for custom woodwork products of approximately $13 million. An estimated further need of $12 million is generated by the same price range of private homes located outside the immediate area but within 60 miles of New Haven.

4.1 Market Segmentation

A market need for custom woodworking is generated by new construction and residential remodeling. For $1,295, a copy of a 350-page market study undertaken by Business Trend Analysts can be purchased. This study examines demand patterns in both new construction and home improvement markets. Figures on specific millwork products are included. Without this report, some statistics are generally available. The April, 2000 issue of Industrial Trends Report states that residential remodeling has reached $150 billion annually. “A healthy economy, a population increase, an aging housing stock, and more people owning their own homes are resulting in a boom for the remodeling industry,” says the president of the National Association of the Remodeling Industry (NARI). The Joint Center for Housing Studies at Harvard University (The Joint Center) reports approximately 25 million homeowners undertake some remodeling every year. There are about 800,000 remodeling contractors. The generations of people that especially impact the remodeling industry are:

• Baby Boomers: This includes anyone born between 1945 and 1964, comprising almost 45% of the American population. With large incomes and not enough time, Baby Boomers prefer to call contractors rather than to do it themselves. This is the strongest market for home improvements, according to NARI. This represents the greatest potential for high-end custom woodwork, primarily Baby Boomers with homes in the $3-$15 million category (referred to as “trophy homes”).
• Mature Market: These are individuals aged 55 and older who need their residences to be more efficient and comfortable to allow them to move around more easily. According to the American Association of Retired Persons (AARP), 75% of mature people own their own homes, and 83% do not want to move. The Joint Center reports that the typical elderly homeowner is twice as likely to undertake a replacement project than a younger homeowner. This sector does represent a market for Comgate, but only among the very wealthy, and considerably limited in respect to the Baby Boomers.
• Generation X: These are individuals born between 1965 and 1980 that tend to take their remodeling one step at a time due to lack of money, according to NARI. The Generation X-ers are, to a large extent, do-it-yourselfers. This group does not represent any market potential for Comgate.

According to U.S. Census figures, there are 127,080 new single family homes built annually in the Northeast, of which 15,500 were in Connecticut, and of those, 5,670 were in the New Haven area. With average single family home prices at $222,000 in 1999 (all U.S.), and probably closer to $350,000 or more in the Greater New Haven area, this translates into an annual expenditure of over $1.9 billion for new New Haven single family homes.

U.S. Census also reports that almost $14 billion is spent annually on improvements to existing single family homes in the East. Assuming the same percentage share for the New Haven area this means that 4.5%, or $627 million, was spent on major renovation excluding repair and maintenance. The above statistics indicate that for every dollar spent on new homes, $.31 is spent on major renovations to existing homes.

Since the major market for Comgate’s services is custom woodwork to very expensive single family homes in the price range of $3-$15 million, it is useful to know how many new homes are built annually in that price range in the greater New Haven area, and how many existing homes in that price range engage in major renovations. Research indicates over 300 single family homes in the New Haven area (area codes 781 and 617) in this price range actually changed hands in the past two years. Since major renovations generally are undertaken at the time of purchase, this would suggest that at least 150 homes valued at about $4.5 million each elect to have major renovations each year. $200,000 per renovation is not an unreasonable estimate for a renovation of a property in that price range. That amounts to annual renovations of the most expensive homes in the greater New Haven area of approximately $30 million (150 homes x $200,000). If we use the statistic of $.31 spent on existing home renovations for every dollar spent on new homes, that would indicate that $96 million is annually being spent on construction of new trophy homes in this price range in the New Haven area.

Another subsidiary market is the new trophy homes being built outside of New Haven (60 mile radius), as well as the major renovations for homes in the same price range. For example, 44 homes in the same price range ($3-$15 million) changed hands in Stanford alone during the past two years.

The Market Analysis Table shown below has omitted three zeros in all the numbers, for space reasons.

4.2 Target Market Segment Strategy

In line with Comgate’s mission statement, the target market is trophy homes, both new construction as well as renovations. The results of our market study indicate that the total high-end trophy home market need for custom woodworking in the New Haven area outstrips the supply from available local custom woodworking suppliers. To compete in this market sector, Comgate has chosen a special service which is proving successful with design professionals. This CAD service is explained more fully in the chapter on Market Needs. All three high-end market sectors are in need of the custom millwork products supplied by Comgate. All of these construction projects, whether new construction or major renovation, will involve design professionals of the highest standards and clients with deep pockets. With properties of this caliber, the work is relatively recession-proof. These clients will have requests for custom woodworking products that are most challenging and thus most suited to Comgate’s expressed mission statement and abilities.

4.2.1 Market Trends

With greater and greater demand for high-end trophy home construction, coupled with the increasing difficulty of attracting and keeping skilled workers, Comgate’s move toward linking its CAD capability with the practices of design professionals will allow the company to out-source certain simpler parts in a project to other mill shops, while keeping the more demanding work for themselves. Being able to present another mill shop with exact detailed CAD drawings, together with precise dimensions and material lists, will allow Comgate to increase sales and profits, and to concentrate on the more challenging custom woodwork products.

4.2.2 Market Growth

Market growth of 2.4% is based on the actual growth rate in building permits in the East experienced in years 1997-99 as tabulated by the U.S. Census.

4.2.3 Market Needs

The new CAD service offered by Comgate evolved as a result of the inefficiencies which the company has observed in the past. One major problem in the past deals with blue-prints. Whichever construction company won the bid would send the blue-prints, let’s say for the kitchen, to custom wood mill shops to bid over. The mill shop will do its “take-offs” from the blue-prints and bid to do the kitchen. Later, the winner of the bid finds that the designed kitchen cabinets will not fit into the room. This results in expensive problem-solving and meetings with architects. The architects themselves do not understand the way in which woodworkers build cabinets, so often the architects’ design concepts are made more difficult (and thus more expensive) to realize. The new CAD service offered by Comgate circumvents all of this. By working together with the architect at the initial stages, the architect only needs to do the inexpensive design concepts. The actual details of how the cabinet is structurally designed, as well as the exact measurements to fit the room, are left to Comgate’s CAD person. The architect can save money on drafting, save again by eliminating the usual problem-solving and re-drafting. The client of the architect also saves by insuring that the woodwork is done in a way that suits the latest woodworking methods without interfering with the design concept — the look of the final product. A further advantage is that Comgate saves the expense of on-site measuring.

4.3 Service Business Analysis

The industry is mature and well-represented. There are many mill shops in the same market area. Mill shops have traditionally focused on specialty areas. This often happens as a result of the type of woodworking that the shop owner likes to do or as a result of his previous background as an employee in another mill shop. One mill shop may concentrate on custom furniture and form special alliances with upholstery shops. Another mill shop may specialize in what is termed “fast-track,” targeting large scale construction companies who might be building a 100 unit condominium complex and need the woodworking element completed inside of 60 days. Other mill shops may specialize in standard kitchen cabinetry. They will produce without regard to the ultimate user using fast production line techniques. By concentrating on the highest end of the residential market and coupling this with its CAD expertise, Comgate should set itself apart from the competition, and be able to fully utilize its recently expanded production capacity.

4.3.1 Distributing a Service

The traditional pattern in this industry is for: an architect to draft the plans according to the specifications, copies given to contractors to bid on, and elements, such as mill work, subcontracted to mill shops who also make competitive bids.

Through Comgate’s marketing strategy, this traditional distribution pattern will be altered to the benefit of everyone concerned. The architect will save on the design drafting (and redrafting), the contractor does not have to worry about change orders to the same degree, because he can feel confident that the desired woodwork will fit the room as built, and Comgate will not have to be as price-sensitive in getting the work. Comgate’s connection to the design professional will assure that the work goes to him rather than being sent to competitive bidding.

4.3.2 Business Participants

The table below lists major competitors in our immediate area. Appendix B is a map marked with red dots indicating the location of mill shops in the Greater New Haven area. None of these mill shops has the same level of CAD capability and few have singled out the trophy home market as their prime focus.

Competing Mill Shops

Strategy and Implementation Summary

Inroads into the stated trophy home market in the Hartford area will be made by contacting and selling Comgate’s new CAD features to those architects and interior designers who are best known for residential work in this price range ($3-$15 million), by sticking to the company’s newly formulated costing/pricing method, and following through on the recent administrative control and reporting changes.

5.1 Sales Strategy

After having successfully priced the job to insure an adequate profit margin after all expenses, it is important to close and bring back the sale. The person to do this is the owner himself, Andrew Comins. To free up his time to network with design professionals it is important that he be able to rely on his office manager to administer properly in his absence (see the chapter on Management Team) and he must be able to rely on a production manager for proper flow in the plant (see Chapter on Management Team Gaps).

The most important aspects to be considered in closing the sale are:

• Clearly stating in the proposal the scope of the work.
• Clearly stating when: both must understand what the schedule is.
• Both parties have to agree to the terms of payment.
• The price must be clear, as well as what is included and what is not.

The proposal must get there on time and get to the right place. A log should be kept of all bidding efforts. Follow up is necessary.

5.1.1 Sales Forecast

There are two sources of revenue:

Plant Produced Sales: This revenue comes from manufacturing custom cabinetry, paneling, and other wood products. To project revenue we have chosen several representative items that make up the majority of plant produced sales. The materials for each of these items have been carefully calculated, as has the labor hours going into each item. The material inputs will show up in the direct cost of each item. The labor hours information allow us to determine how many items we can produce with given manpower and machinery. The cost of the labor is calculated in detail in the Personnel Plan Table. As this plan is being written in October, 2000, the actual sales revenue from January through September will be averaged to arrive at a monthly amount for that period. Projected sales will begin as of October, 2000. The representative items chosen are:

• 250 linear feet of Crown Molding
• 16 Pilasters
• 20 Haunched passage doors (paint grade)
• 20 Haunched passage doors (stain grade)
• 45 linear feet of cabinets

The Costing/Pricing Work-up Sheet in Appendix C will break down, in detail, the various materials going into each of these items, as well as the labor hours for each. Labor break-downs for each phase in the production of these items is also included. For example, the Crown Molding (250 linear ft.) requires a total of 4.25 man hours and only one material. The Pilasters however needs two materials in different quantities. Since 4 man hours per pilaster are needed (see labor break-down sheet), 16 pilasters will require a total of 64 man hours. These 64 man hours have been split equally between the two materials (8/4″ Mahogany and the 4/4″ Mahogany). From the totals in Appendix C the total labor input for the above items is 390.4 hours. Since production is limited to 160 manhours per week (8,000 manhours per year), these above-listed items can only be produced 20.5 times in one year. Total yearly full production, assuming only these items are produced, would be:

• 5,125 linear feet of Crown Molding
• 328 Pilasters
• 410 Haunched passage doors (paint grade)
• 410 Haunched passage doors (stain grade)
• 922.5 linear feet of cabinets

These items have been projected in the attached table on a monthly basis beginning October, 2000 and on a yearly basis for years 2001 and 2002 assuming 80% of full production October-December, 2000, 85% in 2001, and 90% of full production efficiency in year 2002.

Contract Site Labor: Revenue is also derived from providing carpenters/installers at certain work sites. There are six site workers listed with an “S” next to their name. Below are listed the all-in costs of these workers as well as the rates that they are billed out at.

Total net revenue from Site Services comes to $89,924.80 annually assuming a full 40 hour week for 49 weeks. For projection purposes we have chosen “hours” as the unit. The average sales price is $35.33. The average cost is $27.69.

5.2 Marketing Strategy

The marketing strategy, as explained in other chapters, is to leverage Comgate’s special CAD capability, as it relates specifically to custom woodworking, with design professionals (interior designers and architects) to increase the type of high-end work taken on, as well as to “jump” the bidding process by creating a situation in which Comgate must be given the bid. A good place to ask for the names of the interior designers with the best reputations is to speak to the designer workrooms. These are the workrooms that carry out the work connected with interior designers’ concepts for window treatments, fabrics, etc.

The best known of these workrooms in and around New Haven are:

• Fall Creek Sewing.
• Andrew Smith.
• Fortress Lines.
• Jones & Jones.
• S. Brandt & Company.
• Tapper Works.

A polling of these workshops indicates the following interior designers are often sought by trophy home owners:

** Names have been removed for confidentiality.

Architects are another important group of design professionals that work in concert with interior designers on trophy homes. The latest edition of the Directory of Architectural Firms in Connecticut is available to the members of the CSA. The directory lists 750 architectural firms in Connecticut. Details of each company are given alphabetically, including location and phone numbers as well as the type of work the firm specializes in. The back of the directory gives a listing based on areas of practice. The category of “Residential Work” lists about 300 firms. Although an architectural firm is likely to have work outside of the city where it is located, it would be a good start to find out which of those 300 residential architects are located in those areas of New Haven with the greatest concentration of trophy homes.

5.2.1 Positioning Statement

Comgate’s CAD capability is an especially strong marketing tool. It allows the mill shop to build the desired items using the most practical methods of construction without interfering with the design concept. It automatically calculates the exact dimensions of each element and produces exact material lists. These features allow simpler elements to be subcontracted to other mill shops, thus allowing the company’s productive capacity to be used to produce the higher end elements.

By pushing this capability with architects who have reputations for designing homes in the $3-$15 million bracket, Comgate will position itself to receive the gravy of this price-insensitive, recession-proof work, while at the same time building an image for the highest quality, most-challenging work.

5.2.2 Pricing Strategy

Simply stated, the goal of the bidding process is to price to get the job while still making an adequate profit. To facilitate this, a dual mark-up system has been developed. One mark-up for materials and another for labor. The reason for the separate mark-ups is that in custom woodwork the mix, or ratio, of material and labor changes with every job. Therefore, a system is needed that accommodates the variations. The system is fairly straightforward and uncomplicated and, once set up, it reduces the bidding process’ complexity. The system requires two separate overhead factors to be computed–an administrative overhead and a factory overhead.

Administrative Overhead The concept is founded on the belief that everything which is sold, whether goods or services, must pay its fair share of the administrative overhead. Whether we use material in manufacturing a product, or merely resell it as is without further processing, it should still make a contribution. So a multiplier factor is calculated and applied to everything sold including direct labor, plant-processed materials, “buy-outs” (out-sourcing to another mill shop), installations, etc.

The administrative overhead mark-up factor is arrived at by dividing the total administrative overhead expenses by the total of materials and direct labor. Appendix B shows the calculations based on expenses in 1999. Total administrative overheads were $123,821. Total direct labor and materials came to $324,495. The resulting .3816 translates into a multiplier factor of 1.3816. By applying this to everything sold it means that the company is setting aside 27.6% of every dollar to cover the cost of bidding, the cost of paperwork to execute the job, the cost of collecting the money, the cost of interest if the money’s late, etc.

Plant Overhead This mark-up is only applied to labor. It’s calculated by dividing plant overhead costs by direct labor. The resulting .837 when added to the .3816 (administrative overhead) builds to a multiplier factor of 2.218 (1.00 + .3816 + .837 = 2.218). The reasoning here is that an item sold that involves plant-processed labor should contribute to defray a portion of those plant overhead expenses (machinery depreciation, insurance, machinery maintenance, etc.) that would not be there if everything were merely sold without any value-added milling by factory millworkers.

With application of the above-described overhead factors, pricing is now reduced to calculating the total materials (including wastage) involved in a job, and projecting the labor input in hours needed to complete the job. Assisting in these calculations is a Job Costing Library which lists the actual materials and the actual labor input involved in similar past jobs. (See a sample section of the Job Costing Library in Appendix C.)

Performing the “take-offs” from blue prints and converting this to materials and labor hours needed to complete the job requires skill, but once this has been done, those figures can be passed on to an administrative assistant who can apply the overhead mark-ups to materials and labor. One can also check the latest prices of the materials as well as the up-dated all-in man-hour rates. (See Appendix D for a schematic of all-in wage rates.)

Up to this point in the pricing process all that we have done is to calculate the actual all-in costs of both materials and labor and added on formulas to cover overhead costs–both administrative and plant.  It is a necessary stage in the pricing process to plan in, and insist on, a profit margin. Although industry averages are less since averages include those suffering losses, successful woodworkers do attain a 15% sustainable net profit. Adding 15% to anticipated costs is not going to achieve a net 15% result (15 divided by 115 is only 13%). The best way is to divide total anticipated costs (after application of the two overhead factors) by .85.

To facilitate the costing/pricing, an Excel spreadsheet has been designed to incorporate the process including the two overhead factors as well as the 15% profit mark-up. Appendix E is a sample of the Costing/Pricing Work-up Sheet for a representative job. This spreadsheet also has a database capability. It allows the user to access statistics to facilitate material bulk purchasing, etc.

5.2.3 Promotion Strategy

With the introduction of an in-house CAD capability that is especially designed for the mill shop industry, the best way to spread the word is to directly contact the architects and interior designers. Only one or two trophy homes in the targeted $3-$15 million range can keep a mill shop fully occupied for months. Advertising is not expected to become necessary. However, joining the ASID and the CSA as an “Industry Partner” is an excellent way to network with design professionals. Also it would be helpful to get listed in the Resource Directories of each of these organizations.

5.3 Strategic Alliances

It is planned that Comgate will establish strategic alliances with several mill shops who will mutually profit from an association. Exact drawings and cut lists can be given to other mill shops when subcontracting the more mundane items, leaving the more challenging work for Comgate. Even the data on disk to program CNC equipment at the subcontracting mill shop can accompany the exact drawings, allowing a fast and accurate set up. Profits from work performed through these alliances has not been considered in preparing this business plan, but when the plan is updated in 2001, there should be enough historical experience with these alliances to include this aspect in projections.

5.4 Milestones

The table below outlines the strategic milestones for Comgate for the coming years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Like other mill shops with less than $1 million in sales, the owner of Comgate has had to wear several hats and shuttle back and forth between production, site visits, the office, and client calls. The company is in the process of making major strides in establishing a more classical managerial structure, as the following chapters will explain.

6.1 Organizational Structure

Ideally, the owner of the mill shop should have three major functions:

• Identify and find customers.
• Maintain proper balance of people, plant and machines.
• Innovate, and set policies.

A plant manager should be responsible to see that the production staff and the available machinery work together at maximum efficiency. He needs to anticipate questions, answer them, and keep production rolling with a minimum of waste and a minimum of down-time. The CEO is now doing that when he is available.

An office manager should handle all the administration and coordinate well between the plant manager and the CEO. A need for the plant manager is well recognized by management, but a certain financial position needs to be reached to afford him. This position is planned to start in April, 2001, which will help substantially to free up needed time for the CEO to carry out the above listed major duties.

The office manager has, until recently, been performing the bookkeeping. This has taken up too much of his time, plus he is not trained in accounting practices. It has taken until July to get tax filing done, and at a heavy cost in accountant’s charges. This has since been handed over to J&R Associates. Procedures have been set up which will serve as a beginning for a procedures manual. A courier is sent each week from J&R Associates to track all costs associated with a job. This is absolutely essential because without this reliable feedback, one can never be sure how accurate the job cost estimates are when putting together a bid. The handling of inventory is also dealt with in the procedures as well as paperwork flow to insure correctness in billing. A costing/pricing scheme has been devised to assure correct all-in costing and to insure that a fair profit margin is built in to the pricing.

The recent addition of a contract CAD man, has helped to ease the work load on the CEO, as there are fewer questions from production staff as a result of the very accurate drawings and cut lists.

6.2 Management Team

The management team, after the addition of the production manager in April, 2001, should be complete until a higher level of sales has been reached. At a level of approximately $1.5 million in sales, Comgate should add a project manager.

6.3 Management Team Gaps

At the present time, a production manager is needed. Without him, the CEO cannot devote enough of his time to CEO issues (see Chapter on Organization Structure). It would have been ideal to promote one of the production staff to that position, but none of the present four workers is suitable for the position. It is hoped that a production manager can be found by April, 2001. His salary and benefits have been provided for in the projections.

Another gap is project manager. The company needs to grow to be able to afford him. The project manager would follow everything from the point of “hand-off” (once the bid has been won) through conclusion. He would confer with architects, handle change orders, examine every facet: warranties, retainage, final payment, punch lists, access to premises, lifts and hoists, check everything. At the moment the CEO is doing this as best he can with the many other matters on his plate. The position of project manager becomes increasingly important when the company has multiple projects.

6.4 Personnel Plan

Milling Costs Personnel: As of the writing of this plan, sales orders are strong and all four production staff are expected to be fully employed on a 40-hour/week basis. For the period of January through September, an average monthly labor amount will be entered based on the totals from the financials as of the end of September. A production manager/project manager has been projected beginning April, 2001, at an annual salary of $60,000 (see Chapter on Management Team Gaps).

Sales and Marketing: Andrew Comins’s salary of $40,000 is entered here although he is general manager/owner. He will continue to wear several hats until a plant manager and a project manager can be found.

General and Administrative Personnel: The office manager, **Stacy Greer, earns $34,320 per year.

** Names have been changed for confidentiality.

Financial Plan investor-ready personnel plan .">

Due to initial losses, resulting in a need to resort to shareholder loans, cash flow pressures caused accounts payable to be stretched out to 30 days and more. The financial projections have reduced this to 10 days for the year 2001 and beyond, in hopes of filling this gap with increased bank lines of credit. This would allow the company to take advantage of trade discounts. Failing to do so is expensive, as it becomes the most expensive form of credit (approximately 36% p.a.).

7.1 Important Assumptions

Personnel Burden: The hourly basic wage rates were totalled ($241.73) as were the total after FICA, State Unemployment, FUTA and health benefits ($291.66). The difference came to 21%. The actual burden of 21.95% is from the September, 2000 financials.

Interest Rates: Looking at the various rates in effect (see Cash flow Section), 9% was taken as an average rate.

Payment Days: In order to show the cash flow effect we elected to assume 10 days so as to take advantage of all trade discounts. This change from 30 days to 10 days will take place in 2001. The cost of not taking the discounts is nearly 36% per annum. It is preferred to finance negative cash flow through bank lines of credit.

Collection Days: Collection days, after netting out down-payments with orders, average approximately 30 days.

Tax Rate: The tax rate reflects the present sliding scale:

7.2 Break-even Analysis

The break-even chart is not suitable for multiple custom woodwork items. However, if we use pilasters as an example, the unit price is $316.96 and the unit cost is $44.09 (material cost). If we assume that all plant labor is fixed, whether there is work for the staff or not, it would be necessary to produce and sell 136 pilasters per month. According to best estimates, one pilaster takes four man hours. With 8,000 man hours per year (666 man hours monthly) it is possible to produce 167 pilasters. So, to break even on pilasters alone it would be necessary to work at 81% of capacity.

If, instead, we take cabinets, and use a cost price of $57.66 per Linear Foot LF and a price of $194.76 per LF it would be necessary to produce 270 linear feet of cabinets monthly. At 1.65 man hours per LF, it would be possible to produce 404 linear feet. Break-even on cabinets needs 67% of capacity.

Doors (cope and stick) cost $130.53 per unit and sell for $592.35. Each door takes five hours to produce. It would require 80 doors to break even, out of a maximum capacity of 133 doors. This would be 60% of capacity to break even.

All other things being equal, based on the above analysis, it would be more profitable to produce doors than cabinets, and likewise more profitable to produce cabinets than pilasters.

In the calculations above, it has been assumed that there is no problem in keeping the six site carpenters working full time. The net profit from this activity has been deducted from fixed expenses. If, instead, we assume that the company makes no money on-site services, the monthly expenses would be $89,925 higher. In this case, it would take 96 doors monthly, rather than only 80, to break even.

7.3 Key Financial Indicators

As mentioned in the chapter on Company History, a more in-depth analysis of past performance is listed on an Excel spreadsheet in Appendix A. The top two rows summarize 1999 and 1998 financial sheet information in an easy to read format. These categories of information are then used to calculate important ratios to compare Comgate results will industry averages. The ratios have been organized into five main groups: Liquidity, Safety, Profitability, Balance Sheet, and Operations Management. Brief comments are made below concerning these ratio comparisons:

Liquidity: Liquidity decreased from 1.27 in 1998 to 1.19, due entirely to a large project on Orange. The large commercial contractor involved took far longer to pay than was anticipated. The project has since been completed and all outstandings have been settled. Despite the 1.19 current ratio for 1999, it is still superior to the average of 1.01 for all AWI members and fairly close to those members in the Northeast Region (1.24).

Safety: The debt-to-equity ratios have been calculated reflecting certain adjustments. Owner loans have been removed from long-term liabilities and placed into equity. The Debt/Equity ratio for 1999, of 11 to 1, is far higher than the average. It reflects the early start-up losses; however, the leverage improved remarkably from 1998, when it was 25 to 1.

Profitability: The gross margins are substantially higher than the average, which reflects the higher-end nature of the company’s work. Operating profit saw a healthy increase from 6.12% in 1998, to 9.67% in 1999. This is not as good as the operating results of the top 25% of AWI members (22.4%) but still more than double the margin for all AWI members (4.2%).

Balance Sheet: The ratio of Sales to Net Fixed Assets is a good measure of efficiency. Comgate’s ratio of 9.53 is not only a substantial increase over 1998, but is nearly equal to the top 25% of all AWI member results. Obviously the very high operating results to equity ratio merely reflects the narrow equity situation. The same can be said for the fixed assets to equity ratio. The A/R turnover (in days) as well as the A/P days turnover were slowed by the above-mentioned large Orange project. The low inventory days turnover reflects the proportionally lower material content of the high-end business.

Operations Management: The most remarkable ratio in this group of ratios is the very high percentage of non-plant produced sales to total sales. This reflects the revenue from outside on-site subcontracted carpenters and installers.

7.4 Projected Profit and Loss

Other Expenses (CoGS): There are several expenses that are included here:

• Shop supplies run about $300 per month.
• Fire insurance for machinery runs $209.55 monthly.
• Storage space rental costs $105 monthly.
• Factory rental is $1,958 monthly of which 90% ($1,762) is allocated to CoGS. The remaining $196/month is charged to General and Administrative expenses. Beginning in January, we assume a doubling of rental space will be made available at a monthly cost of $2,000.
• Repairs and maintenance comes to about $272 per month.
• The company truck costs approximately $200 monthly.
• Utilities (electricity, waste removal, and security) come to $267 monthly. They are applied 90% to plant ($240 monthly).The other 10% ($27 monthly) is charge to General and Administrative expenses.
• Take-offs and listing, the CAD contract employee, costs $70/hr and works 35 hours weekly. Most of this expense (60%) can be charged to the client and is a wash. The remainder ($49,000) is split 60% for Plant ($29,400) which is $2,450/month starting in September 2000.
• The remaining $19,600 is charged to General and Administrative expenses.

These CoGS expenses come to to $3,088.55 (January-August) and $5,538.55 per month after August, 2000. Beginning January, 2001 the total grows to $7,538 due to the increased space and rent.

Sales and Marketing Expenses:

• Advertising and promotional expenses have not been projected because production is now at 100% capacity and is expected to stay that way due to the marketing strategy of approaching designers and architects directly, stressing the company’s CAD strengths.

General & Administrative:

• Bank charges of $40 monthly.

7.5 Projected Cash Flow

Fixed Assets:

In the first nine months of 2000, $110,412 was added in new machinery and equipment.

Increase (decrease) Other Liabilities:

At the end of 1999, there was $49,884 outstanding in shareholder loans. After netting out loans due from shareholders amounting to $20,396, loans from shareholders were reduced by $8,126.23. No further changes in years 2001 and 2002.

Change in Other Short-term assets:

At the end of 1999, there were only $1,465 in other short-term assets. This has been increased due to pre-paid insurance, and reflected in April, 2000 of $2,855. No change in 2001 or 2002.

Long-term Borrowing (repayment):

• Applebee Leasing extended a secured loan in July to purchase fixed assets. This loan is repayable in 36 equal monthly installments of $1,816.07. A schedule is not available with breakdown of principle and interest. Assume principle repayment of $6,000 during 2000 $18,000 during 2001 and $24,000 during 2002.
• Due to a change in ownership from Fleet Bank to Chase Bank, there has been some confusion as to the amounts of various loans. The borrower’s understanding of facilities is:
• $50,000 line of credit (fully outstanding) @ 2% over prime, about half of a seven-year term-loan (originally $64,000 in September, 1996) being repaid monthly at $1,268.80 (interest@ 8.25% and principle), and the remainder of a five-year term loan (originally $20,000 as of June, 1999) being repaid $437.90 monthly (interest @ 11.15% and principle).
• Based on interim financial statements as of September, 2000, $10,974 of the term loans have been repaid since the end of 1999. We will assume principle repayments of $1,200 monthly throughout 2000, 2001, 2002, until this confusion has been clarified.

7.6 Projected Balance Sheet

The following table represents Comgate’s balance sheet.

7.7 Business Ratios

The table below shows some of the more important ratios. The table also includes business industry data for Standard Information Code (SIC) 2541, wood partitions and fixtures.

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How to Start a Home Renovation Business

If you are passionate about home improvements, starting a home renovation, repair, or re-construction business can be an exciting and rewarding venture. There’s nothing quite like being your own boss while doing something meaningful and fulfilling. Play your cards right, and you’ll also get to make a decent income and career out of it. 

The home renovation space is teeming with lucrative opportunities. Many homeowners will pay top dollar for room additions and improvements, bathroom and kitchen makeovers, landscaping , roofing and flooring, décor, HVAC services , and more. The US home remodeling market grew to $340 billion in 2020. And it could reach $450 billion by 2027, with the Do-It-For-Me (DIFM) segment taking a 60+ percent market share.

So, where do you begin? Starting any business calls for careful planning and finessing. Even a small contracting business has several moving parts. And it’s your job to put everything together that makes the business work.

This is more than a guide on how to start a home renovation business. It will take you through all the necessary steps, worthy considerations, and pitfalls to avoid when establishing a home remodeling business.

Let’s get started.

Step-by-Step Guide to Starting a Home Remodeling Business

Before you make any moves toward starting your own home contractor business, it’s important to understand what you’re getting into. Get the lay of the land and learn what to expect. So, take a step back and ask yourself the following questions:

• Why am I getting into the business?
• How will I be involved in the business?
• What will I sell?
• Where will I sell and to whom?
• What unique value does the business bring to the market?
• Who are my potential competitors?
• Is my idea financially feasible?
• What will it take to make the venture work?
• How big can the business really get? 
• What challenges lay ahead? 

Conduct some rough preliminary research into the home remodeling scene in your target area or market. You need a good picture of the market’s size, dynamics, and potential competitors. Find out what consumers want, what they’re getting, and how much they’re paying for it. After that, you can identify the market holes or niches that your business could fill. Then build your business model and unique selling points from there.

Going into any business also requires the right mindset. For starters, check your expectations, anticipate challenges, and set realistic and achievable goals.

With that in mind, here are steps to start a remodeling business.

Draft a Solid Business Plan

A business plan is a formal document that serves as a roadmap for your new business. It’s a dynamic guide that describes how to structure, run, and grow the enterprise. Business planning essentially fleshes out your business idea and represents it as a digestible and actionable blueprint. This should help you get an overview of the renovation business and spot its potential strengths and challenges.

There are generally two ways to write a business plan. One, you can draft a comprehensive traditional business plan detailing every aspect of the business. But for a small home improvement business, it’s better to keep things simple at first with a lean business plan. This type of business plan is more compact and concise. It covers just the core business elements in a few short pages.

These are the key components you should include in your lean business plan:

• Business overview – Give a general description of the business model.
• Key activities – Outline the home renovation services you’ll be offering and your role in the business. Will you be doing the work yourself or contracting outsourced professionals?
• Resources available – What key resource will your home renovation business leverage? It could be your skills and expertise in the home improvement industry, a capable labor force, construction/renovation equipment, or a proprietary asset.
• Value proposition – Explain the unique value your business brings to the consumers. These are your unique selling points (USP), the attractive qualities that distinguish you from competitors.
• Customer segments – Narrow down your target customers. Your ideal customer might be a fresh homeowner looking to turn their new house into a home. Or anyone wanting to raise their property’s value for an upcoming appraisal or sale.
• Revenue streams – Paint a picture of how the business will make money remodeling homes.
• Cost structure – Design a cost structure fitting your business model and its services. More importantly, set an affordable and competitive price point.
• General financial plan – Work out what it’ll cost to launch and run the business, how you’ll get the money, and what the cash flow will look like.
• Goals and objectives – You should have a clear vision for your new business. How far do you want to take it?

Pick a Name and Get Registered

Choose a catchy name for your business and get it registered in your state. However, there’s much more to registering a new business than simply picking a killer name.

First, you have to choose a business structure under which to register your home remodeling venture. There are several business structures to choose from. But sole proprietorship and LLC (limited liability company) are the best structures for a small home renovation business.

Registering a Sole Proprietorship

A sole proprietorship is a business that’s owned and controlled by one person. It’s also the simplest of all business structures. To register a sole proprietorship, you can either put up your own name or pick a fictitious name by filing a DBA (“doing business as”). Registering an LLC

Unlike a sole proprietorship, an LLC separates your personal and business identities, legally speaking. That means you won’t be personally liable for the business’s legal or financial obligations, such as debts and lawsuits. However, registering an LLC is a lot more involved than a sole proprietorship.

With an LLC, you’ll have to nominate (depending on your state) a “registered agent” to submit and receive legal papers on your behalf. You’ll also have to file two documents: Articles of Organization (also known as Certificate of Formation or Certificate of Organization) and an LLC Operating Agreement, though this is not required in every state.

In either case, you also need an Employer Identification Number (EIN) to hire workers, file federal taxes, open a business bank account, and apply for business permits. The federal government also requires every business with employees to have unemployment, workers’ comp, and disability insurance. Remember, business insurance laws vary from state to state. But compulsory or not, insurance is essential in the home renovation business. So, consider insuring your business anyway.

Learn more about business structures and registration in this article by the SBA.

Secure the Necessary Permits and Licenses

Every business needs a license in order to operate anywhere in the country. Business licenses are issued by local government agencies, usually the city or municipal office. But a license only allows you to do business. You’ll also need various business permits to carry out home renovation projects in specific states, cities, municipalities, or zones.

The permit requirements for your home contractor business will depend on its specialization and location. You may also need temporary work permits for specific projects. But generally, most states and cities require builders and contractors to have a professional license/certificate, health and safety permits, and general contractor permits. Check with your local industry and government authorities to see the permits you’ll need.

Nail Down the Business Logistics and Resources

By this stage, you already have a fundamental business framework. Now is the time to gather all the resources you’ll need to get going. This will obviously depend on your business model, size, and service scope. Top-of-the-list items might include:

• Funding – Get the funds to start and run the business until it can stand on its own. You can bootstrap the venture or apply for financing from banks or alternative lenders.
• Labor – Start hiring subcontractors, handypersons, project managers, etc., if needed. But you don’t have to make permanent hires right away. It’s safer and more cost-efficient to hire staff on a contract basis at first.
• Suppliers – Find the best suppliers for any construction, plumbing, or electrical materials you’ll need for various home renovation projects. Remember to consider reliability and quality above pricing when selecting suppliers.
• Assets – Acquire all the equipment, machinery, and tools you’ll need to start work (specialized construction equipment, vehicles, hand tools, etc.). Buy what you can afford and hire the more expensive machinery, such as trucks and power tools, only when needed. These assets can also include the tools needed to run a business, like an estimating and invoicing app, or setting up a template in Excel.

Define Your Remodeling Business Brand

Branding is a way of setting your business apart from its competitors. It’s a means for customers to identify and associate with your business. Branding also forms the basis for marketing. Anything that identifies your business is part of your branding, from its name and logo to USPs.

However, there’s more to branding than just the business name and logo. Branding extends beyond mere recognition to the customers’ perception of the business. Customers prefer to engage with the businesses they trust, and you can build that trust through strong branding.

Your brand should represent what your renovation business stands for, expressing its qualities, strengths, values, and personality. In other words, instill customer confidence through your business’s presentation. Make assurances, quality guarantees, and value-added advantages part of your business identity.

Start Marketing

Once everything is set up, you can start a rigorous marketing campaign. Focus your marketing efforts on spreading brand awareness and generating leads to score your first customers. That means presenting your brand to the relevant audiences and getting people excited about signing up for your home remodeling services. You can do this in any number of ways.

Here are some proven marketing ideas worth trying out:

• Create a website and optimize it for local search within your service area.
• Get your business on social media: Facebook, YouTube, Instagram, Nextdoor, Twitter, and LinkedIn.
• Involve yourself in local community activities.
• Brand your vehicles, machinery, and work sites.
• Cold pitch to homeowners using direct mail.
• Hand out flyers and branded merchandise at local gatherings and events.
• Get your business listed in local and online directories.
• Join various home remodeling and construction groups/associations to build your credibility and leverage their advertising muscle.
• Consider taking out paid ads in local publications and on the internet.
• Entice first-time customers with irresistible home renovation discounts and offers.

Avoid These 8 Rookie Mistakes

Fundera calculates that about 20% of small businesses fail in their first year. Meanwhile, about half never make it past five years. Worryingly, start-ups in the construction industry have relatively low survival rates. Only 35% of small construction businesses make it through their fifth year.

These grim figures are not meant to scare or discourage you from starting your home renovation venture. In business, failure is always an opportunity to learn, even the failures of others. And there’s a lot you can learn from failed businesses when starting your own. On that note, here are some of the costly mistakes that can easily run you out of business as a home improvement contractor:

Starting with Too Little Cash

Running out of cash is one of the top reasons many small start-ups fail. Don’t underestimate your business’s financial needs. Ensure you have enough capital to begin with and avoid unnecessary purchases or drawing money out of the business during its infancy.

Underestimating the Competition

Understand your competitors before going up against them. The home improvement sector is often a highly crowded commercial space. So, carefully gauge the possibility of carving out a niche for your business. Check whether your value proposition and unique selling points are a match for what’s already available in your target market.

Lacking a Solid Business Plan

Starting any business without a solid plan is like wandering blindly into dangerous waters. A good business plan lays out a clear path to your goals, sets up contingencies around potential obstacles, and puts guardrails to keep the business on track to success.

Ignoring Customer Satisfaction

Praise for home renovation businesses largely spreads through word of mouth and referral from past clients. Therefore, customer satisfaction is a big part of passive marketing. Plus, happy customers are more likely to contract your business again in the future. The rules of customer satisfaction are pretty simple: work on customer service, promise and deliver, and never compromise quality.

Doing Everything Yourself

A contractor business doesn’t have to be a one-man show. Besides, you surely can’t expect to juggle every aspect of the business yourself. Don’t hesitate to seek wise counsel, outside financing, subcontractors, and labor whenever you need it. Surround yourself with people and resources that support your enterprise.

Setting the Wrong Price

Writing price estimates for home renovation services is a delicate balancing act between competing and profiting. The trick is to set a price that not only best represents the value of your services but also fairs well against competitors’ benchmarks.

Poor Project Management

Develop an efficient project management strategy that prevents delays, cost overruns, and poor-quality delivery even when handling multiple projects at a time. Also, accept only the projects you’re sure can be completed in time and within budget.

Focusing on Rapid Growth

This may seem counterintuitive, but rapid growth can lead to all sorts of problems. Expanding too fast can deplete your cash reserve faster than the business can replenish it and introduce sudden risks, choices, or opportunities you were not prepared to handle. Aim for homogenous and organic growth that’s more sustainable and manageable.

Wrapping Up

Running your own home renovation business can be rewarding and liberating. However, these rewards and freedom come with great responsibility. It takes a lot just to start a business, let alone run it for years and years. But although it may be challenging, it becomes easier once you break everything down and take it one step at a time.

Once you’re ready to get started, use this guide for help and let Joist save you time, win more jobs, and get paid faster with quicker remodeling estimates , professional invoices, and payment tracking.

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How To Start A Home Remodeling Business: A Comprehensive Guide

In 2022, the home remodeling industry saw a staggering growth of 5.5%, with homeowners spending more time indoors and looking for ways to enhance their living spaces. If you’ve ever considered diving into this lucrative market, you might be wondering How To Start a Home Remodeling Business . This comprehensive guide is here to illuminate the path for budding entrepreneurs like you. Dive in to discover the essentials of setting up, running, and growing a successful home remodeling venture. Let’s embark on this transformative journey together!

Essential Skills and Qualifications

Necessary Skills for Starting a Remodeling Business

Beyond the hammer and nails, a successful remodeling business owner needs a keen eye for design, strong project management skills, and a dash of salesmanship.

Training and Certifications to Consider

While a degree in construction might give you a head start, various certifications, like the Certified Remodeler (CR) designation, can boost your credibility.

Importance of Hands-on Experience

There’s no substitute for getting your hands dirty. Before diving in, consider working on a few projects or shadowing a seasoned pro. It’s the best way to learn the ropes and avoid rookie mistakes.

Crafting a Business Plan

Importance of a Well-Defined Business Plan

A business without a plan is like a house without a foundation. Wobbly and risky! Crafting a solid business plan is the first step to ensure your remodeling business stands tall and sturdy.

Key Components to Include

From financial projections to marketing strategies, your business plan should cover all bases. And don’t forget to include an analysis of your competition. Knowledge is power, after all.

Setting Clear Objectives and Goals

Where do you see your business in 5 years? Whether it’s opening a showroom or expanding to multiple cities, setting clear objectives will keep you on track.

For more insights on designing the perfect spaces, check out How to design floor plans . And if you’re looking for a deeper dive into starting a remodeling business, this guide on How to start a remodeling business is a goldmine.

Legal Considerations and Licensing

Choosing a business structure.

So, you’ve decided to take the plunge and How To Start a Home Remodeling Business . First things first, let’s talk structure. Whether you’re leaning towards an LLC for its liability protection or considering the simplicity of a sole proprietorship, your choice will have tax implications and determine your level of personal liability.

Obtaining Necessary Licenses and Permits

No one likes red tape, but it’s a necessary evil. Depending on your state, you’ll need specific licenses to operate legally. And remember, working without the required permits can lead to hefty fines. So, always better to be safe than sorry!

Importance of Insurance for Remodeling Business

Accidents happen! Whether it’s a misplaced hammer or an unexpected plumbing issue, having the right insurance can save you from a financial nightmare. Consider general liability and workers’ compensation as your safety nets.

Building a Brand and Online Presence

Crafting a memorable business name and logo.

Your brand is more than just a name; it’s the first impression you make. So, choose a name that resonates with your target audience and a logo that’s as unique as your services.

Setting Up a Professional Website

In today’s digital age, if you’re not online, you’re invisible. A sleek, user-friendly website can be your most potent marketing tool. And hey, while you’re at it, check out these Best free home design apps to give your site that extra oomph!

Utilizing Social Media for Marketing and Engagement

From Pinterest boards of dream homes to Instagram’s before-and-after shots, social media is where your audience is. Engage, inspire, and watch your client list grow!

Financing and Budgeting

Initial investment and startup costs.

Starting a business isn’t cheap. From tools to advertising, the costs add up. On average, initial investments can range from $10,000 to $50,000. But remember, every penny you put in is a step towards building your empire.

Securing Loans or Grants

Unless you’ve got a money tree in your backyard, you might need some financial help. Research loans tailored for small businesses or grants that support local entrepreneurs.

Importance of Budgeting and Financial Planning

A successful business is as much about smart spending as it is about earning. Budgeting isn’t just about cutting costs; it’s about maximizing profits. For more insights, this guide on How to start a home renovation business is a treasure trove of information.

How To Start Home Remodeling Business: Marketing Strategies

Traditional vs digital marketing.

In the age of TikTok and Instagram, it’s easy to dismiss traditional marketing methods like billboards and radio ads. But guess what? They still pack a punch! However, combining them with digital marketing strategies can give your business the edge it needs. Think of it as a PB&J sandwich – classic yet timeless.

Importance of Word-of-Mouth Referrals

Ever heard the saying, “A happy customer tells a friend; an unhappy customer tells the world”? Word-of-mouth referrals are the gold standard in marketing. Happy clients become your brand ambassadors, and their recommendations are worth their weight in gold.

Collaborating with Real Estate Agents and Contractors

Real estate agents and contractors can be your ticket to a steady stream of clients. Build strong relationships with them, and watch your client list grow faster than you can say “remodel”!

Building a Portfolio and Client Testimonials

Importance of showcasing your best work.

Your portfolio is your business card. It’s what potential clients will judge you on. So, make it count! Showcase a variety of projects to demonstrate your versatility and expertise.

Collecting and Displaying Client Testimonials

Nothing screams trust like genuine client testimonials. Encourage your satisfied clients to leave reviews. And for the love of all things DIY, please don’t be tempted to fake them!

Leveraging Before-and-After Photos

A picture is worth a thousand words, but a before-and-after photo? That’s priceless. It not only showcases your skills but also gives potential clients a tangible sense of what you can achieve. For more insights, check out Surviving a major home renovation .

Challenges and Solutions in the Remodeling Business

Common challenges faced by new businesses.

From managing client expectations to navigating the maze of permits, starting a remodeling business isn’t a walk in the park. But hey, if it were easy, everyone would do it!

Strategies to Overcome These Challenges

Knowledge is power. Stay updated with industry trends, attend workshops, and never stop learning. And when in doubt, seek advice. There’s no shame in asking for help.

Importance of Continuous Learning and Adaptation

The remodeling industry is ever-evolving. What’s trendy today might be passé tomorrow. Continuous learning and adaptation are not just buzzwords; they’re your ticket to long-term success. For a deeper dive into the world of home renovation, this guide on How to start a home renovation business is a must-read.

Frequently Asked Questions

What do i need to start a home remodeling business.

Starting a home remodeling business requires a combination of skills, certifications, a well-defined business plan, and the necessary licenses and permits.

How much capital is needed to begin?

Typically, the initial investment can range from $10,000 to $50,000, depending on the scale and location of your business.

Is experience in construction necessary?

While having construction experience is beneficial, it’s not mandatory. Many successful entrepreneurs start with a passion for design and then acquire the necessary skills.

How do I market my home remodeling business?

Marketing strategies can include digital advertising, word-of-mouth referrals, collaborations with real estate agents, and showcasing a strong portfolio.

What challenges can I expect in this business?

Common challenges include managing client expectations, staying updated with industry trends, and handling unexpected project complications.

How long before I start seeing profits?

Most businesses take about 1-2 years to break even and start seeing consistent profits, depending on their strategies and market conditions.

How can I ensure the growth and sustainability of my business?

Continuous learning, adapting to market needs, and focusing on customer satisfaction are key to ensuring the growth and sustainability of your home remodeling business.

Embarking on the journey of How To Start a Home Remodeling Business can be both challenging and rewarding. With the right strategies, dedication, and this comprehensive guide at your side, you’re well-equipped to carve a niche for yourself in this booming industry. Ready to transform homes and lives? Dive deeper into our guide and take the first step toward your entrepreneurial dream today!

Thank you for reading!

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How to Start a Home Improvement Business: The Step-by-Step Process

If you’ve been thinking of starting a home improvement business, now may be the right time to begin your new venture. While other small businesses have struggled to stay open during the pandemic, the home renovation business has continued to grow . According to the Joint Center for Housing Studies of Harvard University, “Americans spend more than $400 billion a year on residential renovations and repairs.” What’s more, projections for 2022 indicate that spending for home improvements is expected to accelerate in the nation’s largest cities. Are you interested in running your own business while helping people turn their remodeling dreams into a reality? Read on for tips on how to start a home improvement business.

Step 1: Determine the Services You Will Offer

Home improvement businesses take many forms, such as basic handyman services, landscaping, interior and exterior painting, kitchen and bath renovation, flooring installation, etc. What services do you want to offer? Do you have a particular passion that’s driving your desire to start a home renovation business? If so, that’s a great place to start. Besides having the right skill set for the services you plan to offer, it’s important that you enjoy doing the work.

Step 2: Get Your Finances in Order

While you may be great at what you do, you can’t open a new business without money. According to The Really Useful Information Company (TRUiC), an independent, part-time remodeler would need about $50,000 to $75,000 to start a business, while someone opening a major renovation service would likely need $250,000 to $500,000 to get the company up and running.In addition to the money for startup costs (such as renting an office, purchasing tools and a vehicle, and acquiring necessary inventory or supplies), you’ll also need enough savings to see you through your first months (or even a year) as a new company. If you don’t already have one, it’s probably a good idea to choose a banking partner who can help you manage cash flow and get a capital loan, if necessary.

Step 3: Do Your Homework

Step 4: deal with the logistics of starting a business.

Once you’ve figured out how you’re going to finance your company and what you must do to open it legally, it’s time to handle the more concrete aspects of setting up shop. Choose a name for your home renovation business and find a space to rent if you’re going to have a storefront or workshop. Buy the necessary tools and work vehicles. Connect with the suppliers and vendors who will get materials delivered to you on time. Purchase any computers and software you need to help you keep your business running smoothly and efficiently.

Step 5: Market Your Services

Now that you’re ready to start working, you’re going to need customers. A good marketing strategy will let the public know that you’re open for business. First, have someone design a logo for you and use it everywhere —on business cards, on the side of your vehicle, on uniforms, on your storefront, etc. Next, create a website. These days, everyone goes to the internet for just about everything. (You’re here right now.) The Hartford’s Business Owner’s Playbook suggests that a well-designed website will generate more customers for you at a lower cost than any other advertising method

Become a Cabinet IQ Franchisee

Of course, if you want to start a home renovation business that’s based on a proven business model, look no further than Cabinet IQ. Cabinet IQ is a kitchen and bath remodeling company that provides customers with functional and beautiful designs, quality workmanship, and incredible value. Currently, Cabinet IQ is offering ground-floor franchise opportunities with affordable buy-in options. We tailor feasible business models to your target market and provide you with extensive training. As part of our franchise network, you’ll have access to our top suppliers along with our proven sales, marketing, and operations processes. Contact Cabinet IQ today and learn how to start a home improvement business that will propel you onto the road to success.

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Home Improvement Business Plan Sample PDF Example | Free Download Presented by BizMove

Watch This Video Before Starting Your Home Improvement Business Plan PDF!

Checklist for Starting a Home Improvement Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Home Improvement business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

Here’s Your Free Home Improvement Business Plan DOC

Free book for you: how to start a business from scratch (pdf).

Copy the following link to your browser and save the file to your PC:

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1. Do you figure markup as a percentage of retail selling price rather than as a percentage of cost?

Using selling price, you can more easily compare your markup with that of other stores and with your own sore expenses (which usually are expressed as a percentage of retail sales). Because most of the difference between cost and selling price represents store expense, it is preferable to express markup as a percent of the retail price. A markup goal is arrived by balancing such factors as sales, markdown, expense, and profit objectives. deviations should require your approval. You should set a markup percentage goal not only for your store, but also for each merchandise department.

2. Do you set price lines or price zones?

Setting a limited number of price lines give you good assortments at those price levels. By concentrating at these levels you will minimize your inventory investment. Using price lines also helps you to aim all merchandise categories at specific groups of customers. Price lines should be determined only after you have studied the income levels and buying desires of your customers. Lines should be revised as these factors change.

3. Do the prices you set provide adequate markups within the limits of competition?

Carelessly set prices often throw away markup without appreciable advantage to your customers.

4. Do you give as much consideration to the adequacy of your dollar markup as to that of your percentage markup?

Setting a lower initial markup may bring you enough added sales to yield a larger total profit, but you must be careful that such action does not disturb the public image of your store.

5. In retail pricing of new items and in evaluating their cost quotations, are you guided by what you think the typical customer will consider good value?

The following is a good way to proceed: estimate the retail price for an item that you believe your customers will regard as good value, from this subtract the markup you have set for similar goods; the amount remaining represents a reasonable cost to you for the item.

6. Do you practice the technique of averaging markup rather than aiming at the same markup percentage throughout your store?

Sound pricing indicates that you should take larger markups on goods whose risk and handling costs are high in order to offset the low markups you would take on competitive merchandise. The pricing mix, by which you achieve an average desired markup, is more important than the markup on individual items.

7. Do you avoid selling new and regular merchandise as loss leaders (items sold at less than cost)?

A small store gains nothing when it becomes involved in a price war. It is better to drop out of such a contest altogether than to offer regular goods at a loss. You may lose the patronage of some bargain seekers; but if you have carefully built your store's reputation, you will not lose the customers who are important to you.

8. Do you keep a record of all your markdowns, and do you analyze them by cause?

Analysis of markdowns by cause will help you to eliminate or reduce major causes, such as reordering too late in the season or holding too many special sales.

9. When you have clearance merchandise, does your first markdown normally move a substantial portion of the stock?

Frequently, two or even three markdowns are required to dispose of an entire lot of clearance merchandise. If you sell out everything at the first markdown, you may have taken an unnecessarily large loss. On the other hand, if you take a very small markdown that moves only a small part of the goods, you are likely to carry the goods into the next season when there is very little demand for them.

10. Before you mark down goods for clearance, do you consider alternate or supplementary ways of moving them - such as special displays, repackaging, or including them in a deal?

In stores handling fashion and seasonal goods, clearance markdowns are one of the heaviest costs. Ingenuity and imagination often make it possible to move goods without markdowns; using other promotion devices allows you to take a smaller markdown.

Advertising And Sales Promotion

1. Do you frequently supplement your routine day-by-day selling operations with special promotions?

Although your customers expect you to maintain full assortments of your regular lines, they also expect you to offer timely specials that are unusual and dramatic. The number and timing of these events should be geared to the type of customer you are trying to attract.

2. Do you advertise consistently in at least one appropriate medium: newspapers, direct mail, handbills, local television or radio?

Even if your store is small, you should not depend wholly on passing traffic and satisfied customers' recommendations. With a little effort and planning, you can find inexpensive yet effective ways to advertise and reach a larger public.

3. Do you plan your advertising at least 4 weeks ahead?

If you plan ahead, you can make better purchases of timely goods; you will have the goods when they are needed; and your advertisements will do a more effective selling job.

4. Do you approve all ads before they are released, reviewing their content and making sure that the goods mentioned will be ready for selling?

You or your immediate assistant should approve all ads before they are released. Carelessness and error not only dissipate your investment in the ad but will lead to customer dissatisfaction.

5. Do you consistently choose items for advertising that are timely, have exceptional value or exclusive features, and help to build your store image?

If the items you advertise do not have at least some of these qualities, your advertising is wasteful and detracts from your store's personality.

6. Do you follow the ads of stores in larger cities catering to customers similar to your own in order to find outstanding items to advertise?

Some small merchants have used this technique very successfully. It often involves making special purchases of goods for their advertising appeal.

Why do some Business managers reach the gain target more frequently than others? They do it because they keep their performance pointed in this direction - management of profit earning. They never lose sight of the goal - to complete the year with a profit. This guide Gives suggestions which should enable an owner-manager to zero on profit earning. It points out that you have to keep informed, make timely decisions, and take action. In effect you must control the activities of your organization instead of being controlled by them. Topnotch Performance in golfing, shootingfishing requires understanding, practice, and endurance. Similarly, in Small businesses, year-end profit comes to the owner-manager who tries for topnotch performance. You achieve profit making goals by understanding your operation, by practicing the art of earning timely, balanced judgments and by controlling the company's actions. Adapt the Suggestions in this manual to your circumstance. They ought to help you predict the shots to keep your business headed in the right direction - toward profit earning. First Rule of Gain Making: Know Your Business. The Time-honored truth"Knowledge is power" is especially pertinent to this owner-manager of a small business. To maintain your company pointed toward gain you must keep yourself well informed about it. You have to be aware of how the company is doing before you may improve its operation. You must know its weak points until you can correct them. A number of the information you need you pick up from day-to-day personal monitoring, but records should be your principal source of advice about profits, expenses, and earnings. Know Your Gain. The profit and loss statement (or earnings Announcement ) prepared regularly each month or each quarter by your accountant is one of the most essential indicators of your business's value and wellbeing. You should make certain that this announcement contains all the details you will need for evaluating your profit. This statement must pinpoint each revenue and cost area. By way of example, it should show the gain and loss for each of your products and product lines in addition to the gain and loss for your entire operation. It is a good Idea to have your profit and loss statement prepared so that it shows each item for the current interval, for the identical period this past year, and for your current year-to-date. By way of example, a P&L statement for the month of November would reveal income and expenses for the current month, for November last year, and prices for the eleven months of this current calendar year. Many corporations publish their annual reports with several previous years so stockholders can compare earnings. Comparison is The trick to utilizing your P&L statement. If your accountant isn't already supplying figures that you may compare, you should talk about the possibility of getting them provided. Financial Ratios from your balance sheet also allow you to know if your profit is exactly what it should be. For instance, the ratio of net worth (return on investment ratio) reveals what the business brought on the equity capital invested. Know Your Costs. An owner-manager ought to know costs in detail. Following that, you can compare your price figures as a percentage of sales (operating ratio). Be certain that your costs are itemized so that you can put your fingers on those that appear to be climbing or falling according to your expertise and the cost figures of your own industry. When prices are itemized, you can spot the culprit when the overall figure is higher than what you'd budgeted. Take advertising costs for example. You can catch the offender should you split out your advertising expenses by product lines and from websites. Additionally, a thorough check of inquiry yields from advertisements will help to avoid unproductive publications. In knowing your Costs, keep in mind that the formulation for profit is: Gain equals Sales minus Costs. Know Your Product Markup. Be certain The pricing of your products supplies a markup adequate for the sort of profit you expect to achieve. You must keep constantly informed on pricing because you have to adjust for rising costs and at the same time keep prices competitive. Knowledge on your markup also helps you to run workouts with your eyes open. Continuing to generate something that only a few clients want is a powerful merchandising tool just once you use it on goal - for example, to hold or attract buyers to other high markup products. Don't be afraid to drop a loser from online. Garbage-In, Garbage-Out. An Owner-manager shouldn't fudge the records. The acronym GIGO the computer industry uses is true with manually kept records in addition to with machine-processed ones. If an owner-manager lets"garbage" to enter the records, the accounts will contain"garbage." Reports need not be extensive but they must be accurate. Look For Trends. Try not to look at a single month's earnings or Profit picture alone. The figures on your operating statements are significant only when you put the image in the right frame - that is, take a look at your characters in the context of what's happened and what's likely to happen. In that fashion, you grab a downward trend before it gets out of hand. You should also Concern yourself with the figures behind the dollars - for example, the number Of units offered or the amount of orders. Insist on cost-per-unit statistics. The Fluctuation of this cost-per-unit can be more meaningful than just looking At the dollar figures alone. Another idea would be to display these comparative Figures on graphs so that important trends can be seen easily.

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How to Start a Remodeling Business

Your remodeling business might be a one person show where you personally complete kitchen, bathroom, bedroom remodels or additions to homes and businesses. In another business model, you could serve as a general contractor and hire employees or subcontractors to help complete jobs in a more efficient manner.

Learn how to start your own Remodeling Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a remodeling business by following these 10 steps:

• Plan your Remodeling Business
• Form your Remodeling Business into a Legal Entity
• Register your Remodeling Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Remodeling Business
• Get the Necessary Permits & Licenses for your Remodeling Business
• Get Remodeling Business Insurance
• Define your Remodeling Business Brand
• Create your Remodeling Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your remodeling business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Remodeling Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your remodeling business?

Business name generator, what are the costs involved in opening a remodeling business.

If you are simply offering up your own skills and time as a part-time remodeler, the start-up cost will be around $50,000 to $75,000 as you will need a complete set of tools, a vehicle for transporting tools and supplies, and the proper licensing and insurance in order to operate in your state and locality.  If you are looking to enter the business world offering major renovation services, expect to have start-up capital of $250,000 to $500,000 as you'll need to be able to purchase your first few orders of materials and hire staff before your customer pays you for the completed job.

What are the ongoing expenses for a remodeling business?

You will need to maintain accounts with material suppliers, pay your crews on a regular basis, and maintain vehicles and tools. Fortunately, your office space can be fairly minimal.

Who is the target market?

Home and business owners who are seeking to have their property professionally renovated and are willing to pay a fair price for labor and materials. Large businesses that need renovating may have more space, allowing you to charge more for your work.

How does a remodeling business make money?

Your remodeling business generates income by charging your customers for labor and materials for their renovation. You are responsible for providing your own tools, as part of your trade.  However paint, hardware, lumber, flooring, and other supplies are purchased by you at wholesale prices and then you charge your customer for them at a premium price.  Your hourly labor costs will be determined by level of expertise, the type of job that is being completed, and local competitive rates.

Your rates will vary depending on size and complexity of the job. Rates vary from $45/hr to $85/hr and can be lower or higher. You will want to complete an extensive competitive comparison to ensure your client is getting a good value. The average renovation project costs between $3,000 and $15,000.

How much profit can a remodeling business make?

The typical markup on materials is 15%.  Income for a one-man company can be around $20,000 a year working part-time while a large contractor with multiple crews can see income in the seven figure range when they complete multiple large jobs over the year.

How can you make your business more profitable?

Ensuring quality work that completely satisfies your customer is the number one means of generating more business, and therefore additional profit. You will need to ensure the quality control and customer service are always of top priority for your successful remodeling business.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your remodeling business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a remodeling business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract

Remodeling businesses should require clients to sign a services agreement before starting a new project.  This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Remodeling Business needs and how much it will cost you by reading our guide Business Insurance for Remodeling Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a remodeling business

Direct Mail campaigns can help your name appear in front of local homeowners. Ask to sponsor a do-it-yourself workshop at your local big box store.  Make sure to add your company name on the side of all the vehicles that appear at the job site and where you order supplies. Consider joining groups such as the National Association of Home Builders or the National Association of the Remodeling Industry to add their advertising power to your own.

How to keep customers coming back

Potential clients love to see an example of the work they might hire you to complete.  Position signs in front of homes that you are working on or have recently completed. Ask satisfied customers if you can add pictures of their new kitchen to your website and social media. Encourage customer feedback, as their word will carry far more weight than a simple advertisement. Be willing to return to the jobsite to complete touch ups for up to a year, as that happy customer is the most likely individual who will hire you again. Always provide professionally prepared contracts and business cards and make sure your phones are answered in a businesslike manner.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

A remodeling business is a great investment for the person who has a passion for home improvement, with extensive knowledge of multiple construction skills and enjoys a background of business and accounting.  Dedication to completing work thoroughly with close attention to detail while providing superior customer service is also required.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a remodeling business?

Whether you simply manage the business or are swinging a hammer with the crew, you might be expected to:

• Participate in demolition, installation of flooring, walls, and cabinetry
• Source supplies and materials for the job site
• Maintain open communication channels with the customer, updating them on progress
• Schedule your reliable crews and subcontractors in a time-efficient manner
• Maintain proper licensing to operate in your state
• Train new crew members to maintain your high standards
• Complete punch lists after you finish a job
• Establish relationships with tool and materials vendors/suppliers
• Maintain payroll records/pay your crews on a timely basis
• Collect payment from customers
• Create contracts for customer approval
• Promote your business to generate new jobs for the future

What are some skills and experiences that will help you build a successful remodeling business?

Your remodeling business will find greater success when you have a wide range of skills under your belt as the owner/operator. These may include, but are not limited to:

• Solid understanding and experience in construction techniques with regards to kitchen, bathrooms, siding, windows, additions, and flooring
• Appreciation and knowledge of quality materials and their fair pricing structure
• Good accounting knowledge to maintain accurate records for accounts payable/receivable and payroll requirements
• Excellent time management that lines up additional crews to complete the next phase of construction without waiting
• Good ability to establish and maintain positive relationships with customers by providing clear and honest communication throughout the remodel
• Ability to identify experienced crew members you are hiring as subcontractors or as employees
• Knowledge of safety standards, permits, and licenses required to operate a safe workplace

What is the growth potential for a remodeling business?

Some individuals work on a part-time basis by themselves completing renovations for local homeowners.  However, with the right business model in place you can be responsible for finishing interiors of apartment buildings, entire subdivisions, and large commercial spaces. The quality of your work and responsiveness of service will build your reputation, helping to land larger contracts able to expand your small business into a major general contracting business.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a remodeling business?

You will need to network with other contractors and potential customers. Attend the next Home Show and rent a booth as an exhibitor to get your name out and about. Ask to leave your flyer and business contact at local hardware/DIY stores and reach out to local plumbers, electricians, and even general contractors who may need help on their next big job. Word of mouth is often responsible for finding your next customer, so you'll need to work hard to build a positive reputation.

How and when to build a team

As soon as you cannot keep up with demand, start putting out feelers for qualified carpenters and installers.  Do not hesitate to complete background checks and ask for references from verifiable sources.

Useful Links

Industry opportunities.

• Membership in the National Association of the Remodeling Industry
• Remodeling Franchise Opportunity with DreamMaker Bath & Kitchen Remodeling Franchise

Real World Examples

• Wel-Vant construction & Remodeling
• Remodeling Business With Specialty in Remodeling Homes for Seniors and Physically Challenged People
• Luxury Remodels Company

Further Reading

• Tips for Moving Forward With Your Remodeling Business
• Hiring People You Can Trust With Your Business

Have a Question? Leave a Comment!

Sample Home Improvement Business Plan

Home improvement company business plan sample.

Home improvement is also known as renovation or remodeling has to do with the alteration of an existing structure by adding extra features to the building.

Like gardens, garage or even extra rooms. It also involves upgrading the interior of the house, the HVAC, electrical and so on.

These projects are undertaken for repair and maintenance of the house, for additional spaces and then for aesthetics.

Here are some business plans for starting a home improvement contractor and referral business.

• Housekeeping business plan
• Interior design business plan
• Lawn care business plan
• Pest control business plan

Business Name:  Home Heaven Ltd

Executive Summary

Our Products and Services

• Vision Statement
• Mission Statement

Business Structure

Market Analysis

Sales and Marketing Strategy

Financial Plan

Competitive Advantage

Home Heaven Ltd is a Malibu-based company that specializes in home remodeling, renovation and interior design and decoration of homes. This company is run by Engr Willis Swanhaim, he has a degree in civil engineering and another in interior design and decoration. On graduation from the university in 97, he got a job working for Albert

Construction limited where he worked for 10 years as a design manager.

Home Heaven Ltd is a startup, and it has fulfilled all the legal requirements for setting up a business in California, the necessary permits have also be gotten so from the required bodies.

Home Heaven Ltd specializes in giving your structure a new look. We do the renovation of dilapidated buildings and also remodeling of old buildings. We add improvements to the home, both structurally and aesthetically. We also deal with the mending of the plumbing, HVAC, and electrical works.  Whether in the interior of the building or the exterior, we have got you covered.

Home Heaven Ltd also specializes in erecting residential concrete structures, and also residential structures from other materials.

Our vision is to leave every house that we remodel much better than we met it both structurally and aesthetically. We also have the vision to make the work so good that it won’t need any more work in a long time.

Our vision is to construct buildings of top quality will providing this services at very competitive prices.

Our Mission

Our mission is to provide great home improvement services to the residents of Malibu California, promptly and at market favorable prices. This we hope to do by hiring professionals for the various services which we offer.

Home Heaven Ltd is run by Mr. Wullis Swanhaim, who happens to be an engineer. He has two other financial partners, though they are not exactly part of the day to day running of the business. At this company, we take the jobs of our clients very seriously.

Therefore, we have hired interior decorators, HVAC experts, masons and stone cutters, tillers, painters and a host of other technical staff. We have Engr Swanhaim as the director, Miss Pat Jon as the human resource manager and Mr. Derek King as the foreman for our structure jobs. In the business are also accountants and much other staff playing administrative positions.

According to the Bureau of Labour Statistics of the U.S. over a ten percent growth is to be expected in the real estate industry for the next for the next 10 years. This prediction is actually very good news especially for those who are already in the business.

Any company which positions itself rightly will make a lot of profit. And with our company being in Malibu where there are rich folks with a lot of disposable income, we see our business profiting greatly.

We will be putting up billboard advert in the Malibu and Beverly Hills region of California. We’ll also be using the internet a lot for an advert. First, we will use Google ads, and then Microsoft Bing for internet adverts. Plan to start up a blog which will teach people various DIY ways for fixing minor issues in their homes.

$5 million is needed for this business to kick off fully. Engr Swanhaim and his associates have provided half of the money. And the remaining funding will be sought through the bank in form of a loan.  Some more investors are also expected to come on board with the funding. These are three ways we hope to finance this business.

We operate out of the Malibu area, therefore there are more than enough rich folks willing to remodel and restructure their houses. With Mr. Swanhaim being very popular amongst the privileged class due to his family background. We will actually get clients very fast.

Our prices are very competitive and we over a wide range of services. Apart from structural and aesthetically remodeling a house, we also construct residential blocks from the ground up.

This is a Home Improvement Business Plan sample, for a business owned by Engr Swanhaim and associates. With this plan sample having an idea of what it entails to start up a home improvement is as easy as ever.

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7+ remodeling business plan templates – pdf, word.

Sometimes, when things around you seem at their best, something suddenly goes wrong. Or it might be that you are not necessarily having a bad day but that you ought to be doing something that has been long overdue. The dilemma is far worse if you are the type that wants a certain task finished at a certain given time.

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Choosing your remodeling services, remodeling business, 1. project size makes little difference for costs, 2. don’t rush the planning, 3. check all zoning and construction regulations in your area, 4. mind the bigger picture, tips for writing a remodeling business plan, 1. company description, 2. services, 3. strategies, 4. competitive analysis, 5. executive summary, housing business plan sample.

Planning and Managing a Renovation Project

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Renovation Contractor Business Plan Template

Document description.

This renovation contractor business plan template has 35 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our renovation contractor business plan template:

INSERT IMAGE/LOGO COMPANY NAME Business Plan 2011 Owner: INSERT NAME INSERT ADDRESS Phone: Email:

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3,000+ templates & tools to help you start, run & grow your business, all the templates you need to plan, start, organize, manage, finance & grow your business, in one place., templates and tools to manage every aspect of your business., 8 business management modules, in 1 place., document types included.

BUSINESS IMPROVEMENT PLAN: Templates & Best Easy Guide In 2023

• by Kenechukwu Muoghalu
• August 12, 2023
• No comments
• 6 minute read

Table of Contents Hide

What is a business improvement plan, #1. identify the current state of the company, #2. assess the process, #3. rebuild the process, #4. outline roles and resources, #5. execute the new process, #6. monitor and adjust the process , #1. enhances accountability, #2. increased resource efficiency, #3. saves time, business improvement plan template, a business contingency plan can also do the magic, when is a business improvement plan not appropriate, how does an employee respond to a business improvement plan, is a business improvement plan bad.

When it comes to composing a business improvement plan in a firm, it is primarily because of the need to encourage struggling employees to do better or to improve the way an organization works into better working strategies. A sample of how a business improvement plan works is by identifying a company’s operations, employee skills, or enabling technologies that can improve the overall performance of either a small home business or a physical one. The essence of this article is to help you create this plan and as a bonus, you will also get to use our well-composed business improvement plan example template for your company. 

To avoid wasting more time, let’s dig in!

A business improvement plan is those mapped out sample strategies that can reduce barriers and enhance a constant workflow and efficiency in a home or physical company. To understand this form of business plan better, it is best to know that it comes in two forms. An example of this plan is the business performance improvement plan while the other is the business process improvement plan. 

Read Also: BUSINESS CONTINGENCY PLAN: Easy How-to-Create Guide

A business performance improvement plan is a formal business document that sets out problems with an employee’s performance and the strategies that can be taken to correct them. When used in the right manner, they can serve as an effective tool for solving problems amongst team members. 

A business process improvement plan is also a document that identifies sample steps and strategies necessary to enhance the efficiency of processes and procedures in a home or physical company. In summary, it generally improves the way an organization works. 

How To Write a Business Improvement Plan

To write either of the above business improvement plans, some key considerations should not be ignored. These sample key points will serve as necessary guides that can help one to compose a business improvement plan for either a home or an onsite business. Let’s analyze these steps below. 

This is a very important step that should not be ignored. Before you start creating a business improvement plan, you will need to identify the particular fault, employee, or process that needs to be tackled. This step will help you visualize how information and knowledge flow between your team and the organization. You can solve a problem only when a process has been broken down into little constituencies.

With proper identification of the problems your organization is experiencing, you will then need to carefully analyze each of them. Try to discover the cause of the problem and why it is happening. Is there a lack of support amongst the team members? Where do bottlenecks and delays occur? While trying to answer these questions you will also need to analyze other sublayers because each problem has a deep origin. So do your due diligence to sniff out the root of your company’s inefficiency. 

When you get to this section of creating your business improvement plan, you should be able to list actions that can improve the condition of the employees and the organization as a whole. This solution should be in response to what you discovered about your company. While deciding the new fate of your business, you should not do it in a vacuum. You will need to consult your team to also get their idea since they will be the ones to carry out the processes. They need to be aware that new development is about to be implemented. 

After consulting with your primary team on the new project, you will also need to inform other teams and departments of your decisions. This is because the new process may require additional resources outside of your team. If that is the case, then make out time to have a conversation with those department heads or managers when assigning roles and allocating resources for the new plan. 

Just after assigning the roles and responsibilities to the designed bodies, it is now time to communicate and execute. In this section, you will need to enforce a little pressure to see that the newly mapped process is being carried out. You will also need to ensure that every team has their hands on deck and meet up with their roles. Failure to get everyone on the same page might lead to a snag in the execution phase. 

Monitoring the performance of your business improvement plan is a critical step that should not be ignored. Carefully detect if the new process is more efficient and effective than the old one. You can either analyze the available data to get answers or talk to the primary team involved. Your team would give you a clear analysis of how the new process has affected the company, which can have a positive or negative impact. From this information, you will then decide if you need adjustments or not. 

Benefits of a Business Improvement Plan

Having a business improvement plan will enable employee mobility and the company’s growth. Therefore this plan can benefit both the employee and employer in general. Let us look at more benefits of a business improvement plan. 

Having a business improvement plan does not only improve the performance of a firm, it also shows the employees that the company has their best interest at heart. And instead of letting them go, the company decided to provide measures that can help them level up. This will encourage the employees to make necessary changes and engage more with the company. 

Another benefit of having a business improvement plan is to identify parts of a process that requires some level of resources. After the initial research is been carried out, you will get more insights into the necessary changes and resources that your business needs to attain.

When a company faces some level of setback, there is always a lot of guesswork to do to determine where the issue is from. Most of the time, constant trial and error tend to worsen the situation. But with a business improvement plan, you can easily make the necessary changes without jumping through multiple hoops and in essence saving time and energy. 

While composing your business improvement plan, you will also need to work with an example template. The essence of using an example template on your business improvement plan is to get a clear guide on how best to make your improvement strategies go as smoothly as possible. To make the utmost use of this template checklist, you will need to follow the guideline with due diligence. 

• Make a business improvement plan
• Listen to your employee
• Find the root cause of the problem
• Emphasize the importance of being positive
• Provide guidance
• Check-in-regularly

Aside from having a business improvement plan for your company, you should also consider getting a business contingency plan. A contingency plan can guarantee your business continuity and save you from the risk and disaster of facing a breakdown. 

For an improvement plan to work, then you will need to secure the safety and future of your company. So while crafting an improvement plan, you should have a contingency plan set aside. Just to save you the stress of composing another plan, we have composed a professional pre-made business contingency plan you can implement in your business. 

At Businessyield, our mission is to help entrepreneurs like you with valid business plans that can enhance the growth of their companies. Avoid missing out on this offer and grab this opportunity now!

Whether it’s to solve a setback amongst the employees or work to improve the growth of a company, a business improvement plan is essential in an organization. Remember that while creating this plan, be sure to involve those who are directly affected by any changes. 

Regardless of the important factors of having a business improvement plan, there are also some scenarios where it might be insignificant in a firm. For example, when an employee’s performance is affected by an unreasonable task, when the problem the company is trying to solve has been in existence for a long time, or when dealing with an issue of fraud. 

For an employee to set up their game and improve their performance to serve the company well he/she will need to be honest with themselves. They will also need to make their jobs a priority, ask for directions when needed and stay positive. By doing this, an employee will be able to cope with a new improvement. 

It tends to be bad when used in the wrong context. Imagine having to use a performance improvement plan on an employee because you want it to serve as a superficial step before the termination of a contract. However, unpleasantly using this plan might attract consequences. Thus, it is better to use it to listen to an employee’s perspective and analyse how your company’s growth will be attained. 

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Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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