How to Start a Home Improvement Referral Business

A home improvement referral business benefits clients by eliminating the time involved to search for reputable contractors to perform home improvement projects. The service offers homeowners a list of pre-screened, pre-qualified contractors with a positive work history. It is possible to quickly establish a thriving home improvement referral business if you are determined.

Difficulty: Moderate

Instructions

1. Pick a name for your home improvement referral service. Keep it simple and easy to remember.

2. Think about the types of home improvement businesses that you will refer. Will you refer contractors that specialize in roof repair or gutter installation? Do you prefer to focus on landscaping and tree removal specialists? Do enough research to ensure that your choice reflects the demand of your clients.

3. Write a business plan. Contact your local, county and state government offices to inquire about licensing requirements. Select a business structure and obtain insurance.

4. Set up the operations infrastructure. Consider installing a separate phone line for your business. Assess your equipment needs and develop a filing system.

5. Select contractors. Make it a policy to only work with contractors who are licensed, bonded and properly insured. When considering a contractor, thoroughly investigate his service. Contact references; ask to see the license, bonding and insurance. When your clients know that your home improvement referral business only refers contractors who meet those guidelines, your business has instant credibility.

6. Market your business. Place newspaper and internet ads, put flyers on doors and create a website. Also consider direct mail advertising.

Tips & Warnings

• As your home improvement referral business grows, consider upgrading your office equipment, filing system and getting separate office space.