How To

How to Start a Home Improvement Business

Contributor
By Dale Devries
eHow Contributing Writer
(5 Ratings)

Starting any business from scratch takes a lot of preparation and some money. A home improvement business is one of the easier to start because you can actually do it while still working another job. If you are good at what you do and have the ability to get the word out, you'll be quitting that other job in no time. Advertising can be very expensive, so this article will focus not only how to start but on some lower cost ways to let people know you are in business. Read on to learn how to start a home improvement business.

Difficulty: Moderate
Instructions

Things You'll Need:

  • Fees and applications for state and county licenses
  • A registered name
  • Software for bookkeeping
  • A van or truck
  • Tools
  • Advertisements
  1. Step 1

    Name your company. You will have to register your name with the state where you will be working and the state where you live, if they are not the same. You can operate as a sole proprietor or form a corporation or form a LLC. There are some tax and liability advantages with some forms over others, depending on your situation and should be discussed with an accountant.

  2. Step 2

    Apply for your license. In most counties, you will have to be licensed. Depending on how much you do will decide the license you need to have. Some counties even require you to take a test. Most will require you pay workman's compensation insurance. You can get all this information from your counties building and zoning office.

  3. Step 3

    Set up your bookkeeping. You should get a software program like QuickBooks and set it up to your type of business. If you plan on using an accountant to do your quarterly and end of year taxes, ask them how they would like it set up. That will make your and their job easier at the end of the year. Keep all of your receipts and record every dime you spend, including your licenses, advertisements and tools. If you are working out of your home, their are certain deductions for the room and electric you use, but be careful here, this often triggers an audit.

  4. Step 4

    Start advertising. Most people, when they need a repair job done, look in the phone book. Get a separate line for your business and get in the next phone book. Try to budget for a small box ad in the yellow pages and make sure they report to yellow pages.com. Word-of-mouth is the next strongest way to get you name out. Have some business cards made up and give a bunch to all your friends and family to hand out for you. Take some to the Realtors' offices and ask if you can leave them for the agents or people buying fixer-uppers. Restaurants usually have a place for business cards, gas station bulletin boards, fire stations, anywhere you think someone will let you leave them. Make up fliers and door hangers and hand them out or put them on doorknobs. You can even make postcard on your computer. Go to the tax rolls of a certain area and print out address labels. Stick them on the postcards and mail them out. You can also advertise on Craigslist. If you're not stretched for money, take out some ads in your local newspaper and real estate magazines.

  5. Step 5

    Schedule your jobs. Find out how quickly your customers wants their jobs done and schedule them accordingly. Do free estimates and price your jobs fairly or slightly under the competition. Always act professionally and ethically. Do the job better than any one else would to gain trust and repeat business. Soon, you'll be busy and successful and customers will be calling you around the clock.

Tips & Warnings
  • Leave a cell phone number on your answering service so people can reach you. If they have to wait, they may just go on to the next number in the phone book.
  • Make sure you budget your start up money well, so you don't end up not being able to pay your bills.
  • When you make appointments with customers, show up on time. If you are late, you will be starting out on the wrong foot with your new customer.
  • Always check with an accountant to make sure you are getting the most deductions and paying any taxes you owe.

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