A home improvement business is a lucrative venture that can earn you hundreds of thousands of dollars every year. However, the business is not a walk in the park as there are various things you must know and adhere to before investing in the business. Here’s what to know before you start a home improvement business.

1. Insurance is Necessary

It is no secret that a home improvement business comes with many risks, including property damage and falls, hence the need to acquire insurance cover. According to the National Floor Safety Institute, slips and falls cause most workers’ compensation claims. Additionally, they are the leading cause of occupational injury for individuals aged 55 years and above. Acquiring various insurance covers like general liability insurance, workers’ compensation, and public liability insurance will help protect your business against incidences that might lead to losses.

2. Transaction Durations Differ

The time for selling flipped homes differs. While some businesses can take a few days to complete a transaction, others can take months. Home flippers who sold properties in the first quarter of 2021 took 159 days on average to complete transactions, which is the lowest record since the third quarter of 2013. The transaction duration is influenced by several things, including the renovation period, property location, demand, and supply. It would be best to evaluate your market before buying houses, flipping them, and putting them out for sale.

3. The Business is Costly

Establishing a home improvement business is costly. The cost is at least $50,000 because you will require contractors, tools, transportation medium, as well as proper insurance, licenses, and permits to work in a specific geographic area. The huge costs imply that you will require substantial capital to set up your business and keep it running. You can finance the business with your savings or acquire funds from banks and other money lending organizations. You can also source money from family, friends, and colleagues. When lending money, ensure you go for favorable loans with low-interest rates and practical payment durations. Read loan agreements carefully before signing deals, or hire an attorney to help you with the processes.

4. Proper Landscaping Attracts More Customers

Some home flippers make the mistake of ignoring a home’s yard when flipping a house. Maintaining a landscape is as important as renovating a house to improve property value. Therefore, give a property’s yard as much attention as you give the house. Be sure to prune trees, decorate hardscapes, plant a garden, and maintain the lawn. As a general rule of thumb, don’t apply more than 4 pounds of nitrogen per 1,000 square feet of lawn each year. Proper landscaping will make the property you are flipping beautiful and help to attract many customers.

5. Work With Professional Contractors

The contractors you work with can make or break your home improvement business. Work with a reputable, professional contractor who has been in the real estate business for a longer time and is familiar with the market. Such a contractor will deliver you high-quality results that will impress many home buyers. Look for contractors from people you trust, like friends and family, search for contractors in your area, or advertise the position through various avenues. Vet the contractors on your shortlist by asking them to provide proof of past work, review their licenses and insurance, and provide references from past employers. Working with a competent contractor in your home improvement business will ensure success.

These guidelines will influence you in the right direction and enable you to manage your business successfully. Contact professionals if you need help or have any questions about starting a home improvement company.

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