How to Start a Remodeling Business From the Ground Up

The recession-resilient home services industry is fertile ground for franchising. As more homeowners choose to forego the volatile real estate market and stay in their current homes, bath remodeling and renovation businesses are a particularly popular investment. In fact, the bathroom remodeling market is projected to have a continuous annual growth rate (CAGR) of 3.7% through 2035, reaching a forecasted market value of $593.7 billion. It’s a great time to make your mark in this growing category.

Curious about how to start a remodeling business? It’s more straightforward than you think. Let’s take a step-by-step look.

9 Steps to Start Your Renovation Business

1. Do Your Research

In order to identify the right remodeling franchise for you, you’ll need to assess a number of things. First and foremost, take an honest inventory of your goals and skills. A bathroom remodeling business can focus on one aspect of the bathroom, like tiling, or you can open a start-to-finish business that handles every element of the remodel. Depending on your interests, as well as your strengths and weaknesses, one may be better for you than another.

Performing market research and competitive analyses can help you narrow this down, too. As part of this process, you’ll come to understand what kind of renovation business your area will support. If there are already bathroom renovation businesses in your area, analyze their services, products, and reputation to find ways to differentiate your business.

2. Create a Business Plan

Once you’ve settled on an idea, you’ll need to create a business plan. It’s important to take this task seriously, as the business plan helps to create your business model moving forward. If you don’t pay attention to the details, you’re likely to find yourself on the back foot as you get your business off the ground. Business plans are also essential to getting financing, as it will be part of what you share with potential lenders or investors. 

3. Get Financing

Research which lenders are the best bet for a small business loan, then start making appointments. You’ll likely have to talk with more than one lender. Some lenders may require you to have your employer identification number (EIN) before applying. You can apply for free through the IRS.

4. Register Your Business and Obtain Insurance

After you’ve secured your funding, you’ll need to register your company and make sure you’re in compliance with all federal, state, and local regulations. Not all states or localities have the same requirements for bathroom remodeling companies, but some common licensing requirements include a business license, contractor license, and licensing for plumbing, electrical work, and HVAC.

Similar to licenses, your state and locality may have unique insurance requirements, but you can usually expect to need general insurance, liability insurance, and worker compensation insurance. You may also want to obtain a surety bond.

5. Set Up Your Finance and Legal Teams

You’ll need to establish a business bank account, and it’s not a bad idea to create relationships with accountants, attorneys, and tax preparers who know about small businesses.

6. Set Up Your Office

Although bathroom remodeling businesses can be operated from home, you’ll still need to set up your office space. This will include the software and systems you’ll need to run your business day-to-day. To get started, you’ll need scheduling, payroll, and customer relationship management (CRM) software. 

7. Hire Your Crew

Nothing is more crucial to success than hiring the right employees. If you haven’t been in a position to hire employees before, this is a good opportunity to reach out to your business network and learn best practices. Local business groups and professional organizations may be a good place to start. 

8. Establish Your Supply Chain and Obtain Tools

Set up contracts with bathroom suppliers for materials such as tile, flooring, fixtures, and essential electrical and plumbing components. Take the time to learn about potential discounts; the deal may sound good, but many discount plans require you to buy in bigger quantities than you may be able to keep up with at the outset.

Identify the tools your business needs to own and the vehicles you need. Remember to account for ongoing maintenance of vehicles and tools.

9. Create a Marketing Plan

Smart, targeted marketing is a must – if you don’t get the word out about your business, you won’t be able to build your customer base. If you lack marketing experience and don’t have the time or interest to learn, budget for hiring professional marketing help.

Can Franchising Make It Easier to Own a Renovation Business?

Yes! Bathroom remodeling franchises like Bath Tune-Up have done the work of building a business for you. They’ve perfected their business model over time, allowing you to step into a turnkey system that lets you focus on starting your business and providing excellent services. 

For over 35 years, Bath Tune-Up has been helping entrepreneurs like you find success in bathroom remodeling – no experience necessary! As a Bath Tune-Up franchisee, you’ll benefit from:

• Best-in-class training, resources, and support
• Marketing assistance
• Proven processes and systems
• Technological innovations
• Business coaching and goal-setting guidance
• Access to preferred vendors and industry-leading supplies
• Protected territories

Find Renovation Business Success with Bath Tune-Up

The best answer for how to get into home renovation? Franchise with Bath Tune-Up. Our low overhead, high profit margin business model is proven to succeed and simple to scale. We’re backed by Home Franchise Concepts, a leader in home services franchising, and this relationship lets us provide resources other bathroom remodeling franchises can’t match. With one look at our franchise success stories, the difference is clear.

Get started today! Inquire now, and one of our franchise advisors will be in touch with more information.