I have been doing renovation work for over 20 years for myself, friends etc. I have been approached numerous times to do work for others that I have turned down due to no time. Now I am recently unemployed and many people are suggesting I start my own reno company. I can do just about everything myself but realize that as a pro I need to be a general and sub my electrical and plumbing etc. I will need to establish a supplier base etc. I read in a small business magazine recently that the number one home based business now and in the coming years be home renovations in Canada this is a very hot market. I consider myself a skilled craftsman I would not consider going underground as there is too much of that and if I do this I want to be a true pro. My background is in marketing which I think will help alot at start up. I would appreciate any comments, thoughts, advice that could be shared.
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First off, welcome to the board. Always glad to have a new face around.
There's a post here about once every two weeks from someone wanting advice about starting out on their own. If you do an advanced search on the word "start" you'll probably get many, many threads on the subject.
Science is organized knowledge. Wisdom is organized life.
Well CD17 I think you've come to the right place. re:" I read in a small business magazine recently that the number one home based business now and in the coming years be home renovations in Canada this is a very hot market." I think that's probably going to be very true. There are several factors that working you favor in that regard in that our existing housing stock continues to age and there is a shortage of skilled trade labor meaning that for those of us with the trade skill there is going to be increased demand. Now you just have to make sure you have the requisite business skills to keep yourself out of trouble too. (
You might want to read the latest State of the Nations Housing Report 2003 (PDF) from the The Joint Center for Housing Studies at Harvard University to see what the future is looking like and there is also the (PDF) Measuring the Benefits of Home Remodeling 2003 report too. yeah it may be specifically about the U.S. but I think you'll still find the information relevant.
View ImageNext on my list you should pick-up and read "The E-Myth Contractor : Why Most Contractors' Businesses Don't Work and What to Do About It by Michael E. Gerber.
I think this is a great book in that it helps you sort out the craftsperson-artisan mentality from the business person consciousness and see how they interrelate and sometimes don't and shouldn't interrelate.View Image
There were some real good discussions both here and on the JLC site years ago on Gerber's original work The E-Myth which is now The E-Myth Revisited so maybe it's time to bring that all up again for everyone to look at and debate again.
And without putting it in second place by listing it second I think you should also get the newly revised and updated book by David Gerstel Running a Successful Construction Company I bought the original years ago and just recently bought the revision again and found tons of good new stuff in it.
I don't know how much you understand about the mechanics of or markup and margins but that's something you have to get down too. You might want to start by reading my paper Markup: Comparing the Traditional Volume Based Markup
vs. the PROOF/Indexed/Labor Allocated method and then (if you agree the premise I present) you can download an Excel spreadsheet I've created that you can use to help yourself set an appropriate billing rate.
A Microsoft Excel Spreadsheet
(Windows & Macintosh)
3/15/2004 7:06am — Version 8 published
I also think that that the JLC Plus CD-ROM is an essential too and it contains craft and trade articles going back to 1986 as well as all the business information, just tons of great stuff. (Of course you already have a FHB subscription correct?)
Well that's all I got for now other than you should ask specific questions on business issues here in these forums.
View Image
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Jerrald,
I love your posts. I always walk away with something new and useful to apply to my own business. That "E-Myth Contractor..." book looks like one I should get my hands on. Thanks.
it's a good buck, quick read too.
Thats kool DP, the "E-Myth Contractor..." is always a good one. As soon as you've read it start a topic on it here and we'll see where it goes. It's always good for some debate because people (contractors and tradespeople) seem to polarize on what he talks about, either agreeing or strongly disagreeing with what the book has to say. (I happen to agree very strongly with him, the author Michael Gerber, in case anyone was wondering)
View Image
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Darn it Jerrald, I'm going to have to work at reading and learning again!
Talk to you soon.
Quality repairs for your home.
Aaron the HandymanVancouver, Canada
Excellent reading list put together!
Here's a few more ideas to get you started:
State governments usually have free advice and seminars for the self-starter.
S.C.O.R.E.---A group of retired volunteer businessman who donate their time to small businesses.
A business plan is a must.
An accountant will help get you started in the right direction so that after the first year your not trying to wade through a shoe box of receipts. Have him/her show you how to keep your own records with quick books.
Marketing: Word of mouth
Good luck!
MES
unemployeed and have a potential customer base ....
I'd say have at it ... no better time, eh?
The marketing background will probably help ....
and if it involved direct sales ... you'll really be a half-step ahead.
I've had quite a few different jobs before I went back to the very first ... remodeling with Dad starting at 8 yrs old ... and the sales career I'd established has definitely helped the most.
Most anyone can build ... even more than a few guys can build well ... but it's the selling that keeps the money rolling in.
Give it a shot .... go legit ... more money and an easier time in the end ....
Stay in touch.
Jeff
Buck Construction, llc Pittsburgh,PA
Artistry in Carpentry
What Jeff said about sales can't be stressed enough.
I received a call from a potential customer the other day and as usual he said he was referred by another customer.He went on to say how pleased and satisfied the other customer was with me and was hoping I'd be able to come and give him an estimate.
Only thing is we haven't even started the other customer's job yet so either I'm a better salesman then even I thought or somebody "likes me" likes me.Vince Carbone
It seems that in my area it would be tough to start out as a small renovator if you wanted to do it the right way. So many people I know hire contractors to do one room renovations, such as kitchen, bath, basement. They never pull permits or use licensed electricians. Its all who can do the job fast and cheap. Additions are a different story, then it seems like everyone does it the right way.
that's whay the sales/marketing background could be helpful ...
as long as it's "in the real world" experience and not behind a desk/in theory experience ...
part of the job is to target the right market.
I have tons of people like you described living all around me ....
which is why I drive thru an hours worth of morning traffic to work in the richer neighborhoods where I have a better potential customer pool.
JeffBuck Construction, llc Pittsburgh,PA
Artistry in Carpentry
Rich,
What Jeff Said!!!!!!
Don't waste a huge amount of time or marketing effort on those who want a cheap job. Market towards those who will pay to have a real professional do the their work.
I live in a nice area. unfortunately it is surrounded by towns full of guys who are all too willing to build a deck for $12.00 an hour cash. Don't bother to compete against those guys. You don't want the type of customer who would hire them anyway.
I agree completely.
I do most of my own work, but when I do hire someone to do something for me at my house, my biggest priority is that the person knows what they are doing, does top quality work and actually cares about it and takes pride in it etc... they bring something more then just labor to the table, some value engineering and service.
I have no problem paying a premium, even a large premium, for these type of people. They are not easy to find either, lots of guys think they are like this, but very few really are.
Nothing makes me happier when I know that the job is going to get done and get done right and it is also nice to just be able to call that person up and let them go right at it, then have to talk to many contractors before you find one you like.
If you try to compete on price, then you will eventually go broke.