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1 Three months wages, not including working money.
2 Clean and tidy truck or van (age not important)Mine has got me three jobs because its tidy.
3 libilty insurance cover.
4 Know what jobs you can do and what to walk away from.
Experance has told me no painting or staining.(I mainly stick to carpentry)
5 Stick to your terms and keep a list of extras, do the paperwork every night
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And while I agree with Rob too, I especially like Ryan's thoughts on not getting into debt to start the business. Make your jobs pay for getting tools, and use cash. Getting a short term loan situation that you and your banker are comfortable with can be a great thing for cash flow during construction, just don't misuse it and start using the money for other things, it all can get messed up pretty fast, because surprises tend to be bad ones, not good.
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KWB,
Here's mine:
1. A good concrete man.
2. A good plumbing and HVAC Co.
3. A good electrician.
4. A good roofer.
5. A great painter.
I suggest you do the carpentry work yourself if you can. Or hire a good carpenter who you can trust. You will eventually have to hire good help because you will spend the majority of your day on the road talking with perspective clients. You can't drum up the next job if your tied up on the current one.
Good subs can make or break your business. You can have all the funds or integrity in the world, but if the plumber don't show and your clients can't take a shower when they get home from work........well, they ain't happy. Unhappy customers are the kiss of death for a small businessman.
About funds.......You will have to have enough to pay the carpenters, or whoever, who work for you on a weekly basis. If they don't get a pay check on Friday, don't expect them show up on Monday. Make your customers pay the bills. Try to finance as little as possible out of your own pocket. You may have to finance some, but borrow as little as possible. I didn't borrow a dime to start my business. I never have. I started the whole business with the $100.00 my wife and I had between us when I got laid off my last hourly job. That's a true story. We now have 15 employees and our gross receipts increase with each year. Just start small and your business will grow. Good credit will make your life easy. Bad credit will ruin your business. Also, you can do a million good jobs and a few people may know you. Screw up one, and everybody knows your name.
Good luck,
Ed. Williams
*priorities:pay your men firstuncle sam secondsubs thirdmatl suppliers fourthyourself........lastGet good employees, and keep them . Get a payroll service, that has access to your checking account, that makes your federal & state deposits for you, that files your quarterly reports. More employers get into deep doodoo by falling behind on Withholding deposits. Uncle will padlock your door just to get your attention.Get a good insurance person with a package plan: put your truck, liability, Comp. & tool package all with one agency.Find a good lumber yard and develop a relationship with them.Work with subs with integrity and keep yourself above reproach. Always give the benefit of the doubt to your customer, but don't give them any reason to think you are corruptible. Join a professional association like the Local Homebuilders or Remodelers Council. They can be your support group.Never badmouth the competition, what goes around gets around.Stay out of politics, or work oustside your town.make sure your wife can live on the edge, man this business can be a real E-ticket ride.Figure your costs, figure your overhead (ALL OF IT)pay yourself, you are the most valuable employee, add profit to all of your jobs and SELL, SELL, SELL. If you can't get your price, don't do the work.
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1. do you love people (at all frames of mind and taste)
2. do you love doin it
3. do you want to own your own buisness
4. do you want to do it the way you think it should be done, and be ready to be humble at the same time
5. are you excited!!!!!!!!!
I'll tell you theres a lot of good advise in the previous responses and heres my little soapbox. I started with very few tools and little money, but I always gave the customer the best job I could do and shot strait with them. I'll tell you I havent worked a weekend in 8 years, always kept my family first, payed my subs as soon as they gave me a bill, treated them like gold, and never quibeled about their bill. (and their worth it, I love those guys) I,m not filthy rich, but I do okay in my book. I love my employees and my customers,and I truly love what I do and wouldnt have it any other way. One thing I'll share with you that was told to me by a very seasoned remodeler that sticks with me to this day as probably one of the best bits of advise I've ever heard. "anyone can do well on 95% of the job, it's the way you finish the last 5%"
Good Luck
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I have been doing home remodeling and side jobs for about 5 years. About 2 to 3 a year. I work as a PM for a general contractor at the present time but get much more satisfaction from doing remodeling projects. What do you feel are the 5 most important things to consider before starting a home remodeling business.
*if you are married, astong marriage. Getting started can really test one. LOTS of capitol. If you are used to maintainig a certain life style you will need financing to maintaain that & the business. Lots of time. It will require a tremendous amount of time.Time from your family, time from week ends off. No fishing.If you haven't been buying a full compliment of tools, start. Compressor, guns, good saws, a newer truck cause the bank won't loan you at a good rate when you are starting.Guts
*ability, want-to, integrity, patience, credit
*People skillsRich Beckman
*I feel I have a strong marriage and a nice collection of tools but how much capitol will I need. When I go to the bank will they want to see any kind of business plan.
*Wife with a good job,benifits,medical insurance.Operating capital/savingsGOOD toolsSales knowledgeLeather skin
*1 Three months wages, not including working money.2 Clean and tidy truck or van (age not important)Mine has got me three jobs because its tidy.3 libilty insurance cover.4 Know what jobs you can do and what to walk away from. Experance has told me no painting or staining.(I mainly stick to carpentry)5 Stick to your terms and keep a list of extras, do the paperwork every night
*KWB,It's pretty unlikely that you will get a business loan to start a remodeling business. Banks know that statistically, you won't make it. (sorry)You may qualify for a personal loan and they won't want to see a business plan for this. However, if you say "Hi, I've always payed my bills on time, I've got great credit and I'd like $10,000 please so that I can quit that job." they might not want to help you.Actually, I would suggest not getting a loan. Debt burden is one of the biggest reasons for new businesses not turning a profit. Debt really zaps your resources. Start small, get accounts with your suppliers and let them finance your business from month to month. As long as you pay on time, they'll finance you for free, not 13% like at a bank. Or worse, 29% on a credit card. I knew a friend that had that rate once.
*I could'nt agree with Rob Rehm more. Relationships suffer unless she knows what kind of dedication it takes. Plenty of operating fundage, time is an issue most often overlooked- people want the work completed, and they give less than a damn if your supposed to be at the race track or its your wifes birthday, and when it comes to tools- do research and buy the BEST, theres nothing more frustrating than getting half way through a job to have a major tool break, time and profit suffer, kind of like an ad I remember " You can pay now, or you can pay a lot later". Last but not least dedication, guts and the willingness to let those race weekends slip by for a few years. Good luck! Its a great trade to be in with many good friends and people to meet along the way!