Tips for Starting a Damage Restoration Business
Table of Contents
Restoration companies do repairs and cleanups after a fire, storm, or water damage. Experienced contractors and home service professionals find value in being there for homeowners and business owners dealing with the unthinkable.
Plus, there’s a growing need for damage restoration work due to growing numbers of people exposed to flood and wildfire risks across the country.
The business opportunity may be lucrative if you’re a skilled professional, but how do you get your new initiative off the ground? Initial financing, networking, and certification are all critical considerations. Follow these tips for starting a damage restoration business and how to get it off the ground.
1. Do Your Industry Research
Even if you’ve spent years working in the restoration and remediation industry, there’s always more to learn before you become an entrepreneur. Stay up to date and read articles online to understand current trends in the business. Then, dive into local market research to get a feel for current competitors and seasonal market trends.
Another good option is taking online classes, such as the IICRC WRT/ASD five-day course. Here you learn skills such as extracting water using different kinds of equipment and monitoring meters. Learning this information can help you be successful in the industry and develop the knowledge you need to fill in any skills gaps.
Once you feel ready, you can start writing your business plan. Keep in mind your purpose in starting the business, your understanding of local market conditions, and the skills and services you bring to the table. A good business plan will help you with the remaining steps.
3. Define Your Core Services
The damage restoration business can include a variety of needed services. Adding more services increases your profits and provides convenience to your customers. However, stretching your business too fast too early can lead you to overextend yourself and your budget for equipment and training. Determine the services that will be most essential to your small business, and grow from there.
When you have your list of core services, make sure you’re set up to move forward with them. Consider any additional licenses and skill training these will need. For example, roof restoration requires knowledge of city building codes, while hazardous waste management requires extensive safety training.
Here are some other services damage restoration businesses can offer clients:
- Carpet and rug cleaning
- HVAC and duct cleaning
- Furniture cleaning
- Steam cleaning
5. Work Out Business Finances
Dealing with finances can be a little overwhelming at first, but have faith in your business plan and professional experience. First, you’ll need to determine initial funding for your business venture. Many entrepreneurs take out small business loans to get the capital they need for equipment, initial hiring, and other business expenses.
When your funding is determined, you’ll need to finalize your pricing structure. Consider taking an estimating class to figure out how much to charge. You can also see what other companies in your area ask for to get a feel for current market prices.
You’ll also want to find a good agency specializing in business insurance to help with risk management. Ask for recommendations and read online reviews to find a reputable professional. You can even find testimonials from past clients on social media sites.
6. Gather All Your Supplies
You need to rent or buy special equipment to start a restoration and remediation business. If you want to save money, buy enough equipment for smaller jobs and then rent out more specialized supplies on a need-to-use basis.
Here is a list of some of the main equipment you’ll need:
- Water extractor
- Moisture meters
- Air filtration devices
7. Get the Right Certifications
You don’t usually need a license for restoration damage. Still, some claims adjusters and insurance agents require the Institute of Inspection Cleaning and Restoration Certification (IICRC). You will learn industry-specific services and be seen as a more reputable source. You can obtain this certification through the IICRC website.
You will also need liability insurance, bonding coverage, and a business license. This is required to run a compliant business because it protects you and your clients.
Starting a Damage Restoration Business
Storms and fires leave homes vulnerable to damage, and restoration companies are often the first call to clean up the initial mess. You may want to start your own business due to this high demand, and we’re here to help.
Build a solid plan, determine your service offerings, and secure financing. Follow these steps to run a successful company and earn a stellar reputation.
Need a small Business loan for your damage restoration business? You can get access to the necessary funds in just three steps. Check out Capital for Business funding solutions or apply for a business loan today.
Evelyn Long is a writer and editor focused on home building and construction. She is the co-founder of Renovated, a web magazine for the home industry.
Recommended For You