Are you planning on joining the home industry but have no idea where to begin? Well, you are not alone!
The home improvement industry is a very different industry compared to others. There are several risks associated while carrying out home improvement projects.Breaking into the home improvement industry goes beyond having the right skills, you also need a sturdy business foundation. For insights on forming an LLC, this legalzoom llc review offers valuable information to ensure your business is set up correctly.
It is not all doom and gloom. The home improvement industry is, in reality, a rapidly expanding sector and is extremely profitable if done right. It is also exciting when you know precisely what you are doing.
The Home Improvement Industry Landscape In The 2020s
The home improvement industry showed an appreciable growth rate for a long time. The rising global trend of urbanizing and an increasing fraction of disposable income have been fueling the home improvement sector more than ever before.
The rapid development of technology and growing demand for smart home appliances and smart homes as a whole has also played a pivotal role in the success of this industry, especially in the developed countries like the United States of America (USA), Canada, and the United Kingdom (UK).
According to a study, the home improvement market was a staggering USD 800 billion in 2018 alone and is forecasted to rise to USD 1,120 billion by 2025. It is safe to say that progress has only been accelerated lately due to the pandemic.
The coronavirus pandemic has pushed everyone into their homes. The unexpected spike in work from home (WFH) culture in 2020 and the shutdown of several educational institutions all over the globe in the same year brought about a lot of free time to bond among families.
Being confined to the walls of their homes, families all over the globe sought to make changes to their homes to pass time and for newer experiences while being in the same place. As a result, the home improvement industry started to thrive and its expansion accelerated ever since.
So, if you are joining the home improvement industry, then there has never been a time as good as now!
Starting Your Home Improvement Business
Starting your own home improvement business takes a lot of courage. To start your business, make sure you first check these four boxes:
- Have a practical plan backed by quantifiable data
- An uncompromising attitude to reach your goals
- Relevant technical skills and knowledge
- Fundamental know-how of management, finances, and recording
Firstly, you should have a crystal-clear self-awareness. Ask yourself why you are doing what you are doing. Are you truly passionate about starting a home improvement, or are you simply doing it because it seems easy or the future looks bright?
The home improvement sector is undoubtedly highly rewarding. But like with any other business, it has its risk. Below are some of the risks and hurdles that you would likely encounter when starting your own business.
1. Restrictions And Monopolies
The first hurdle you would face is probably a monopoly of an existing company.
There are many home improvement companies out there, so you should position yourself such that although your company is a new kid on the block, you still stand out and stand tall in the crowd. Doing this can get ridiculously difficult if you are up against a company that has been around in the region for several decades and has tipped the scales of competition.
You should also consider the government restrictions and other restrictions like unavailability of the required skills and labor.
2. Expensive To Enter
The home improvement industry is a rather capital-intensive sector. If you are starting out your business in a region where the cost of living is very high, then you are likely to face many financial hurdles.
You should not just have enough capital to start the business and enter the market, but also have enough reserves to sustain the business in the event that you do not get clients right off the bat.
3. Obtaining Finance
Another aspect to consider when starting your own home improvement business is financing.
Since it is a capital-intensive business, you should be able to get loans easily and fast to pay your bills before you start profiting off of your business.
But it is not just for yourself. When you are performing jobs for clients, sometimes they could be looking for a radical change, like getting an in-ground swimming pool for their homes. In-ground swimming pools could be very expensive and, in such cases, you can offer pool financing to clients, where a different financial party would take up the job and alleviate some of the pain from your shoulders.
4. Ease Of Marketing
Like with any other business, marketing is of paramount importance even in the home improvement industry. Without marketing, nobody outside your friends and family circle would know anything about your business.
How To Become A Home Improvement Contractor?
As a home improvement contractor, you not only have the pleasure of being an owner but also get to take part in field jobs when you work for smaller clients. You are also gifted with a lot of flexibility in your schedule and independence in your work.
To become a home improvement contractor:
- You should have relevant educational qualifications
- Acquire relevant skills
- Gain required experience
- Get licensed
- Get insured
- Learn business management fundamentals
If you want to land more projects and you also want clients that are ready to pay more, then you should invest your time into networking. Join associations like the Wisconsin Builders Association and attend webinars and other programs to meet and get to know like-minded people in the same niche as you.
To conclude, if you are thinking of joining the home improvement industry and if all your finances and plans are in order, then this is the right time for execution.
In the words of the famous entrepreneur Gary Vaynerchuk, “Ideas are worthless. Execution is the game.”