Start a home improvement business. Home improvement and renovation business

Banks 19.01.2023
Banks

Gone are the days when people made their own repairs at home. Today, more than 90% of the population seek help in this matter from special organizations or individual entrepreneurs. Therefore, despite significant competition, it is possible to find your niche in this area, but for this you will have to work hard. Getting your home renovation business up to par requires not only an original idea, but also a carefully thought out plan.

Before building a business, you need to analyze the market situation, identify your competitors, evaluate their strengths and weaknesses in order to rely on this information in the future.

Assessment of the competitive environment and demand

It is difficult to assess the market for apartment renovation services, since a large number of firms that are engaged in apartment renovation work according to “black” or “gray” schemes, underestimating the actual amount of revenue in official reporting. Nevertheless, market experts say that the service sector for finishing apartments is very saturated.

In order to break into the market and create sustainable demand, you will need to work on your reputation and expand your customer base. This is due to the fact that the best way to attract customers is the so-called word of mouth.

Therefore, from the very first days of work, it is necessary to pay attention to the quality of the services offered, compliance with deadlines and agreements, polite and attentive treatment of the customer.

Do-it-yourself apartment renovation is gradually becoming a thing of the past, today more and more families are resorting to the help of professionals in this matter

Finding a working idea and choosing a target niche

At the start of your activity, you need to decide in which price segment you will work.

The premium segment implies a larger amount of investment, the need for an attractive office to receive clients, the maintenance of designers, architects, landscape designers, etc. on the staff.

Entering the economy segment is much easier and cheaper, but incomes in it will be relatively low, and competition will be high.

The RUSGLOBAL company provides data that about 60% of customers order cosmetic repairs worth up to 200 thousand rubles, 30% - up to 1 million rubles, and more than 1 million rubles - less than 10%.

The optimal option can be called the middle segment - the cost of entry is acceptable, the competition is moderate. At the same time, you will be able to serve clients at any price level, depending on the situation: such narrow specialists as a designer or architect can be outsourced, and meet clients on their territory, at least for the first time of work.


The middle price segment is the best option for a target niche for a novice businessman

How to organize the work of the company

In parallel with the choice of the target segment, you should decide on the concept of work: will you perform only a specific service or will you take responsibility for the execution of a full list of services that may be of interest to the client. In conditions of rather tough competition, the second option seems more appropriate. Even if there are no specialists in your team, you can attract third-party workers on a subcontract basis. Clients will appreciate this approach.

Choice of funding sources

It's great if you have savings that you can invest in a business. Otherwise, you will have to think about a loan. Few banks will finance the creation of a new business, so you will receive a loan as an individual. The interest rate in this case starts on average from 14-15%. Another option may be to attract investors - private or corporate. Recently, this method has become increasingly popular.

After you have decided on the general concept of work, target audience and project financing, proceed to the implementation of the main business plan.


Get ready for the fact that at first you will have to finance the business from your own funds

Detailed business plan of the company

The business plan includes a description of the following stages of work: registration of a company, recruitment, drawing up a range of services and a price list, organizing an advertising campaign.

Features of registering a business in the field of apartment renovation

The registration stage does not present any particular difficulties, since, unlike construction, in the field of repair there is no need to obtain any special permits or licenses.

Your actions may be as follows:

  1. Register as a legal entity. You can choose the form of a limited liability company (LLC) or an individual entrepreneur (IP). The latter option is simpler and less expensive.
  2. Choose the form of taxation. Apartment renovation is a household service, so you can choose not only a simplified form of taxation (STS), but also a single tax on imputed income (UTII). However, remember that you can apply UTII only when working with individuals. If you will also be engaged in the repair of offices and other non-residential premises, you will have to switch to the simplified tax system. Under this system, 2 rates are defined: 6% of the total amount of income or 15% of the difference between income and expenses. You can choose any of them.
  3. An important stage is the production of a seal and the opening of a current account.

In addition to these points, do not forget to also draw up standard service contracts, which you can later use to work with clients, and in case of an unfavorable development of events, in court. You will also need a detailed price list with a description of the list of work performed and prices.


Registering a business does not take long, home renovation business does not require special licenses or permits

Recruitment

Personnel is the most important resource for any construction company. After all, the quality of the work performed will depend on the professionalism of your employees, their conscientiousness and commitment. Finding competent and hardworking decorators is not easy, but it is necessary to try, as in the end it will affect your reputation and the nature of the recommendations.

In a minimum format, you will need specialists in the following specialties:

  • tiler;
  • finisher;
  • electrician.

The functions of an accountant, foreman, designer at the first stage of activity can be taken over or outsourced.

It is desirable that the business organizer is well versed in the topic of repairs.

As a rule, the form of remuneration for these specialists is piecework and depends on the amount of work performed.


A team of professionals is the key to the success of the company

Table: Calculation of expenses for the wages of employees

Determining the range of services and drawing up a price list of orders

As noted above, it is desirable to provide customers with the fullest possible range of services. Services can be:

  • dismantling of coatings;
  • alignment of walls and ceilings;
  • wallpapering;
  • painting walls and other surfaces;
  • laying tiles;
  • laying laminate, parquet;
  • radiator installation;
  • plumbing installation;
  • electrical services and other works.

Additional services: installation of stretch ceilings, Smart Home systems, plastic windows, turnkey glazing and insulation of the balcony, etc. For their implementation, third-party companies can be involved in part or in full.

The setting of prices for these services will largely depend on the region of operation and prices prevailing in the local market. For a medium-sized city, the average repair bill is 1 sq. a meter of turnkey housing will average 2-7 thousand rubles.


It is important to provide the maximum number of services for the convenience of customers

Table: income calculation for one construction team

Questions about the purchase of equipment and inventory for interior decoration

To carry out repair and finishing work, you will need to purchase equipment and inventory. The minimum required list may be as follows:

  • power tools (hammer drill, drill, grinder, curtain cutter, screwdriver, etc.);
  • painting tools (rollers, brushes, spatulas);
  • locksmith accessories (wrenches, pliers, screwdrivers, hacksaws);
  • plumbing equipment (keys, pipe cutter, pliers, etc.).

It is important to understand that in order to perform high-quality repairs, in addition to qualified workers, you will need professional expensive equipment. On average, the cost of the minimum set will be about 300-400 thousand rubles. At the first stage, these costs will be enough for you to start full-fledged work. In the future, you can rent a warehouse for storing equipment, building materials, etc.


Buy only high-quality tools and equipment

How to grow your business and attract customers

Referrals from past clients are considered to be the most effective way to attract clients in the home renovation business, but this tool will only work after you have built a client base. To do this, use the following proven tools:

  • posting ads in the entrances of residential buildings, distributing flyers, especially in areas of new buildings;
  • advertising in local newspapers. It will not require a lot of money, but the effect will bring from time to time;
  • Internet advertising. Create a web page, preferably in the form of a "one-pager" - indicate the types of services provided, photos with examples of work, reviews of real customers, various options for contacting you. To make your site work, place content advertising in search engines (Yandex and Google), maintaining pages on social networks will also help;
  • reaching agreements with employees of real estate agencies, sales departments of developers, mortgage departments of banks, interior designers. For assistance, you will pay a certain percentage.

Now there is high competition in the topic of repair, so at the first stage you will have to do it cheaper, but always with high quality, in order to make a name for yourself, and it was distributed through word of mouth. At first, you should splurge on expensive and high-quality tools in order to do the job better. Then it will all pay off, plus it will add significance in the eyes of customers - not a “caricature montage”.

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Cons and Pros of Starting an Apartment Renovation Business

All the risks that are typical for the apartment renovation business can be conditionally divided into external and internal.

External include:

  • a highly competitive environment. In a highly competitive environment, many companies lower their prices to attract more customers. However, this is not the most efficient way: as a rule, only large organizations can afford to significantly reduce prices. If you have a small turnover, you will not be able to compete with them. Therefore, it is best to focus on the quality of services provided, the professionalism of employees and an individual approach to each client;
  • decrease in demand for services. Against the backdrop of the prevailing negative economic conditions, a decrease in the purchasing power of the population, the demand for apartment renovation services has decreased;
  • seasonal nature of the business. Although repairs can be done at any time of the year, the demand for services in winter is significantly reduced, and this must be taken into account when planning your activities.

Internals include:

  • reputational risk. It can be associated with poor-quality performance of work, failure to meet deadlines and other factors. It is in your power to avoid such moments. Remember that negative publicity about the company spreads much faster and wider than positive;
  • the risk of non-payment for the performance of work. To reduce the impact of this risk, be sure to document the relationship with the client;
  • downtime risk. To ensure a constant flow of customers, pay attention to advertising: it is important that it is not episodic, but permanent.

In order for the business to prosper, be attentive to the study of risks and think about ways to work with them.

Calculation of profitability and payback

Below is a calculation of the main indicators of business performance, including profit, profitability and payback period.

Revenue for the year is calculated taking into account risk factors, including the seasonality of sales (80% of the maximum amount of income, and 50% within 6 months in the off-season period).

The expenses include the cost of salaries of employees, payments for taxes and contributions of the entrepreneur (STS and social contributions for oneself), as well as expenses for the maintenance of equipment, promotional activities, uniforms of employees, unforeseen expenses.

The initial investment includes the cost of purchasing equipment and primary marketing (website, advertising campaign, etc.).

Table: business performance indicators

The payback period of the business will be about 3 months, and the profitability will be about 40% -45%.

Video: recommendations for organizing an apartment renovation business

The apartment renovation business is a promising area of ​​activity that can bring sufficient income to its owner, while not requiring large initial investments. This type of business should be done by those who are sufficiently versed in the field of repair and construction work. Then you will be able to competently organize the workflow, control the activities of employees and ensure a high level of quality. In the future, you can develop the business and transform the IP into a diversified company. Recent history knows many examples of how entrepreneurs starting their business from scratch managed to become owners of large holdings.

The modern real estate market is very active. This is evident in the demand for professional services for the repair and decoration of premises. Analysts believe that, despite the rather difficult economic situation, this trend will continue steadily.

Are you interested in the idea of ​​opening your own apartment renovation company? Then you need to know where to start and how to deal with the competition.

First advice: first you need to decide on the scale of the business and the list of construction services that you will provide.

Choose a field of activity

  • Redecorating. It includes updating the state of the premises, but only superficially (does not imply interference with the original building, does not provide for the replacement of windows and doors).
  • Maintenance. Includes cosmetic repairs, as well as strengthening the foundation, eliminating dampness and cleaning the ventilation.
  • Capital repairs. The most ambitious works: redevelopment of the premises, alignment of the walls are components of the overhaul.

How to register the activity of a repair company

Now let's talk in more detail about how to open an apartment renovation company. If you do not register your business officially, the following consequences await you:

  1. Receiving only low-paying orders. The main clients of firms without official registration are individuals who want to save as much as possible.
  2. You will not be able to file a complaint against a customer who has decided to leave you without payment for work.
  3. Expect a fine for non-payment of taxes.

To perform cosmetic and current repairs, you only need to register a company. Moreover, for citizens of Russia, obtaining a license for construction work has been abolished. However, in order to get the right to carry out major repairs, you need to join the SRO, since this type of repair includes redevelopment of the premises.

In order to join the SRO, which determines the admission to various kinds of work and gives permission to carry them out, it is necessary to collect the following documents for registering a company:

  • Document on the education of managers and employees. In the absence of education in the field of construction, you are allowed to perform only cosmetic repairs.
  • Copies of work books of all employees in the state, as well as employment contracts.
  • Certificate of whether it is possible to allow gas workers, electricians and high-altitude fitters to work in hazardous work.

Tips for choosing premises and warehouse for this business

The step-by-step instruction for opening includes several stages, and the first of them is the search for a room. There are several suitable options:

  1. Communicate with clients on the territory of the customer, sign documents there, and deliver building materials to the site from the market. Thus, there is no need to look for an office and a warehouse.
  2. Enter into an agreement with another firm that you will bring clients to their premises for a nominal fee.
  3. Rent a warehouse where building materials and tools will be stored. Thus, you will have the opportunity to purchase goods in bulk, which will be more profitable.
  4. Rent space for both office and warehouse. In the office, you will organize work and meetings with clients, and store materials in the warehouse. The most expensive option.

At first, you will not feel the need for a warehouse for building materials. It will be more convenient and easier to deliver everything to the object.

Only when you have a large amount of various equipment, then you need a place to store it. An ideal option would be a room equipped with shelving for convenient storage of materials.

Do not forget about safety. It is necessary to protect the warehouse from opening, as the equipment is not cheap. The damage from the theft will stop the development of your business indefinitely.

There are several options for choosing the necessary instrument, which is influenced only by the financial capabilities of the company:

  • Hire workers with their own tools. In this case, their wages should be higher than those of workers without tools.
  • Buy only consumables.
  • Rent tools.
  • Buy everything you need yourself.

Proper selection of personnel and formation of a team of workers


You don't need a large team to start a business. A quartet of electrician, plumber, plasterer and carpenter will suffice. Specialists with higher education are required to obtain a license.

One of the conditions for obtaining a license is that 50% of all employees have higher education.

There is no need to confirm your qualifications only for a young employee who has had less than three years since graduation from the university, in all other cases it is necessary. Do not ignore the importance of employee validation, otherwise it will reflect badly on your business.

Specialists required for permanent staff.

Approximate data:

  • Monthly income - 330,000 rubles.
  • Net profit - 119,000 rubles.
  • Initial costs - 380,800 rubles.
  • Payback - from 4 months.
This business plan, like all others in the section, contains calculations of average prices, which may differ in your case. Therefore, we recommend that you make calculations for your business individually.

In this article, we will draw up a detailed business plan for apartment renovation services with calculations.

Service description

The company is engaged in apartment renovation. Services are provided for the decoration of the apartment, overhaul. The organization does work of different levels, but mainly focuses on the middle class. Please note that this business plan is not designed for a large company, but for start-up entrepreneurs.

Market analysis

Services for the provision of apartment repairs is a fairly profitable enterprise. In many cities, the niche is not crowded, and the entrance to it is free. This opens up excellent prospects in this business. Firstly, the costs will be reduced to wages, because the client can buy raw materials on his own or pay separately. To these expenses, you can add funds for advertising. The remaining categories of costs can be considered insignificant.

In this business, it is very important to understand what you are working with. The ideal option would be if a private entrepreneur worked in this business area, knows the prices, the required quality and sequence of work, understands how the service should be promoted.

Most often, such enterprises are opened by former workers who decided to try their hand at independent swimming.

Remember that the two most important criteria are the quality of the services provided and advertising. Moreover, the second aspect has no less effect on success.

Even in developed cities, there are no large repair organizations. More precisely, there are very few of them. Benefits can be obtained from a large enterprise, only costs rise and often reduce profitability. Therefore, small firms will be the main competitors. The difficulty lies in the fact that it is quite difficult to assess their impact on the market. Many today work in the gray segment of the market, their activities cannot be traced in any way. Needless to say, many do not even have their own offices.

How can you win the market? Quality and promotion of services. Active advertising will become the main engine, but more on that later.

It is quite difficult to draw up a specific portrait of the buyer. Today, many use the services of such repair teams. These are not necessarily wealthy people. Although, large orders can be obtained from them. Therefore, it is worth building your work in such a way as to attract the attention of people with an average and high level of income.

If we talk about age, then most often people under the age of 45-55 apply to such offices. The older generation, as a rule, makes repairs on their own. Pensioners often simply do not have enough money to use such services.

SWOT analysis

When creating your own organization, you need to evaluate the internal and external factors that affect the operation of the business. The impact of the external environment cannot be changed, but many consequences can be avoided, and opportunities can be used for good. External factors include:

  1. Possibilities
  • Free entry to the market.
  • different price categories.
  • Mobility of own production facilities.
  • Opportunity to optimize own production.
  • The possibility of applying favorable tax regimes (STS, UTII).
  • Great opportunity to expand your own business.
  1. Threats
  • Average level of investment (due to the high cost of professional tools).
  • The service is not a commodity.
  • Lack of guarantees of a constant level of demand.
  • Inconstancy of orders (blockages are possible or, conversely, the absence of objects).
  • High level of competition.

It is possible and necessary to work with internal factors. These include:

  1. Strengths:
  • Providing quality service.
  • Providing guarantees for the work performed.
  • Acceptable cost of work.
  • Qualified personnel.
  • Quality tools.
  • Short terms of work.
  • Providing a wide range of services.
  • Developed marketing and pricing strategy.
  1. Weak sides:
  • Inexperience.
  • Lack of customer base.
  • Zero business reputation.
  • Difficulty in finding qualified personnel.
  • Lack of staff training programs.

Based on the analysis of internal factors, the organization can follow one of the following paths:

  1. Strengthen your own capabilities through positive aspects, use them as a competitive advantage.
  2. Try to deal with weaknesses.
  3. Minimize the consequences arising from the presence of weaknesses.

Opportunity Assessment

Demand in this industry is difficult to estimate. Its peak is from April to October. But the rest of the time, the value of demand does not fluctuate much. You can reduce its influence with the help of a good advertising company and a permanent customer base.

Work will be carried out according to the following schedule:

Total: 58 hours per week. Per month: 252 hours.

Remember that according to the Labor Code of the Russian Federation, an employee cannot work more than 40 hours a week. In order not to hire additional people, you can arrange each of them for a part-time job, so that according to the papers everything complies with the law. Then each employee (namely, finishers and tilers) will have 1.45 rates. If this option does not suit you, you can arrange overtime or work on a day off.

Thus, there will be only one shift. You do not have to break the work into several teams. This will improve the quality of work and increase the level of responsibility.

After developing a client base, you can think about expanding, increasing the number of teams. It will also be possible to hire a foreman, rather than doing these things yourself. Soon it is worth thinking about a secretary or deputy who will be engaged in the selection of clients, phone calls, and advertising. The foreman can take on the responsibility of checking the work, coordinating the plan of services provided with the client. Additionally, you can offer a service for the purchase and delivery of materials, having previously agreed with any organization on the wholesale supply of raw materials.

Organizational and legal aspects

  1. or . OKVED codes that can be used:
  • 45.25.5 - Production of stone works;
  • 45.31 - Production of electrical work;
  • 45.32 - Production of insulation works;
  • 45.33 - Production of sanitary works;
  • 45.42 - Production of joinery and carpentry;
  • 45.43 - Installation of floor coverings and wall cladding;
  • 45.44 - Production of painting and glass works;
  • 45.44.2 - Production of painting works;
  • 45.45 - Production of other finishing and finishing works.

Remember that one main OKVED code must be selected, the rest must also be indicated.

  1. This type of activity no need to license.
  2. Repair of apartments according to OKUN (All-Russian classifier of services to the population) - a household service. Therefore, an entrepreneur can use not only, but also. Please note that UTII is provided only for the provision of services to individuals. If you will be engaged in the repair of apartments transferred to commercial real estate for legal entities, then you will need to switch to the simplified tax system. You can also get a patent and get certain benefits and privileges. But this will increase the initial cost. You can use the STS "Income" 6% or the STS "Income minus expenses" 6-15% (the rate is determined depending on the region).
  3. No permits are required. It is very important to take care in advance of drawing up contracts, acceptance certificates and other documentation that will not only confirm income, but also protect you from unscrupulous customers.
  4. Make a detailed price list that will help the customer navigate.
  5. It is better to get a seal, especially since today there are many online programs that allow you to track and manage funds in your bank account.

Marketing plan

Pricing strategy: Do not underestimate the cost of work. First, it can reduce the profitability of the enterprise to nothing. Secondly, such a move can completely frighten away potential customers. In this business, most often people associate the price of services with their quality. It is worth considering setting an average market price. If you are sure that there will be customers in a higher price segment, and the quality of work is at a level, then you can make the price higher than the average.

"Don't put your eggs in all the baskets at the same time." Firstly, this approach will cost a pretty penny. Secondly, the advertising company in the field of repair services has its own specifics. It is worth studying this market in more detail and choosing those types of advertising that have the greatest impact on potential consumers. These include:

  • Posting advertisements.

This type is considered the most effective way to attract customers. If possible, they can be pasted throughout the city. It is especially necessary to bypass new buildings or objects under construction. Mostly such announcements need to be pasted directly on the entrances or inside them.

  • Advertisements in newspapers.

It is worth placing them in all the famous city newspapers. The cost of such advertising is low. Here it is very important to flash in the newspapers regularly. Weekly announcements will remain in memory, if necessary, a person will look in the newspaper and find the right phone.

  • Internet advertising.

This can include maintaining your own site (better). And you need to fill it to the maximum. Make a price list, talk about your masters, show examples of work (preferably with video and customer reviews).

  • Word of mouth radio.

This is a free form of advertising. They cannot be controlled directly. But the quality of your work will ensure the receipt of new orders. You can also hand out your business cards to satisfied customers. This type of advertising begins to act, as a rule, after the first 5-10 orders. Unless, of course, the quality of your work is at the highest level. Even if something is done wrong, you need to try to correct the shortcomings, to satisfy the customer's requests as much as possible.

Do not forget that the most important thing is the systematic and correct focus of your advertising.

Calculation of projected income

Production plan

As such, no space is required for work. At first, you can meet on the territory of the customer, all the more you still have to evaluate the apartment, draw up a plan and estimate. As a last resort, you can always take advantage of renting a room. Of course, when the organization becomes famous, has a client base and the entrepreneur wants to expand, it makes sense to consider renting your own office, as well as hiring a designer. All this will increase the range of services offered, and improve the reputation of the company.

You can rent a small room for overexposure of inventory. There is no need to make repairs.

Thus, you do not have to spend money on repairs and furniture. But here the tools will require serious costs. Our organization will employ two teams of finishers (two people each) and one tiler. They all need their own tools and supplies.

You will have to spend a lot on tools for 5 people. This includes various drills, screwdrivers, mixers, levels, goats, grinders and much more. Of course, it is better to buy a quality instrument right away.

Consumables do not include the cost of raw materials required for repairs. This is paid by the client and provides everything necessary.

It is worth buying uniforms for workers. Firstly, it will add respectability, and secondly, they will have everything necessary for work. This will provide them with comfort.

Salary will be calculated as follows:

It is better to take people with work experience, not necessarily with education.

When calculating, the amount is indicated “dirty”, that is, personal income tax and contributions are not deducted from the salary.

organizational plan

Financial plan

Monthly income 330,000 rubles
Expenses
Rent 6 000 rubles
Consumables 5 000 rubles
Wage 165 000 rubles
Advertising 20 000 rubles
Outsourcing (services of electricians, telecom operators, locksmiths) 8 000 rubles
Office expenses 2 000 rubles
Total cost: 206 000 rubles
Profit before tax 124 000 rubles
Tax 5 000 rubles
Net profit 119 000 rubles
Profitability (net profit / income) 36,06%
Payback (Initial cost / Net profit) from 4 months

We took the UTII tax, as it turned out to be more profitable in this case. In your particular case, it may happen that the USN will be more profitable. The amount was given per month. Remember that UTII is paid once a quarter. That is, for the quarter, the entrepreneur pays a tax of 15,000 rubles.

Risks

It is important to take into account all possible risks at the preparatory stage. They are usually divided into internal and external. The latter include the following risks:

  1. Decreased income of the population.

This can lead to a sharp decrease in demand for services. To fight, it is worth strengthening the advertising company, if necessary, lowering prices. These actions will help reduce losses and reduce downtime.

  1. Increasing competition in the industry.

To avoid this risk, it is necessary to offer customers only high-quality services. Be sure to be able to present yourself, your employees and the company. Become recognizable in your city, increase your business reputation, respectability. By the way, lowering the price here can help, but not much.

  1. Customer dishonesty.

All contracts must be formalized. You can work after prepayment. Consider risk insurance. If necessary, you will have to go to court to demand payment of the debt.

The probability of occurrence is medium.

Internal risks will include:

  1. Low level of personnel qualification.

It is worth more carefully approaching the selection of personnel. Consider ways to test skills, develop acts and other documentation that allows quality control. Register new employees for a trial period.

The probability of occurrence is medium.

  1. Downtime due to breakdowns of the equipment used, as well as a decrease in quality, slow work.

It is necessary to check the condition of the tools used in a timely manner. It is worth thinking about purchasing additional units of equipment. The quality of the purchased equipment should be given special attention. These must be reliable tools. One of the most popular companies is HILTI (Germany).

The probability of occurrence is high.

  1. Lack of staff.

It is worth thinking about ways to attract employees and motivate them for further fruitful cooperation. The search should be done not only through newspapers and television, it is worth using the Internet.

Probability of occurrence is low.

Important: Remember that you can write a business plan for your business on your own. To do this, read the articles:

Last request: We are all human and we can make mistakes, ignore something, etc. Do not judge strictly if this business plan or others in the section seem incomplete to you. If you have experience in this or that activity or you see a defect and can supplement the article, please let us know in the comments! Only in this way can we jointly make business plans more complete, detailed and relevant. Thank you for your attention!

The active development of cities has made the apartment renovation business a promising and profitable line of business. Most new buildings are rented with minimal or no finishing. Therefore, entrepreneurs working in this area, despite the presence of competitors, do not lack customers.

How to start an apartment renovation business: registration

Before you open an apartment renovation company, you need to go through the business registration procedure. Depending on the expected scale of activity, you can register an individual entrepreneur (individual entrepreneur) or LLC (limited liability company), as well as choose the appropriate taxation system (see).

If you plan to work with large customers and projects, the entrepreneur will need to obtain licenses to perform the relevant work (for each type of activity - a separate document).

The following types of work are subject to the licensing procedure:

  • plastering;
  • stucco;
  • mounting;
  • facing;
  • decorative;
  • glass.

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Types of services provided

When figuring out how to organize an apartment renovation business, you need to decide on the type of services provided. There are three main categories: cosmetic, major and improved repairs.

Redecoration involves laying tiles, wallpapering, leveling and painting ceilings, replacing linoleum, dismantling or installing skirting boards. Sometimes it is possible to replace plumbing. This is the most budgetary and simple type of work. Prices in this segment range from 1,500 rubles. up to 2,000 rubles for 1 sq. m.

Major repairs are by far the most in demand. The services performed in this segment are already more significant and expensive, they include the replacement of basic structures and outdated or failed communications. The list of works will include plastering and painting, dismantling and installation of doors and windows, installation of additional details (arches, niches, columns). The cost of services starts from 3,000 rubles. for 1 sq. m.

Improved repair means the performance of work using advanced technologies and modern high-quality materials. These include leveling and screeding floors, parquet work, installation of the "Warm floor" system, three-layer painting of walls, drawing up design projects (see), installation of interior items, furniture and other services.

Recruitment for work

Employees are one of the most important aspects of a home improvement business. Therefore, it is necessary to assemble a team of qualified and conscientious specialists. As a rule, a team of workers includes a plasterer, plumber, painter, electrician and carpenter. It is desirable to have in your staff installers for stretching ceilings and flooring, specialists in installing door and window structures, finishers and a handyman.

Tip: the entrepreneur himself can initially take on the role of foreman, accountant and estimator, this will help reduce current costs by 60,000 - 100,000 rubles. When there are more customers, you can think about expanding the staff.

Purchase of tools for repair work

Having decided where to start an apartment renovation business, what services will be provided, and how many people will work in the team, you should purchase the appropriate tools. To get started, you will need:

  • perforator;
  • screwdriver;
  • drill;
  • Bulgarian;
  • jigsaw;
  • a set of brushes;
  • Screwdriver Set;
  • industrial dryer;
  • spatulas;
  • rollers;
  • ladder;
  • Consumables.

Attention! To provide apartment finishing services, it is desirable to have your own car, for example, a GAZelle, to deliver the work team to the facility and transport the available tools.

Promotion of the apartment renovation business

Such a business idea as apartment renovation involves a carefully designed advertising campaign, since there are a lot of competitors in this niche. Undoubtedly, there is no advertising better than testimonials from satisfied customers. But besides word of mouth, there are more modern and effective types of promotion, such as online advertising, which can attract a large number of potential customers and help make money on apartment renovations.

Today, most people turn to Internet sources in search of information about future contractors. Therefore, it is desirable to have your own website, a group on social networks or a one-page site. If available, you can run contextual, banner and teaser advertising. It will also be useful to place advertising posts on thematic forums and sites.

Advertising in magazines and newspapers can also help in finding customers. But, as a rule, such columns abound with such ads, so you need to try to attract attention with the help of non-standard and original presentation of information.

You can hang ads near shops, crossings, stops and entrances. The main thing is that these should be places of large congestion or patency of people. You can also distribute business cards and flyers.

How much capital is needed to open a company

Having figured out how to start an apartment renovation business, it would be advisable to calculate how much initial capital is needed for this. On average, this amount is about 400,000 - 600,000 rubles. (consider also rub.). The most expensive items are the purchase of a car and the necessary tools for repair work.

The list of basic expenses is as follows:

Monthly revenue is 200,000 - 400,000 rubles, net profit is from 60,000 to 160,000 rubles. The return on investment is usually achieved quite quickly - from 6 to 9 months. Much depends on the season of the year.

Today, some repair companies provide a full cycle of services, such as a turnkey residential building, which allows you to earn much more. Consider this idea, you might also like it.

Read what you can organize with a simple set of building tools.

Simultaneously with the repair of apartments, it is possible to develop and. In this case, customers whose apartments are undergoing finishing work can immediately be offered to update the furniture.

Conclusion

Apartment renovation as a business is a direction that can bring good income to its owners. The average investment is about 500,000 rubles, however, you can start this activity with less investment, if, for example, you refuse to purchase a car, or if the entrepreneur already owns it. In general, by providing quality services and working on the recognition of the enterprise, you can receive monthly from 100,000 rubles. net profit. Read what else

The market for home renovation and design services is extremely saturated. Licensed companies that have the right to this type of activity are competed by numerous brigades of covens, the cost of whose services, as a rule, is low, but the quality of their work is at the same level. The demand for construction services is stable, which means that this business is profitable. Not everyone knows how to open an apartment renovation company, but there are many who want to start this one. And no wonder: with a competent approach, this type of activity will bring considerable income.

Where to begin?

First of all, you need to decide on the right form of activity. Two options are possible here: if you plan to work mainly on your own or with a small number of assistants, then it would be wiser to register as an individual entrepreneur. In the event that your ideas are large-scale and there is a goal to cover as wide a range of the market as possible, it is recommended to register as an LLC (limited liability company). This will make it possible to work with legal entities: to conclude contracts and make payments both in cash and non-cash.

Next, you will need to take care of obtaining a license to perform repair and finishing work. In accordance with the Federal Law "On Licensing Certain Types of Activities", the following list is indicated in the "Finishing Works" section:

  • plastering and stucco works;
  • decorative and finishing;
  • glass works;
  • facing;
  • installation of suspended (stretch) ceilings, panels and plates with front finishing.

The license can be obtained for a period of 2 months and 5 years. This is a simple matter, you just need to collect the entire package of necessary documents. Large customers prefer to work with licensed companies, as this indicates their reliability and the seriousness of their intentions to stay in for a long time. As of October 2013, the cost of a license for the simplest type of finishing work (plastering) is 1300 rubles. Another 1500 thousand rubles. you need to pay for a consultation with a specialist who will explain what documents you will need to provide and when to expect a permit to work. With an increase in the list of services provided, the cost of a license also increases.

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Search for personnel and formation of teams

At the beginning of the formation of the company, you can get by with a minimum number of specialists. Only four are enough: plasterer, electrician, plumber, carpenter. It is highly desirable that half of them have higher education. The fact is that a prerequisite for obtaining a license is the presence of such specialists in the staff of the company, and their number should be at least 50% of the number of all employees of the company. There are also certain qualification requirements for employees. If he is a young specialist, and no more than 3 years have passed since he graduated from the university, then he does not need to confirm his qualifications. In all other cases, you will have to take courses to improve it.

With regard to the members of your team, you need to be demanding, but at the same time a democratic leader. Withholding money or skimping on workers' wages is considered bad manners. It should be understood that such an attitude will not add good fame to the company. And rumors about a dishonest leader spread quickly, and soon you may find yourself faced with the fact that only mediocrity and non-professionals agree to work for you. A good specialist will not come to work in such a company. Therefore, from the very beginning it is important to develop the right policy in relation to those who work for you, and to fulfill all promises for the payment of earned money.

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How to find clients

The most effective way to find someone who needs repairs is to post ads directly on the entrances of residential buildings. It must be produced regularly, as these pieces of paper tend to disappear quickly. In order to avoid claims against the company from housing and communal companies, it has recently become possible to conclude contracts with them for advertising on special bulletin boards located at each entrance. The amount to pay for the permit will need a small amount, and it will save a lot of nerves.

Another effective way to find customers is to rent advertising posters in public transport. This method of attracting people interested in home improvement services has two goals at once: finding a client and advertising your company. Over time, the name of the company will be remembered, and it will gain some fame. But you can not rely only on the owners of apartments. There are many businesses and institutions that need cosmetic or major repairs. It makes sense to pay attention to schools, kindergartens, canteens, shops, offices. It will be more relevant to leave booklets and business cards there.

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