by Wm. David Waterman

Created on: February 10, 2009   Last Updated: March 03, 2009

Home remodeling and restoration businesses can be very lucrative and profitable. They can also turn into a major headache with perpetual and continual crisis situations confronting the owner. The direction a home remodeling business takes hinges entirely on the planning and preparation that is done before the 'doors' are opened for business.

The positive side of owning a business is the control a person has over their own work and the quality of work that is produced. If one enjoys working without the need for constant supervision, and enjoys being in charge of their own life, business ownership is very gratifying. It is not uncommon to find that a substancial number of business owners make less in take home pay than the nine to five crowd earns. It is often the feeling of independence and the freedom to explore new careers or follow a dream that draws people into starting a business. If a person is a true craftsman and takes pride in their work and wants it to stand alone, the home remodeling business is a great way to shine.

However, there is a downside to business ownership. When the help goes home at the end of the day, the owner is often still hitting the books and doing the paper work. The need for good and accurate estimates is an absolute essential in any construction business. Bid enough jobs too low in price and one either sacrifices quality of work or compensates in another area. Owning a business cuts down on quality time with the family and social life in general. One must count the costs and include the hidden costs as well. Those things that are done in order to start a business can include tightening budgets, cutting normal recreational activities, losing sleep and sacrificing financially.

A very important issue to bear in mind is the fact that all businesses must be licensed and make regular reports to Social Security departments as well as local, state and federal tax offices. In addition, there are building codes that need to be complied with and in some instances local building codes require that remodeling businesses be licensed as building contractors. In light of that, it behooves the person contemplating starting a remodeling or restoration business to verify what is required in the area he/she plans to operate and secure the proper paperwork and licenses. It is possible that a considerable amount of study is required and tests taken in order to obtain the proper local or state licenses that are required in the area where the business is going to operate.

The aforementioned issues bring up another major point. A home remodeling and restoration business will generate income and will often be very profitable. But one must often invest money in order to generate income in a business. Good quality tools and reliable transportation are essential, but many people stop right there without understanding there is more to be considered. It is just not wise to operate in a remodeling business without a good solid relationship with an insurance agent who will ensure that the business is properly insured and covered. And as mentioned previously, a good bookkeeping system or bookkeeper should be in place at the outset. Bear in mind that there are always blown tires, tools and vehicle breakdowns and the taxes and fees as well as insurance premiums. This is all part of the overhead in the business operation.

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