Across the nation, the remodeling industry is booming. Remodeling is a wide-reaching term that involves interior and exterior work, most often on residential properties. Whether you want to complete additions, alterations, reconstruction, or maintenance and repair work, your business would fall into the overarching category of remodeling.
Who plays a role in the remodeling space? General contractors, construction management companies, and design-forward remodelers are all major players in this space.
By starting a remodeling business, you’re entering a $120 billion industry that just keeps on growing. Even if you don’t have a lot of capital to work with when you are starting out, it is possible to build a successful remodeling business. In this article, we’ll guide you through some of the tips and tricks to start a remodeling business with no money, or at least without breaking the bank.
The Bare Necessities You Should Probably Buy
Starting a remodeling business does not have to cost an arm and a leg – but there are some things that are essential for getting started on the right foot. As with any cost-saving endeavor, make sure to shop for deals, consider purchasing secondhand, and reach out to friends or family members who might have tools you can borrow until your business is up and running. If you have a little bit of cash to spare, check out this list of the most important items you will need.
Also, when it comes to tools, don’t buy anything unless you’re absolutely positive you’ll need it (i.e. until you’ve secured your first customer). We’ll touch on this more in a bit.
While cutting costs is important, there are a few areas we recommend that you don’t skimp on. From our perspective, these are non-negotiables, but if you want to take your chances with legalities/insurance, that’s up to you. Just remember that depending on your state, it could be illegal to run a remodeling business without insurance or registering the business. As you get your remodeling business going, here’s what we recommend you invest in to start:
- Business registration - $50+ (check out this guide from the US SBA to learn more)
- Transportation to get from job to job with your equipment (if you already have a pickup truck, van, or a suitable car, you’re all set here)
- Contractor’s insurance for your business - averages about $79 per month according to TechInsurance.com
With the legalities and insurance of starting a remodeling business, you need at least $200 before you’ve even bought any tools. If you can be creative about borrowing tools or finding them second-hand (from reliable brands like Milwaukee, DeWalt, etc.) after you’ve already landed your first customer, you can start off on the right foot budget-wise.
Don’t invest in any specialized tools or equipment until you know that you’ll actually have work to do with it. Otherwise, you could end up spending a lot of money on tools that end up collecting dust.
Simple Ways to Get Your First Customer
Now that you’ve made the decision that you’re going to run a remodeling business, it’s time to find your first job. As we mentioned, you can do this before you’ve even bought any tools. Go out and find the work, then invest in the tools. There are many ways to get your name out there, but leveraging free tools such as social media is a great place to start.
Facebook Groups
Consider posting in neighborhood Facebook groups and Nextdoor groups to reach local homeowners who may need help around their home. You never know when someone looking for remodeling services will happen to see them and give you a call. Always include a “call to action,” which could be something like: “Need help with a remodeling project? Give us a call at (123) 456-7890.”
With Facebook groups, you can also find people who are actively seeking a contractor for remodeling work. Here’s an example of some of those posts, and only a few contractors commented; not too much competition!
Talk to Your Friends and Family
Another great way to kick things off is by offering your services at a discount to family members and friends – and there’s another reason why working with friends and family is great. Usually, friends and family will be okay with you taking before-and-after photos.
You can then post these to your website, share them on social media, or show them to prospective clients to highlight the quality of your work. Take as many pictures as possible, as long as they showcase your good work!
Go Door to Door
You can even try going door to door in neighborhoods near you to offer your services. Make sure to knock, be polite, and be respectful if people are not interested – all you need is one person who wants your help! Make sure to remember to smile, people want to work with kind people. Here’s a sample pitch you could try:
Hi, I’m *name*. I’m a local remodeler and happen to have some free time in the next few weeks to bring life to your kitchen/bathroom/etc. Have you ever considered remodeling your home?
And just like that, your conversation is either off and running, or you’ll get a quick no. Just remember; listen twice, speak once.
Know What to Charge Your Customers
Once you’re at the point that you’re sending off estimates to potential customers, Handoff can help you price and send estimates in just a couple of clicks using AI technology. Time is money, and Handoff can help you with the time-consuming process of estimating. You’d be surprised at how many contractors are underquoting on jobs due to small things like nails, tape, and other smaller materials that add up over time. Handoff takes everything into account, and helps you ensure that you’re charging a fair price for every job.
“Nice-to-Have” Items When Starting Out
Some things will make growing your business feel that much easier, whether it’s about helping you get the job done as efficiently as possible, or helping you secure work. While this list could be infinitely long, we’re only going to add what we think are the essentials that you should get once you have a few jobs under your belt.
- A sturdy toolbox (and/or toolbelt depending on how many tools you’ll have) - $20-$100+ (consider store-brand options to save money, like this Home Depot Husky toolbox)
- Basic tools: power drill, impact driver, power saws, screwdrivers, hammer, tape measure, etc. - $200 - $800+
- DeWalt has a number of different starter tool sets on Amazon, but take a look around on Facebook Marketplace, Craigslist, and other second-hand marketplaces for good deals on tools near you.
- A website for people to find your work and contact you (free with Google Sites). While a website is not a necessity, it can be a great way to stand out as a reliable provider with a good reputation. Keep it simple: Just showcase some photos of your work, your contact information, and maybe a couple of great reviews!
- A sturdy ladder, depending on the type of remodeling work you’ll do ($100 - $250)
- Professional logo design (free using AI, or $40-$100+ if you prefer working with a designer)
Start With Skills and Sweat, Not Unnecessary Tools
Purchasing tons of expensive and unnecessary tools right off the bat is a great way to drain your bank account. Basic tools are important to have, but don’t go crazy purchasing specialized tools or equipment that you might not need right away. Instead, focus on leveraging your existing skills. For instance, are you already proficient in handyman work, like basic repairs, small-scale renovation projects, and routine maintenance tasks?
You can also work on learning new skills and improving your existing skills through free online resources. You don’t need to sign up for expensive courses – instead explore remodeling channels on YouTube or dive into helpful online blogs. You can also lean on your existing connections – such as friends, family, or neighbors – to build a portfolio.
And don’t be afraid to trade your time and labor to get your foot in the door for some initial opportunities. See if other local contractors need assistance on a freelance basis – building relationships with reputable contractors in your area will be an immense help.. If there are career groups in your area, networking with other industry professionals and potential clients. Another great resource? Social media!
Start with building a reputation by performing quality work before you invest in expensive tools. This is the key to keeping startup costs low, you don’t need to go crazy buying all the tools you can right off the bat. And focusing on doing quality work will help you generate customer reviews, which are incredibly important, especially at the beginning of your business journey. Make sure to ask your customers for reviews!
TIP: To do remodeling work, you’ll always need to use at least a few tools. But there is no reason to break the bank on pricey items for niche projects. Instead, shop for deals on the basic tools you do need and then get maximum use out of them by expanding your remodeling skills! And depending on your situation, it may be a good idea to only buy tools once you’ve actually gotten a job.
How to Grow Your Remodeling Business
Once you’ve got a few jobs under your belt, your sole focus should become growing your remodeling business. Here are a few ways to distinguish your business from the competition, especially in the beginning.
Offer a Unique Service
One way to make yourself stand out in the crowded remodeling market? Find your niche. Whether that is small repairs, bathroom renovations, or eco-friendly upgrades, focus your skill set on one particular area and position yourself as an expert in that space. Better yet, choose a niche that requires minimal overhead. This will make for even easier online advertising and will help you keep upfront costs to a minimum.
Start Small and Scale Gradually
The key to starting a remodeling business with no money is to start small – begin your work with small projects that don’t require a lot of investment. Think painting, minor repairs, and similar endeavors. Then, reinvest the earnings from those first few projects into the business.
You can buy tools and expand your services, allowing yourself to take on larger and better-paid jobs down the line. Patience can be a challenge in the beginning stages of your entrepreneurial life, but remember… you are setting yourself up for long-term growth and success!
Use Free Marketing Tools
It’s important to do some marketing so that potential customers are aware of your business – but you don’t have to break the bank doing it! Instead, use free marketing tools like social media to promote your work. Social media is a great place to post before-and-after photos, to show how great your projects look.
Additionally, lean on word of mouth and referrals within your network. Consider printing business cards to give to each customer so they hold onto your contact information. You might also create a Google Business listing (this is free and easy!) and encourage customers to leave positive reviews. This will help build confidence for new customers as well.
And if you’re the outgoing type, you should consider going door to door to promote your business. But if you can’t handle rejection, don’t even consider this route. People will say no more than yes, although it can be a very lucrative way to sell your services.
You can also hand out print materials such as business cards or brochures when selling door to door, which can lead to a new customer in the future.
Freelance for Larger Companies
Another great way to find remodeling business opportunities? Work with established contractors for subcontracting opportunities. This is a great way to build connections and gain experience from longtime remodeling pros without handling upfront costs yourself.
Plus, these fellow contractors may keep you in mind for referrals in the future if they get a job they cannot take on, or who knows what other type of partnership could stem from working with them!
Grow at Your Own Pace
Remember, you don’t need to go 100 mph right off the bat to kickstart your remodeling business. Instead, it is okay to gain traction slowly and then reinvest the money you have already made.
Over time, you will gain a strong reputation and build a client list that might even bring you back for repeat work. Building a remodeling business is a marathon, not a sprint. Once you have seen strong growth in your business, you can also explore financing options such as a small business loan or home equity line of credit.
Build Your Business the Right Way With Handoff
As you grow your remodeling business, remember to start small and leverage your existing skills to build a reputation as a high-quality contractor in your area.
With a remodeling business, money is not a barrier to entry – as long as you are savvy with how you spend it and take advantage of free or low-cost tools and strategies like social media, local networking events, and freelance contracting.
Once your remodeling business starts to get off the ground, then you can invest in tools that will up your professionalism and efficiency, making your company more profitable than ever. And that’s where we come in. We’re Handoff, an AI-driven program that allows you to create estimates and proposals faster than ever before, as well as keep track of your business in a centralized CRM (customer relationship management) platform and invoicing tools.
