Starting a restoration company can be tough. It’s a competitive market, it requires a big up-front investment and in order to provide the best services, you must have a highly trained staff. However, a restoration company provides services that people need when they’re facing disaster. It takes someone deeply committed to do this work because you’re always on call and must provide solutions for people who are facing a crisis. We will break down how to start a restoration company from scratch. Then, we’ll show you a more effective model you can follow that allows you all the benefits of ownership with a big advantage through franchising.
The Need for Restoration Services
Owning a restoration company is an essential service in the community. It means you see people as they’re dealing with the stress of a disaster. As a restoration company owner, you’re providing services people might have never thought they’d need. To be successful, you’ll have to build a solid reputation with high standards because these are crucial services that homeowners don’t want to have done twice.
Disaster can take on many forms like flood, fire, or smoke damage. Perhaps a home or business has been wrecked from an electrical fire, and smoke or mold remediation is necessary. Another part of your work will be restoring damage caused by natural disasters. Based on findings by EOS Data Analytics — a global satellite analytics company — we will experience an increase in the occurrence and severity of natural disasters like cyclones and tornadoes all over the world in the years to come, thanks to climate change.
From a business perspective, that means increased demand for restoration services. The $8 billion global disaster recovery solution industry is projected to climb to $115 billion at a growth rate of 34.5% through 2030. These statistics from Straits Research show that North America will hold the greatest share of this market. From a financial perspective, this is a high-demand industry with promising growth opportunities.
What Your Business Will Look Like
So, there’s profit potential for you — but first comes the investment to get you in business. If you decide to be an independent business owner starting a company from scratch, you’ll want to know how much it costs to start a restoration company. The answer is dependent on many different factors. For instance, will your company help residential customers or commercial customers or both? Will you handle all types of issues like storm destruction, fire and smoke damage, flooding damage and mold remediation? How much equipment you need depends on the services you provide. You’ll have to answer these questions before moving forward.
Setting Up Your Restoration Business
- How to start a restoration business as a startup begins with a solid business plan . The U.S. Small Business Administration (SBA) has forms at your disposal. This plan will outline exactly what services you’ll provide and how this will be a value to customers. You will need to identify your customers as either residential or commercial or both. Also outline who your competitors are and what unique edge you’ll have to entice customers to choose your company. The plan will be your guide, so it should include strategic growth plans, staffing and management.
- The next step is a marketing plan to determine the best way to reach your target demographic. Will you send direct mail fliers, have a website, maintain a social media presence, do traditional marketing through T.V. or radio? This part of your plan should also answer how you’ll generate leads. Restoration companies work closely with local fire departments, government agencies, plumbers, contractors, Realtors, and insurance companies. You can begin developing relationships with these people with the goal of getting on their list of preferred companies. This is not easy. It’s a very competitive industry, and there are likely many companies providing the same services who are already considered the go-to providers.
- The next step figuring out how to start a restoration company is determining your legal structure. This outlines whether you’ll be set up as a sole proprietor or limited liability company (LLC). Seek advice from experts like your accountant, financial advisor, and attorney to help with how to set up banking and deal with taxes. You’ll need to come up with a company name, logo, trademarks, accounting, invoicing, and pricing. Owning a specialized service company means you must also maintain certifications for doing restoration work. Some of those include a contractor’s license, and environmental licensing like the Institute of Inspection Cleaning and Restoration Certification (IICRC) and the Restoration Industry Association (RIA).
- Crunching numbers will be a big part of your homework when you look at how to start a restoration company. Financially, you’ll look at your equipment costs, licensing, average permit costs for repair work, employee wages, business expenses, trucks, office space rental, etc., to determine how much seed money you’ll need. You’ll decide whether to use your own money, have a business partner or finance through a business loan. You will also track your return on investment (ROI).
ServiceMaster Restore Can Simplify Your Business Goals
Starting from scratch and learning the ins and outs of how to start a restoration company can be overwhelming. We have a solution. Becoming a franchise owner with ServiceMaster Restore allows you to cut out all the leg work we’ve just mentioned and instead utilize our proven model and operating systems for a quicker ramp-up to your business. We’ll educate you about getting your business up and running. We’ll also provide the necessary training you and your staff need to perform and be certified in restoration work.
ServiceMaster Restore is a restoration franchise that has earned a trusted name in the industry thanks to the high level of service we’ve provided our residential and commercial customers for more than 65 years.
Whether it’s damage from water, fire and smoke, mold, or weather, we’re available 24/7 to those in need. We assess and mitigate damage and restore property, allowing our customers get their lives back to normal as quickly as possible.
Here’s a look at our startup costs and qualifications:
- Franchise Fee: $72,500
- Initial Investment Range: $252,675 - $358,810
- Minimum Net Worth: $300,000
- Available Liquid Capital: $150,000 - $200,000
How to start a restoration company that is well-respected, provides an essential service to your community and carries brand recognition giving you a solid customer base from the day you start your business is simple. Become a franchise owner with ServiceMaster Restore. Get started by filling out our form and let’s get the conversation going.