According to the Global Entrepreneurship and Development Index, the United States holds the number one spot for being the country that offers the best environment that fosters entrepreneurship. No wonder, more than 27 million entrepreneurs are in the country. And if you are thinking of being your own boss, you might be wondering about the kind of industry you would like to take part.
Medical, food, gaming, service, and manufacturing businesses are some of the most common and profitable businesses in the economy today. One particular sector though has stood the test of time and is no position to stall… real estate. Real estate is worth $217 trillion in the global scale. In the US alone, the housing industry has a total value of around $30 trillion. Making it a huge business with the possibility of huge returns.
Real estate is more than just housing though. A lot of business opportunities are available in this industry. Construction, property management, valuation, brokerage firm as some of the most common and then there is remodeling. The remodeling or home improvement business is thriving with an annual revenue of $100 billion.
If you are thinking of venturing into this promising business, then here are some factors you need to consider before starting one.
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Having The Right Equipment
Whether you are a cook, an artist or a teacher, you won’t be successful and effective if you do not have the right kind of equipment. Home improvement businesses need to have the right set of equipment in order to properly function. Investing in this part of your business is a fruitful business decision. The ability to maximize the use of quality equipment means getting the most out of them and providing the best quality of work possible.
What Is Your Specialty
As a remodeling and home improvement business, you need to be able to cover most if not all the demands of such a service, but also need to determine your specialty. Having a specialty allows you to have something special, a more premium service to offer to your clients. Whether its painting jobs, sunroom additions, disaster repairs, porch construction, floor installation or setting up stained glass business, it is up to you. Make sure your specialty brands you unique and gives you a competitive edge.
Be Aware of the Competition
Before you dive into any business sector, you need to conduct some due diligence and the home improvement business is no different. Conducting due diligence will allow you to be knowledgeable and aware of the market status, potential customers, and most importantly competition. In addition, it makes you conscious of the big brands that usually lay out the trends in the industry. Knowing who and what to follow will increase your success.
Type of Business
You need to decide whether you are going after sole proprietorship, partnership, corporation or a limited liability corporation (LLC). All these types of businesses have pros and cons. It is up to you which one best suits your business style. Deciding early about the type of business model you are going after will help you in the future when the business starts to grow.
Consider Industry Association
Joining an industry association not only makes you affiliated with a trusted network it also allows you to meet and know people who can potentially be your mentor. These type of networking also exposes you to the core of the industry and keeps you updated with new trends, pricing and business practices.
Who Is Your Target Market?
You can’t choose who enters your office, but you can decide who you are going after with your marketing strategy. You need to determine which demographic needs home repairs and has the capacity and willingness to pay for it to be a sustainable form of income and revenue for you. Knowing the customers you would like to engage with will make it easier for you to establish the practices and service that they like and will use.