The apartment renovation business allows you to create a profitable business with little investment, because such services are always in demand.
Where are repair services consistently in demand?
- In new buildings. The volume of new housing is growing every year, and apartments are usually rented without finishing.
- In the secondary housing market. Here, too, repairs are periodically required, including during pre-sale preparation.
- The same applies to suburban real estate: a new house/cottage needs a comprehensive overhaul, and a one bought on the secondary market needs cosmetic or major repairs.
- A repair and finishing company can also take orders for the decoration of offices, shops, cafes, and other commercial areas.
Therefore, there is always a demand. But before drawing up an apartment renovation business plan, you need to decide: what kind of services are you ready to provide .
Apartment renovation business plan: your specifics?
The success of this business depends on the quality work of the masters of repair and finishing specialties, so the apartment renovation business plan must necessarily include steps to select qualified and reliable personnel.
For different types of repairs, different specialists are involved:
- When redecorating, the old finish is removed and replaced with a new one. All communications and wiring remain the same. Therefore, only finishers are needed for “cosmetics”: plasterers, painters, tilers, flooring specialists, etc.
- During the overhaul, not only the finish changes, but also the plumbing, sewerage, and electrical wiring. Therefore, in addition to finishers, a plumber and an electrician will be needed. And if the design project involves the installation of a fireplace or multi-level stretch ceilings, then you can’t do without such masters.
- The same specialists are needed for complex repairs that are carried out in new buildings. It differs from the capital one only in the absence of dismantling works.
- Luxury or elite repairs are carried out by experienced highly paid craftsmen who work with expensive finishing materials. This is not a business that you can start from scratch, so we will not consider it here. Orders for «elite» are much less than for ordinary repairs, and they will not be trusted by a young unknown company.
You will also need a foreman and estimator. But at first, when the business has not yet unfolded, the organizer of the company can also perform their functions.
Apartment Renovation Business Plan: Initial Costs
- About 150 thousand rubles are needed to register a company and obtain an SRO permit.
- Acquisition of a professional tool — 250-300 thousand rubles. This amount may be less: firstly, it depends on the types of work performed, and secondly, hired craftsmen usually work with their own tools.
- Purchase of a used car — 100-120 thousand rubles. If you already have a car, then only the cost of gasoline remains.
The business plan may not include the cost of renting an office: at first, it is enough to accept applications by phone, and store the tool in the garage.
Building materials are purchased by the customer.
Apartment renovation business plan: business profitability
According to statistics, the profitability of the repair and finishing business is 20-50%. 30-40 thousand rubles will go to the salary of specialists. to each. The manager/foreman receives 20-30% of the order.
For example, a major overhaul of a small one-room apartment of 42 sq.m with a balcony in Moscow costs about 500 thousand rubles. At the same time, the team usually manages several objects at the same time, because according to the technology, time must pass between some stages of work (for example, it takes 20 days to dry the floor screed).
From here, you can calculate the income of the manager, taking into account the number of workers and the amount of orders.
The fastest return on investment is in the repair of non-residential premises — their area is much larger than apartments, and repairs are easier.
Apartment renovation business plan: basic steps to implement
- Market research. You need to know the average prices in the city for the services you offer. Set your prices slightly below average (you can read about how to attract customers here ).
- A set of specialists. Advertise in the newspapers about the recruitment of finishers, negotiate with the workers on working conditions and pay.
- Advertising. Post ads about the company’s services in areas of new buildings and in all crowded places. On a free hosting, make a website where the types of work, prices will be described in detail, and over time, place a portfolio and customer reviews there. Indicate the address of the site in the ads.
- Take customer calls and start working.