Apartment renovation business: how to start your own business
Despite financial problems, the volume of construction in all cities not only does not fall, but continues to grow steadily. A person receives or buys an apartment in a new building, which means that the room has either minimal interior decoration, or housing without it at all. Statistics say that a very small percentage of people undertake to do repairs on their own: in most cases, everyone is trying to find some kind of trusted workers.
How to make money on renovation work: features and pitfalls of business
The competition among companies that are officially engaged in the repair and decoration of premises is quite big today. However, the demand for their services remains equally great, because not only apartments in new buildings need finishing or renovation work. Very often, when buying a home on the secondary market, people also want to make either major repairs or minimal cosmetic finishing, based on their tastes and wishes. In addition, at least a small maintenance is necessary for any apartment every few years. So the niche of apartment renovation - as a business - is very profitable and promising in the market.
The organization of the business itself requires some preparation and knowledge, since it is always better to first study all the nuances and subtleties in order to avoid possible risks and not burn out.
You can just be a private entrepreneur and hire teams of builders, but this way you will work almost illegally, which will not allow you to develop or even increase the cost of your services. Moreover, “sabbat” labor threatens with serious fines and other problems with government services. It is much better not to have any problems with the legislation, that is, to open an official company with a license to carry out certain works.
First steps or milestones of business
First of all, you need to write down a clear business plan for apartment renovation. So you can distribute for yourself the main points that require timely implementation, calculate the possible costs and incomes, etc.
- Conduct marketing research or analysis of the existing market in order to understand what services are in greatest demand, what is the deficit, how your competitors attract customers, and other important issues. After researching the market, you can also set your price category (for a start, it is better not to overstate the prices, because it is very important for you to develop a base. Stop at medium prices, and you can increase the cost of your services after several successful projects, when they start to vying with you to praise and invite) ... Keep in mind that this work is still seasonal in nature, that is, your services will be most in demand only at certain times of the year (as a rule, from spring to autumn). In winter, however, you will have to interrupt on rare orders, pulling out the business on special offers or promotions.
- Take care of the legal side of the case by registering a company and obtaining a work permit. Decide on the financial side: how much you can invest, where will you get these funds, etc.
- Select the type of repair in which you will specialize. You can, of course, provide a variety of services, but at first you simply do not have enough working hands for this, and you cannot make mistakes.
- A small space may be required to store building materials and equipment. If the volume of orders is still small, then there is no point in renting an additional warehouse. But it is worth thinking about a personal truck (at least a used Gazelle). Because you simply cannot carry everything in your hands.
- Purchase of equipment and professional tools. Everything here will depend on the directions of your activity and the specifics of the work performed.
- Personnel (as in the previous paragraph).
- Advertising and search for customers.
As you can see, if you decide to gain a foothold in this business seriously and for a long time, then you need to substantially prepare before starting your activity. Moreover, you are not looking for one-time jobs, but are going to build a profitable enterprise with a stable income and good prospects.
Ideal if you yourself are a highly qualified specialist in any field. Otherwise, you will have to study yourself, since you must be well versed in all the intricacies of repair and finishing work: understand the entire technological process, know what tools and why are used during the repair, how this or that stage is carried out, etc. Since many clients want a full range of services, you must "be in the know" of everything that exists in this market.
The demand for apartment renovation services is primarily based on the state of the real estate market, and secondly, on competition in this business segment. The proposals of small companies that carry out renovation of residential premises should not exceed the corresponding demand in the housing stock. Otherwise, there will be an oversupply on the market and, as a result, a decrease in prices for repair services, which entails a loss of profit. At the same time, it is worth paying attention to the "shadow" side of business - the work of illegal contracts that perform rough work for a low price. Thus, a rich housing stock and a small number of companies providing repair services are optimal conditions for entering the melon market.
Apartment renovation can be carried out both in new buildings, rented out without finishing, and in houses operated for a long time. In the second case, the service is relevant, first of all, when new tenants move in. Accordingly, the main target audience is individuals (B2C relations), aged 30-50, working and having a family. The combination of these criteria does not allow customers to do repairs on their own due to employment, which makes the apartment renovation service relevant for them.
Types of repairs
The main types of repair include cosmetic, major and luxury repairs.
Redecoration involves finishing work without affecting the structures and main highways of the apartment. The main goal is to eliminate defects in the premises. The list of works performed includes finishing (leveling) walls and ceilings, dismantling / installing floor coverings, replacing wallpaper and other minor work that does not require skilled labor and certain competence. Redecoration of a one-room apartment takes 1-3 days of work of a small team from the moment of acceptance to the moment of placing the order.
Overhaul involves, along with cosmetic finishing of the premises, modernization of structures (for example, moving walls, installing arches, etc.) and replacing the main highways (electrical wiring, plumbing). The main purpose of such renovation is to renovate the premises for comfortable and safe living conditions. The list of work performed includes the replacement of electrical wiring, plumbing elements, floor replacement, insulation, plastering, etc. Overhaul of a one-room apartment can take from 1 to 2 weeks of work, depending on the complexity and the number of nodes being updated. Also, this repair requires the presence of certain specialists in the team - an electrician, plumber, painter-plasterer, etc.
Lux-renovation involves renovation work to change the design of the premises. This service is less in demand among the middle class of the population due to its high cost. Luxury renovation necessarily involves cosmetic repairs, and may also include work from the range of major repairs (for example, redevelopment of the premises). Luxury renovation requires a designer.
How to find workers / brigade
The working team performing apartment renovation services is conventionally divided into 2 parts: the main staff and the involved staff.
The main state includes:
- Repair team leader. The main tasks: finding clients, accepting orders, buying consumables, monitoring the work, handing over the order to the client, etc. If you have certain skills (both the organizer and the foreman), this role can be taken on by the business leader.
- Ongoing wizards. Their competence should include skills in the field of cosmetic work on the decoration of the premises. The salary is 20 thousand rubles, with a significant number of orders, the salary may increase.
Staff recruited include:
On thematic forums, people are actively interested in whether repairing equipment at home brings income and whether it is worth it. Members of the forum are proud to call themselves “jack of all trades” and even boast of their own experience. Many of them have already worked in this field, but left due to low income in the so-called fat years.
Alas, life circumstances force us to look for additional sources of income, and the repair services market has now noticeably revived. It's time to open a repair service.
Repair or buy
The current interest in this type of entrepreneurship is undoubtedly connected with the past devaluation. If in 2021 many people preferred to buy washing machines, cell phones, refrigerators and even TVs instead of repairing the ones that were out of order, then in 2021 the situation changed radically. Banks are wary of commercial loans; and people themselves have become more critical of loans.
The "fix or buy" dilemma is gone. If the cost of repair does not exceed 30% of the price of new equipment, choose the first one. Appliance repair shops say that customers only start to doubt when the cost of a fix reaches half the price of a new product. Approximately 70% of these services are light repairs. The most common services generally cost a penny, although they charge full-weight rubles for them. These are services in the spirit of "change the fuse", "fix the connector", "solder the wires", "tidy up the switch" and many others.
According to master Ivan Kryshnikov from Rostov-on-Don, the demand for the repair of old-fashioned equipment has sharply increased - washing machines produced in the "zero" years, twenty-year-old refrigerators, microwave ovens that have served more than ten years, old vacuum cleaners and televisions, mainly CRT. Often, a specialist advises to purchase new equipment, since he cannot give a guarantee. In any case, the market for home appliance repair services has grown, and significantly. “According to my notes, 60 percent,” sums up Kryshnikov. It is clear that “one does not judge a flock by one sheep,” but roughly the same figures were indicated by masters from Kaliningrad, Astrakhan, Kazan and Volgograd.
Kulibins go into business!
Today, people with "golden hands who know how to hold a soldering iron" are again in demand. “Curiously, there are indeed a lot of such people in our country,” says small business expert Igor Malyugin. - For example, in the most ordinary five-story building in which I live, there is a guy of thirty years old who will reanimate the electronics of the car and bring the washing machine back to normal. And a modest man of pre-retirement age lives across the house - he easily repairs refrigerators, air conditioners and every little thing, from kettles to electric shavers. "
In other words, Russia is rich in "left-handers" and "kulibins" - especially since you can find any scheme or, at least, good advice on the Internet. In the business of repairing equipment there are people who can really do this business. As the Russian classic Leskov wrote, this gift is given from above.
Note that opening a repair shop for household appliances is not difficult. In any regional tax office, a specialized specialist will not only tell you what documents are needed, but will also help you arrange them. A person who is confident in his abilities will not experience any problems with the start at all.
Good renovation business and low costs in the initial stages. Up-to-date business plans for the repair of equipment tell in sufficient detail what and when to do. “If you don't have money for rent, start repairing household appliances at home,” advises Igor Malyugin. - Perhaps the biggest difficulty at the beginning of the journey is the advertising campaign. Use everything: word of mouth, personal website, local press advertisements, posting your suggestions. " It is necessary to carefully work out the issue with the available spare parts and, based on this, determine what type of repair services to offer. Legal advice will also be useful - for example, on how to draw up an agreement so as not to take on unnecessary obligations.
Pros and cons of the repair business
Despite the easy start and growing market, it would be wrong to call the home appliance repair business “cloudless”. Equipnet portal. u phoned several workshops in a number of major cities and asked them to answer questions about competition and professional issues. It turned out, for example, that in large cities there is a rather tough struggle for customers - and relationships with customers are often nervous. Lawsuits also happen.
If you are a professional, love and know how to work with appliances, perhaps today you should think about opening your own business - a workshop for the repair of household appliances. The demand for the services of skilled craftsmen is constantly growing. In almost every home today there is a huge number of electrical appliances, which often fail and need to be repaired. In addition, complex and multifunctional devices that require regular prophylaxis and diagnostics appear on sale every year.
In this article, we offer a step-by-step plan that will help you understand the current issues necessary in order to open your own repair shop for household appliances.
Relevance of the topic
Before opening any company, you should conduct a market analysis on the following positions:
- availability of effective demand in a particular locality;
- range of services provided;
- are there any seasonal market fluctuations;
- base of spare parts - necessary materials for repairs, their availability for sale;
- production capabilities and competitor analysis of similar services.
If you answered all of the above points, made an analysis, you can proceed to the next stage - assessing the profitability of a business in a particular locality.
In the modern world, it is difficult to imagine an apartment or house without many household devices, including refrigerators, vacuum cleaners, dishwashers and washing machines, boilers and many others. The cost of home appliances is very high and, as a rule, a complete replacement of devices is carried out every 6 - 8 years, when the equipment is completely out of order. During operation, such devices need repair and maintenance, and it is about creating a business on such services that we will talk about in this article. It is often easier for customers to pay a check of $ 17 - $ 40 than to buy new equipment at a price tag of $ 600 or more.
Therefore, the demand for services for the repair of household appliances will always be in the future, given the economic crisis, this business will only grow and develop. The main thing is the quality of work and the installation of original components, then customers, having received a high service service, will advise you to friends and acquaintances, and you, in turn, will get new regular customers.
- Stationary workshops, which, having processed an application, take the equipment to themselves, repair, and then deliver the equipment back. Often these are large services that are official representatives of well-known brands, but in order to obtain such a status, you need to meet certain requirements and have positive experience in this area. In addition, a rather big investment is needed. This format is an example for business development in the future. Usually, repairs have a long warranty period.
- Craftsmen who fix household appliances at home. Nowadays, in everyone in the house there are many different electrical appliances that make our life easier and save time. But there are times when these devices fail and then we start a continuous red tape with repairs. It's one thing if your electric kettle breaks down, you take it and bring it in for repair, and if a refrigerator or stove breaks down, what then? You need to hire a cargo taxi to take it to a service center and wait for a response from specialists. In accordance with this problem, work at home is now actively gaining popularity. First of all, you do not need to go anywhere and take your broken appliances, you just call the master, and he himself comes to you. On the spot, he does an inspection and determines the cause of the breakdown, often they already have component parts (since the essence of the breakdown, according to statistics, you can estimate and take everything you need), if there are no parts, he buys them. Upon completion, you receive a serviceable technique and a several months warranty. Agree, home appliances repair is convenient and fast. The scope of services of such masters includes all electrical equipment, but there are masters, for example, who specialize only in the repair of washing machines or other equipment.
- Combined workshops. Which include the features of the two previous formats. These are services that have their own office, but at the same time, at the request of the client, they can repair equipment on the road. This is the most suitable option for opening a repair shop for household appliances. Having started such a business, you will be able to cover the widest range of client requests and, accordingly, get the maximum profit at the exit.
For your service to work, you will need to receive all the necessary documents. We will provide an approximate list of what you will need, but to obtain accurate information, you can ask a lawyer for help, and he will accurately suggest the most relevant list of everything you need.
- open IP.
- indicate OKVED for activity. For Russia it is - 95. 2. For Ukraine - 95. 9.
- obtain a permit to work in the premises from the SES and the fire service.
- issue a lease agreement for the premises.
- to hire staff.
Premises and equipment
The next stage in the implementation of this business idea is to find an office space. It should be located preferably in large residential areas or near markets, hardware stores. There must be a good entrance and a parking place, including a minibus that will transport equipment. Office areas should be divided into a reception area, where all orders will be processed, and there will be workplaces for managers who will process requests from clients. Next, there should be a workshop area, a warehouse and a bathroom. The minimum area of the premises for this is from 40 sq. ... and higher.
You will need to purchase furniture, these are tables and chairs, racks, and wardrobes. You will also need computer equipment and peripherals, the same printers, laptops. Of the working equipment, special devices for diagnostics, disassembly and other things will also be needed. The list of tools will differ slightly for each type of technique.
If you yourself are engaged in the repair and maintenance of household appliances, then at the initial stages you will only need to hire a driver and loaders for piecework wages. In fact, you take over the rest of the business process, including communication with the client, the repair process itself, and warranty service. As the business develops, you will need to hire personnel, namely: masters of various profiles, so that you can not only process more orders, but also take new types of equipment for your service. Next, you'll need sourcing and customer service managers.