Home remodeling contractor business

Homeowners, landlords and people preparing a home for sale.

Fixed-price or cost-plus contracts per project, with a markup on labor and materials. Payment is usually taken in stages as work is completed.

• Reading plans and estimating costs
• Managing subcontractors and schedules
• Clear communication with homeowners
• Knowledge of building basics

• State or local contractor license requirements, which vary a lot and may need exams, experience or a bond
• General liability insurance, workers' compensation once you hire, and check whether subcontractors carry their own
• Building permits and inspections, check with your city or county building department
• Written contracts, change orders and cash flow, since you often pay for materials before the client pays you
• Rules on deposits and payment schedules, which some states limit

Startup costs are typically around $6,000 to $25,000, depending on your insurance, licensing or bonding requirements, and how you set up your office and vehicle. Cash flow matters because you often pay for materials before the client pays you.

Monthly revenue is typically around $4,000 to $20,000, depending on the number and size of projects you manage. The estimate assumes about 25 or more hours a week. Written contracts and change orders help protect your cash flow.

State or local contractor license requirements vary a lot and may involve exams, experience or a bond, so check yours. Also check building permits and inspections with your city or county, insurance needs, and any state limits on deposits and payment schedules.