What Are the Largest Expenses of Starting a Home Repair Business
It’s one of life’s inevitabilities - at some point, parts of people’s homes are going to break. When that happens, they call for home repair services unless someone in the home has the skills to perform the necessary repairs. It’s an important job that will always be in demand, which can make starting such a business an enticing prospect. As with any business, there are some pretty significant expenses to cover.
Vehicles and Equipment
As a home repair business, you’ll need to have vehicles that your employees can use to get to job sites and equipment that they can use to get the job done. The equipment needed will vary, depending on what types of home repairs your business handles, but regardless of your specialty, it’s important to make sure you get quality equipment. You’ll pay more, but it should last longer. You can expect the same for your vehicles. Cargo vans and trucks are often the best options, with cargo vans having some distinct advantages, and you’ll pay more for newer, higher-quality vehicles. A single vehicle can easily cost tens of thousands of dollars, and you’ll probably need at least a few.
If you want to have a thriving home repair business, you’re probably going to have to have at least a few employees. That means paying employee salaries, which can cost you a pretty penny. HVAC technician salaries can range from $37,000 to $66,000 depending on the state. Electrician salaries range from $43,650 to $77,810, again depending on the state. Of course, that’s the gross pay the employees are receiving. Because you’re responsible for different employee-related taxes as an employer, you can expect to shell out 1.25–1.4 times an employee’s salary per employee.
You’ll need to attract customers to your business, and your marketing is how you’ll go about doing that. Marketing doesn’t typically come free though. You’ll need to pay for decals or wraps for your company vehicles, a website, and any digital and traditional marketing you do. You can expect to use anywhere from 10–25 percent of your revenue for marketing expenses. That sounds like a big range, but the age of your business, how established it is, and your chosen marketing methods will all influence the amount you spend.
Starting your own home repair business can be great, but you need to make sure you have a plan for how to go about covering your expenses before you get going. Vehicles and equipment, employee salaries, and marketing are some of the major expenses you’ll need to plan for. That will help you get a handle on your cash flow so you can have a profitable business model.