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Starting a property
preservation business, like starting any business, requires some
pre-planning. Doing the pre-planning can help you better understand
what you will need and what you will have to do to establish a successful
property preservation business.
Here are the
basics:
- Prepare a
business plan
- Assemble
basic supplies, equipment & tools you'll need
- Marketing
PREPARE
A BUSINESS PLAN:
Every startup should begin with a business plan. It provides a way
of making you think what you're going to need, what running the
business will cost, and what revenue you'll need to earn. Items
to include: Business licenses, Insurance, Labor costs, Telephone,
Fax, Marketing costs, and any other costs associated with the business.
Break it down into months (January through December). List Revenue
and Expenses for each month.
PREPARATION:
- Liability Insurance: You should have liability insurance.
Some companies who hire subcontractors require
the
subcontractors have $1 million or $2 million liability
insurance.
- Business license: You'll need one, maybe several, for
the areas where you will be working.
- Other licenses: Check with your state and municipality
to find out if preservation companies require
a special
license (such as a contractor's license).
- Taxes & withholding: Check with the IRS, your state
&
municipality to find out what taxes you
must pay and when
you must pay them. Federal estimated tax forms
are
required quarterly -- some states, too. Consider
using
an accountant or payroll company to handle payroll.
- DBA, LLC, Corporation: Consider forming an LLC
or a
corporation
to protect your personal assets.
- Locate resources: Check on rates at the landfill you will
use, check on pricing for dumpsters, find out
if there are
places where you can find temporary labor (day
labor).
- Compile a list of prospective clients: Contact area realtors,
banks, find out who handles FHA and HUD foreclosures
in your area (banks or realtors may be able to
provide you
with contact information).
- Plan your marketing: Letters, online advertising, your
own
website, a listing at Preservation
Company Directory.
SUPPLIES,
EQUIPMENT & TOOLS:
Focus on what you'll need for:
- Trash removal (brooms, shovels, rubber gloves,
a truck or trailer)
- Cleaning (cleaning compounds, brushes, paper
towels,
scrub brushes)
- Miscellaneous supplies and equipment (office
supplies,
invoice forms, business cards, hand
tools)
MARKETING:
You'll have to let people know you're available. Marketing tactics
can include:
- The web
- Flyers on mailboxes
- Roadside signs
- Contacting local real estate agents & brokers
- Contacting national or regional preservation
companies.
- Networking
If you perform
work for companies, you might not get paid for weeks after the work
is complete, so you'll need a cash cushion when you're initially
getting started.
LINKS:
Visit the Links page for more
resources.
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