Starting a property restoration business is rewarding, fun and challenging. With multiple items to complete before opening your business, including IICRC training, obtaining insurance, purchasing equipment, marketing, insurance relationships (and TPA’s), it can be a lot to get done!
Two options we will discuss are starting your own business, and purchasing a franchise.
Starting your own business means you have to do all the groundwork. You come up with a name, create your marketing strategy, determine your equipment needs, build relationships and make your own processes.
If you want to start your restoration business with the above systems already in place, a franchise may be a good fit for you. A franchise provides a business owner with branding, marketing materials, training and back-end and front-end support.
There are tradeoffs between opening your own business and purchasing a franchise.
In either case, Remediation Training & Consulting can provide IICRC training and consulting services before you open your doors, and through every step and project along the way.
Is a restoration business right for me?
The property restoration industry is different than any other industry. It is related to the construction industry, however, many restoration companies only offer mitigation services and let other building contractors complete the rebuild portion of the project. While starting as just a mitigation company, it may be beneficial to eventually start a reconstruction side. This way you can complete the job from start to finish, increase revenues and not have to turn the reconstruction part of the business over to a potential competitor. Being a one stop shop for all restoration needs is a great way to become the risk management service your clients are looking for.
Helping a home or business owner restore their lives is a rewarding experience. As a restorer, you begin the job process when the homeowner needs help and their home of property is in disarray and finish the job process after successfully restoring their property to the way it was before. During this process, you build great relationships with your clients. In addition to the rewarding work, restoration businesses can be a lucrative venture (if done correctly and honestly).
Restorers often bill insurance companies for the work they do, which is another reason this industry is different than other industries. As restorers, we go to a client’s home, do a bunch of work and don’t charge them. We then bill the insurance company and ask them to pay us. If the job process is done correctly, the bill sent to the insurance is fair and honest and the client has the proper insurance, the insurance usually pays estimate. (There are exceptions to this, including collecting deductibles from the homeowner, coverage issues, etc. The contract is with the homeowner and if the insurance doesn’t pay the bill, the client should understand you will be looking to them for payment. Have a contract between you and the homeowner that is prepared by an attorney and give the client plenty of time to review the contract and make sure they understand it.)
With the above in mind, the property restoration industry is different in terms of the hours worked. This is a 24/7/365 business. Water damage happens at all hours. When the phone rings you need to be ready to respond. Creating a great team with on-call rotations helps this process, however, when starting out you may not have a team in place, and you will have to go. The initial job may start after hours, but the remained of the work usually happens during normal business hours.
There are many other services you can offer in your restoration business. Many owners add services including carpet cleaning, carpet repair, asbestos abatement, mold remediation, graffiti removal and fire and smoke restoration.
The work of a restoration company is often dirty, after hours and tiring. On the other side, the work of a restoration company is often rewarding, lucrative and challenging.
Water Restoration Franchises
Pros of Purchasing a Franchise
Cons of Purchasing a Franchise
Purchasing a franchise can be a great investment. We have identified restoration franchises below. This is not a complete list of all restoration franchises. Each franchise has different aspects including franchise fees, ongoing royalties, territory size, etc. To learn more about each franchise, you should talk to that companies’ franchise department.