Remodeling Business Plan
You’ve come to the right place to create your Remodeling business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Remodeling companies.
Below is a template to help you create each section of your Remodeling business plan.
Executive Summary
Business Overview
Eternity Remodeling and Renovations is a new residential remodeling business located in Sacramento, California. We can remodel any part of a home, including bathrooms, kitchens, interiors, and exteriors. We also provide services to update homes so that homeowners can age in place safely. Eternity Remodeling and Renovations strives to be the best remodeling business in the area, focusing on customer service and maintaining long-term relationships.
At Eternity Remodeling and Renovations, we believe that every customer deserves to live in their dream home. Our expert contractors will work with customers to design and create the perfect spaces that will make their current home their dream home. With 20 years of experience, we can take on any remodeling project and create any space that our customers desire.
Eternity Remodeling and Renovations is led by Luke Johansson, who has been a contractor for 20 years. Throughout this career, he has overseen a variety of remodeling projects and worked for hundreds of customers. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, Luke is ready to officially incorporate his business and hire several other contractors who can help expand the business and clientele. His experience, education, and initial list of loyal clients will ensure that Eternity Remodeling and Renovations is a success.
Product Offering
Eternity Remodeling and Renovations offers a variety of residential remodeling services. Some of these services include:
- Kitchen and cabinetry remodeling
- Bathroom remodeling
- Interior remodeling
- Roof remodeling
- Exterior remodeling
- Whole house remodeling
- Aging-in-place remodeling
Customer Focus
Eternity Remodeling and Renovations will primarily serve homeowners, home buyers, and landlords in Sacramento, California. The Sacramento area has a booming population, with millions of people who own their own home. Sacramento also has a large population of middle and upper class residents who have the disposable income to invest in remodeling services. Therefore, we have a large target demographic to work with and are assured to be successful in this industry.
Management Team
Eternity Remodeling and Renovations is led by Luke Johansson, who has been a contractor for 20 years. Throughout this career, he has worked on and overseen a variety of remodeling projects for hundreds of customers. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, Luke is ready to officially incorporate his business and hire several other contractors and employees who can help expand the business and clientele.
Luke has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). He also already has a starting customer base to provide revenue for the company. The combination of his education, skills, experience, and loyal clientbase will ensure that Eternity Remodeling and Renovations is a success.
Success Factors
Eternity Remodeling and Renovations will be able to achieve success by offering the following competitive advantages:
- Customer-Focus: Eternity Remodeling and Renovations’ contractors provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the process, from the initial inquiry to the follow-up once the project is completed.
- Management: Luke Johansson has been extremely successful working in the remodeling industry and will be able to use his previous experience to help clients with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of Eternity Remodeling and Renovations’ competitors.
- Relationships: Having lived and worked in the community for decades, Luke knows many of the local residents and has already established a loyal clientele from his years as a solo contractor. These relationships will provide the company’s initial clientele and help our business through word-of-mouth marketing.
Download the Remodeling business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Eternity Remodeling and Renovations is currently seeking $550,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Store design/build: $150,000
- Vehicle purchase and maintenance: $100,000
- Equipment and initial supplies: $150,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $30,000
- Working capital: $25,000
The following graph below outlines the pro forma financial projections for Eternity Remodeling and Renovations.
Company Overview
Who is Eternity Remodeling and Renovations?
Eternity Remodeling and Renovations is a new residential remodeling business located in Sacramento, California. We can remodel any part of a home, including bathrooms, kitchens, interiors, and exteriors. We also provide services to update homes so that homeowners can age in place safely. Eternity Remodeling and Renovations strives to be the best remodeling business in the area, focusing on customer service and maintaining long-term relationships.
At Eternity Remodeling and Renovations, we believe that every customer deserves to live in their dream home. Our expert contractors will work with customers to design and create the perfect spaces that will make their current home their dream home. With 20 years of experience, we can take on any remodeling project and create any space that our customers desire.
Eternity Remodeling and Renovations is led by Luke Johansson, who has been a contractor for 20 years. Throughout this career, he has overseen a variety of remodeling projects and worked for hundreds of customers. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, Luke is ready to officially incorporate his business and hire several other contractors who can help expand the business and clientele. His experience, education, and initial list of loyal clients will ensure that Eternity Remodeling and Renovations is a success.
Eternity Remodeling and Renovations’ History
Luke Johansson recently began researching what it would take to incorporate his business and expand his client base. He has analyzed the costs, market, demographics, and local competition. Luke has compiled enough information to develop his business plan in order to approach investors.
Once his research was complete, Luke incorporated Eternity Remodeling and Renovations on May 1st, 2023 as an S-Corporation. The business is currently being run out of Luke’s home, but once the lease on Eternity Remodeling and Renovations’ office location is finalized, all operations will be run from there. He currently uses his personal vehicle to drive to clients’ homes but will purchase a vehicle that will be used specifically for the business.
Since incorporation, the company has achieved the following milestones:
- Found a commercial space and signed a Letter of Intent to lease it.
- Developed the company’s name, logo, and website.
- Planned the suite of services to be offered.
- Determined equipment, supplies, and materials needed.
- Begun recruiting key employees
Eternity Remodeling and Renovations’ Services
Eternity Remodeling and Renovations offers a variety of residential remodeling services. Some of these services include:
- Kitchen and cabinetry remodeling
- Bathroom remodeling
- Interior remodeling
- Roof remodeling
- Exterior remodeling
- Whole house remodeling
- Aging-in-place remodeling
Industry Analysis
No home is perfect. Many homeowners find that they need to make updates or changes to their homes at some point in their ownership. These projects can either be purely aesthetic or improve the functionality of the home (such as for those wishing to age safely in place). Common remodeling projects include repairing broken structures and fixtures, improving the aesthetics, adding more space, and improving the safety of the structure. Since many of these projects can be extensive, homeowners depend on professionals to get the job done. Therefore, contractors and remodeling businesses will always be in demand as long as people own their own homes.
According to research, the home remodeling market is currently valued at $852 billion and is expected to grow at a compound annual growth rate of 4.3% over the next five years. This growth rate shows that remodeling services are still needed and the industry will continue to grow and expand. Though the remodeling industry suffered losses during the pandemic years, the current project growth rate shows that people are ready to spend money on extensive remodeling projects again. Therefore, now is a great time to start a new remodeling business.
Download the Remodeling business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Eternity Remodeling and Renovations will serve the community residents of Sacramento, California and its surrounding areas.
The area we service is suburban, with 50% owning homes. This means a sizable portion of the local population will require our services at some point.
A demographic profile of the Sacramento area is as follows:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Eternity Remodeling and Renovations will primarily target the following customer profiles:
- Homeowners
- Homebuyers
- Landlords
Competitive Analysis
Direct and Indirect Competitors
Eternity Remodeling and Renovations will face competition from other companies with similar business profiles. A description of each competitor company is below.
Mountainside Remodeling Services
Established in 1979, Mountainside Remodeling Services has been a popular local commercial remodeling business. They help offices and other establishments update their spaces to improve their office environment. Many businesses have sworn by Mountainside’s services, and the company’s reputation has skyrocketed simply through word-of-mouth marketing.
Though Mountainside Remodeling Services will continue to thrive, the company primarily works with local businesses and, therefore, will be a minor competitor for Eternity Remodeling and Renovations.
John’s Remodeling Inc.
John’s Remodeling Inc. has been a profitable small remodeling business for over a decade. This small business helps with a variety of residential remodel services, including remodeling bathrooms, kitchens, and exteriors. John’s small team has gained a great reputation for their friendly customer service and the professional quality of their work.
Though John’s Remodeling Inc. has gained a positive reputation, its scope of work remains small, even after a decade. They can only help with small projects and generally don’t sign up for larger-scale services. As Eternity Remodeling and Renovations grows, we will take on larger projects and aim to be the primary remodeling company that the residents of Sacramento, California can rely on.
Carpentry And More LLC
Established in 2005, Carpentry And More LLC set out to be the best local business for all carpentry-related needs. Customers can expect high-quality carpentry work paired with excellent customer service. Carpentry and More’s most popular services include deck and fence installation, remodeling, and door replacement.
Though Carpentry And More offers a variety of services, they primarily focus on and make revenue from their carpentry services. Therefore, they are a minor competitor when it comes to remodeling projects.
Download the Remodeling business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Eternity Remodeling and Renovations will be able to offer the following advantages over their competition:
- Customer-Focus: Eternity Remodeling and Renovations’ contractors provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the process, from the initial inquiry to the follow-up once the project is completed.
- Management: Luke Johansson has been extremely successful working in the remodeling industry and will be able to use his previous experience to help clients with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of Eternity Remodeling and Renovations’ competitors.
- Relationships: Having lived and worked in the community for decades, Luke knows many of the local residents and has already established a loyal clientele from his years as a solo contractor. These relationships will provide the company’s initial clientele and help our business through word-of-mouth marketing.
Marketing Plan
Brand & Value Proposition
Eternity Remodeling and Renovations will offer the unique value proposition to its clientele:
- Client-focused remodeling services, where the company’s interests are aligned with the customer.
- Service built on long-term relationships and personal attention.
- Professional industrial experience in a small business setting.
Promotions Strategy
The promotions strategy for Eternity Remodeling and Renovations is as follows:
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. Eternity Remodeling and Renovations will use social media to develop engaging content in terms of sharing renovation and remodeling ideas and posting customer reviews that will increase audience awareness and loyalty.
Word of Mouth Marketing
Eternity Remodeling and Renovations will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers.
Website/SEO
Eternity Remodeling and Renovations will invest in developing a professional website that displays all of the services offered by the company. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. Eternity Remodeling and Renovations will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Pricing
Eternity Remodeling and Renovations’ pricing will be estimated on a project basis drawing on Luke Johansson’s deep expertise in remodeling services. The pricing will be determined by the materials needed and the amount of labor required to complete the job. Pricing will be moderate and less expensive than our competitors, but more expensive than lower-quality, efficiency-driven remodeling businesses.
Operations Plan
Operation Functions:
The following will be the operations plan for Eternity Remodeling and Renovations.
- Luke Johansson will be the owner of Eternity Remodeling and Renovations. He will oversee the general operations of the company and manage the staff. He will also conduct all work on the remodeling and renovation projects for his clients until he can hire several more contractors to keep up with demand.
- Luke will hire an Administrative Assistant to help him with all the administrative tasks.
- Luke will also hire a Marketing Manager to manage all of the marketing and advertising functions.
- As the business grows, Luke will hire other contractors to keep up with client demand.
Download the Remodeling business plan template (including a customizable financial model) to your computer here <–
Milestones:
Eternity Remodeling and Renovations will have the following milestones complete in the next six months.
- 06/202X – Finalize lease agreement
- 07/202X – Design and build out Eternity Remodeling and Renovations
- 08/202X – Hire and train initial staff
- 09/202X – Kickoff of promotional campaign
- 10/202X – Launch Eternity Remodeling and Renovations
- 11/202X – Reach break-even
Management Team
Eternity Remodeling and Renovations is led by Luke Johansson, who has been a contractor for 20 years. Throughout this career, he has worked on and overseen a variety of remodeling projects for hundreds of customers. He initially worked for local competitors but branched out on his own a few years ago. After being self-employed for a few years, Luke is ready to officially incorporate his business and hire several other contractors and employees who can help expand the business and clientele.
Luke has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.). He also already has a starting customer base to provide revenue for the company. The combination of his education, skills, experience, and loyal clientbase will ensure that Eternity Remodeling and Renovations is a success.
Financial Plan
Key Revenue & Costs
Eternity Remodeling and Renovations’ revenue will primarily come from charging homeowners for completed remodeling services. Pricing will be determined by the services required, materials and tools needed, and scope of the project.
The main cost drivers for Eternity Remodeling and Renovations will be labor expenses, materials and equipment, marketing, and the lease for the office space.
Funding Requirements and Use of Funds
Eternity Remodeling and Renovations is currently seeking $550,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Store design/build: $150,000
- Vehicle purchase and maintenance: $100,000
- Equipment and initial supplies: $150,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $30,000
- Working capital: $25,000
Download the Remodeling business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Number of clients:
- Year 1: 30
- Year 2: 50
- Year 3: 75
- Year 4: 100
- Year 5: 130
- Annual lease: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Remodeling Business Plan FAQs
What Is a Remodeling Business Plan?
A remodeling business plan is a plan to start and/or grow your remodeling business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Remodeling business plan using our Remodeling Business Plan Template here.
What are the Main Types of Remodeling Businesses?
There are a number of different kinds of remodeling businesses, some examples include: Residential Remodeling, Design-Build and Whole House Remodeling, and Restoration.
How Do You Get Funding for Your Remodeling Business Plan?
Remodeling businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Remodeling Business?
Starting a remodeling business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Remodeling Business Plan - The first step in starting a business is to create a detailed remodeling business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your remodeling business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your remodeling business is in compliance with local laws.
3. Register Your Remodeling Business - Once you have chosen a legal structure, the next step is to register your remodeling business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your remodeling business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Remodeling Equipment & Supplies - In order to start your remodeling business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.Â
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your remodeling business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.