2017-03-15 00:00:00 Starting a Business English Review some of the most common pros and cons of owning a remodeling business so you can make an informed decision. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/worker-stains-table-during-custom-remodel.jpg https://quickbooks.intuit.com/ca/resources/starting-business/pros-and-cons-of-owning-custom-remodeling-business/ Pros and Cons of Owning a Custom Remodeling Business

Pros and Cons of Owning a Custom Remodeling Business

2 min read

If you’re looking for a career change, a home remodeling business can be a rewarding choice. At the same time, there are potential drawbacks to consider before getting started. If you’re thinking about getting a crew together and starting a home renovation company, do your homework first to ensure it’s a prudent long-term decision. Let’s examine some of the most common pros and cons associated with owning a custom remodeling business in Canada.

Startup Expenses

The cost to start a home remodeling business can be filed as a pro or con depending on the equipment you already own. If you already have a solid tool collection and a truck, your expenses are going to be significantly lower than if you’re starting from scratch. Determine what type of jobs you’re going to be performing, and then spend some time bargain hunting for professional-quality tools. Consider buying used when possible. If you have any partners or crew members on board, see if they’re willing to contribute equipment in the early stages to help get the company started.

Seasonal Income Shifts

It’s no secret that Canada can get downright frigid during the winter, and your company isn’t likely to see as much work during those months. Seasonal pay changes are generally not ideal, but some contractors do enjoy taking some time off during the slow season. Try to book winter jobs well in advance when possible, and make sure you create a solid budget so your money lasts through any temporary dry spells.

Licencing Requirements

Starting a home remodeling business isn’t as easy as booking a few gigs and cashing some cheques. You’re going to need to acquire appropriate licences and learn about regulations in your area. You need to register or incorporate your company, and decide if you’re going to hire employees or use independant contractors. In Canada, contractors that make revenue surpassing $30,000 in a single calendar quarter or four consecutive quarters need to register for goods and service taxes and harmonized sales taxes, and they need to acquire a business number. Make sure you thoroughly review and follow all Canadian contractor laws.

Potential Profitability

Home remodeling businesses can potentially generate a substantial amount of revenue, but it’s not guaranteed. How profitable your company will be depends largely on your location in Canada and how far you’re willing to travel. For example, if you’re based in a prosperous city such as Vancouver, BC, you’re probably going to have access to more wealthy clients, but you will also have more competition in the saturated area. If you’re going to work in a more rural region, you may not have as much competition, but you may not have as many client possibilities either. Research your area, and try to gauge its financial potential before you begin. The bottom line is that if home remodeling is your calling, you will figure out a way to make it work. Most obstacles can be conquered with some motivation and perseverance, so stay focused on your long-term goals. There are plenty of up-and-coming regions in Canada that would be perfect for home remodeling businesses, so do your research. In the long run, you will be glad you put in the effort to get started on the right foot.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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