Opening a Restoration Business

[Ivan Turner]

Let's assume for just a moment that you were magically dropped out of the sky into a completely different geographical location than you are currently operating in.

Next let's assume that you wanted to open a restoration business. Now let's further assume that when you landed in this new location, which you know nothing about you had a check in the amount of 50K.

1.What would be the steps you would take to get er' up and running?
2.Who would you market to first, second, third, etc?
3.What about equipment? When you landed you had no equipment.
4.How long do you anticipate it would take before you showing a sixable return on your 50K?
5. For the experienced restorer, what would you do differently in this strangfe nw land that you had failed to do at your current location?


Ivan

 

[Desk Jockey]

Until I was established I be strictly WDR, no Fire.

Fire takes up a lot more space and personnel, the receivables are generally slower too.

I'd lease an average size building big enough to work out of but not so big I would be wasting space. $1,000.00 month?
Lease First & Last $2,000.00

Mainstream radio and cable TV, drop $2,000.00 month for 6-months $12,000
$2,000.00

I'd hit Plumbers/Drain cleaners, Property/Risk managers, Insurance agents. Everyone, as down time allowed.
$5,000.00 marketing materials and promotional items

Lease a Butler in box, racked for WDR, but capable of carpet cleaning 210 tanks.
Put down $10,000.00
Lease payment $1,200.00?

Drying Equipment and Inspection tools
2-dz airmovers, 4-large Dehumidifiers
This would just to be to start with, as the jobs began to flow I'd reinvest some of the profits and buy more. I don't need a bunch of equipment if I don't have any water jobs.
lease $15,000.00 equipment.
$1,500.00 down $500.00 month? for 3-years

Leaves you with more than half of your $50,000.00 as operating capital, but you better get moving because the monthly overhead is going to be a bear if you don't get some work in!!! Nearly five grand without fuel and utilities.

I think a year, maybe two?
You're going to experience some rapid growth after the first year but your need for additional personnel and equipment will also grow.

I wouldn't use so much of my own money. :wink:

 

[Ken Snow]

Richard- with money so cheap right now, why put 10k down? There are lots of leases avail with 0 down and that gives you more cash to either add to other areas or allow more time for business to generate self sustaining cashflow.

Ken

 

[Desk Jockey]

I was trying to keep my monthly down.

How much more would it be if I went zero? I rather have the cash, but I'm a little afraid of the monthly expenses especially in the beginning.

 

[Ken Snow]

That would depend on lease factor (rate), length of term and your credit. Could be as little as 150 or so for long term lease or 300 more for short term. Either way you got 10k more to make those monthly payments, or pay for things you can't finance. If you use the 10k as down payment its gone. Better to use other peoples money IMO.

 

[Jay D]

I think he ment to say 50,000 and no leasing, but I might be wrong.

 

[Ivan Turner]

I meant to say 50k for you to use in whatever way would best help you to launch in your new location. I'm like Ken in that I'd try my hardest to use other peoples money. I'd put the 50k in a lockbox only to be used as a last resort.

 

[Mikey P]

bump!

 

[tmdry]

bump!

 

[windmarkbob]

Rather than buying the Truckmount for extraction and a van large enough to carry it, I'd look at a hydro-x with vac pack for the wdr extraction work for about $8k, and for carpet cleaning work I'd get an OP machine for both residential and commercial work. You can tote several air movers, dehumidifiers and the hydro-x when the wdr work gets called in, and for a cleaning route you've got a machine, pads, chems, and a few accessories. A chevy astro will work here where you should have a 1 ton extended for the other. Versatility rules.

Mr. Coffee