Starting a home improvement business is one thing. Growing it sustainably in a competitive industry is another. If you’re here, chances are you’ve already laid the foundation—a few successful projects, satisfied clients, and the confidence to take the next step. But to scale from skilled tradesperson to thriving business owner, you need more than just talent with a toolbelt. You need a strategy.
This guide covers how to start and grow a home improvement business—with real, actionable advice that reflects today’s challenges and opportunities in remodeling.
Why now is a great time to start a home improvement business
The home renovation and remodeling market is booming. According to industry surveys, over 55% of homeowners planned renovations in the past year, with demand rising for professional, licensed contractors as DIY interest plateaus.
Many factors contribute to this growth: a hot real estate market, aging housing stock, and changing homeowner priorities post-pandemic. More people are investing in home offices, energy-efficient upgrades, and outdoor living spaces. As a result, remodeling spending in the U.S. alone is projected to surpass $500 billion annually.
That makes now a prime opportunity to get started—or scale up—your home improvement business.
1. Understand the industry landscape
Before diving in, it helps to understand the difference between home improvement, renovation, and remodeling. Renovation generally refers to restoring or updating a space, while remodeling involves structural changes that often require permits and specialized teams.
Understanding this distinction is important because it affects the type of clients you pursue, the projects you take on, and the qualifications and licenses you’ll need. Remodeling projects tend to be more complex, require more resources, and carry higher risks—but they also come with higher potential earnings. Early in your business journey, make a decision about whether you want to focus on cosmetic upgrades or structural transformations, and align your business structure accordingly.
2. Have a vision for growth
It’s easy to fall into the habit of accepting any job that comes your way, especially in the early stages of business. But long-term success comes from having a clear vision and sticking to it. Think about where you want your business to be in the next one to five years. Do you want to become the go-to contractor in your region for luxury kitchen remodels? Do you want to scale and manage multiple crews on simultaneous jobs?
Deciding what growth looks like for you—whether it’s increased revenue, expanding into new service areas, or building a brand reputation in a niche market—helps you plan more strategically. Specializing in one or two areas, like energy-efficient upgrades or historic home restorations, can help you stand out in a crowded market and attract higher-quality clients.
3. Invest in your skills and people
Even if you’re already experienced, continuing education and training is a smart investment. The remodeling industry is constantly evolving with new codes, materials, and client expectations. Staying current ensures you’re providing top-notch service and staying competitive.
If you’re starting with limited experience, consider learning a high-demand trade such as carpentry, electrical work, or plumbing. These skills are not only valuable but essential in most renovation jobs. You can begin by taking courses at a trade school or working under an experienced general contractor. Hands-on training provides both skills and insight into managing projects and clients.
As your business grows, hiring the right people becomes essential. Take the time to train them properly, establish clear expectations, and then trust them to do their work. Delegating responsibilities allows you to focus on higher-level strategy and growth opportunities.
4. Build a rock-solid marketing presence
In today’s digital-first world, your online presence can make or break your business. A professional website should showcase your work, describe your services, and make it easy for potential clients to contact you. Use high-quality images of your past projects, and include testimonials from satisfied clients.
Search engine optimization (SEO) helps your site show up when homeowners search for services in your area. Claiming and optimizing your Google Business Profile is another must—it allows your business to appear in local searches and maps, while collecting reviews that enhance your credibility.
Don’t neglect social media. Platforms like Instagram and Facebook are ideal for sharing before-and-after photos, video walkthroughs, and home improvement tips. Over time, your content builds trust and gives clients a sense of your expertise and style.
5. Use technology to accelerate growth
The right tools can save time, improve client satisfaction, and streamline your operations. Project management software helps you stay on top of tasks and timelines. Customer relationship management (CRM) systems allow you to track leads, follow up with potential clients, and organize contacts.
You can also leverage specialized tech platforms like HOVER, which uses smartphone photos to generate fully scaled, accurate 3D models of homes. This not only helps you create more precise estimates but also gives your clients a clear visual of what to expect. It enhances professionalism and gives your business a competitive edge.
Automation tools, such as email marketing platforms, can help you stay connected with past clients and nurture new leads without extra effort. Using digital tools wherever possible means fewer mistakes, faster turnaround times, and a better customer experience.
6. Strengthen industry relationships
No contractor works in isolation. Success in home improvement depends heavily on relationships—with subcontractors, suppliers, designers, and other contractors. A reliable network allows you to expand your capacity and take on more complex jobs.
Join industry associations like the National Association of the Remodeling Industry (NARI) or the National Association of Home Builders (NAHB). These organizations provide resources, training, and networking opportunities that can lead to new business.
Local partnerships are also valuable. Establish good relationships with materials suppliers, building inspectors, and real estate professionals. These connections often lead to referrals and discounted rates on supplies, both of which contribute to your growth.
7. Estimate and price projects right
Accurate estimating is critical to profitability. It’s important to understand all costs associated with a project, including materials, labor, permits, overhead, and your profit margin. Start with a quantity takeoff—a breakdown of all the components needed for the job—and use estimating software or templates to price each item accurately.
Don’t make the mistake of underbidding to win a job. Clients appreciate transparency and fair pricing. Underestimating leads to eroded trust and profit loss. Instead, walk clients through your estimate so they understand the value of what they’re getting.
8. Manage cash flow proactively
Cash flow is the lifeblood of any business. Many small contractors go under not because they lack work, but because they can’t manage money between jobs. Make sure you have clear policies for deposits and payment schedules.
Set aside savings to cover the cost of materials and labor in case of late client payments. Use accounting tools to track expenses, project income, and manage payroll. Having a clear view of your finances allows you to make smart decisions about when to invest and when to hold back.
Building a financial cushion, especially during busy seasons, helps you weather slower periods and take on bigger projects when they arise.
9. Deliver amazing customer service
Quality craftsmanship matters, but what clients remember most is how they were treated. Good communication, timeliness, and professionalism can turn a one-time client into a repeat customer and a vocal advocate for your business.
Always follow up after project completion. Ask for feedback, address any concerns promptly, and thank them for their business. Encourage satisfied clients to leave online reviews or refer friends. Those five-star ratings and referrals are worth their weight in gold.
Taking time to listen and respond to your clients’ needs builds long-term trust and enhances your reputation in the market.
10. Take smart risks
Business growth always involves some level of risk. But you can—and should—prepare for it. Consult with an attorney to ensure your contracts are legally sound. Review your insurance coverage, including general liability, workers’ compensation, and commercial auto insurance.
Consider putting non-compete clauses or NDAs in place when appropriate. Make sure you’re aware of local labor laws, union regulations, and OSHA requirements to avoid costly penalties.
The more prepared you are, the more confidently you can pursue big opportunities without exposing yourself to unnecessary danger.
Common mistakes to avoid when growing
Trying to grow too fast without proper systems in place
Rapid expansion without a strong operational foundation can lead to chaos. Without systems for scheduling, budgeting, quality control, and customer management, scaling your business will likely cause more harm than good. Before hiring more staff or taking on bigger projects, make sure your workflows, tools, and leadership structures can support the added complexity.
Underpricing work to compete on cost instead of value
It’s tempting to lowball quotes to win jobs, especially when starting out. But pricing too low undercuts your profits and devalues your services. It’s better to communicate your value clearly—highlighting your experience, materials, technology, or project quality—so customers understand what they’re paying for.
Ignoring customer satisfaction and post-project follow-up
Happy clients are your best marketing. Failing to check in after a job or ignoring small issues can turn a good experience into a negative one. Always follow up, ask for feedback, and thank your clients. Satisfied customers are far more likely to refer you and leave reviews that attract future business.
Failing to maintain good financial records or manage cash flow
Without visibility into your finances, you can’t plan effectively. Poor record-keeping leads to tax trouble, missed payments, and cash shortages. Stay disciplined with your accounting: track expenses, project profits, and cash on hand. Use software if necessary to simplify the process.
Not training or trusting new team members
You can’t do everything yourself as you grow. Yet many business owners fail to train or delegate properly. Onboarding new team members with clear expectations and trusting them to do their job enables you to focus on high-level strategy and build a stronger, more scalable business.
Avoiding these pitfalls can save you time, money, and headaches in the long run.
Quick start checklist for new home improvement businesses
Create a business plan with clear goals
A well-thought-out business plan helps you define your services, target market, pricing structure, and marketing approach. It also outlines short- and long-term goals that guide your decision-making.
Register your business and get licensed
Make your business official by registering with your local government. You may also need contractor licenses, bonding, and business insurance depending on your state’s requirements.
Invest in tools, technology, and training
Start with essential tools for your trade, and build your inventory as your needs grow. Consider investing in platforms like Hover, estimating software, and a CRM to help manage clients and projects efficiently.
Build a basic website and set up Google Business Profile
Having a professional online presence helps people find and trust your business. A simple site that showcases your work and services, along with a verified Google profile, makes a big difference.
Set up project management and accounting software
Digital tools streamline everything from job scheduling to budgeting and payroll. They help you stay organized, manage multiple projects, and keep tabs on your finances with ease.
Start with smaller projects and ask for referrals
Begin with manageable jobs to build experience, reputation, and confidence. Deliver great service, ask for testimonials, and let your early clients know you welcome referrals.
Final thoughts: Build for the long haul
Building and growing a successful home improvement business doesn’t happen overnight. It takes a clear vision, smart planning, strong relationships, and the ability to adapt to change. But with the right systems in place—and a commitment to delivering outstanding service—you can create a business that thrives year after year.
Whether you’re just starting out or ready to scale up, tools like Hover and CRM software can support your growth and help you stay ahead of the competition. Keep investing in your people, your clients, and your systems. The results will follow.
