Home improvement referral services are springing up from New York to California. They are taking the time to do the groundwork to find reputable and reputable contractors, and these companies are making a profit from good work.
It really doesn’t take much to get started. A home improvement referral service business requires only a little money and no more time than a regular 40-hour-a-week job. In fact, they can start earning money within the first year of activity.
The first thing to consider is what types of home improvement businesses you will recommend. This can include gutter cleaning and replacement, remodeling, building additions, fences, lawn maintenance, and many others. Remember, even if a client likes to paint, they may not like it or don’t have the time. Therefore, no matter should be overlooked.
Once you have an idea of the types of contractors for your referral service business, you will need to call your local, county, and state government offices. Get the regulations and requirements related to licenses, bonds, business registration and insurance for each type of contractor. This is the first step in creating your list. Any contractor that does not comply with government regulations should not be on your reference list.
By knowing these requirements and using them, your home improvement referral business will gain credibility with your customers. They will know that if the contractor does not meet these requirements, they will not be on their list. Makes the client feel more confident that the job will be completed professionally and correctly.
Another way to ensure the credibility of your referral services business is to look only at contractors recommended by your former happy clients. But this is not the end of the selection process. Recommendations are not enough.
Once a contractor is recommended for your home improvement referral business, you need to verify their service. Talk to them and explain your referral service business. Many contractors will be happy to provide you with the information you need. Ask to see their licenses, bond information, and insurance to make sure they are current and current. Ask for a list of the services they provide and the cost of these services. Lastly, ask for references you can talk to.
You have now started your contractor referral list. As you worked on creating this list, you should have started to think of a name for your referral service business, advertising, office area, office equipment, and request a phone line for the business. You may want to use a computer right away, but an index card or file system might work just as well, and for a fraction of the cost, until your business grows. Keep in mind that as your business grows, the office space, office equipment, and reference list system will likely need to be computerized to save time and money.
Since your referral business will start locally, check with local newspapers and periodicals to see if they would be interested in running an article about your business. Make some flyers and ask local hardware stores if you can leave some there to advertise your service. You can also send letters to real estate agents announcing your business, they can be great advertisers for you.
Make your services free to people who call your business looking for referrals. Many home improvement referral companies charge the contractor between 6% and 15%, depending on the size of the project. You put clients in contact with the contractor, and after the project is complete, the contractor pays you a fee.
Advertise that no contractor is paying you to get on their referral list. If customers or contractors ask how they get listed, explain that the only way a contractor can get on the list is for a customer to recommend them. You may want to explain the entire selection process so that the person knows the exact qualifications contractors must have before being accepted.
A referral service business can expand quickly and easily. Once your business starts to grow, create a business plan to set goals. Decide how much you want to expand and consider starting franchises in other locations or expanding the list to include contractors that were not originally listed. This is your home improvement referral service business and you can take it anywhere.
