How profitable is a restoration business
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- Опубликовано: 30 янв 2023
- Ever wonder how much profit should you expect to make owning a restoration company? In today's video we break down the various job types: fire, water, mold, reconstruction.
Not only do we let you know which is the most profitable, we explore the difference between profit margin, profit dollars and RISK.
Asking the question of which is most profitable... that isn't specific enough. We need to know what you are looking for? Are you looking for highest profit margin? Or are you looking for which will generate the most profit dollars?
These are VERY DIFFERENT. We break it all down TODAY!
Which job type has the highest margin
Which job type has the most profit dollars
Which job type has the highest RISK
And then we explore what should you expect from each.
You don't want to miss this one!
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Which job type do you like the most???
Let me know here in the comments
Water for sure. Most fun to least risk out of almost all the work. Great channel Shane!
Glad you like it
Where do you guys operate your business?
Is there any health risks with water restoration like the others? Is asbestos or other contaminants actually a risk? I’m taking the course for water and they bring that up quite a bit.
@@gabe3134a certified expert is supposed to deal with asbestos but some mitigation companies don’t care and will put employees at risk by telling you to do it. Other than that you’re constantly exposed to a ton of dust, fiber glass from insolation, black mold, Sheetrock dust ect. The biggest risk is mold and whatever kind of dust you’re inhaling. Mold isn’t actually dangerous it is harmless even black mold but public fear of mold =$$$$ as for whatever else your breathing in time will tell the damage done
Great Video. Always good information.
Glad you like it.
on you recon jobs are you just turning in subs bids to insurance? or are you writin your own?
Great video Shane. Thank you! Roughly how big could you grow your yearly revenue just doing water jobs? And how big could you grow just mold jobs?
How much is possible will depend on your ability to run the company as a leader
That said, it is easy to make over a million dollars a year
Great video Shane. Just signed up for your free course and going thought the modules. My question is if I don't have much experience in the residential water restoration space, am I better off going with a franchise or build something up. I don't want to go with franchisee but not sure if without too much experience in the space , that's the only way. Would appreciate your advice.
Glad to have you
Watch this video
Should a restoration contractor buy a water damage franchise?
ruclips.net/video/Fc_gOBPJEts/видео.html
When you say your net profit should be 50% annually on your first million dollars doing water jobs, do you mean after taxes?
If not, where does the other 20-30% go?
One thing I do that add to my bottom line everyone I service I set them up on a yearly testing and defogging service for a flat rate that never goes up as long as they prepay after that all they need to do is scheduled it when it's time .I created a contract that will be a asset to my company when I go sale it
nice work!
hello.
Please need your advise for best state or city to start water damage company in the states ?
Thank you
Any city or county with over 100k people
In a perfect world you would be on the outskirts of a large city
For instance we were 20 min south of Nashville
Find the area outside of a city and make sure it isn’t the ghetto side
Water damage, Mold Removal, Fire & Smoke damage cleanups
What is your favorite?
i like water and mold
Those are the two gems!
Can a business be a freestanding water business? Or will you get shopped around to the all in one?
if your question is "can we do water only - not recon" then yes
Freestanding water and mold... possibly move into fire restoration, no reconstruction. @@TheRestorationContractor
Are there a need for more restoration companies and what are the problems that need to be solve in the industry? I’m a 23 year old guy that is not a handy person. I’m looking to start a business that has some problem nobody wants to solve and it has a demand for it?
Hey Travon, I don't think you need to be "handy" for restoration.
Restoration isn't for everyone though. You can make TONS of money but it is hard work.
Most get into it for the $$$ (I did)
Ultimately you get to help people when they are in dire need because they just suffered water, fire or mold damage.
They are scared and need help.
It is fun helping people on what is often times one of the worst days of their life
Is there a demand.... ABSOLUTELY!
Hope this helps
@@TheRestorationContractor I am looking at the profit margins but the biggest thing I’m looking at is the growth of industry, the demand of the work, and what high paying jobs I can bring back to American.. I really don’t have a passionate for anything but I’m trying to create a driving purpose to start a business. Helping people is the biggest driving purpose for me. What is the hardest about the the work itself and the sales department?
@@travonbrown8818go in a crawl space that’s 12 inches tall, tear out insulation while your down there, clean up and set up fans and a dehumidifier. The insects alone will make 99% of people not do it if the claustrophobia doesn’t get them. Demolish a sewage loss house in the middle of summer. Remove glued down oak wood floors. It’s a real man’s job
Is there demand for a start up shop or will the one stop all in one shops be more competitive?
@@garrettp.5018That is a great question.....I am in that situation right now
I strongly disagree with the profit margin for reconstruction. I'm sub for a few restoration business's right now and clear 30 to 40% profit. Imagine when I start getting these jobs myself. These companies take 40% off the top before I even see the job.
You're doing it wrong if you're only making 10% on recon, my company is sitting at 35% on the year after all overhead. I've done $5 million in revenue this year
So what is your profit on $5M?
Do you have a GC license for the recon? Assuming you sub out your work?
he just said 35%@@TheRestorationContractor