10 Fundamental Needs to Start a Restoration Business.

Here at Restoration Advisers, we have worked with many restoration companies in the last decade, and have chatted with hundreds more. We've compiled our top 10 Fundamental things you need to consider to start a restoration business. 

Here is the TL;DR 

1. Develop a business plan
2. Gain Restoration Industry Experience
3. Lead Generation strategies
4. Analyze your Competition
5. Develop Financial Management Skills
6. Establish a training program for your business with good SOPs
7. Talent Acquisition 
8. Set Realistic Growth Expectations
9. Commit to lifelong learning
10. Embrace delegation

1. Develop a Comprehensive Business Plan

Begin by outlining your business. Will you offer comprehensive restoration services or niche down to specialized areas like mold remediation or emergency water extraction? Getting clear on this question is critical for many reasons. In the beginning, knowing how to target your audience is vital. If you ONLY want to do water damage clean up, and NOT do any build back, your marketing strategy should be crystal clear and your client onboarding process should reflect as such. A detailed plan helps navigate the complexities of the restoration industry, setting clear goals, strategies for marketing, and financial projections.

2. Gain Restoration Industry Experience

Before launching, you stand a better chance of being successful in this industry if you work another company who provides the services you want to provide or closely with a mentor. One thing that this industry does very well is collaborate. There are many examples of restorers traveling to visit another restorer to learn from best practices. One owner getting suited up at another company and working alongside the crew to learn a technical aspect to take back to his company. Or spending the day shadowing another owner to learn about implementing an incredible culture.

Experience teaches you the nuances of dealing with insurance companies, understanding client expectations, properly onboarding clients to maintain positive cash flow, and managing disaster scenarios successfully within IICRC standards and maintaining OSHA compliance

Every restoration job teaches a lesson; make sure you're in class."

3. Lead Generation Strategies for Restoration Companies

This is not specific to the restoration industry. At the end of the day, the skills needed to sell are agnostic to industry.

The most basic advice that can be given is to develop a multi-channel approach. Utilize SEO for your website, engage in PPC advertising, and foster relationships within your community. Just because the rest of the industry says that you should chase plumbers doesn’t mean that you should chase plumbers. The right plumbers can be a good source of referrals for you, but there are a lot of other opportunists to develop referral partners.

We like to say:

Build your business on cups of coffee

Meaning that you should take the time to sit down with people in your community of all walks of life. Get to know them. They have a network of people and they want their network to be successful. If you can provide value to their network they will be ecstatic to introduce you to them!

Follow up with every opportunity you have, have a cup of coffee, and tap into their network also! Its a exponential factor!

4. Analyze Your Competition Collaborators

Study other restoration businesses in your market. Get to know their strengths and weaknesses. Perhaps there's a gap in fast response times or eco-friendly restoration processes you can fill.

Get to know them and the key players in the companies in your market. Often times it can be said that 2 companies in the same market aren’t competition. They are collaborators. What you struggle with or don’t want to do, another company can do well, or loves to do. What most people consider competition could be the greatest asset to you and your business because you can work together to provide for customers and refer business back and forth to be able to work with the clients you prefer.

"There are two ways to have the tallest building in town. One is to tear everyone else's building down, and the other is to build your building taller." - Jim Rohn

5. Financial Management Skills

Many Restoprueners™️ started their business believing the E-Myth. They worked for someone and thought they could do it better, cheaper, and have more free time. While many of those beliefs are possible, many Restoprueners™️ (not unlike entrepreneurs) fault to understand how vital accounting and finance are to a business. One of the most important things a Restoprueners™️ can focus on when just starting a business or rethinking their strategy after they’ve been down the road a bit is to understand cash flow, profit margins, and budget allocation. This industry is especially challenging because insurance companies are becoming a bigger and bigger factor in the process of restoring peoples homes.

Without a good understanding of proper client onboarding, and a lack of emphasis on good financial processes and systems, restorers find themselves in cash flow deficits more often than not.

Develop good financial management skills early in your businesses lifecycle. Your stress level will thank you later.

Numbers tell the story of your business's health; learn to read them fluently.

6. Establish Restoration Training Programs and SOPs

Whether you are thinking about selling your restoration business, or building a business that allows you to freely come and go at your leisure, creating detailed Standard Operating Procedures for every process is the single most important think you should focus on. This ensures consistency in service quality, which is crucial when dealing with sensitive situations like post-disaster recovery.

Building a company playbook takes time, and effort. Lots of time. Lots of effort. It is probably one of the things that overwhelms our clients the most.

In Restoration Business Academy we have a free download to help you manage all the different SOPs that need to be written in your business. Check it (and other free downloadable resources) out here.

If you are looking for a platform to house all of your SOPs, your policy’s, and procedures (your business playbook) look no further than Trainual.

Here at Restoration Advisers, we are certified Trainual implementers and we can help you get your playbook outlined for exceptional training and team accountability. Find out more about Trainual here.

7. Talent Acquisition

Look beyond skills; seek individuals with resilience and empathy. Restoration work often involves comforting clients during distressing times. While technical skills are necessary, the heart of service in blue-collar industries often lies in the character of your team. When acquiring talent, look for individuals who demonstrate resilience in the face of adversity and empathy towards others. These traits ensure that your team can not only perform their tasks but also connect with clients on a human level. Remember, "Skills can be taught, but a compassionate heart and a resilient spirit are invaluable."

"Your team's compassion can be as crucial as their competence."

Every company has a culture, whether it's explicitly defined or not. Hire individuals who will enhance this culture, not just fit into it. In restoration work, where teamwork can make or break the morale during long, challenging projects, finding someone who shares your company's values and work ethic is crucial.

Sometimes, the best candidate might not have years of experience but shows immense potential. Look for signs of eagerness to learn, adaptability, and problem-solving skills. These individuals can grow with your company and often bring fresh perspectives that experienced hires might not. As the saying goes, "Hire for attitude, train for skill."

8. Set Realistic Growth Expectations

Keywords: Business Scaling, Sustainable Growth

Growth should be strategic, not just rapid. Understand that scaling might mean investing in technology or expanding your service area gradually.

Restoration businesses, often rooted in local communities, face challenges that other industries don’t face. On the flip side, there are very unique opportunities in the restoration industry when it comes to growth. Setting realistic growth expectations involves a getting very familiar with the local market, understanding demand, and assessing the competitive landscape. This initial step ensures that growth goals are not just ambitious but also grounded in market realities.

Financial health and capacity are critical in setting these expectations. Restoration businesses need to evaluate not just their current financial standing but also the cost implications of scaling up. This could mean investing in new equipment, hiring more staff, or expanding service areas. One very important component that is often overlooked is working with local financial institutions and banks to understand what is needed to obtain short term funds for jobs or opportunities that may exceed the funds on hand. The goal here is to ensure that growth is sustainable, avoiding the pitfall of overextending resources which could lead to financial strain.

SMART is a tried and true framework for setting goals. Setting SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) provides a framework for restoration businesses to move forward. Instead of aiming for vague growth, a business might target a 10% increase in customer base over a year through targeted marketing campaigns. This approach not only clarifies the path to growth but also makes progress measurable, allowing for adjustments along the way. A restoration company, for instance, might set a goal to complete 10% more projects in the last half of the year by improving project management efficiency.

Finally, leveraging technology and digital marketing can significantly help a restoration company achieve these growth targets. Having a strong online presence through a user-friendly website, local SEO, and social media engagement can expand reach and credibility. Restoration businesses can also benefit from customer reviews and testimonials, which build trust and are invaluable in marketing. By integrating both digital and traditional marketing strategies, these businesses can not only meet current market demands but also set a foundation for future expansion, ensuring that growth is both realistic and achievable.

9. Commit to Lifelong Learning

Committing to lifelong learning in the restoration industry is more than beneficial—it's absolutely essential. The field evolves rapidly with advancements in technology and methodologies for damage mitigation, making staying current more than just a professional development goal; it's a necessity for maintaining safety, and the standards. From a marketing perspective, the lifelong learning contributes to relevance and excellence. Organizations like the Restoration Industry Association (RIA), the Institute of Inspection Cleaning and Restoration Certification (IICRC), and OSHA provide a wide variety of resources, from certifications to workshops, ensuring that professionals are equipped with the latest knowledge and skills.

Professional development in this industry goes beyond just acquiring new skills. It's about embracing the changes within the industry as they come. For instance, there is a growing trend of homeowners policy limits and deductibles being related to the value of the home. Meaning that more and more restoration clients are having to come out of pocket for restoration work. Its becoming vital for restoration contractors to have a rock solid client onboarding process to ensure they get paid for the work that they do. By committing to continuous learning, restoration professionals not only continue to develop their own capabilities but also contribute to the industry's progress towards true independence.

The only constant in business is change; embrace it by always learning.

Keeping communication lines open with educational organizations like the IICRC for certifications or OSHA for safety training ensures that practitioners are not only skilled but also compliant with industry standards and regulations. These certifications serve as a testament to a professional's commitment to excellence and safety, which are paramount in restoration work where health hazards are a constant concern.

Attending workshops or seminars offered by RIA can also provide insights into emerging trends, offering a competitive edge in a field where being ahead of the curve can mean securing more business.

Lifelong learning in the restoration industry also fosters a culture of innovation within companies. When employees are encouraged to pursue further education or attend industry conferences, they often bring back new skills but more importantly fresh perspectives that can lead to process improvements or new service offerings. This continuous cycle of learning and applying feeds into a company's growth and adaptability, ensuring it remains a leader in the market.

Ultimately, the commitment to lifelong learning in the restoration industry is about resilience and readiness. It prepares professionals to handle not just the known challenges but also the unforeseen ones with competence and confidence. By staying informed and skilled through the resources provided by key industry bodies, restoration experts can navigate the ever-changing landscape of their profession, ensuring they're always at the forefront of industry standards and innovations. In essence, "Learning is the fire that fuels the engine of progress in restoration."

10. Embrace Delegation

In the challenging world of blue-collar businesses, particularly in industries like restoration, delegation is not just a strategy for achieving the business you desire; it's a necessity for survival and success. As your business scales, the principle of "you can't be everywhere and do everything" becomes increasingly evident. Effective delegation is about more than just distributing tasks; it's about building a culture where every team member feels empowered and responsible. This shift is so important for scaling operations without compromising on quality or personal oversight.

Training your team and having the right people in the right seats to take on responsibilities is vital for effective delegation. This process involves not only teaching them the technical aspects of the job but also outlining and communicating a clear accountability structure. For instance, in a restoration business, this might mean training staff to handle client communications, manage project timelines, or even lead smaller projects. By doing so, you're not just buying back time for you to focus on strategic growth opportunities but also building a pathway within your organization that your team see as a career path.

A common theme in leadership and management books suggests that delegation is trust in action. Its turning your vision into a collective mission. When you delegate, you're showing trust in your team's ability to carry forward your business's goals and values. This trust, when reciprocated with competence and commitment from your team, turns individual tasks into a collective effort towards achieving larger business objectives. It's about transforming your vision into a shared mission where every team member feels they are a crucial part of the bigger picture.

Effective delegation in business operations leads to several great outcomes. It increases efficiency as tasks are distributed based on specific roles where individual strengths and expertise are matched with the role. It also reduces the risk of burnout, a common issue when business owners try to manage every aspect of their operations. By delegating, you make sure that your business can continue to operate smoothly even when you're not directly involved, which is crucial for long-term sustainability.

Its important to recognize that successful delegation requires clear communication, defined roles, and clear accountability structure. It's not about handing off tasks and forgetting about them; it's about setting clear expectations, providing support when needed, and giving feedback to ensure tasks are aligned with your business's standards and goals. This approach not only empowers your employees but also builds a resilient business structure where growth is supported by a capable, motivated team.

Essentially this can be boiled down to embracing delegation in blue-collar businesses like restoration is about creating a defined accountability structure where your vision is executed through a network of trusted, capable hands. Delegation is not about doing less; it's about doing more through others."

Bringing It All Together

Armed with these fundamentals, you're not just starting a business; you're building a legacy for those you care for most.

Remember, profitability over vanity metrics will keep your business thriving. However, navigating the complexities of growth, embracing continuous learning, and mastering the art of delegation can be daunting. This is where Restoration Advisers steps in, not just as a guide but as a partner committed to your success. Our Restoration Business Academy helps restorers translate these principles into actionable strategies tailored for your restoration business, ensuring you're equipped to handle industry challenges with expertise and foresight. Whether it's through our training programs, strategic consultations, or direct support in operations, we're here to help you achieve your goals, turning your vision into a reality. Let us show you how we can make your journey in the restoration industry not just successful but also sustainable and fulfilling.

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