How to Start Up a House Painting Business

Friday, May 17, 2013

How to Start Up a House Painting Business

House painting businesses are among the cheapest and easiest to start: you can operate from home and the initial start-up costs can be less than $2,000. The catch is that because it's a relatively easy business to start, you will have heavy competition. Before you start painting, it's important to create a business plan, determine your company''s specialization and create a company image that sets you apart from the competition and attracts your target market."Your targets will be homeowners, apartment buildings and condominium complexes, businesses large and small, interior designers, and real estate agents who may need help with a vacant property," according to Entrepreneur.com. An individual with an eye for detail and handy with tools can start a painting business within a few weeks.

Step 1

Draw up a business plan. Create a document that describes the focus of your business. Decide whether you will do interior painting, exterior painting or a combination. Outline the services you will provide and include areas of specialization, such as color consultation, stenciling or murals. Determine the target market for your business, whether it is apartment building owners, owners of historic homes or homeowners in typical, middle-class neighborhoods. Research other local house painting companies to see how well they are meeting your target market’s needs. Make a list of ways that you can distinguish yourself from competitors through lower prices, faster or specialized services or design expertise. Include a section in your business plan that describes your marketing plans, pricing and supplies.

Step 2

Name your house painting business. Brainstorm a list of names with the help of friends, family members and business partners. Choose a name that stands out and communicates your business’s unique focus and image. For example, if you specialize in painting historic homes, incorporate this idea into your business name. Apply for a license. Go to the state's licensing board to obtain a contractor's license. You will have to pay an application fee ranging from $50 to $200 and pass a background check. In some jurisdictions, you may have to seek addition licenses or permits for hazardous materials.

Step 3

Register your house painting business. Visit your local city clerk or courthouse to secure the necessary paperwork. Check the zoning requirements for your area if you will run your business from home. Get insurance. Phone an insurance agency and inquire about coverage products and amounts. In general, you should take out a liability policy and have business level automobile coverage or "garage coverage" for your company vehicle.

Step 4

Collect equipment and supplies. Gather ladders, paint trays, drop cloths and most importantly a variety of rollers and brushes. Purchase these items in bulk through an online wholesaler to save money. Visit your local hardware store and invest in a sprayer, face mask and scaffolding. Ask them to order these items for you if they do not have them on hand. Find a vehicle big enough to carry necessary equipment to job sites. Decide whether clients will buy their own paint or if you will buy it for them. Purchase basic paint colors that you will use frequently.

Step 5

Create and distribute marketing materials. Design marketing materials based on the image you want to communicate to your target market. List your services and focus on what sets your company apart from the competition. Hang fliers on shopping center bulletin boards, distribute door hangers, and place ads in local newspapers and websites for a basic, no-frills business. Create glossy brochures if you’re marketing toward those looking for higher-end, specialized services. Include pictures of your work that feature your expertise. Create a website that communicates your company’s uniqueness. Create yard signs with your company’s name that can be placed in clients’ yards after you’ve painted the exterior of a home. Advertise your painting business. Print fliers and brochures. Send copies of your painting business' literature to real estate management agencies, real estate brokerages, real estate investor clubs, local schools and churches, and to retail stores as well as hotels and condominium associations. Offer a discount for jobs that entail many different units or job sites.

Step 6

Build a portfolio and share it with prospective clients. Take photographs of all work you do and assemble them in a binder. Take this binder with you when you visit possible customers to showcase the quality of your work. If you haven’t painted houses before, it’s worth doing a job for a friend or relative for free to have pictures of the work you’ve done.

Things Needed

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Resources (1)

My Own Business: Business Licenses, Permits and Business Names

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Friday, May 17, 2013