Do you want to know exactly how much it cost to start a property preservation business? If YES, here is a detailed cost analysis for starting a property preservation business and raising finance.
Having provided you with a:
- Property Industry Overview
- Market Research and Feasibility
- Property Preservation Business Plan
- Marketing Plan
- Property Preservation Name ideas
- Licenses and Permits
- Cost of Starting a Property Preservation Business
- Marketing ideas
We will consider how much it cost to start a property preservation business from scratch including the operating costs.
How Much Does It Cost to Start a Property Preservation Business?
According to research, starting a property preservation business is not as easy as it sounds, especially as you would have to work to preserve a property regardless of the weather. Also, you would need to not only have certain skills but be able to fulfill the terms of the contract to the last letter.
Most of what consumes the start-up capital is the cost for equipment and tools, as you might be asked to carry out any task in the house, and where you are given the whole task of preserving the house, you might need various different tools or you might have to contract the job to independent handymen, and would inspect the job once it is done to ensure that it was satisfactorily done; this is if you cannot afford to have human resources on stand-by.
The necessary resources needed for you to be able to start your property preservation business in the United States, which includes the tools to be used are as follows;
- Incorporation Fees would cost $1,500
- Business License (Optional depending on state) would cost $500
- Insurance policies and Permits would cost $1,000
- Acquiring an office facility for a period of one year to store tools and equipment would cost at least $20,000
- Cost of equipping the office (Computers. Filing cabinets, printers, safety tools, telephones) would cost $5,000
- Cost of acquiring the basic tools needed to carry out light tasks would cost $8,000
- Getting a truck would cost at least $8,000
- Launch of official website would cost $500
- Miscellaneous expenses (signage, business cards, posters and flyers) would cost $1,000
Going by the above report gotten from a detailed research, you will need an average of $40,000 to start a small scale property preservation business in the United States of America.
If you want to start a medium scale property preservation business in the United States, you would need nothing less than $80,000 usd. If you intend starting a large scale property preservation business in the United States of America, then you should be thinking in lines of raising well over $160,000.
Financing Your Property Preservation Business
Financing for business is very important, it is what sustains a business and ensures that it stays alive for a long period of time. Most banks start to pay for even simple jobs from two months, and so finance is necessary as it will help with cash flow and also with bank rolling jobs from the banks whilst you await your payment. This show how important having finance is if you intend to start your own property preservation business in the United States.
One quick way of getting finance especially for those who have a bad credit rating or not so rich family and friends, is to approach investors. However, investors usually would want to know what your plans are, which is why it is necessary for you to have a business plan, which will at a first glance intimate investors on why their money would be safe with you.
In this time and age, no investor will part with their cash if they cannot see the seriousness of how you are likely to treat your business. So, if you have decided to go into the property preservation business, the next thing is to get your business plan ready.
The options available when it comes to financing your property preservation business start-up are:
- Getting money from credit cards
- Raising money from family and friends
- Getting money from factoring companies
- Raising money from personal savings
- Getting money from investors