If you want to start a new installation company, there are a few things you need to know. These include licenses and permits, insurance, business taxes and more.
Whether you’re looking to add an extra team member or grow your business, digital technology can help you do all of this with less time and effort. Learn more about how these tools can streamline the installation process for both you and your customers.
Licenses and Permits
If you’re an installation company, you’ll need to ensure you have all the proper licensing and permits in place before starting your business. This is because failure to comply with local rules can result in fines and other penalties that will negatively impact your bottom line.
The type of license or permit you need will depend on your specific industry and your location. Some business activities are regulated by the federal government, while others are regulated by your state or city.
Regardless of the license or permit you need, it’s always a good idea to consult with legal counsel to determine which requirements are appropriate for your business and to help you fill out the application process.
A building permit will allow you to open your doors to the public and show prospective clients that you are qualified to handle their project. It also ensures that you’re following local building regulations and safety codes. And a fire department permit will protect your property from damage in case of an emergency.
Insurance
Your installation business needs a variety of insurance to protect yourself, your employees and your clients. In addition to the basic policies like general liability and workers’ compensation, you need business property and inland marine insurance to protect your inventory and tools from theft or damage.
Business property is coverage that helps pay for the replacement costs and repair costs for equipment, inventory or other items your business owns. It also provides protection for items that are borrowed or leased by your business.
Inland marine insurance is important for businesses that transport their equipment in a van to the job site. This policy covers the contents of the van if they are stolen, damaged or destroyed while in transit.
If a project is delayed due to a covered loss, you may be eligible for compensation to help keep your business going. This type of insurance helps cover the cost of extra lodging and meals, transportation expenses for workers and other costs incurred by your business in the event of a covered loss.
Business Taxes
Taxes are a significant expense for any business, and many of them can be deducted. However, it’s important to be aware of what is and isn’t deductible.
The IRS has a helpful guide that helps you determine whether an expense is legitimate: Is it ordinary and necessary for your line of work?
If you’re unsure about any business expenses, seek the advice of a certified public accountant or other credentialed tax preparer.
A business is generally subject to federal income tax, which is based on net profit (your revenue minus your expenses). This tax is paid by owners of sole proprietorships, partnerships and most LLCs through their personal tax returns.
In addition, businesses are required to pay sales taxes on the sale of most retail products, construction activities and some services. The sales tax varies from state to state, and some states also impose an “incidental” service tax on purchases of equipment and services where the equipment or service is not the main reason for the purchase.
Marketing
Whether you’re a flooring contractor or a windows and doors aficionado, there’s no doubt that marketing is essential to the longevity of your business. The good news is that there are plenty of marketing techniques you can use to get the most bang for your buck and the best ROI. Having a comprehensive marketing plan in place can help you maximize your resources, minimize your risk and increase sales. To make the most of your advertising dollars, you’ll need a solid understanding of your competition as well as what consumers are looking for in a home improvement company. From SEO to social media to content, there are a multitude of tools and techniques to help you win the war for your customers’ attention. For a competitive edge, there’s no better way to ensure that your business stands out from the crowd than with an effective digital marketing strategy.
