How to Start a Restoration Business

Owning your own business is not only rewarding, but it also allows you to make your own decisions and be in control of your future. If you are thinking about becoming a business owner, a business in the restoration industry should be at the top of your list. The essential nature of the restoration industry makes it recession-resilient and a great option when exploring business ownership opportunities. 

In fact, the restoration industry is currently valued at $50 billion and projected to have a growth rate of 4.2% annually through 2028. This projected growth is due to a combination of aging infrastructure, modern building techniques that are sub-standard compared with the past and increases in extreme weather. These factors indicate that in any economy, there will likely always be a need for professional restoration services. 

Why Restoration is in Demand 

Starting a restoration business can be a rewarding and profitable venture, with opportunities to help people in need and become your own boss. Restoration services, such as water damage restoration, fire and smoke damage repair, and mold remediation, are critical to property owners looking for expertise to ensure their homes or businesses are restored as fast as possible while minimizing any further damage and ensuring property safety.  

A restoration business specializes in repairing and restoring homes or commercial buildings that have been damaged by natural disasters or other accidents. The goal of a restoration business is to return the property to its previous condition as quickly and efficiently as possible. 

Restoration businesses are ideal for entrepreneurs who aim to tackle the biggest challenges and serve the people in their communities. These businesses are there for both residential and commercial customers when they need them most. Mitigation services are essential for damaged properties, and because of this, owning a restoration business can position you well for success. After all, when damage occurs to a business or home, the owners must look for ways to fix the issues immediately to protect their livelihoods.  

Types of Restoration Services 

There are many types of restoration services that businesses can choose to offer, depending on demand as well as their technical skills and resources. You could choose to specialize in a particular area or offer a range of services. 

Providing a variety of related services holds many benefits, including allowing you to offer customers a “one-stop shop” for their restoration needs while potentially increasing your upside by minimizing the need to subcontract out to other businesses. 

Water Restoration  

Water damage affects about 14,000 people in the United States every single day. This makes it one of the most common causes of home damage. In fact, on average one in every 60 insured homes files a property damage claim due to water damage each year. 

Although flooding and storm damage are the most frightening causes of water damage, they are not the most common. Most water damage is caused by issues such as: 

• AC leaks 
• Appliance leaks 
• Clogged gutters 
• Blocked drains 
• Faulty plumbing 
• Leaky roof 

Investing in quality equipment like dehumidifiers and air movers is crucial for an effective drying process in water restoration. 

Mold Damage 

The National Institute for Occupational Safety and Health (NIOSH) estimates that nearly 47% of residential buildings in the U.S. have mold.  This may seem like a shocking statistic, but perhaps not after you know that advancements in detection and technology are doing a better job of revealing the harmful effects that mold has on homes and residents. 

Mold can grow anywhere moisture is present, and it can be harmful to both the structure of the building and the health of its occupants. In fact, mold damage can occur in both newer and older construction and is usually caused by water damage. These factors mean that detecting, removing, and preventing mold growth are all in-demand services that are essential to many homeowners. 

Smoke and Fire Damage  

Along with water and mold damage, smoke and fire damage are common issues faced by home and business owners all over the country. A 2021 study showed that there were over 1.3 million fires in the United States, which resulted in about $15.9 billion in property damage. Most of these fires occurred in homes and caused extensive smoke and fire damage. 

Smoke and fire can cause significant structural damage as well as pose serious health risks to those living or working in a damaged building. If firefighting measures were taken, water damage could complicate the recovery. This makes professional restoration services crucial for properties affected by smoke and fire. 

Carpet Restoration 

Carpets are one of the most common flooring choices for homes and businesses. However, they can also be easily damaged by water or fire, leading to extensive restoration needs. In fact, both upholstered furniture and carpets can play host to germs and grime, and require regular deep cleaning, especially if heavy wear and tear are present or when moving into a new home. 

Additionally, for homes or businesses that have suffered from a flood or fire, carpet restoration can be an essential service they will need to get things back to a livable condition. These elements make carpet deep cleaning and restoration valuable services to offer. 

Emergency Services 

Most disasters happen without warning, and when they do, waiting until normal business hours for damage repair is not an option. When disaster strikes, home and business owners need a fast, effective emergency response. This can make offering 24/7 on-call restoration services a great way to help your local community and grow your business. 

In some states, offering emergency services may require obtaining a contractor's license, such as the C-61/D-64 Limited Specialty Contractor License for water restoration. 

It is important to note that emergency services, mold treatment services, or water and smoke mitigation services may each require specialized equipment, training, and certifications.  

For example, states, including, but not limited to, Florida, Texas, and Maryland, may require a mold remediation contractor license to treat mold in homes and businesses. While all businesses require basic business registration and licensing, it is important to thoroughly research all local licensing laws and regulations before adding a restoration service offering. 

I Want to Start a Restoration Business - What Do I Need to Do? 

Starting a new business in the restoration industry requires careful planning and adherence to several key steps. If you’re interested in starting a restoration franchise, there are several steps you’ll need to take first to get set up properly. These include: 

Research Certifications & Training: Obtaining Restoration Business Licensing 

To start a restoration business, you will need to obtain any necessary licensing or certification for your specific service offerings. As mentioned previously, certain states have different requirements and regulations for restoration businesses, and it’s important to research these thoroughly before launching your business. 

You should also consider getting IICRC certified. The Institute of Inspection, Cleaning, and Restoration Certification (IICRC) is the primary certifying body for the restoration industry. The IICRC certifications include 28 classes that cover a range of industry-specific services or tasks. Getting certified can help familiarize you with industry-standard applications, ethics, techniques, and terminology. Additionally, ensuring OSHA compliance is crucial for maintaining safety standards and legal requirements in your operations. 

Claims adjusters and insurance agents are more likely to turn to IICRC-certified professionals. In fact, many insurance agents won’t work with a company that isn’t certified. This is a big part of why we require all Rainbow Restoration franchises to be IICRC certified. 

Equipment and Technology Required 

Even IICRC-certified professionals can’t do their work without the right equipment. Basic equipment for a restoration business includes dehumidifiers, air movers, and moisture meters. As your business grows, you’ll need to acquire more equipment to cover multiple job sites. It’s essential to invest in proper tools and technology to ensure efficient and effective restoration services.  

Job management software is also necessary for tracking tasks, scheduling, and billing, helping you to streamline your business operations and improve operational efficiency. Staying up-to-date with the latest equipment and technology is crucial for providing high-quality services and staying competitive in the market. 

Owning a Rainbow Restoration franchise means being backed by a support system and a proven business model. Being a part of the Neighborly hub of brands means having access to quality tools and equipment to get the job done right. 

Relationships Matter in the Restoration Business 

One of the most important aspects of starting a restoration company is managing the relationships your business will need to forge with insurance companies and adjusters. In most cases, restoration work is a part of the insurance claim process. This means that successful restoration companies work closely with insurance companies to manage and complete the restoration process. As such, it’s important to understand insurance policies, claims processes, and industry standards for pricing and invoicing. 

Understanding the dynamics between restoration contractors and property owners is crucial for managing expectations and ensuring successful project outcomes. 

Another essential aspect is building trust with clients. Disaster restoration is an emotionally charged field, as home and business owners are often in a vulnerable state after experiencing damage to their property. As a restoration professional, it’s important to be empathetic and understanding while also providing expert solutions and guidance. Building trust with clients can lead to repeat business, positive reviews, and referrals. 

Rainbow Restoration prides itself on the quality experience offered to customers who are experiencing trying times. That means providing clear communication at every step of the process and delivering results. Hear from one of our incredible Rainbow Restoration franchise owners, Justin Forrest, on what it takes to be an owner in this critical industry:  

Unlock Your Path to Business Ownership: Consider Investing in a Restoration Franchise 

Starting a restoration business on your own can be challenging and overwhelming. With variable service offerings and a complex market to navigate, it makes good business sense to have experts by your side to help guide you every step of the way.  

Franchising offers the advantage of a proven business model, reducing the risks associated with starting a new business from scratch. 

In the restoration industry in particular, franchising has substantial advantages over other startups. For example, franchising reduces many of the barriers and difficulties that come with starting a restoration business by offering: 

• Established relationships and contracts with insurance companies and nationwide clients. 
• Established procedures for business operations 
• Front and back-end support (call center, legal team, website and databases, job management software, and more) 

When it comes to starting a restoration business,  Rainbow Restoration® is a top franchise pick. As part of the Neighborly® family of home service franchise brands, we’ve been ranked among the Entrepreneur’s Franchise 500 and are proud to be a leader in restoration services worldwide. 

A Rainbow Restoration franchise gives business owners the freedom to maintain independence while supporting steady business growth. Plus, we help you supplement your core restoration offerings with cleaning services, reconstruction services, content removal services, and more! 

Download our free franchise ownership guide today and unlock your path to business ownership!