Home Improvement Business

How Profitable Is A Home Improvement Business? (Updated for 2024)

Pat Walls

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Updated: December 18th, 2024

How Profitable Is A Home Improvement Business? (Updated for 2024)

So you want to start a home improvement business?

And the first question that came to your mind was, “well, are home improvement businesses actually profitable?”

With a market size of $800B - there’s plenty of business to go around.

Especially considering:

You could start a home improvement business with as low as $3,000
Based on our data, home improvement businesses generate an average of $382K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a home improvement business.

Let’s dive in!

Is a home improvement business profitable?

Yes, a home improvement business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $382K per year with an estimated gross margin of 90%, you could expect to recover your investment within 11 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your home improvement business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your home improvement business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a home improvement business worth it?

If you’re wondering if a home improvement business is worth it, the answer is a big YES. With home improvement businesses, you have the potential to earn $382K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $800B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a home improvement business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful home improvement businesses case studies.

Examples Of Profitable Home Improvement Businesses

Here are a few examples of profitable home improvement businesses, and a few more details about them:

2. Hometown Painting LLC ($330K/year)

Matt and his wife started Hometown Painting LLC, a local painting company in Oklahoma City, after recognizing the need for high-quality and efficient painting services in their area. Despite facing challenges and not making any sales in their first year of operation, they grew the business to the point where it now generates over $100,000 in net profit. Through business coaching and implementing effective systems, they were able to overcome obstacles and create a successful painting company.

Is it profitable? Yes
How much money it makes: $330K/year
How much did it cost to start: $3K

From Zero To $100K Net Profit/Year: How This Husband & Wife Built A Home Painting Company

Hometown Painting LLC, an exterior residential painting company founded by a husband-wife duo, went from no sales in their first year to over $100,000 net profit the next year, and is projected to reach half a million in annual sales with a 30-35% net margin with continued growth and adding more crew in the next year.

Read this case study

Read by 3,026 founders

3. Pinks Window Services ($696K/year)

In 2020, right after both Carter Smith and Brandon Downer were laid off from their corporate jobs during the pandemic, they spent a lot of time walking around their neighborhoods in Austin, Texas. They noticed how many homes and storefronts had dirty windows and thought a cleaning service could fill that need. Their past experiences with service companies had been terrible; they saw a gap for reliable service that actually shows up on time and does a good job.

They didn't rush into it blindly. Carter had already considered the business while getting laid off, and they researched the necessary equipment and techniques, learning from online sources like YouTube. They even spoke directly with experienced window cleaners like Steve-O, who shared valuable advice, helping them avoid common pitfalls.

Initially, the idea was simple: clean windows to make ends meet. They started with pretty basic tools but quickly realized the potential for something larger. They went door-to-door offering their service, sometimes even for free, just to practice and get feedback. They refined their approach based on what worked and what didn't and soon built a reputation for reliability and quality.

The main lesson they took away was that combining good service with a strong brand identity could significantly stand out in a crowded market. They learned that it was crucial to set a new standard and not follow the mediocre norms typically associated with blue-collar jobs. This insight helped them shape Pink's Window Services into a more customer-focused, professional, and dignified service.

Is it profitable? Yes
How much money it makes: $696K/year
How much did it cost to start: $120K

How Two Laid-Off Workers Built a $58K MRR Window Cleaning Franchise

Read this case study

Read by 12 founders

Learn more about starting a home improvement business:

Where to start?

-> How much does it cost to start a home improvement business?
-> Pros and cons of a home improvement business

Need inspiration?

-> Other home improvement business success stories
-> Marketing ideas for a home improvement business

Other resources

How much can you make with a home improvement business?

With a home improvement business, you can make an average of $382K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $3,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 11 months.

How much does a home improvement business make a week?

Based on our data, average weekly revenue for a home improvement business ranges around $7.96K. As such, you could see monthly revenues of $31.8K.

To know if your home improvement business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your home improvement business.

How much do home improvement businesses owners make?

The income of a home improvement business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established home improvement business is about $7.96K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a home improvement business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Home Improvement Business Profit Margins

Generally speaking, a home improvement business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a home improvement business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, home improvement business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, home improvement business owners can ensure long-term sustainability and profitability for their business.

Home improvement business owner salary

The salary of a home improvement business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established home improvement business, in a prime position, might see an average weekly salary around the ballpark of $7.16K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a home improvement business may be a promising business to start - but the success of your home improvement business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable home improvement business.

Part of

Starting A Home Improvement Business: Everything You Need To Know

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