Hardwood Floor Refinisher Business Plan: the Ultimate Guide for 2024
Last Updated: 12/17/2023
If you want to start a hardwood floor refinishing company in 2023, you need a well-thought-out business plan. A good business plan for a hardwood floor refinishing company outlines your goals and how you’ll achieve them. It also helps you get funding and manage your money. In this guide, we’ll explain what to include in a hardwood floor refinisher business plan, give you examples and templates, and provide tips to help you write a great plan.
Why do you need a business plan for a hardwood floor refinishing company?
A solid business plan is key for any new hardwood floor refinishing company. Without a plan, it’s hard to get funding and attract customers. A business plan helps you stay organized, keep track of your money, and set goals. It also helps you budget for equipment, supplies, and other costs. A good business plan prepares you for challenges and helps your business succeed.
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How do you write a business plan for a hardwood floor refinisher?
A strong business plan for a hardwood floor refinishing company should describe your business clearly, analyze the market in detail, and have a financial plan.
How to Include an Executive Summary
An executive summary briefly outlines your mission, concept, timeline, costs, and expected returns. Your mission statement says what your company aims to do and how. Your concept describes your services and products. Your timeline lays out steps to meet your goals. Potential costs estimate expenses for materials, labor, and more. Expected returns project profits and risks.
A good executive summary helps investors quickly understand your business and see if it’s worth funding. Take time to make an effective executive summary — it’ll increase your chances of getting funding to start your business.
How to Describe Your Company
Explain your company’s name, location, owner details, experience, goals, and legal structure. Do a quick market study to show you understand industry trends and why your business will succeed.
How to Analyze the Market
Discuss the hardwood floor refinishing industry, market size, trends, and expected growth. Analyze competitors — their services, prices, customer service, and features. Explain your marketing plan — how you’ll reach customers and projected costs.
Describe Your Services
List the services you offer, like sanding, staining, sealing, and refinishing. Include specialized services and costs for each service. Briefly describe each process so customers see your value.
Identify Your Target Market
Target homeowners, businesses, and property owners needing refinishing. Know your target market’s age, gender, location, and job to tailor marketing. Consider partnering with stores, contractors, agents, and managers who can refer clients. See who competitors target to differentiate yourself. Understanding your target market helps write an effective plan.
Analyze the Competition
Research current and potential local competitors. Review their services, prices, quality, and offerings. See industry trends and what other floor refinishers do to stay competitive, e.g. new products/services or marketing strategies. Understanding the competition helps create a strong, unique plan.
List Your Equipment
You’ll need a sander, edger, buffer, vacuum, protective gear, tools for installation like saws/drills/routers, sandpaper, sealers, finishes, rags, sponges, buckets, etc. Equipment and supply costs help determine pricing and should be in your budget. Plan how you’ll maintain equipment to offer quality service.
Develop a Financial Plan
Have detailed, realistic financial statements: an income statement, cash flow analysis, balance sheet, costs of goods/labor and equipment, additional launch costs, overhead like marketing/ads, and growth strategies/projections. Be realistic in costs and account for them properly. Projections show how you’ll scale up.
Create a Marketing Plan
Make a list of potential customers and target areas. Find media to spread the word, e.g. newspapers, radio, social media for posts/reviews/discounts, and a website for information/contact.
Identify Risks and Solutions
Discuss competition, pricing, and customer service risks and solutions. Consider environmental impact — how you’ll properly dispose of hazardous waste and follow regulations on noise/dust control. Plan for natural disasters like insurance for damage from fires/floods. Mitigating risks ensures success.
Develop an Exit Strategy
Planning an exit strategy for selling your business helps set milestones, goals, and considers business value. You can sell to a larger company, pass to family, or sell to investors. Choose a strategy and include it in your plan.
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Hardwood Floor Refinisher Financial Forecasts
Startup Expenses
Monthly Operating Expenses
Revenue Forecast
Frequently Asked Questions (FAQ)
How much does it cost to start a hardwood floor refinishing business?
Costs include equipment, supplies, licenses/permits, insurance, and advertising. Equipment like sanders, edgers and buffers are $2,000-$5,000 total. Supplies are $500-$1,000/month. Licenses/permits are $200-$500. Insurance is $300-$700/month. Advertising $300-$1,000/month. Total around $10,000-$30,000 to start.
How much do hardwood floor refinishers make? According to the Bureau of Labor Statistics, median pay for hardwood floor refinishers in the U.S. is over $40,000 per year. Actual pay depends on factors like experience, location, and specific services offered. Refinishers charge an average of $3 to $5 per square foot, so experienced refinishers working full-time can make $50,000 per year or more.
What skills do hardwood floor refinishers need? Key skills include physical stamina, attention to detail, customer service orientation, and knowledge of wood floor types, refinishing techniques, and safety procedures. Refinishers should be comfortable operating equipment like sanders, edgers, and buffers and applying stains and sealants evenly. Basic math, measuring, and estimating skills are also important for determining job costs and quotes.
How to market a hardwood floor refinishing business?
Effective ways to market a hardwood floor refinishing business include:
● Build a professional website to establish your online presence
● Create social media profiles on Facebook, Instagram and LinkedIn to connect with potential customers
● Post before and after photos of your work on your website and social media
● Offer promotions like discounts for referrals, military, seniors or bundle packages
● Place ads on home improvement websites like HomeAdvisor, Angie’s List and Craigslist
● Partner with real estate agents, interior designers, contractors and flooring stores to provide referrals
● Put ads in local home and garden magazines, newspapers and newsletters
● Sponsor local home and garden shows, charity events or sports teams to increase visibility
● Offer free consultations and estimates
● Distribute flyers and business cards in local neighborhoods
● Ask happy customers for online reviews and testimonials to build credibility
● Network at your local chamber of commerce to meet potential customers and partners
What certifications or licenses does a hardwood floor refinisher need? Most states require hardwood floor refinishing businesses to have a contractor’s license or permit. Some states require refinishing certification or journey-level registration. Optional certifications that can enhance credibility include those from NWFA, NAFCD, and WFCA. Local business licenses or permits may also be needed. Check with your city clerk’s office for requirements in your area.
