8 Tips for Starting a Water Restoration Company

Lay the right foundation for long-term profitability.

Water restoration is one of the most resilient trades in the home services industry. When disaster strikes—whether it’s a broken pipe or major flood—homeowners and insurance companies need fast, professional help. If you're considering launching a restoration company, here are eight essential tips to get started on the right foot.

1. Understand the Business Model

Restoration isn’t just about cleanup—it’s about rapid response, technical accuracy, and navigating insurance billing. It’s also capital-intensive, with delayed payments and high expectations.

• Tip: Learn how insurance billing, job documentation, and Xactimate estimating work before you launch.

2. Get Certified and Stay Compliant

IICRC certification is considered the industry standard for water damage, mold, and fire restoration. You may also need contractor licenses, lead-safe training, and environmental certifications depending on your state. Make sure you learn the law concerning asbestos testing.

• Tip: Check local licensing requirements and get certified before marketing your services.

3. Invest in Core Equipment First

You don’t need to own everything upfront. Prioritize dehumidifiers, air movers, moisture meters, and a reliable truck or van. Rent larger or less-used gear until your volume justifies the investment.

• Tip: Buy slow, rent smart, and reinvest as you grow.

4. Build a Local Referral Network

Your first jobs won’t come from Google—they’ll come from plumbers, property managers, real estate agents, and insurance adjusters.

• Tip: Start building relationships with these referral partners before you even open your doors.

5. Set Up Your Financial Systems From Day One

Many new owners skip this—and regret it later. Track revenue, expenses, job costs, and cash flow from the beginning.

• Tip: Use QuickBooks Online or similar software, and consider hiring a bookkeeper familiar with restoration work.

6. Know Your Numbers (Before You Price Anything)

Underpricing is the #1 mistake new restoration companies make. You must account for labor burden, equipment wear, insurance, overhead, and delayed payments.

• Tip: Learn job costing and use your real numbers to set profitable pricing.

7. Expect to Work Nights and Weekends (At First)

This is a 24/7 industry. Until you have crews to rotate in, you’ll likely be taking calls and running jobs at odd hours.

• Tip: Have a system for emergency calls—and a plan for scaling yourself out over time.

8. Plan for Slow Pay Cycles

You may wait 30–90 days for insurance payouts, even after the job is complete. That creates a cash flow gap you must prepare for.

• Tip: Keep at least two months of operating costs on hand—or access to a line of credit.

Launch Smarter, Grow Faster

At Kiwi Cash Flow, we help new and growing restoration companies set up the financial and operational systems they need to stay profitable. From startup planning to job costing and forecasting, we’re here to help.

👉 Schedule a call here and start your business with confidence.