Thinking of Starting a Restoration Business?
Here Are Some Things to Keep in Mind
If you’re thinking about starting a restoration business, you’re entering a high-demand industry with real potential for profit—if you plan it right. Water, fire, and mold damage aren't going away anytime soon, but getting started requires more than a few dehumidifiers and a truck.
Whether you’re coming from construction, property management, or just looking to be your own boss, here are key things to keep in mind as you launch your restoration company.
1. Restoration Is a 24/7 Business
Unlike remodeling or other home services, restoration work is emergency-driven. Homeowners and property managers expect immediate response, day or night.
What to consider:
Will you be available after hours or hire techs to rotate on-call duty?
How will you handle emergency calls when you’re on another job?
Can you scale your crew to cover surge events like storms or floods?
Being "on call" is part of the business model—build your systems around it from day one.
2. Licensing, Insurance, and Certifications Matter
Depending on your state and service type (e.g. mold remediation or asbestos abatement), you may need special licensing.
Essentials to have:
General contractor license (in most states)
General liability and workers comp insurance
IICRC certifications for water, fire, and mold restoration
Business license and registration
Check state-specific rules before offering services, especially for mold or biohazard cleanup, which may carry extra regulations.
3. Startup Costs Add Up Fast
Starting a water restoration business isn't cheap—but you don’t have to buy everything at once. Here’s a general idea of what to expect:
CategoryEstimated CostTruck or van$20,000–$50,000Drying equipment (fans, dehus)$10,000–$30,000Insurance and bonding$3,000–$8,000 annuallySoftware (CRM, estimating)$200–$500/monthIICRC training & certs$1,000–$3,000 per personMarketing setup$2,000–$5,000
You don’t need to start big—but you do need a plan to grow smart.
4. You Need a Strong Estimating and Billing Process
Xactimate is the industry standard for insurance work—but it’s not plug-and-play. Learning how to build accurate estimates, justify supplements, and document properly is essential if you want to get paid in full.
Many new restoration owners lose money simply because their estimates are missing key line items—or invoices aren’t submitted properly.
5. Cash Flow Will Make or Break You
Restoration jobs are often paid after the fact—once the adjuster signs off or the customer finishes insurance claims. That delay can put pressure on your bank account.
Plan ahead by:
Tracking accounts receivable weekly
Keeping a business credit line for float
Building a budget and forecast (not just a P&L)
Restoration businesses don’t fail because there’s no work—they fail because they run out of cash while waiting to get paid.
6. Your Reputation Is Everything
Restoration is a trust-based business. You're walking into people’s homes at a stressful time. Your online reviews, personal referrals, and communication will either make or break your growth.
Get 5-star reviews early and often
Stay in contact with past clients—they refer more than you think
Answer the phone. Always.
Final Thoughts
Starting a restoration business is a serious opportunity—but only if you treat it like one. With a strong plan, smart financial controls, and a commitment to quality service, you can build a company that thrives in any market.
Need help planning the financial side of your restoration startup?
We’ll help you budget, forecast, and track your numbers the right way from day one.
👉 Schedule a call with Kiwi Cash Flow