It happens all the time. Women with a real flair for creating beautiful living spaces fail when it comes to making a profit from home renovations. They have the creativity and the drive to make it happen, and yet they make some fundamental mistakes.
Women Renovation Mistake 1: Buying a Property That Does Not Guarantee A Profit
When you have a flair for creating a beautiful space, you know that you can make anything look amazing! But, when you are renovating for profit, not every property is going to have the budget it would take to get it looking fantastic.
You need to be strategic about which property you buy. If you buy a house that is run down and looks awful, you may have to spend too much money on structural problems. There is a good chance that you won’t have enough to spend on the things that will get you the end result you have envisioned.
This puts you at risk of not making a profit, or even worse losing money on the project. This has happened to me. In my early days, I knew that anything I touched would look great, but I wasn’t strategic about which properties I bought and as a result, I rode very close to the wind at times.
Women Renovation Mistake 2: Treating Your Renovating Business Like A Hobby
If you are treating your home renovation business like it is a hobby, then there is a good chance that you will fail and not make a profit. You may not have realised it, but you are running a business. And a business requires that you have a plan in place to maximise your profit and minimise your risk.
A home renovation project is not just about buying a property and making it beautiful. There is a whole lot of business planning behind the scenes. You need to do your research, work out a strategy and create a budget to support the potential profit.
Women Renovation Mistake 3: Not Taking The Time To Build A Team Of Professionals
To make a house look amazing, you need a stellar trade team to carry out your vision. But they are not the most important members of your home renovation business team. The people who support you in your strategy are the ones who will help to ensure that you make a profit on every property you tackle.
Having a brilliant property accountant can be the difference between paying twenty percent tax on your project, and paying fifty, or even a hundred percent tax if you get it completely wrong. You want to have a great finance person, someone who understands renovating for profit. Not every finance person is a great property strategist.
Mistakes are inevitable, but if you avoid making these three fundamental mistakes in your business, you will be able to make a tidy profit on your home renovation projects more often than not. Buy the right property, have a business plan and build relationships with the right people. These three things put you in the starting block that leads to success.