Start a Cabinet Refacing Business

Getting Started

You don't need a plush office to carry out cabinet refacing business. You can easily operate from the comfort of your home. Of course, you will need a business address, a telephone and an e-mail connection so that potential clients can get in touch with you. But all these can be easily installed in your home.

There are two ways to start a cabinet refacing business. The first is to become a franchisee in your area. This will give you the backing of the franchiser, who will provide you with the technical expertise and resources to carry out the work. The franchiser may also offer training and help with marketing. Another area where the franchiser can help is inventory management. You need not block valuable space storing products. But can lift the products from the franchiser as and when you get a project.

The second is to do the work on your own. This will be more challenging, and will demand more resources. You will have to find distributors, and build an inventory. But it will give you the satisfaction of starting a business on your own.

Business plan

The next step is to get a business plan ready. A good place to obtain a business plan is the Small Business Administration website. You can download a sample business plan and use it to prepare your own cabinet refacing business plan. This will push you to obtain information on subjects like licensing, insurance, budgets, taxes, etc., and you will learn what a cabinet refacing business entails in terms of statutes.

You can take the help of a consultant to write the business plan. But it would be better if you prepare the plan yourself. This will ensure that you have missed nothing. The business plan should be dynamic, and should be reviewed every year. While creating your cabinet refacing business plan, you should also do some legwork regarding distributors and franchisers. This will help you take a final decision as to which strategy suits you more.

If you decide in favor of becoming a franchisee, then you should check the commissions, and support being offered by different companies. Select the one that offers you the best rates. You must also remember that cabinet refacing business opportunities are all over, and the only way you can do business is to offer competitive rates. Make sure the prices that the franchiser is suggesting are not above the prices offered by your rivals. You will also need to know how to set prices, without losing the competitive edge.

If, however, you decide to do the work yourself then you need to study the option of sub-contracting the work. This will enable you to handle more assignments, but will also impose more responsibilities. You will have to ensure that the sub-contractor follows all state and local regulations, and has proper insurance.

Financing

The best place to get a loan for a cabinet refacing business is a commercial bank. However, the bank will sanction the loan only if it is convinced with your business plan, especially the projected costs and revenues. The plan may be rejected if the bank manager feels that you have inflated the revenues and slashed the costs. Also, the bank manager must be convinced that you can lead a small crew of people.

Advertising

Finally, you need to advertise the fact that you are in business. The best way to advertise is through handbills. They cost less, and reach the target audience. You should also get yourself listed in yellow pages, and place advertisements on cabinet refacing business sites on the net. Potential

The cabinet refacing business has tremendous earning potential. According to industry analysts, an individual can easily earn $200,000 a year if he is able to get four to five projects a week.