Apartment renovation business: 3 types of work and business features

How to open an apartment renovation company?

Many construction teams work at their own peril and risk without any organization of their activities, which is fraught with fines and inspections if the fact of illegal provision of services is revealed. To prevent this from happening, you should take care of registering the company. For this industry, either an “IE” or an “LLC” is organized. What is the difference?

Opening an individual entrepreneur is much simpler, cheaper and faster, and through the employment center you can open an individual entrepreneur for free, although registration takes a little longer. A minimum package of documents is required, and you can register it at your home address. This form of organization requires a small staff. The main focus is working with individuals.

An LLC requires more documents, a legal address, and authorized capital. The cost of opening is more expensive, however, this form makes it possible to conclude contracts not only with individuals, but also with large companies, for example, with developers, which is a definite advantage due to the fact that having one large customer, the probability of being left without work tends to zero. Mandatory requirements for an LLC are the presence of a legal address, a bank account and authorized capital.

How to correctly write an advertisement for apartment renovation

An advertisement is the most affordable option to offer your services. The main advantage is that you don’t have to pay for this advertising method. Place an original ad on thematic sections of selling websites.

For an ad to work, its content must be:

• catchy;
• brief;
• unlike dozens of other advertisements.

It is important to indicate in the text the benefits that the customer will receive when he chooses you. For example, people work in two shifts, which reduces deadlines. In this case, complex work is performed by a professional.

Note! The advertisement must indicate:

1. Company name;
2. contacts;
3. basic range of work.

Initial capital and necessary costs.

A well-drafted business plan for finishing and renovating apartments will help you avoid unnecessary expenses and predict income from each type of activity. First, the list of work that the organization will carry out is determined. The most popular works among clients are:

— plumbing work (laying out the water supply and sewerage system throughout the apartment);

— electrical work (installation of automatic machines, meters, wiring, installation of sockets, switches, dimmers, lighting devices);

— plastering work (leveling walls, removing corners, puttying, eliminating wall defects);

— painting work (painting walls, ceilings);

— finishing work (wallpapering, decorative plaster);

— tiling work (finishing walls and floors with tiles and porcelain stoneware);

— installation work (construction of partitions from plasterboard, brick, gas silicate, installation of suspended and suspended ceilings);

- dismantling walls and partitions.

The list of works is not small, and specialists carrying out such orders must have special education, high qualifications and approvals for such work.

So, in order to open an apartment renovation business from scratch you will need:

1. Organization costs. In 2020, in order to register an individual entrepreneur for apartment renovation ,
   the only obligatory payment is a state duty of 800 rubles. The remaining services (notaries, registrars) are not required, but if they are required, then the budget for them includes, depending on the region, from 3 to 7 thousand. To open an LLC, you will need to pay 4,000 rubles as a state fee, and within 120 days after registration, deposit the amount of the authorized capital into the current account. The minimum authorized capital for LLC in 2020 is 10,000 rubles. This should also include opening a bank account and maintaining it; not everyone provides this service for free. Lawyers-registrars request up to 5 thousand rubles for registration services, but this procedure can be carried out independently. Thus, the minimum amount for opening an LLC will be 15,000 rubles, provided that the founder is involved in the registration procedure independently.
2. Tools and materials. For a company engaged in apartment renovation, it is very important to have high-quality tools on its balance sheet. The cost of purchasing the required minimum will be from 100 to 200 thousand, depending on the manufacturer.
3. Automobile. This expense item is not necessary if workers use their own vehicles to deliver tools and materials. However, if there is a large volume of work and if materials are delivered, it is better to have a minivan or minibus with a large capacity. Thus, transporting equipment and materials will be much more convenient. A used car costs about 400,000 rubles.

Basic tools for work:

- hammer drills

— drills/screwdrivers;

- brushes;

- spatulas of different lengths;

— sets of screwdrivers and keys.

This list is the minimum and is determined by the volume of work performed. In the future, you may need circular saws, grinders, jigsaws, etc. You should never skimp on quality tools. This is exactly the case when small savings can result in large costs for servicing and repairing equipment from unpopular manufacturers.

Thus, the minimum capital for starting an apartment renovation business from scratch is from 150 to 200 thousand. This figure is due to the high cost of professional tools.

Attracting clients

For repair companies that have been on the market for a long time, the best advertising will be recommendations from satisfied customers. They will quickly spread the news about a good repair to the masses, which will lead to an influx of new customers. But for a company that has just opened, such attraction of potential customers will not help, so you need to use other methods. Among them:

1. Advertisement in the newspaper . This is one of the most inexpensive and easiest ways to attract your first customers. In this case, there is one negative point, which is empty calls. That is, many people will simply call in order to test the waters regarding valuable policies and deadlines for completing work.
2. Internet advertising . Today, a large number of people, whether at work or just for fun, spend a lot of time searching for the necessary information on the World Wide Web. Therefore, posting information about your home renovation company on specialized forums and websites will be an excellent solution that can attract many customers. Most information posting is free or at a very low cost.
3. Advertising at the entrance . An excellent solution would be to print leaflets with information about your company, as well as a list of services provided, and place them at the entrances of both old houses and new buildings.
4. Contractual relationship with the designer . It will be very helpful if among your friends there is a person with this profession. You can enter into mutually beneficial cooperation with him. That is, when ordering a room design from him, he will recommend the company as a repair team.
5. Creating your own business card website . Here you can make a full list of services, and also add photo reports on repairs over time. This way potential customers will be able to clearly see the quality of work. In addition, you can post useful information about discounts and promotions on your website. This usually attracts new clients very much.

That is, if advertising campaigns are carried out correctly, you can receive new orders for repair and finishing work.

If everything is done efficiently and on time, then satisfied clients will recommend this company to their friends and acquaintances, which will quickly give a positive rating to the start-up business.

Do you need an office and warehouse?

Our business plan “Finishing and repairing premises” implies the presence of an office with an administrator, a warehouse for storing tools and materials. Are these costs really necessary at the initial stage?

The fact is that you can draw up an estimate and sign an agreement with the customer directly on site during a visual inspection. If the company is engaged exclusively in repairs, then the office is not such a necessary cost item. If you subsequently plan to develop the company, hire designers, architects, then premises are looked for in accordance with the needs of the organization; otherwise, an office is not needed.

As for the warehouse, the need for it arises if you need a place to store a large number of tools and materials. However, the specifics are such that customers prefer to independently purchase materials in accordance with their needs and capabilities in consultation with specialists.

Material suppliers and equipment

When planning an apartment renovation business, you must consider what equipment you will need and where you will get construction and finishing materials. To do this, for each type of service you need to draw up a technological description of the process, with a list of materials used and the necessary tools.

In terms of equipment, it is advisable to provide both a conventional power tool and one that does not require a network connection. It is better to purchase tools directly from the manufacturer to get the lowest price. If there is no money to purchase the entire set of necessary equipment, it is better to refuse lending in favor of leasing (rent with option to buy). This will avoid debt and the need to sell off the instrument if the business is unprofitable. In addition, the equipment will not be listed on the balance sheet of your enterprise, which will simplify accounting.

When choosing a supplier, you should pay attention to cost and timing. There should be several suppliers so that they are interchangeable. At the same time, for each service it is important to calculate materials for different budgets in order to be able to adapt the project to the financial capabilities of the client. When working with suppliers, it is advisable to provide options for deferred payment.

A mandatory point when opening a construction and repair company is to have your own cargo and passenger transport (for example, a minivan). This will facilitate the delivery of crews, tools and materials to the site.

Recruitment

Where to start an apartment renovation business? From the selection of qualified personnel. Workers in a construction company are the most important thing. No matter how high-quality and exclusive the materials and tools are, you should not expect excellent results in inept hands.

At the initial stage, many apartment finishing companies work with already formed teams of contractors, or freelancers, hiring them for a specific project. However, having our own craftsmen on staff provides a guarantee that when a new facility appears, all the specialists that it will require will be available.

The services of a first-class specialist are not cheap, however, for an apartment renovation company, reputation is primarily important. Each team member must work efficiently and complete work on time.

To operate a repair company, the following must work in the state:

- painter-plasterer;

- tiler;

- electrician;

- plumber.

The foreman in the team is the key figure who distributes work at the site. At first, this responsibility is performed by the owners of companies, especially if they have solid experience in construction, but if there is no specialized education and solid experience in this field, it is better to hire a professional for this position.

To further expand the staff, you can hire helpers, train them in repair work, promote their professional growth, and gradually develop new professional personnel.

Apartment renovation is not a business in which it is enough to teach workers the basics once and then use these skills in the future. Construction and finishing materials are changing, new technologies are being applied, so staff training is an important part of the work and an expense item for any organization that promotes its services in the field of interior decoration.

Business management and team management

Usually there are 3-5 people in a team. If we are talking about a super-economy renovation option, then it could be one “jack of all trades out of boredom,” usually a guest from Central Asia. The quality can be either poor or good - it depends on his personal qualifications. As a rule, large teams assemble when there are a lot of orders, and start with small ones on recommendation; often a good master begins by doing all the finishing and rough finishing himself.

Here it is important to grasp the economic component and correctly balance

If you don't hire enough staff, you'll miss deadlines or deliver poor quality work. If you hire a lot of people, but you can’t provide them with work, they will run away or you will go broke paying for downtime.

In a real full-fledged finishing team, where there is an electrician, a plumber, a plasterer and an auxiliary worker, the foreman does not do any physical work at all - he only looks for clients, purchases materials, draws up and reports on estimates and checks the quality of work. In general, the foreman here acts as a project manager, and not as a builder. If you are not a businessman by nature, you will not succeed in this field.

It will be of great help to have your own work car - a station wagon, a "heel" or a Gazelle - a "workhorse", you will have to transport people and cargo from site to site.

In practice , a young entrepreneur, in order to survive in the repair business, will have to set prices lower than competitors and do everything at lower costs. This means that the team will have 1-2 guests from Central Asia, whom the foreman will force to work seven days a week in extremely harsh conditions.

What you need to get started

And you will need:

• buy a complete set of tools;
• provide registration and work patents to your migrant workers;
• pay for their arrival and arrange a meeting;
• organize food, life, treatment and hygiene of workers;
• make and place advertisements, be constantly in search of customers;
• know all the prices for building materials in order to buy cheaper.

Advertising and customer search:

Orders are easy to find directly in a new building, when you have already taken one object and are simply communicating with a bunch of owners who have just received the keys. Let's not talk about word of mouth and recommendations, let's consider a professional approach to advertising in the field of repair and decoration.

Methods of advertising your apartment finishing company

1. Leaflets. You can scatter them in mailboxes, you can slip them under doors in a new building. This is effective and inexpensive - after all, people there are interested in finding finishers; their apartments are empty, uninhabited concrete cubes.
2. Repair forums. Communication, advice, offering services in the signature of messages on the forum, creating a positive reputation. It's tedious, but effective and free.
3. Ordering contextual advertising - Yandex Direct, Google Adwords. Pay for clicks, receive calls, get a client - this is a task that depends on your negotiation skills. Expensive, fast, many potential clients.
4. Creation and promotion of the company website. It’s very long, expensive, and not always practical, but in six months it will contribute to the emergence of a fairly large number of clients at relatively low maintenance prices.
5. Offering corporate discounts for a percentage of sales. The point is to offer various companies in your neighborhood to bring you a client, luring him with a discount or an artificial recommendation. For example, negotiate with sellers of building materials or plumbing in the construction market so that they recommend you on occasion. In general, you need to create your own network of “sales managers” for your services for a percentage. It is labor-intensive, you need to be able to convince, but does not require advance payment.
6. Advertising in elevators, advertisements on fences, entrances. The same leaflets, only in profile and with less focus on the consumer.

How to find clients for a company?

Standard methods of attracting customers, such as television and print media, do not work. To remodel their apartment in Russia, they still prefer to invite specialists based on the recommendations of friends, not trusting advertisements.

Search for clients among individuals

If an organization specializes in renovations for individuals, then the best recommendation is high-quality work in the portfolio. To begin with, many novice entrepreneurs are renovating their homes and the homes of friends to develop skills and compile a competent portfolio.

Social networks are a tool that will significantly increase the flow of customers for any company. Photos of finished works, videos, master classes, increases the number of subscribers, attracts new clients. There, clients leave feedback on the work done, which inspires more confidence among customers.

Posting advertisements is a great way to attract customers. A well-written advertisement attracts attention.

Collaboration with designers

A designer is a person who draws up a renovation project for a room. Professionals deal not only with finishing materials and furniture, but also with communications and electrical plans, that is, they do all projects from scratch, but they themselves do not carry out construction and finishing work, so cooperation between the design bureau and the team performing the work is fruitful for both parties. Typically, designers collaborate with three to four teams; accordingly, three or four familiar designers can provide several objects per year, and the budget for such objects will be higher than that of customers doing ordinary cosmetic repairs.

Cooperation with developers

Construction companies annually deliver hundreds of thousands of square meters of housing throughout the country. Despite the economic situation, new apartments are being sold out, and more and more families are becoming the owners of the keys to new apartments.

Cooperation with developers is useful because they provide a large volume of work and stability. Even if apartments are rented in a rough finish, work is still carried out on plastering the premises, laying sewer and water pipes, and electrical wiring. And if the apartment is rented with a fine finish, then there is much more work in it, and the payment is correspondingly higher.

How much can you earn from apartment renovation?

The final cost of any work depends on the volume of services that the organization performs at the site. The main activities of construction companies:

— economy class cosmetic repairs, in demand among 60% of clients, stable demand for services for updating an apartment or house. Such repairs are carried out quickly; only replacement of decorative finishing materials is required. The price for the work is 1 thousand rubles per sq.m. area.

- middle-class renovations, most often in demand among clients in new buildings. More services are required: electrical replacement, installation of air conditioning systems, apartment redevelopment, pipe installation, installation of partitions, etc. The cost of such repairs increases to 3-4 thousand per sq.m.

-repairs in the VIP segment. There is high competition in this area; every team dreams of getting a client who needs high-quality repairs from premium materials. The cost of repair work is from 10 thousand per sq.m. Only experienced craftsmen should undertake such orders; the cost of an error on such an object is very high, clients demand only the highest level of performance. At the very beginning of the development of an apartment renovation business, such orders should be taken only with full confidence in the qualifications of your employees.

How much can you earn from finishing and renovating apartments?

Profit directly depends on the types of services provided, announced prices, and quality of work.

The average price of cosmetic repairs is from 1200 rubles. per sq. m. Cosmetic renovation of a one-room apartment may take a week. As the area of ​​housing increases, the time for repairs also increases.

Major repairs will require more time. A two-room apartment takes 1-2 months, depending on the type of work and the drying speed of the materials used.

Average earnings from finishing and renovating apartments are estimated at 100-200 thousand rubles per month. Don't forget that business is seasonal. The repair season is summer, and in the winter months there is a decline in orders. Although if the company services new buildings that are delivered at the end of the year, seasonality can be avoided.

Apartment renovation services are always in demand. And despite the competition and the presence of semi-official teams, you can find your niche in this area and make money. The main thing is that the work is completed efficiently and on time. If customers are satisfied with the company's work, this will help you attract new customers without advertising costs.

Licensing of activities

It's no secret that customers prefer to work with organizations that have ready permits for all types of services provided. Each employee must have official clearance and specialized education. Licensing of each type of activity is the responsibility of any owner of an apartment and premises renovation company.

The price of a license for one type of activity is 1,500 rubles, it is issued for a period of up to 5 years. Obtaining the necessary documentation is not mandatory, but will significantly expand the circle of clients, especially if the customer is a large construction organization.

How to hire workers to renovate an apartment

To successfully operate a repair company, it is worth hiring highly qualified specialists. Here you can use personal connections, as well as look for workers on employment exchanges or through advertisements on websites.

Often, renovation companies have a permanent staff of craftsmen who perform cosmetic renovations of apartments, as well as workers hired as needed. Additional forces are needed, for example, for complex repairs associated with redevelopment. As the scope of activity expands and the number of orders increases, temporary workers can become permanent staff.

Business plan for apartment renovation

Initial costs for starting a business:

– 150,000 rubles – purchase of tools and equipment;

— 15,000 rubles – purchase of special clothing for employees.

— 10,000 rubles – printing advertisements, setting up advertising on social networks, posting advertisements on portals.

— 15,000 rubles – expenses for registration and licensing of activities.

Thus, initially 190,000 rubles were invested in the company. How long will it take for these costs to pay off?

The attractiveness of the apartment renovation business is that the initial costs can be recouped within three to four months by making three cosmetic and two middle-class repairs.

Salaries to employees are paid based on the volume of completed orders, which motivates staff to do their work efficiently and on time.

At the same time, even if there is only one team, repairs can be carried out at two or three sites, drawing up a plan in such a way that employees do not stand idle, and at each site a certain group of work is carried out that is necessary at the moment.

Organization of a team of workers

Before you start your own business for repairing and finishing apartments, special attention should be paid to hiring specialists and crews who will carry out all the work. The success of the entire enterprise will depend on how experienced and qualified they are.

First of all, it is necessary to recruit people who have various construction specialties. These include:

• painter;
• plasterer;
• electrician;
• plumber;
• tiler.

A foreman will also be needed to monitor the correct and timely completion of all work. His responsibilities will include establishing agreements with the customer during the repair for the performance of various services and works.

In addition, it is imperative to establish contractual relations with the architect and designer. That is, they may not be on staff, but if something happens, they will always be on hand. Since the client may also need their services, and obtaining high profits and a positive reputation directly depends on how fully and efficiently any services related to home renovation will be provided.

It is best to immediately agree on piecework wages with your workers. This will give them an incentive to do their work faster and better, for which they will be given a good reward.

After the business is already sufficiently developed, you can take on several parallel orders to complete. Over time, you can hire several crews who can do more repairs at the same time.

Personnel training and development

Fashion trends have long been about more than just clothing. Each customer, having decided on an expensive renovation, wants the final result to receive a design that corresponds to modern ideas about a fashionable interior.

In the 2000s, plasterboard structures were in demand everywhere: carved arches, niches, suspended ceilings. Nowadays minimalism and eco-renovation made from natural materials are in fashion.

Each type of material requires skillful handling, so the qualifications of workers must meet the requirements of customers. And this means that it is not enough to get a crust once and work for years according to the studied scheme. A dynamically developing industry requires employees and construction business owners to be flexible and able to adapt to customer needs.

A few years ago, it was considered sufficient to level the walls and hang wallpaper from a European manufacturer, or paint the walls, but now the finishing is becoming more artistic. It is not enough for a plasterer to make the walls smooth. After the appearance of such a material as decorative plaster, which won the hearts of customers with its durability, environmental friendliness and aesthetic appearance, the demand for craftsmen who have mastered working with it has grown significantly. There are few specialists capable of making a masterpiece, their services are expensive, and demand clearly exceeds supply.

Thus, by investing money in training staff in new techniques and working with modern materials, you can get greater profits than following the classical canons.

Market analysis in this niche

Proposals for apartment renovations are found everywhere:

• announcements on the entrance and pillars of the residential area;
• newspapers, magazines, advertising brochures;
• commercials on TV and radio;
• TV tickers;
• contextual advertising;
• banners, streamers and electronic displays in the city;
• announcements on social networks;
• spam via email and SMS messages.

Businessmen build up a client base, which can never be many. However, you shouldn’t think that people don’t have work and are trying to somehow find clients.

The target audience

50% of the target audience are property owners in new buildings. It is there that a good half of the apartment finishing activity is in full swing. The remaining 50% is successfully divided between:

• owners of secondary housing;
• tenants of non-residential real estate on the first floors of apartment buildings;
• real estate agencies.

The average age of clients is 30–55 years old, mostly men.

How much competition is there?

Competition in the apartment renovation industry is enormous. But it is almost impossible to analyze the activities of other companies or individual teams, except for the cost and list of services.

This is explained by the fact that more than 50% of all finishers work illegally or semi-legally, hiding their real income. In the repair industry, this is quite simple, especially for those who work without registering a business activity.

Important: for tax evasion or illegal conduct of business activities in Russia, both administrative and criminal liability are provided.

On the other hand, huge competition does not in any way prevent you from successfully joining this business, since the demand for finishing work in large cities exceeds supply. Repair is not one day, or even a week, which still depends on the amount of work. And people never want to wait in line. This leads to the conclusion that repair teams are almost always busy, and clients have to look for more and more specialists. The demand for services is growing exponentially.

Possible risks

The apartment renovation business involves the following risks:

• Lack of mutual understanding with clients - there are often cases when, after the work is completed, the owner refuses to pay for the services. There is only one way out - official registration of business activities and drawing up an agreement, so that in the future you can provide documentation to the judicial authorities.
• Lack of mutual understanding with subordinates - team members may complain about low wages, perform poor quality work, or deceive the entrepreneur. The solution is careful selection of personnel.
• Associated risks associated with the purchase of low-quality tools or materials. And if the tools are purchased personally by the entrepreneur, then the client often buys the building mixtures himself. Wanting to save money, cheap, low-quality material is chosen. Workers are obliged to immediately warn about the possible consequences of repair actions, indicating this in the contract.

Tips for starting an apartment renovation business

What to do and what not to do for a start-up company to become successful?

1. Materials and tools must be of high quality. Poor quality work reduces the company’s reputation, a dissatisfied customer is bad advertising for any business, and doubly so for the construction business, where word of mouth is the main source of attraction.
2. Do not underestimate the prices for your services too much. It's no secret that customers prefer to save on everything, but too low a price scares them away. Most often, a low price indicates low quality.
3. Repair work is a seasonal business, spring-summer can be busy, but in the autumn-winter period there is downtime. A small discount on services may encourage the client to make repairs earlier; during such periods, care should be taken in high-quality advertising that covers a wide range of potential clients.
4. There is no need to spend money on expensive advertising in glossy magazines or on billboards. The return on it doesn't match the cost. The most effective way is to post advertisements in new buildings and residential buildings. It attracts much more potential clients at minimal cost.

All these tips will help those who are wondering: how to open your own apartment renovation company?

By selecting reliable personnel and making several objects at a reduced price for your portfolio, you can acquire a stable flow of clients. In the apartment renovation business, the emphasis is always on price-quality ratio. With proper organization and an understanding that reputation for repairmen is a paramount thing, the company will always be in demand among customers, no matter whether the focus is on individuals or organizations. These tips will tell you how to make your apartment renovation business successful and prosperous. Good luck in job!

How to make money on apartment renovation services: the essence and nuances of business

To successfully sell apartment renovation services, you need to be well versed in repair and construction work - or have a qualified consultant on all issues related to renovation, if you plan to just be a business organizer.

According to the types, volumes and timing of work, repairs are divided into:

• cosmetic - involves eliminating defects in the premises and performing finishing work;
• capital - in addition to finishing work, includes the replacement of main lines in the apartment, such as plumbing and electrical wiring, as well as work on redevelopment of premises;
• luxury renovation - carrying out renovation work related to changing the design of the premises. Such repairs combine elements of both major and cosmetic repairs. It requires the involvement of a designer and is the most expensive.

According to statistics, less than 10% decide to do repairs themselves. Most prefer to turn to specialists.

Repair services are required when:

1. A person bought or received housing in a new building. Such apartments are most often rented without interior decoration. In this case, cosmetic repairs are required - correct construction defects, perform interior finishing (floors, ceilings, wallpaper), carry out simple electrical and plumbing work, etc.
2. A man bought a home on the secondary market. It's nice to move into a clean, renovated apartment - it will most likely require major renovations. Its scale depends on the condition of the house and the apartment itself.
3. A person lives in an apartment and has no plans to move anywhere. Any home periodically requires updating: putting up new wallpaper because the old ones have faded and lost their attractiveness, painting the ceilings or replacing them with suspended ones, changing the flooring, etc. Usually in such cases, cosmetic repairs are enough, but it happens that a major one is required.

It turns out that no matter what type of repair is undertaken, “cosmetics” are always required. It is advisable to start your own business with this type of repair. As you gain experience in renovation work, you can expand your business by adding major renovations and luxury renovations.

Word of mouth works well in the apartment renovation business. We made repairs for one client, the client’s neighbors, friends, colleagues, relatives saw your work, and began asking for the contacts of the craftsmen. The flow of customers is ensured without advertising costs.

The following options for running a repair business are possible:

1. Create a permanent team or several teams, and also, if necessary, attract outside craftsmen. Permanent workers carry out cosmetic repairs, and when major repairs are required, specialists in certain fields are additionally hired.
2. Just be a mediator. Work for reward. You can look for clients for a team or teams of repairmen. Or you can work with those who want to make repairs, selecting teams to perform certain types and volumes of work. This is how entrepreneurs usually start who do not have start-up capital to start their own business. When clients appear, you can move on to creating your own team.
3. Another interesting direction is to buy an apartment in poor condition, make decent repairs to it and then sell it for much more. But to implement such an idea, you need funds to purchase an apartment and partnerships with realtors who will help you choose suitable housing.

The choice of business option depends on the personal qualities of the entrepreneur, organizational abilities, availability and size of start-up capital.

Registration of individual entrepreneurs for construction

Today, registering an individual entrepreneur for construction is a fairly simple procedure, consisting of several interrelated stages:

1. Selection of OKVED corresponding to construction and repair.
2. Choice of taxation regime.
3. Payment of state duty.
4. Submitting a package of documents to the tax office.

The procedure takes from 3 to 5 days, and the exact date of receipt of registration papers is usually indicated in the receipt. After the specified period, the new individual entrepreneur must receive a certificate of tax registration and a record sheet of the Unified State Register of Individual Entrepreneurs in form No. P60009.

Selecting OKVED

The first step in opening an individual entrepreneurship is to select codes for the economic activity that the businessman plans to engage in in the future. Codes are chosen according to the all-Russian classifier: since 2020, only one version of it has been in force - OKVED-2.

The classification of entrepreneurship according to OKVED is not affected by the size of the initial capital, the form of ownership, or the taxation system. All that matters is the intended activity.

When creating an individual entrepreneur, the OKVED code must be indicated in the registration application.

OKVED consists of 17 sections (from A to Q), which describe all types of activities performed by entrepreneurs. Construction and repair corresponds to section F. This group includes major and current repairs, as well as new construction; and does not include activities in urban planning, architecture and building design.

Set of OKVED codes “Repair and finishing of turnkey apartments”

The activities of individual entrepreneurs in the field of construction and repair mainly consist of repairs and turnkey finishing of premises. The main code for this activity is , which characterizes the finishing and finishing work.

Individual entrepreneurs can also use additional codes:

• 45.31 – electrical installation work;
• 45.32 – insulation work;
• 45.33 – sanitary and technical work;
• 45.42 – carpentry and carpentry work;
• 45.43 – floor coverings and wall cladding;
• 45.44 – painting and glass work.

An individual entrepreneur has the right to choose several OKVED codes, but the main one must be one. You can read more about codes and their groups in.

Package of documents

In order to register an individual entrepreneur, a citizen of the Russian Federation will need only three documents:

• photocopy of civil passport;
• receipt of payment of state duty;
• application for opening an individual entrepreneur, drawn up according to the current model (P21001).

applications can be found at .

If a business is registered with the help of an intermediary, then such a representative must present a power of attorney, as well as a document confirming his identity. A foreigner who wants to open a business in Russia must have a residence permit in the Russian Federation (TRP, residence permit).

Choosing a tax system

The choice of taxation system is a particularly important issue for individual entrepreneurs, since this determines how often it will be necessary to submit reports and how much contributions to pay. There are four systems in use in the construction industry:

• general (OSNO);
• simplified (USN);
• patent (PSN);
• unified tax on imputed income (UTII).

Let's look at their characteristics:

1. OSNO is optimal for large entrepreneurs and for those who need VAT, but it is unprofitable at the beginning of doing business.
2. The simplified tax system is most common among beginner entrepreneurs. It is convenient because instead of 3 general taxes you only need to pay one.
3. PSN applies only to individual entrepreneurs, allowing them to acquire a patent for activities for a period of one month to a year and not pay other taxes during this period.
4. When paying UTII, it does not matter how much income the individual entrepreneur received. Tax is charged only on the amount established by law.

Let us note that of all the listed taxation regimes, experts advise beginning businessmen to choose the simplified one. If desired, the tax regime can be changed later.

Apartment renovation franchises

The apartment renovation market is a harsh test for newcomers who lack experience and a positive reputation with clients. Many of them spend years working their way to the top, content with modest earnings. To avoid such a grueling struggle, you just need to buy a franchise. As a rule, it includes:

• Training materials on repair technology;
• Advanced training courses for craftsmen;
• A guide on where to start renovating apartments as a business;
• Schemes for conducting advertising campaigns;
• Ready website on the corporate platform;
• Software for business automation and budgeting;
• Corporate style guide;
• A complete set of legal documents;
• Access to the corporate knowledge base.

Today, many construction companies are ready to show a beginner how to earn money for an apartment in Moscow. Here are some interesting offers:

Good renovation. The franchise is intended for cities with a population of 50,000 or more people. The break-even point is reached after two months. Package Features:

• Investments - from 129,000 to 2,500,000 rubles;
• First installment - from 350,000 to 600,000 rubles;
• Royalty from the third month - 5000 rubles + 2%;
• Payback period - up to 3 months.

Hassle-free repairs. The franchisor offers a ready-made business: renovating apartments with his instructions can bring in up to 300,000 rubles in profit. Package Features:

• Investments - from 900,000 to 3,400,000 rubles;
• First installment - from 650,000 to 1,400,000 rubles;
• Royalty from the fourth month - 10,000 rubles;
• Payback period is up to 6 months.

Alsero. If you follow the franchisor’s business plan, you can earn your first money within 30–40 days. At the start there is a deferred payment of royalties. Package Features:

• Investments - from 400,000 rubles;
• First installment - from 380,000 to 780,000 rubles;
• Royalties from the fourth month - up to 10,000 rubles;
• Payback period - up to 4 months.

Equipment for apartment renovation

As noted above, mostly hand tools are used for repair work: the largest piece of equipment that builders will need is a concrete mixer. However, you should not save money and buy household appliances: with the loads they are subjected to in the hands of craftsmen, not a single device will last even a week. Therefore, in a business plan for apartment renovation with detailed calculations, you need to include the costs of purchasing professional tools:

Equipment for apartment renovation

Apartment renovation technology

A novice entrepreneur needs some theoretical training, since it is impossible to open your own apartment renovation business without knowledge of technology. All work is carried out step by step in a given sequence, and violations and errors in previous phases can cause problems in subsequent ones. In the case of a major overhaul, the list of operations looks like this:

1. Inspection of the object. The engineer assesses the condition of the premises and the scope of work, and the designer discusses the concept with the customers and draws sketches of the future interior;
2. Project development. The designer creates a renovation project, including room plans, specifications of materials, installation points for electrical equipment and plumbing;
3. Drawing up an estimate. Using the designer’s drawings, the engineer determines the required quantity of finishing materials, pipes, cables, fasteners, and electrical appliances;
4. Purchase of materials. All building materials are delivered gradually, in accordance with the work plan, so that they do not clutter the apartment;
5. Preparation. At this stage, unnecessary partitions are demolished, doors and plumbing are dismantled, old wallpaper and floor coverings are removed;
6. Redevelopment. According to the project, openings are cut and new partitions are erected. These walls are made of red brick, aerated concrete or plasterboard;
7. Communications layout. Following the markings, grooves are cut in the walls and floors into which cables and water pipes are laid. The grooves are covered with gypsum mortar;
8. Plaster. Beacons are attached to the walls and ceilings, which are then used to level the surfaces. Plasterboard structures do not need to be plastered;
9. Installation work. The layer of plaster determines the geometry of the rooms, which helps to correctly install boxes, socket boxes and faucet outlets;
10. Heating installation. At this stage, the radiators and heating risers are changed and relocated. Before finishing, radiators are temporarily removed;
11. Filling the screed. The floors are cleared of debris, impregnated with a primer and filled with mortar along the beacons. If necessary, a warm floor is laid under it;
12. Application of waterproofing. After the screed has dried, the floors in the bathrooms are treated with waterproofing compounds, covering the lower part of the walls;
13. Putty surfaces. Walls and ceilings are coated with finishing compounds, after which they are sanded and impregnated with a primer for wallpaper or painting;
14. Bath installation. Tiles are laid in the area under the bathtub, after which the bowl itself is installed and connected to the sewer. An inspection hatch is installed in the riser;
15. Laying tiles. Starting from the bottom, the walls in the kitchen, bathroom and bathroom are covered with tiles. Then they move on to the floors, leveling them along the common horizon;
16. Plumbing installation. After the tile solution has dried, install and connect the toilet, sink, heated towel rail, and faucets;
17. Laying the floor. They begin to work with coatings when the humidity in the room is equalized. A substrate is laid under laminate and parquet;
18. Final finishing. Walls and ceilings are covered with wallpaper or paint. Door frames, sockets and switches, baseboards, lamps are put in place;
19. Delivery of the object. The entrepreneur and the customer evaluate the work performed, after which they sign acceptance certificates and make final payments.