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6 Reasons Why Water Restoration Business is Beneficial Nowadays

Every day, around 14,000 people experience a water damage emergency at home or in the workplace. Water restoration is a billion-dollar industry. The average cost of simply drying a “clean” water leak alone already costs $2,700 while the average cost of drying an entire house and repairing areas like the drywall or carpet is $7,500.

If you have the education, training, and skills in water restoration, you might consider putting up your own water damage company.

Starting your own business can be a fun and challenging journey. On this post, let us talk about the major reasons why water damage restoration is one of the most profitable business ideas nowadays.

Water restoration business has great growth potential

If you’re looking for profitable business ideas, a restoration company should be part of your options. As of 2018, the restoration industry is worth $210 billion and the figure is expected to grow in the coming years. There are several factors for the continued growth: the increasing intensity of natural disasters, flooding and wildfire issues, and aging homes and infrastructures.

Furthermore, increasing awareness about the health effects of mold in homes has contributed to the growth in the restoration business. The new technology has made it possible for home restoration companies to detect the presence of mold in homes and buildings, which means they are going to create a greater demand for restoration services.

Lastly, natural disasters are driving demand for restoration services. The increasing number of natural disaster occurrences due to worsening climate change has made restoration service even more crucial these days.

Water restoration business is profitable

As mentioned earlier, water restoration companies charge $2,500 on average for simple mitigation jobs or dry-ups. Of this price, the profit margin is usually 75%. For major restoration work, such as a rebuild, they charge $10,000 (on average) and the profit margin can be as high as 50%.

If you dig deeper into the figures, you will only need about 300 mitigation projects (small jobs) in a year to earn a $750,000 revenue. And if you add some more high-value projects, your annual revenue could reach as high as $2.4 million.

In your first year in business, your profit might be small as you are still trying to build your reputation and might still be purchasing new equipment. That is normal in all other kinds of business. After that, you can expect to see an increase in your profit.

Here are some strategies to amp your sales:

  • Partner with local government agencies.
  • Partner with the fire department in your city or region.
  • Network with plumbers, contractors, realtors, property managers, and insurance agents.

Water restoration business requires little initial investments

Another advantage of the water restoration business is that it doesn’t require huge investments. The start-up cost is not as expensive as a home repair company. You need minimal equipment to be able to start offering services. You will need moisture meters, cleaning products, dehumidifiers, air movers, and a service van. That’s it and you’re all set. You have to resist the temptation to over-equip especially if you are working on a small capital. If you are hiring subcontractors for certain projects, let them use their own equipment. They should provide for their own tools. You should also invest in a truck-mounted water extraction machine but this can wait until you have saved money from your earnings. As your business grows, you can expand your services and cater to more specialized projects which call for specialized tools and equipment.

Water restoration business has small risks42>

Water restoration is among the industries that are not affected by economic and recessionary influences. There will always be a demand for restoration service and people will be willing to pay for it. Perhaps the biggest risk associated with this industry is connected to employee management. Restoration companies can largely benefit from purchasing employment practices liability that provides protection against wrongful termination, failure to promote, harassment at work, etc. Employee burnout is also a real thing in the industry.

A lot of ongoing work to be done in the water restoration business and it’s challenging

It doesn’t take long before you realize that working in this industry is challenging. Right from the start, expect to get a lot of calls requesting for emergency services, even on weekends, and at the time when you’re supposed to be having some rest. Plus, you get to deal with the long hours fixing dirty, laborious water damage problems. Your ability to adapt to changes will determine your success in this industry. The key is to invest in tools and equipment that will make work easier. More importantly, you must plan ahead. Create a strategy that will get you to where you want to be.

Restoration business is about helping others

The restoration industry is not for people who simply want to make money. It requires passion and dedication to cope with the long hours of hard physical work. Apart from your skills and professional abilities, people need your compassion and empathy to recover from disasters. If you’re motivated by helping others especially during natural calamities such as storms and flooding, you will find this business rewarding and fulfilling.


You will find lots of new business ideas out there. But if you’re specifically looking for something profitable, requires minimal investment, is less vulnerable to economic downturns, challenging, and gives you an opportunity to help others, putting up your own water damage restoration company is a great option.

But of course, just like other kinds of business, it takes hard work, dedication, and strategic planning to succeed in the restoration business. Start by making a business plan that outlines your business model. Next, invest in the right equipment. You can start with just the basic tools and invest in some more once you start earning. To get more clients, consider partnering with government agencies, as well as other home improvement contractors in your area (plumbers, engineers, property managers, and real estate agents).

More importantly, your desire to help people recover from disasters should give you the motivation to overcome the challenges and triumph in this industry.

2019-07-29 17:00:00