How To Start A Water Damage Restoration Business?

Starting your own Water Damage Restoration business can be daunting, just like starting any other business.

You might wonder what equipment you should get, what licenses are required for the same, how much investment you should pump in, etc.

Don’t worry; in this guide on how to start a Water Damage Restoration business, we will cover every detail that is essential for you to know before starting your own water damage restoration business.


Water Damage Restoration Business

Let us look at the following 7 steps, with the help of which you can start your Water Damage Restoration Business swiftly.

1. Come up with a solid business plan

Come up with a solid business plan

In order to execute a business, it is essential to have a solid business plan.

A business plan acts like a blueprint and helps gain more clarity towards your desired goal. So what constitutes a business plan?

1. Market research

The first and foremost step to starting any business is to do some market research.

So go and analyze what your competitors are offering, how much do they charge, what is the demand for water restoration in your area, etc.

2. Target market

Do you plan on helping homeowners whose homes or garages have been damaged due to water leaks, or do you want to work for project managers having commercial business projects?

Ask yourself a few questions and make sure to have a set target market because a lot of what you plan ahead will be dependent on this.

3. Get clear on your motive

Once you know what your competitors are offering, get clear on your motive. Ask yourself, “How will you differentiate your business” or “What is your motive to start this business.”

Having a clear motive will help you plan things ahead with more clarity.

4. Investment

Before starting any business, it is important to make a blueprint of the amount of investment that you will need to make and to determine from where you will procure that kind of money from.

On average, you may require anywhere between $55000-$160,000 to start this business.

2. Choose a business name


Some of you may think of this step as unimportant, but if you want to get leads for your water restoration business quickly, having a brand name can help you create a business presence, and it is a no-brainer that customers get attracted to a brand much more quickly.

So choose a short and simple brand name and then let your marketing strategy do its magic.

Also Read: 15 Foolproof Methods To Get Water Damage Restoration Leads

3. Register your business & get a license


Before legally starting any business, you will need to register it, followed by procuring a license specific to your state.

So get in touch with your state’s local authorities to gain information on what all licenses are required to start the water restoration business in your area.

Apart from this, you should also get an IICRC Certification or take Water Restoration Training (WRT).

Although this is not compulsory, but having these certifications improves your credibility and gives your customer confidence to hire you for this service.

You will also need to get business insurance so that you stay protected from any potential damage to your equipment or business.

4. Open a separate business account

Open a separate business account

Once you are done with the above steps, it’s time to open a separate business account.

Many people overlook this step and often end up getting mixed up with their personal and business expenses. Having a separate business account will help you immensely in two ways:

  • You will be able to keep track of all your business inflow and outflow and will be able to determine profit very easily.
  • You will be able to manage and save on your taxes better with a separate business account.

5. Procure Water Damage Restoration Equipments

Water Damage Restoration Equipments

There are a few very important Water Damage Restoration equipment that you will need, including:

  • Moisture detectors: Moisture detectors help you detect the moisture level in the affected area, which is essential to know during the initial evaluation and before the final evaluation.
  • Air movers: Air movers are drying fans that help you in drying the room, thereby reducing the drying time. You can choose from mainly three kinds of air movers- Axial Fans, Centrifugal Fans, and Compact Fans. Make sure to do your research on these pieces of equipment before procuring them.
  • Self-propelled dump trailers: It is obvious that water leakage would damage a lot of things. It is obvious that doing this all by yourself is not at all ideal and almost impossible. Hence you should acquire a dump trailer to get all the damaged things out of the house. And a good dumb trailer ideally is able to lift up to 4,000 pounds of debris.
  • Dehumidifiers: A Dehumidifier helps in reducing the moisture from the air. So you can either get a standard dehumidifier or a low-grain refrigerant (LGR) dehumidifier. An LGR dehumidifier is more powerful and effective as compared to a standard dehumidifier. So make sure to check out all available options and buy the one that you think would help you the best.
  • Air scrubber: Water leaks can lead to mold and can lead to airborne bacteria, and toxic particles. This is where an Air scrubber comes in handy. This equipment helps in removing the number of toxic bacteria and airborne particles from the air, so make sure to get one.

Note that this is not a comprehensive list of equipment, and make sure to do your research before investing in these or any other equipment.

6. Price Your Service

Price Your Service

Once you have carried out all the above steps, now it is time to price your service, and your service price can vary depending on your location and the price that your competitors are charging.

On average, a water restoration business owner charges $1200-$5000 for each job.

7. Market Your Business


Now that you have carried out all the above steps and have your business started, now it’s time to market it to attract prospects.

Here are some of the ways in which you can market your business to attract potential customers:

  • Create a business website
  • Use SEO practices
  • Give out referrals and bonuses
  • Use digital marketing
  • Get in touch with friends and family
  • Give out flyovers

Also Read: How To Get Your Water Damage Restoration Business Registered?

Profitability of Restoration Business

What Additional Services Can I Offer?

If you want to impress or retain your customer amidst cut throat competition in your filed then you can offer these additional services along with water damage restoration:

  • Reconstruction + Remodeling
  • HVAC + Duct Cleaning
  • Steam Cleaning
  • Carpet + Rug Cleaning
  • Furniture Cleaning
  • Painting 

Tips For Starting a Water Damage Restoration Business

Tips For Starting a Water Damage Restoration Business

To get the most out of your newly started water damage restoration business, here are some useful tips:

  • Number of Employees: When starting a new business, employing the right number of people is very important. Initially, you might need just a few employees. But as your business grows and you start getting more clients, hire more people to be able to cater to your clients. Avoid being under or over-staffed.
  • Insurance Agents: If you are looking for an easy way to obtain water damage restoration leads, then build your contacts with Insurance Agents or Claims Adjusters. These people can refer you to your potential customers.
  • Franchise: Whether you start your business independently or choose to go for a franchise, but comes with its respective pros and cons. With your own business, you will have to draw everything from scratch and deal with hiring, licensing, marketing, etc., and if you choose to go for a franchise, then most work would be done for you, but you will have limited flexibility.

Here Are Tips From Reddit Users

About to start my own mold Remediation(short term) then full restoration(long term) business. Looking for any tips and pointers!
by u/hcritt in sweatystartup


Just like any other business, Water Damage Restoration is also a very competitive field and requires a lot of patience, planning, and skill to sustain.

You not only need this but also a lot of knowledge about the field along with first-hand experience in the industry.

We hope this article on how to start a Water Damage Restoration business helps you in planning out your business.

Also Read: How To Price A Water Damage Restoration Service?


Is Water Restoration a hard job?

A household that has been affected by water damage will leave the homeowners frustrated.

So dealing with them and helping them fix their house will be a bit challenging, nonetheless rewarding.

Is the water restoration business profitable?

Yes, the water restoration business has the potential to help you make a lot of money and profit, and you can easily keep a profit margin of 40-70%.

What is WRT certification?

WTR stands for Water Damage Restoration Technician certificate, and this certificate helps you demonstrate your skill and knowledge of water damage, drying techniques, along with remediation work.

Is mold inspection a part of Water Damage Restoration Business?

Mold inspection is a part of Water Damage Restoration, but a person having Water Damage Restoration Business is not allowed to carry out both mold inspection and restoration in many states.

What qualification do I need to start Water Damage Restoration Business?

There is not any compulsory education degree that you require for the same, but having certifications or training from a recognized place is a must.

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