Running a startup is a risky job, especially if you are launching your business in tough economic times. According to the recent estimate, 49% of businesses have been unsuccessful in achieving their goals within the first three years.

Thus, there are 30% of businesses fail to generate enough revenue in the first two years. Particularly, some business markets are potentially risky and they have high failure rates as compared to other industries. For instance, 71% of the restaurant owners fail to run their setups in even first year of the launch. Similarly, the technology startups have much higher failure rates and they do not make it first six months of the launch.

However, the scenario is a bit different in case of the home improvement industry. The renovation-focused startups have made their place in a major business market.

According to the research performed by Harvard University, the annual renovation spending report has been around $300 billion. If these home improvement companies continue to grow with the best leadership, efficient planning, and winning services, homeowners will be happy to use their platform for even some minor repairs.

A brief comparison between Porch.com, Houzz and Renovaten:

Porch.com, Houzz, and Renovaten are some of the biggest names in the home improvement industry. The later one is a startup company which is slowly making its place in the market, and about to give major challenges to porch.com and Houzz.

With Porch.com, homeowners can easily look for professionals by location and type such as plumbers, electricians, painters, general contractors,and many others. Contractors can also post the photos of their projects, and then homeowners can review their work before hiring.

You must have visited Houzz, even if you are not a part of its professional network. Since its inception in 2009, the Houzz network has successfully attracted more than 50 million people in a month. Unlike Renovaten and Porch.com, home owners find great inspiration from the community, shop desirable furniture, and find more than 1.7 million professionals offering everything from pest control solutions, to furnishing and interior designing services.

With Renovaten, homeowners can find a group of professionals, such as kitchen contractors, roofing contractors, bathroom repair contractors and many more without paying anything. They can get a free quote and search through the profiles of these contractors by type and location in a user-friendly way. Since the launch, the company is committed to offering great technical help regarding home improvement and helped millions of homeowners with advanced and innovative solutions.

Using an online approach to finding qualified professionals:

Some of the startups in the US are moving one step ahead. They are working hard to fix up the homeowners with the network of professionals online.

However, a good startup company can make rapid progress by offering homeowners a quick price estimate for their project based on the labor costs in the entire neighborhood. When people click ‘Find a pro for your project’, the company would be able to match up the user with the relevant and qualified professional present in the database. The startup company usually takes less than 10% commission for the project booked through the platform.

The purpose:

For a home improvement startup company, the initial purpose is to provide a central platform to the homeowners to find relevant professionals for their project.

The benefit;

It is quite easy and user-friendly to have some platform, database or an online directory for finding a relevant professional. You can get deep information about the contractor’s work details, his background, and reasons why he is best for your home improvement project. Some startups even allow the professionals to send custom proposals, customer reviews and detailed information about their business.

Currently, there are millions of startups and small businesses thriving in the marketplace and finding a way to reach millions of households. However, the fact is, only a few of them are making their way to success and obtaining highest customer satisfaction. If you are a business owner and want to become a part of this winning race, it’s better to implement right strategies and focus on offering better customer experience rather than making enough dollars.

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Bobby Lynn is the Owner of LiveWire Electrical, a fully licensed and insured residential electrical company serving Charlotte, NC and surrounding areas. Bobby has been in the electrical industry for over 20 years and has a vast knowledge of all things electrical. Learn more about LiveWire's services here.