Because we know what it feels like to be a start-up franchise, we’ve kept our entry costs low. Let’s break the initial investment into three parts:
The initial investment is broken down into three parts:
The startup fee: $42,700, which you pay up front.
This fee includes a comprehensive startup package. This is an “at cost” package including a laptop, initial setup of the Renovare software system, training and travel allowance, uniforms, stationary and marketing items to help set up your office. All software fees are included in first 12 months.
Service fee: This fee is a total of 5,5% of your turnover. The service fee is 4.5%, another 1% goes into a marketing fund.
Sales Venue: As a builder, you are required at some point to open up a shop front. However, our suppliers support us by providing most of the fit-out materials at no cost.
(Monthly service fee): $1,000+gst/month. This fee is only applicable if a business does not turn over a certain amount of money (Less than $166,000/month).
No real other ongoing fees.
- Working capital– we think you should have working capital that equals 5% of the total contract value of your current renovation projects. This is not an expense, rather capital you’ll need to have access to in order to safely operate your business.
- Startup package– a well-planned startup package means you keep more in your bank for working capital! Upfront costs are $42,700 plus a 5k Grand Opening advertising allowance. This is an “at cost” package that includes: – A new laptop (always start a new business with a new computer) – Initial setup of the Renovare software system. – Training and travel allowance – Uniforms, stationary and marketing items to help set up your office
- Sales Venue– our builders will at some point require a shopfront. We usually keep fit-out costs surprisingly low because our suppliers support us by providing most of the fit-out materials at no cost, and we have been successful at negotiating “rent-free periods”.
To learn more about the initial investment, we recommend you book a business planning meeting
with us where you will be able to learn:
- How Renovare builders are able to fund the startup of their business (Tip: Most builders don’t have their startup capital sitting in a bank account)
- What the typical first year in business looks like.
- How many jobs you have to win.
- About how to project when you will get your money back and start to make money.
Other miscellaneous costs
you should budget for when establishing a new business may include:
- Legal and Business Fees
- Adviser/Accountant’s fee
- Setup of business entity
- License, registration and insurances
- Travel involved in due diligence