Hello,

I have always had a dream of starting my own business. After researching several ideas, I came up with the following:

I was thinking of starting a referral service for new and existing home owners that offers a comprehensive listing of home contractors that are licensed, bonded, insured, and also have a good rating for quality service. The service would be free for home owners and I would charge a percentage of project cost to the contractor for referring the business? I live in an area where there is alot of building and remodeling going on.

Is this a good business idea?

Honest opinions please:) Thanks!

That is a good idea. In fact I offer that as an idea on my site:
http://smallbusinessstartup.biz/home/

Check it out to learn about the business.

>Hello,
>
>I have always had a dream of starting my own business. After
>researching several ideas, I came up with the following:
>
>I was thinking of starting a referral service for new and
>existing home owners that offers a comprehensive listing of
>home contractors that are licensed, bonded, insured, and also
>have a good rating for quality service. The service would be
>free for home owners and I would charge a percentage of
>project cost to the contractor for referring the business? I
>live in an area where there is alot of building and remodeling
>going on.
>
>Is this a good business idea?
>
>Honest opinions please:) Thanks!

My honest opinion is that I think that it is a great idea. I also live in an area where there is a lot of remodeling work - even regular maintenance work as well - being done.

Some of the big questions are are you sure that providing this kind of service will provide you with enough income. Have you determined how much money you would have to make per month/year that would be enough to sustain your business?

I'm also trying to understand your concept. Are you saying that for instance that a homeowner would call you stating what kind of repair they need and then you would suggest or show a list of contractors and the homeowner would determine which one they would want? And then you would charge the contractor a percentage of how much the job was worth? How would you be sure to get your percentage? Would you have a contract of some sort with the contractor beforehand?

How are you going to let the homeowners know of your referrel service? And how are you going to let the contractors know of your service?

I think almost any idea is a good one to start a business but planning it is key!

Hello, and thanks for the advice.

Those are definitely good questions to help me get started. Yes, you are correct with the concept. They will call my service and we will provide them with different contractors they can choose from. I would make sure to have a pre-arranged contract with all contractors in my service to ensure I am paid a commission.

Thanks so much for getting my mind brewing with start-up issues!!!

Have you considered starting a welcoming service and offering your idea along with that?