How to Start a Restoration Company: 9 Proven Steps to Build a Profitable Business

The restoration industry isn’t slowing down. 

In 2023, the global disaster restoration market was valued at $41.3 billion, with projections to reach $76.8 billion by 2033. As property damage from water, fire, and storms continues to rise, so does the need for qualified companies that can respond fast and do the work right. 

So, you want to know how to start a restoration company? Let’s see what that looks like.

How to Start a Restoration Company: 9 Steps

So, how to start a restoration company and set it up for long-term success, you ask? From our experience, these are the nine steps that matter. We’ll explain each one in detail below:

1. Have a business-first mindset
   
2. Research your market
   
3. Choose the services you’ll offer
   
4. Get certified
   
5. Set up your business and insurance
   
6. Invest in essential equipment
   
7. Get contracts and documentation ready
   
8. Learn how to price jobs correctly
   
9. Market your business through real relationships

1. Have a Business-First Mindset

If your goal is to build a real company, not just take on side jobs, you need to think like an owner from day one. That means, have the mindset of profit first. Plenty of people start businesses because they see demand. But not every demand turns into a business that works.

Take lawn mower repairs, for example. 

There might be demand, but is it profitable?
Can someone else learn to do it quickly? Or does it take years of experience just to get started?

If you build your restoration company the right way, with structure and training in place, you want to be able to grow it into something bigger than yourself that also brings you profit. Not just revenue, but what you actually keep. Make your decisions around that number.

2. Research Your Market (and Competition)

Before you even think about training or gear, get a clear picture of your market. Every location is different, so if you’re in a flood-prone area, water restoration may already dominate. In other regions, fire damage or mold remediation may be more common. 

Figure out what’s in demand, what’s missing, and how that lines up with what you’re willing to do. 

The easiest way to go about this is to talk to people in construction, insurance, and property management. They already know the market inside out, so ask them:

• Are jobs with water damage common in your area?
  
• What services are lacking?
  
• Who are the top water mitigation companies in the area and what are they missing?
  

Starting a restoration business with no research is like framing a house without checking if the ground is level. You might get some early traction, but it won’t last. Most restoration companies that fail do so between years 5 and 10 because they didn’t build on the right foundation.

3. Choose the Services You’ll Offer

The restoration industry includes water mitigation, mold remediation, fire and smoke cleanup, trauma and crime scene cleanup, odor removal, contents cleaning and reconstruction. Do not try to offer them all on day one.

Start with water damage restoration. It’s where most insurance claims begin, and it gives you the clearest entry point into working with adjusters and property owners. Once you have the documentation and process down, you can expand into related services.

Again, look at what’s missing in your market. If no one handles crawlspace drying or deodorization, that might be your in.

4. Get Certified (And Actually Learn the Work)

If you want to build a company that lasts, you need IICRC-approved training before anything else.

The two most important certifications to start with are:

• WRT (Water Restoration Technician)
  
• ASD (Applied Structural Drying)
  

Both are approved by the IICRC and give you the foundation for understanding drying science, equipment use, moisture tracking, and job documentation.

You can take them together in our WRT and ASD Combo Course, where we walk you through the real job process step by step. When you understand how the work should be done, you can train others, prevent callbacks, and communicate clearly with adjusters, which are not the things you can figure out on your own.

5. Set Up Your Business and Insurance

Before you send an invoice, get your business structure in place. Start by speaking with an accountant. It may cost a little up front, but it will save you a lot in taxes and legal confusion later. They can assist you with:

• Choosing the right legal entity (LLC or S-Corp)
  
• Opening a business bank account
  
• Setting up accounting software or a spreadsheet
  

You’ll need general liability insurance, commercial auto coverage, and workers’ comp if you plan to hire. These policies protect you on job sites and make you eligible for bigger contracts. There are many risks when operating a mitigation company. Speak with a good agent that specializes in business insurance.

6. Invest in Essential Equipment

The most common question we hear is how much does it cost to start a restoration company.
The truth is, you can get started for around $10,000 if you build smart.

Here’s a basic starter setup:

• Water extractor or wet vac
  •  Kleenrite Mega 3 Water Extractor
    
• Hygrometer
  • Vaisala HM40/Phoenix HM40
  • Delmhorst HT4000
• Moisture meter
  • Delmhorst
  • Protimeter
  • Tramex
    
• Small infrared camera
  • Flir ONE Pro
  • Flir C5
    
• Dehumidifiers
  • My suggestion: A good rule of thumb when deciding on how many dehumidifiers, air movers, and AFDs (air filtration devices) to purchase is:
    • For every 1 XL Dehumidifier, buy 7-8 air movers, and 1 AFD
    • For every 2 Large Dehumidifier, buy 10 air movers, and 1 AFD 
  • XL Dehumidifier recommendations:
    • Phoenix Drymax XL
    • or DriEaz 7000XLi
  • Large Dehumidifier recommendations:
    • Phoenix DryMax
    • or DriEaz Revolution
      
• Air Movers
  • Get 7-8 air movers if you have 1 XL Dehumidifier or get 10 air movers if you have 2 large dehumidifiers. There are different types of air movers. Pick your air mover and stick with it because they stack together, the repair parts are all the same, and they look better on the jobs.
  • Air mover recommendations:
    • Velo
    • Phoenix AirMax
      
• Air Filtration Device
  • When you buy one XL Dehu (or 2 large dehus), buy one 500 CFM AFD, I recommend this and not going with larger units. It works better to have smaller units spread out because they can capture particulates in different areas versus having just one really big one in one spot.
  • Phoenix Guardian Pro R 
  • Sterilizair from ASD Products

That is enough to handle one decent-sized job and get paid. As you grow your restoration company, rent what you need or buy based on what your jobs demand. Avoid overbuying equipment that you won’t use for months. Let your cash flow guide your growth.

7. Get Contracts and Documentation Ready

Now, this is not optional. Before your first job, you need:

• A legal service contract that protects your work
  
• Paper or digital forms for documenting each job
  

We recommend starting with the Ed Cross’s restoration contractor package. Bring it to a local attorney to customize it for your state.

For documentation, your forms should include:

• Scope of work
  
• Moisture readings
  
• Equipment logs
  
• Jobsite photos
  
• Customer signatures
  

If you’re not ready to use software yet, start on paper. You’ll learn the flow better and can upgrade to digital tools once your systems are solid.

You’ll cover this process fully in our WRT and ASD training, so you don’t have to figure it out alone.

8. Learn How Much To Charge

Doing the right job is an important piece of any project. But getting paid for doing the right job is just as important.

New companies should focus on doing the right job and getting paid for it because

• When there isn’t a lot of volume, you need to maximize the average dollar sale of every project.
• You need to establish profitable standard operating procedures from the beginning. It is very difficult to retrain employees that have learned bad habits.
• Getting paid for water restoration includes production team members, estimators and management. If one role isn’t adequately trained, profitability is affected. 

This is why we teach the Get Paid for Water Restoration Series. You’ll learn how:

• A preinspection meeting and proper moisture documentation affects negotiations
• A communication plan will help to gain agreement
• How to negotiate throughout the project
• How the s500 can assist techs and estimators do the right job and get paid for it
• How to track profitable activities to confirm goals are being set and making a difference.

Charging correctly isn’t just about getting paid more. It’s about staying in business and building something that lasts.

9. Market Your Business Through Real Relationships

Restoration is a people business. Your first jobs will likely come from people you already know or people you meet through networking.

Start here:

• Connect with plumbers, realtors, HVAC techs, and property managers
  
• Introduce yourself to insurance agents
  
• Offer to explain how you work but don’t make it sound like a sales pitch
  
• Be honest and do the work the right way, and you will get recommendations 

If you want to build an online presence, set up a simple site, get listed on Google Business, and ask for reviews after jobs. But don’t forget that real trust gets more jobs than any ad in the long run!

How Reets Drying Academy Can Help

Most people fail in this industry not because they lack skill, but because they skip necessary steps and try to grow without a realistic plan. 

If you’re serious about starting a restoration company that can turn consistent profit, we’ll help you do it the right way from the start.

ReetsTV gives you on-demand lessons you can access anytime, whether you’re learning on the go or can’t attend in-person training. It trains techs and estimators to do the right job and how to apply what they are learning in real world scenarios that will increase profits.

Check out our class schedule for upcoming courses you don’t want to miss!