How to Create a Restoration Company Business Plan (That’s Actually Useful)

Alexa Hertel

March 26, 2025

Insights

5 min read

“A business plan is integral to the success and direction in management and leadership of your business,” says Jeff Jones, Director of Sales and Marketing with Violand Management Associates.

A well-crafted restoration company business plan is an invaluable tool for setting clear goals, making informed decisions, and navigating your business through every stage of growth.

Ahead, learn how to craft a business plan for your restoration company.

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What is a restoration company business plan?

A restoration company business plan is a strategic roadmap that guides the decisions, growth, and financial planning for your restoration company. It usually consists of several different sections, like an executive summary, marketing strategy, and competitive analysis. Business plans might also be used specifically to acquire capital.

Do you need a business plan for your restoration company?

Generally, it’s a good idea for all restoration companies to go through the process of creating a business plan. Below, we’ll cover how business plans can be helpful at each growth stage.

For new restoration businesses

As a new restoration entrepreneur starting a restoration business, your business plan is your blueprint. It can help you define your strategy and set achievable goals.

Your initial plan will help you lay a solid foundation and outline your vision, identify target customers, and determine what services to offer.

For mid-sized restoration businesses

Are the marketing strategies you started with working? Do you have new growth goals you’d like to document? Taking a moment to craft a new business plan can help you sort through ideas and put them into action.

For established restoration businesses

Over time, your business plan will evolve into a guide for scaling operations, improving efficiency, and capturing new opportunities.

For example, you might expand into new restoration categories or geographic markets. You’ll want to continuously update your business plan to align with new growth strategies.

Resources 📚

Key sections of a restoration company business plan

Business plans allow you to “Sit down and focus on who the company is, where it’s going, most importantly why, and what steps have to be taken in order to get there, in all core functions of your business,” says Jeff Jones, Director of Sales and Marketing with Violand Management Associates.

As you start getting into writing the plan itself, restoration expert and President of Business Mentors Phillip Rosebrook recommends asking questions like, “Where are we going? What is this year going to look like? How are we going to get there? What assets and people do we need to accomplish our goals?”

Here are the key sections you’ll need to include:

Executive summary
Company description
Market and competitive analysis
Organization and management structure
Services
Marketing and sales strategy
Operational plan
Financial plan, startup costs, and forecasting

Executive summary

In your executive summary, you’ll craft a short blurb about your company that highlights your mission, vision, and goals. It should also summarize the services you offer, market opportunity, and what you believe to be your financial potential.

Resource 📚 Executive Summary Templates

Company description

Why do you do what you do? Outline the restoration services you'll offer, like water and fire damage restoration, mold remediation, or storm damage repairs. Describe what makes you stand out from other restoration businesses in your area, and why customers should choose you.

Market and competitive analysis

“Assess your personal skill set, align with market opportunities and study the competitive environment to create the best market niche for your new business,” says expert Phillip Rosebrook, the President of Business Mentors.

In order to complete a market and competitive analysis, you go through three steps:

Identify your target market
Analyze the state of the market
Evaluate competitors’ strengths

Identify your target market

In order to market your business to the right group of people, you need to first identify your target market. Finding out who is going to want to work with you and the messaging you need to acquire their business is going to be essential.

Look around at local competitors’ websites and offerings to determine how they position themselves and what their marketing tactics look like. You can learn a lot about where your business is unique by doing research like this.

If you already have customers, chat with them about how they found you or things they liked about working with you. This can go a long way towards establishing the types of clients you need to look for.

Resource 📚 What Is a Target Market and How Do You Find Yours?

Analyze the state of the market

According to the U.S. Small Business Association, conducting market research is a key part of learning more about your customers and the environment you’re launching your restoration business into.

They recommend researching the answers to questions like how saturated the market is, where your customers live, how high demand is, and market size in your area.

Evaluate competitors’ strengths

When you look at the different restoration businesses in your service area, what are they doing well? Make a list of each competitor and the strengths that you read about, hear about, and can see from their website, reviews, and from past customers you know.

Resources 📚

Organization and management structure

In this section of your restoration business plan, you’ll define your business structure (LLC, S Corp, etc.), introduce your leadership team, and describe their roles.

Define your business structure

There are several different business structures that exist. The main categories of these business structures include: sole proprietorships, partnerships, limited liability companies (LLC), and corporations.

Each business structure has different pros and cons and work well for different types of businesses. The U.S. Small Business Administration created a helpful guide to each: Choose a Business Structure.

Introduce your leadership team

Clearly explain their responsibilities and include bios that highlight their relevant expertise.

“I see a lot of failures in businesses because they have a partner and they haven't described or defined what the partnership looks like from a structural process. Avoid the common mistake of hiring people with your exact skillset. Look for complimentary skills that help cover your weaknesses,” says restoration expert Phillip Rosebrook.

Services you offer

Break down your services in detail. For example, will you specialize in water damage remediation, or be a full-service restoration company? Highlight anything unique that you plan to do.

Here’s an example of a fictional water damage-focused restoration company’s service offerings:

Water damage restoration
Flood damage restoration
Mold damage restoration
Sewage cleanup
General cleaning services

Or, a full-service restoration business might offer:

Fire and smoke damage restoration
Reconstruction
Biohazard cleanup
Storm damage restoration
Water, mold, and flood damage restoration

These are all examples of what a residential-only restoration company might offer. Keep in mind that your service offerings can include commercial projects too.

Marketing strategy

Outline how you'll attract and retain customers. Your marketing strategy is one of the most essential components of this plan, as it establishes the tactics you’ll use in order to get a steady flow of business. Find resources on how to craft a marketing strategy below.

Resources 📚

Operational plan

Outline how you plan to manage jobs from intake to completion, where you’ll track jobs and customers, the safety protocols you will adhere to, and the operational structure of your business. Without an operational plan, you’ll set yourself up for disorganized processes. That could mean poor communication with vendors, customers, and insurance agents.

Resource 📚What is Restoration Management Software? A Guide to Building the Best Software Stack

Financial plan, startup costs, and forecasting

Financial planning can be challenging, especially for first-time restoration business owners. Key areas to focus on include:

Startup costs and operational expenses. How much will it cost to get your business started (are you buying a franchise or starting from scratch?) and how much will it cost to run it day-to-day?
Profitability planning and revenue projections. Understand your margins, pricing strategies, cost of labor, employees, tools, and cost of materials.
Funding strategies: A few different options include self-funding, bank loans, or private investment.

Resources 📚

Choose the right business plan format

Traditional business plan

Traditional business plans are detailed and extensive. They typically include each of these elements:

Executive summary
Company description
Market and competitive analysis
Organization and management structure
Services
Marketing and sales strategy
Operational plan
Financial plan, startup costs, and forecasting

Resource 📚 9 Business Plan Examples to Inspire Your Own

Lean startup business plan

Lean startup business plans are more streamlined. They’re meant for rapid business planning and easy adoption. Rather than focusing on outlining each section above, you’ll focus on your core business elements and strategies. These plans include: a business model, schedule, strategy, and tactics.

Resource 📚 A Guide to the Lean Business Plan (With Template and Example)

Using your business plan post-launch

Your business plan should never be a static document. It's a dynamic tool that consistently evolves as your company grows.

Ensure you update your plan consistently, track and measure progress, and pivot to be adaptable to change. Generally, it’s a good idea to revisit your plan quarterly or every six months to reevaluate your goals and plans.

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Restoration company business plan FAQ

Peruse some commonly asked questions about restoration business plans and their answers below.

1. Do I need a business plan for my restoration company?

You don’t necessarily need one, but a business plan provides a strategic framework, helping you clearly define your business strategy, secure funding, and navigate growth effectively.

2. What should I include in a restoration business plan?

Your plan should include an executive summary, company description, market analysis, management structure, detailed service descriptions, marketing strategies, operational plan, financial projections, and funding needs.

3. How do I use a business plan?

Use your business plan as a living document, regularly revising it to measure progress, inform strategic decisions, and adapt to changing market conditions.