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Are you interested in starting your own water damage restoration company? With the increasing number of natural disasters and accidents causing water damage, this industry is in high demand. However, starting a business from scratch can be overwhelming.

Where do you begin and how do you stand out from the competition? This fully market-researched article by GBoosts will guide you through the essential steps to successfully start your own water damage restoration company.

How to Start a Water Damage Restoration Company

Starting a water damage restoration company can be a lucrative business opportunity, in fact, the restoration industry is estimated to be worth over $100 billion. But starting a water damage restoration company does require diligence and planning.

To begin, it is important to conduct thorough market research to understand the demand for such mitigation services in your area. Next, you will need to obtain the necessary licenses and permits to operate legally based on the location of your business and the state you’re in as different states may have different permit requirements. Additionally, investing in the right equipment and tools, as well as hiring knowledgeable and experienced staff, is crucial for the success of your business.

Developing a strong marketing strategy, including creating a website and utilizing digital marketing techniques, will help you attract customers and establish your brand. Building relationships with insurance companies – for liability insurance – and networking with other professionals in the industry can also be beneficial in growing your water damage restoration business.

Understanding the Restoration Industry

Understanding the restoration industry is a first step for anyone looking to get involved in restoration work. The restoration industry encompasses various sectors, including water damage restoration, fire and smoke damage restoration, mold remediation, and more.

The restoration industry refers to the sector that specializes in repairing and restoring damaged properties, such as homes or buildings, after events like fires, floods, or natural disasters. This industry plays a vital role in helping individuals and businesses recover from these destructive events by providing services such as water extraction, mold removal, structural repairs, and content restoration.

The outlook for the restoration industry is generally positive, as there is a growing demand for these services due to the increasing frequency and severity of natural disasters. Additionally, advancements in technology and techniques have improved the efficiency and effectiveness of restoration processes, further driving the industry’s growth.

As a result, businesses operating in the restoration industry can expect a steady stream of opportunities and potential for expansion in the coming years.

Water Damage Restoration Market Size

The current market size of the water damage restoration industry is difficult to determine as it can vary depending on various factors such as geographic location, market demand, and industry trends.

According to a report by Zion Market Research, the global water damage restoration market was valued at approximately $69.8 billion in 2022 and is expected to reach around $107.4 billion by 2030, growing at a CAGR of around 8.3% between 2020 and 2030. This growth can be attributed to factors such as increasing incidents of water damage due to natural disasters, rising awareness about the importance of water damage restoration, and growth in the industry.

Types of Restoration Services to Offer

There are several types of restoration services that can be offered depending on the specific needs of the clients.

One common type which has the highest demand is water damage restoration. it involves removing water and moisture from a property, drying and dehumidifying the affected areas, and repairing any damage caused by the water.

Another type is fire damage restoration, which includes cleaning and removing soot and smoke residue, repairing structural damage, and restoring the property to its pre-fire condition. In our research we discovered that fire damage is an under-marketed service which new restoration business can look into and benefit from.

Mold remediation is also a popular restoration service, involving the identification and removal of mold growth, as well as treating the affected areas to prevent future mold growth. 

These are the main three in-demand services for this target market. However there a few less talked about services such as cleaning and removing soot and smoke residue, repairing structural damage, and restoring the property to its pre-fire condition, and biohazard cleanup, which involves the safe removal and disposal of hazardous materials.

Marketing Your Business

Water damage marketing is like casting a fishing line. You need to strategically choose the right bait (marketing tactics) and cast it out into the right waters (target audience) in order to attract and reel in potential customers. To go further with this analogy, to fish successfully, you need a boat which is where you keep the fish (your customers). And that boat is business website for your company.

Create a Water Damage Restoration Website

  1. Firstly, it is important to choose a user-friendly and visually appealing restoration website design that reflects the professionalism and expertise of the water damage restoration company. The website should include relevant information about the services offered, such as emergency water extraction, mold remediation, and structural drying. Additionally, the website should feature before and after photos of previous restoration projects to demonstrate the company’s capabilities.
  2. It is recommended to highlight the company’s certifications, licenses, and years of experience in the industry to build trust with potential customers. 
  3. Contact information and a simple online form should be easily accessible for customers to request services or ask for more information.
  4. Lastly, search engine optimization techniques will help the website rank higher in search engine results, making it more visible to potential customers seeking water damage restoration services in their area.

Proven marketing strategies for restoration companies

For water restoration companies, we have found over time that there are 4 main marketing channels that always turn out to have the best ROI. These digital marketing channels such as search engine optimization (SEO) and pay-per-click (PPC) advertising to increase online visibility and drive traffic to their websites. These two are great for attracting commercial customers.

In addition, content marketing has proven to be an amazing source of new customers for restoration businesses and a reliable marketing for water damage restoration companies.

Job referral incentives can also benefit your business since your already satisfied customers will spread the word around. That’s why Implementing effective customer relationship management (CRM) systems and actively seeking customer reviews and testimonials can enhance reputation as well as attract new clients, ensuring the success of your restoration company.

Buying water damage leads is also a quick and easy way to get new customers. The two models for this type of client acquisition is pay per lead or monthly flat fee. Many new business owners are hesitant about this, so we’d recommend starting with free water damage leads which is a free trial with real leads that you get with paid leads.

How Much Does It Cost to Start My Own Restoration Business?

The cost of starting your own business can vary greatly depending on the industry, location, and the scale of your business. It can range from a few thousand dollars to several million dollars. Some common expenses to consider include licensing and permits, equipment and supplies, marketing and advertising, office or retail space, employee salaries, and legal and professional fees. It is essential to carefully devise a business plan and budget for these expenses to ensure a successful start to your business.

Equipment for Water Damage, and Its Cost

Some of the water damage restoration equipment commonly used for water damage restoration include dehumidifiers, air movers, moisture meters, and extraction pumps.

Dehumidifiers help to remove excess moisture from the air, preventing further damage and the growth of mold and mildew. Air movers are used to circulate air and speed up the drying process. Moisture detectors are used to measure the moisture content in different materials, allowing professionals to determine the extent of the moisture damage and monitor the drying progress. 

The cost of water damage restoration equipment can vary depending on the specific needs and requirements of the restoration project. On average, the cost of renting or purchasing this equipment can range from a few hundred dollars to several thousand dollars. It is important to consult with a professional restoration company to assess the damage and provide an accurate estimate of the equipment cost.

Franchising vs. Starting from Scratch: Water Damage Edition

Franchising offers several advantages over starting from scratch. Firstly, it provides a higher likelihood of success as you are entering a proven market with an established customer base especially in the case of water damage as the cost per click, and consequently cost per acquisition is higher than other industries. The franchisor has already refined their business model and marketing strategies, which can save you time and effort in developing these from scratch.

Secondly, franchising provides ongoing support and training. The franchisor will offer training programs, operational support, and marketing plan to help you run your business effectively. This can be particularly beneficial for individuals who have little experience in the water damage restoration industry or running a business.

Starting from scratch in restoration, on the other hand, offers more freedom and control over your business. You can create your own brand identity, business strategies, and adapt quickly to changing market conditions. However, it also requires more effort, robust marketing and resources to establish a customer base and build brand recognition from scratch.

Is a restoration business right for me?

Water damage, fire damage, and restoration business in general requires knowledge and expertise in areas such as construction, renovation, and project management. We could say the restoration is one of the tougher businesses to get into especially in terms of marketing, as established companies bid extremely high for more market share. But if you have a genuine passion for restoring and improving properties, then this line of work may be suitable for you.

Additionally, consider the market demand for restoration services in your area. Research the competition, identify potential clients, and evaluate the growth potential of the industry. It is also important to consider the financial aspects, as starting and running a restoration business can be costly. If you have the necessary skills, passion, market demand, and resources, a restoration business could be a viable option for you.


Is restoration a high profit business?

Restoration is mostly a profitable business. Some areas of restoration, such as water damage restoration or fire damage restoration, can be lucrative due to the urgent need for these services and the potential for insurance reimbursements.

Do you need license for water restoration in the US?

Yes, in the US, you typically need a license for water restoration. The specific requirements and regulations may vary depending on the state, but most states require individuals or companies involved in water restoration to obtain a license. As a new business owner, it is important to check with your local licensing board or regulatory agency to understand the requirements in your state.

Is it hard to get into restoration and water damage business?

Yes, it can be challenging to get into the restoration and water damage business. This industry requires specialized knowledge, and there is often significant competition in this field. Navigating the necessary certifications, regulations, and insurance requirements can also add complexity to starting a restoration and water damage business. while it may be a lucrative industry, it is not without its difficulties.

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