Business Overview

Also known as a smart home business, a home automation business uses technologies like sensors, Internet and automation control to create a centralized, digital system for homes. Normally, this system helps homeowners control the lighting, home security and HVAC services. It can also power the dryer, dishwasher and entertainment electronics.

A home automation business can also offer consultations and services to homeowners, helping them pick the best automation system for their home. Often, the business installs the system for them.

Who is this business right for?

The home automation business is great for any tech-minded individual who wants to create ongoing relationships with homeowners. A great job for computer gurus, smart-technology-lovers and even HVAC workers, the home automation business is a high-tech job for those who understand the ins and outs of home operation.

Having a background in electrical engineering, programming, design or mechanical engineering helps. Management skills, too, are important. A home automation business owner will need to be a good people person, so as to help clients pick the best system.

What happens during a typical day at a home automation business?

A home automation business must source the many electronics they hope to sell to homeowners. This can include smart fire and flood detectors, smart window dressing controls, smart thermostats, and smart security alarms.

Once they obtain a client, the home automation business delivers the product to the household. Then, they install it. A lot of installations are quick, though some may require an in-depth understanding of household cooling and heating systems. A lot of home automation businesses spend a lot of time on pre-installation planning.

Other day-to-day actions include making financial projections, creating executive summaries, marketing, conducting marketing analysis, and focusing on new services.

What is the target market?

Your target market will be homeowners in the upper-middle to upper class. Larger homes are more profitable, as home automation needs are higher. You can market to commercial entities, but you won’t be nearly as profitable.

How does a home automation business make money?

Primarily, a home automation business makes money by selling home automation systems. Whether it’s selling entertainment suites or smart security alarms, the vast majority of a home automation business’ revenue comes from the sale of similar products.

They can, however, make more money by offering direct installations. In these cases, homeowners can be charged by the hour. Or, they can be charged a flat rate. Some home automation businesses offer updates and repairs—for a fee, of course. Other home automation businesses may expand their product line, servicing businesses and apartment complexes.

What is the growth potential for a home automation business?

If a home automation business’s planning is effective, it’ll be in store for a lot of growth. Home automation has become incredibly popular, and a lot of home automation businesses are expanding to national levels.

A home automation business owner must be an effective market analyzer, however. If they branch into the e-commerce world, they may need to balance profits from delivered goods while losing money from direct installation services. In general, however, a home automation business can grow quite a bit.