Starting a carpet cleaning business is the best for aspiring entrepreneurs who are looking for a profitable business endeavor with fewer capital requirements and experienced staff. However, many questions might be rolling in your mind whenever you are stepping into the new phase of starting a cleaning business from scratch. Questions may be:-
- Is carpet cleaning a great business to start?
- How to start a carpet cleaning business?
- How much does it cost to start a cleaning business?
Let’s turn your vision of building a successful carpet cleaning company that generates profit into reality.
1. Why Start a Carpet Cleaning Company?
Since the first carpet industry in the United States began in 1791, individuals have got a way to enhance their home or office appearance. Today, carpets have become an essential part of homes and offices. It provides comfort and warmth, which is necessary to brighten up any residential or commercial areas.
You can use carpets as a brand marketing tool. It is designed with a specific company logo weaved into the fabric. So, we can say that the carpet is now a beautiful accessory and a powerful brand statement. Because of the varied usage of carpets, there is a high demand for cleaning and maintenance.
Therefore, carpet cleaning is one of the best businesses to startup in terms of work, profit, and revenue.
2. How to Start a Carpet Cleaning Business? 8 Steps to Follow!
According to the renowned contributor editor of INC. Jeff Haden, “one way to be successful and become rich financially, is to start your own business.” Deciding on starting your own carpet cleaning business is a smart move.
Are you the one looking for profitable startup tips that can bring in more customers? If so, then following are the ideas to consider which help you become a successful business entrepreneur.
- Join a Franchise or Go Solo?
The first step to start a business of carpet cleaning is to decide whether to start an independent cleaning business or opt for a franchise of the larger cleaning company. Some top carpet cleaning companies are TNT Carpet Cleaning, Xtreme Cleaning, Xtraordinary Carpet Cleaning & Restoration or NeighborHood Carpet Cleaning.
Taking on a franchise and going alone both has its importance.
Franchising is helpful for those who do not believe in taking a risk, which comes with starting a business. Whereas, an entrepreneur who prefers more hands-on-approach for them, starting a cleaning company from scratch makes more sense.
Whether you become a franchisee or start a business, think about the risks involved and money needed in running a cleaning company. Take your time, market research, and then make a smart move.
- Write a Smart Business Plan
Once you have concluded to either start your own business or do business under the franchisor’s trademark, the next move is to write your business plan.
A business plan is a clear and well-written description of how your business will evolve from beginning to final achievement of the success goals. The impact of creating a business plan with clearly set goals to attain specific objectives are shown in the graph below.
As you can observe, the percentage of people who have started a company with a business plan has received more benefits in terms of:
- Getting a loan
- Securing investment capital
- Growing business faster
The ones who have not developed a business plan are lagging the competition. Therefore, a proper business plan will give you a significant advantage. Here we suggest including the following elements in your business plan:
- Title Page
- Executive summary
- Business Description
- Marketing Strategies
- Competitive Analysis
- Design and Development Plan
- Operations and management plan
- Finance factors
Overall, a well through business plan will make a massive difference in your company’s growth and success.
- Select the Right Location
The next thing is to decide where your company will be located. Choosing the right spot for your new business is the vital decision to make when you are in the planning phase to establish ventures. Location matters as it affects your income, your expenses, and overall company success and failure. In the case of an LLC formation, researching the best state to form an LLC can provide valuable insights into tax advantages, legal protections, and other key considerations in the state that could greatly benefit your business.
For choosing the right location for your business, following are the questions you should ask yourself.
- Is the population large enough to support the business?
- How is the economy doing?
- What is the impact of demographic factors on business?
- Does your business value match those in the community?
- Is it easier to find a handyman in the area?
Whether you buy a new place or rent one, above mentioned business location factors help you set the company strategically. In case of renting, find the tips on how to lease a commercial space here.
- Get Necessary Licences
After deciding on your business location, it’s time to get the necessary licenses and permits from federal, state, or local government. But, how to get a business license or permit? As licensing and permits for your cleaning business can vary among jurisdictions, you must contact your state or local government.
At the beginning of your business, get all the needed licensing. It is because to avoid any criminal allegation reported against your firm. Apart from this, there are many other benefits of getting a license and permits for your company. They are:-
- Legal Protection
- Receiving funding
- Tax compliance
In the below-mentioned figure, you will find the most popular business licenses and permits that you may need in the initial stage of business development.
Don’t take any chance with your businesses; Instead, contact an expert and experienced small business attorney. They will advise you about the business laws and take you out from any legal situation.
- Take Insurance To Protect your Startup
Business insurance is essential to protect startup assets when any accident occurs. Apart from these, you as a business owner need protection for the following reasons:-
- Working with customers
- Purchased a business property
- Rent cleaning equipment
- Doing an advertisement for a business
- Offering professional tips
Before jumping directing to get insured, first, it is essential to take the advice of a reputable broker or agent. They will help you resolve all the issues related to insurance that cover every aspect of your cleaning business. Below are the business insurance statistics 2019, which will help you understand its importance in the industry.
The proper insurance policy can protect you from the cost of a lawsuit, cover your cleaning equipment, and help you deal with new contracts. There are different insurance that a carpet cleaning company owner should have like:-
- General Liability Insurance
- Property Insurance
- Business owner’s policy (BOP)
- Worker’s Compensation
- Professional Liability Insurance
- Data Breach
- Personal Umbrella Insurance
The business insurance and the level coverages depended on the business itself. Also, it can be influenced by lenders who have financed expensive machinery or other types of cleaning equipment. Overall, having an insurance policy helps to protect the lender and yourself against the loss that occurs to the insured item.
- Hire Accountant or CPA
In different stages of your new cleaning company growth, an accountant plays a vital role. From a loan application, tax audit, business plan to company formation, hiring a CPA (certified public accountant) makes life easier for you at each step. They can avoid costly mistakes and save you time. Along with these, in the below figure, you can observe other benefits of hiring an accountant for your new cleaning business.
Hiring a CPA or accountant is an investment as it helps you set up your business correctly with no legal errors. Also, they can recommend the best business structure for your company, i.e., sole proprietorship, partnership, LLC, corporation, or co-op, which affects your taxes and liability.
But, from so many accountants and CPA in the industry, how to hire the correct one? The following are the questions to ask when interviewing an accountant.
- Do you have needed permits and licensed to practice?
- In which year and where did you receive a license?
- Can you please tell me about your past clients?
- In what area do you have a specialization?
- What is your availability?
- In what professional organization are you active?
- What are your fees? Please share some current invoices.
Every dollar counts when you are a business owner. So, you require an accountant or CPA who assists you in every area of business growth, including:-
- Tax planning
- Tax compliance
- Monitor expenses
- Track a budget
- Spot trends
- Financial statements
- Tax returns
- Think About The Equipment
Carpet cleaning may sound like a simple business, but it takes hard work. From strategy making to framework planning, it requires a lot to set up a new business. However, once the structure of your business is ready, now it’s time to think about the equipment you’ll use.
According to a recent survey by M/A/R/C Research and National In-Store, “14% of the customers polled that they would stop visiting the store if they didn’t meet their cleanliness standards.” Therefore, it’s time to buy the best-in-industry cleaning equipment and tools that suit your budget. Some essential tools needed are:-
- Mildew cleaner.
- Floor cleaner.
- Extension cords.
Apart from these, there are many options available in the industry regarding cleaning supplies. You can hire or buy the best equipment that suits your business cleaning goals. This way, you can achieve the highest level of satisfaction for the customers. There are many success stories of companies purchasing quality products and achieving thorough cleaning results.
For example: The leading carpet cleaning company renowned as Neighborhood Carpet Cleaners has achieved their cleaning goals while using the best equipment and techniques.
You can observe in the above-figure various equipment and techniques are used by the technicians of Neighborhood Carpet Cleaners. Since many decades, they were serving Woodbridge, Mclean, Alexandria, Fairfax etc with quality carpet cleaning services at an affordable rate.
After hiring cleaning equipment, you will need chemical solutions and products. Research a bit and get the best tools and liquids for your newly set-up cleaning business.
- Bring In Customers
Finally, find a way to get in front of people searching for your business. The competition is bigger! According to the Bureau of Labor Statistics, “there are 2.3 million jobs in the cleaning sector, which is expected to grow from 2016 to 2016. It represents an excellent opportunity for cleaning business owners.
There are many ways to reach your target audiences. They are:
- Ask referrals.
- Offer discounts.
- Re-contact old customers.
- Improve your website.
- Promote your expertise.
- Take part in community events.
These are all business marketing ideas that are used to attract new customers to your cleaning business. Apart from these, there are other carpet cleaning marketing ideas to generate leads and sales for your new company. They are:-
- Conduct Simple Market Analysis
- Create Engaging Content For Website
- Use Social Media to Drive Instant Traffic
- Start Email Marketing
- Focus on Traditional Marketing/Direct Mail Marketing
- Start a Referral Program
- Reviews are Important
- Provide the Best Discount and Offers
- Get Your Website to the Front Page (SEO)
Along with these marketing tactics, there are many creative plus budget-friendly ideas that you can research and implement to grow your business. Managing alone is difficult. You can contact the best branding marketing agency that can help you enhance your brand’s online presence.
After knowing different steps to grow your carpet cleaning business, now it’s time to plan your business budget.
3. What is the Cost To Start a Carpet Cleaning Business?
How much does it cost to start a cleaning business? It is the frequently asked question when you are ready with a full-proved business setup plan. If you work within your budget, then you can quickly achieve your new company goals.
You will need not more than $1100-$2100 to start your cleaning business. As you begin a step-by-step to set up your business, you have to pay for all. Let us look at the costs that you need to pay at different stages.
- The cost to register the business: $30 – $60 as a sole proprietor and $100 – $500 as a limited liability company.
- Insurance: $500 – $3500 depending on the company’s employees.
- Cleaning Equipment: On average $300 – $600. The high-quality vacuum can cost you around $200 – $300 — also, $10 for each broom, mop, and dusting supplies.
- Marketing: Cost you around $100 – $200 as per requirement. For exact estimation, opt for an online marketing calculator.
- Labor: Approximately $11 per employee per hour
Above all, are roughly set rates that can change according to your policy, regulations, and budget. Still, if you are wondering about how to set cleaning rates, then we have a solution.
Typically, the cleaning service charges an hourly fee $50 to $90 or a flat rate $120 to $150 for a single-family home. The following factors will determine the exact cost of your cleaning service:-
- The size of the property
- Condition of the home
Three ways you can charge for your carpet cleaning service: hourly rate, flat rate, and per square foot. Also, you must outline which services are included in your package and which comes with an extra fee. This way, you can achieve customer expectations and trust.
Starting a carpet cleaning business is one of the profitable and inexpensive startup businesses for entrepreneurs. If you are ready to launch a new cleaning business, then look-up to the useful steps in this blog. It will help you start a new marketing strategy, gain licenses and permits, insurance plans, and provide tips on the business structure. Also, you will get an idea about budgeting while knowing the average cost to start a cleaning business.