As an entrepreneur, are you planning to start your own carpet cleaning business this year? Trust me, it’s the best idea to implement now.
However, there must be a lot of questions in your mind like how to take the initiative to start a carpet cleaning business from scratch.
Don’t worry! We have come up with an article highlighting essential points that will answer your question: how to start a carpet cleaning business?
So, let’s get started.
Table of Contents
Basics About Carpet Cleaning Business
A carpet cleaning or upholstery cleaning business is a type of business that includes lower startup costs and enhanced flexibility.
With this business’s help, a business owner contacts customers as a part of road meetings and provides carpet cleaning service to homes and offices.
So, carpet cleaning businesses require small investments to gain huge profit margins and enhance business productivity.
How To Start A Carpet Cleaning Business in 7 Easy Steps?
To start a new carpet cleaning business, we have mentioned essential and easy steps you need to know as a business owner.
1 – Decide on Franchise or Solo?
For starting a new carpet cleaning business, first of all, you need to ensure that whether you are going to start your independent company or going to opt for a franchise?
The franchise helps the business owners who cannot take risks and are not interested to undergo the trial-and-error process.
On the other hand, entrepreneurs mostly prefer to use a practical approach for starting a cleaning company from scratch.
Running your company in your way is an ideal choice for individuals who can easily maintain complete control over all the business operations.
So, whatever the option you select, whether opting for carpet cleaning franchises or going alone, remember that both have their importance. The only thing that matters the most is the risks involved and the equivalent budget required to run a cleaning business.
2 – Write Your Business Plan
Once you are ready to answer the previous step, the next step is to write a business plan. A business plan plays a vital role in your carpet cleaning business. It represents the company description from beginning to end and mentions the business entity’s final goals.
To create a perfect and successful business plan for your carpet cleaning industry, you must be ready to answer the following questions:
- How to gain profit in my business?
- Who will be my target customers?
- How to bring the customers to my business?
- What are my financial goals?
Overall, a well-planned business plan will make a massive difference in carpet cleaning businesses’ growth and success.
3 – Pick The Right Location For Your Business
Now is the time to decide on the location of your business. In the initial stage, you can efficiently work out on your home, but you need to opt for a large-scale area, depending on the carpet cleaners working in your company as you grow.
Selecting the correct place for your carpet cleaning industry is the most crucial decision in your business plan. Location matters if you are planning to start your own carpet business as it affects:
- Overcall company success and failure
Moreover, the small business owners, before selecting the location for a business, need to ask the questions like:
- Is the population large enough to support the business?
- What is the current scenario of the business economy?
- How does the business influence the demographic factors?
- What is the value of your company in the competition?
4 – Apply For Business License, Permits, and Insurance
Once you have finalized the business location, you need to opt for the local state government’s licenses and permits. However, many local governments provide a cleaning business license to cleaners due to wastewater disposal.
The primary intent of having a business license is that your company gets protected from any criminal allegation. In addition to it, business owners can quickly grab the following advantages of having license and permits for your company, and they are:
- Legal protection
- Receiving funding
- Tax compliance
One of the best tips to apply to your business is to consult with an expert professional for a small company attorney. He/she will advise you with the laws and rules to come out of a legal situation.
Business insurance is another important metric that helps your company protect startup assets when any property damage or an emergency or accident occurs. In addition to it, a business owner can avail of the protection to:
- If something happens while working with customers
- Company property
- Rented cleaning equipment
- Doing an advertisement for a business
- Offering professional tips
As a business owner, it becomes quite mandatory to know the types of insurance you can avail yourself of from multiple insurance companies. It includes:
- Professional/General Liability Insurance
- Property/Personal Umbrella Insurance
- Business owner’s policy (BOP)
- Worker’s compensation
- Data breach
5 – Opening a Business Bank Account
Once all the legal formalities are completed, it’s time to open a business bank account for your carpet cleaning company. You need to make separate accounts for business banks and credit cards to manage the company and personal finances to track your business’s income and expenses.
It is important to note that managing your asset becomes quite complex to handle if personal and business accounts are mixed. Even more chances of risk of your company getting sued, most commonly known as piercing your corporate veil.
With the help of a business credit card, you can easily separate personal and company expenses by including your business’ costs all in one place. Eventually, you can efficiently enhance the credit history of your company for raising money and investment.
By learning about building business cards, the business owners can quickly get credit cards and other financing options for their business names. In addition to it, they get better interest rates, better lines of credit, and more.
Once the carpet cleaning business owners open a business bank account, the personal assets are financially managed completely differently from company assets and are most essential for personal asset protection.
The accounting and tax filing process becomes more comfortable to include in your business structure.
6 – Hire Employees
For starting a business, the most important thing that a carpet cleaning business owner needs to perform is to hire expert professionals in the industry.
The expert professionals are nothing but carpet cleaners or individuals that possess strong carpet cleaning experience. You need to include pros that can easily clean carpets and provide services related to window cleaning and home cleaning services.
According to a recent survey by PayScale, expert cleaners make an average of $13.20 per hour or $35,370 per year.
So, as a business owner, budgeting constraints related to employee salaries are of prime importance. It includes health insurance, unemployment contributions, paid time off, and even employee compensation expenses.
Before hiring employees in your business, you need to consider the following questions:
- Which are the specific skills you are looking for?
- Are the employees aware of the task they need to perform?
- How much does an employee cost?
- What are the employer’s key responsibilities?
7 – Build Your Marketing Plan To Attract More Customers
Generally, different carpet cleaning businesses have other methods to deal with marketing expenses. Even the owners have to select whether the marketing is done in-house or needs a professional marketer.
The primary intent of creating a marketing plan is to allow people to know your business. It can be in any form like simple flyers, TV ads, costly radio, and others.
The customers can quickly decide to select your carpet cleaning business over another by having an online presence. So, you just need to make sure that online and social media marketing are included in your business plan.
Moreover, you can also opt for buying a website domain for your company website, and it’s not a complicated process.
Having before and after photos of your business’s work is one of the most robust marketing tools that you can include, and even not too much money is required.
The owners can even include word-of-mouth marketing to get new customers. Additionally, other options you can include like social media pages, Yelp and Google Reviews, emails, and print advertising.
You may also like to read:
7 Best House Cleaning Schedule Apps With Weekly Plans (Pros+Cons)
Who is the Target Market for Your Carpet Cleaning Business?
For your carpet cleaning business, select your specific target market as per your business needs.
Generally, there are two types of carpet cleaning business’ target:
- Commercial carpet cleaners: The targets are property managers, offices, stores, owners, and other professional spaces.
- Residential carpet cleaners: The targets are homeowners, renters, and landlords.
What to Consider Before Starting a Carpet Cleaning Business?
To start your carpet cleaning business, you must have essential things that will make your work easier.
1 – Obtain an IICRC Certification
Institute of Inspection Cleaning and Restoration Certification (IICRC) offers business certificates related to home cleaning, including carpet cleaning.
Your company can become an IICRC certified firm if your company has one or more IICRC technicians.
IICRC certification plays a vital role in proving your legitimacy to many clients. Moreover, you will get more potential customers with the help of this certification.
The customers will have complete trust in you as they know that your company has trained and licensed pros.
2 – Spend Your Money Carefully
One of the common mistakes that many owners make is purchasing the most expensive equipment for their business. So, don’t do that even if you have many financing options available with you.
It is better to keep secure your extra money for other work. You can opt for the equipment that has a lower price and which makes your business operation go smooth.
An alternate option that you can apply is to purchase high-quality cleaning products that will be available with you forever. You should neglect to buy expensive products—like a truck-mounted carpet cleaner—until you have a steady cash flow.
3 – Target a Specific Market
Business owners should never make the mistake of using the “market to everyone” strategy. The reason behind it is that everyone is not associated with carpet cleaning services.
It’s better to get started with a particular market. So, the business owners or entrepreneurs need to search for the people who need a carpet cleaner and market them correctly.
Your target market might be a specific neighborhood, city, county, or even state.
4 – Determine Your Business Model
The owners of carpet cleaning companies need to determine the business model. The business model becomes perfect if the owners can answer the following questions:
- What kinds of jobs will you take?
- Who is responsible for doing the work in your company?
- Which tasks will you share with the representative, and which one by yourself?
So, the owners can quickly start working on washing the floors and performing all the essential tasks by having the answers.
It becomes quite possible for an owner to know everything about the rug washing process, so don’t start delegating until you build your expertise.
5 – Centralize Your Business’ Management
For your new business to stay organized, it becomes quite mandatory for you to improve its service quality.
The owners of the carpet cleaning industry can include the essential business facets in their business idea, including:
- Scheduling employees
- Invoicing & payment processing
- Customer communication
You can also use carpet cleaning software to manage and operate the business areas in an online mode. By including such tools, your company can reduce operating costs and streamline your business management.
6 – Create an Executive Summary
The executive summary plays a vital role in any business, and the carpet cleaning company is no exception. It is nothing but a detailed description of your business.
As a part of an executive summary, you can also add a short presentation mentioning the complete details about solving that particular problem. Additionally, it focuses on your main business’s aspects and that too different from other competitors.
Some examples are green services, 24/7 customer support, and even flexible payment plans.
7 – Develop Marketing And Sales Strategies
To enhance your business’s customer base, you need to create robust strategies that quickly improvise sales and marketing skills.
When you are writing the business plan for your carpet cleaning business, you can start by defining the goals you want to achieve. For example, if you have ten contacts in one year, you can easily connect with at least 40-50 customers.
Following are the best practices that you can apply to enhance more people’s reach to your business.
- Using online presence on leading social media platforms like Facebook, Instagram (for residential cleaning services), or LinkedIn (for commercial cleaning services).
- Using a personalized website, a Google My Business account, maybe a YouTube channel, depending on how comfortable you are to enhance your audience.
So, these are the leading and essential things that you can include in your business plan to grab the best cleaning solutions for your customers.
Have any questions or queries in mind? Here are some frequently asked questions along with answers.
You may also like to read:
8 Best Scheduling Software For Cleaning Service Provider in 2021
Generally, the cost fluctuates explicitly based on the company needs and location of your business. The company has some standard startup costs like:
- Insurance costs
- Rent for office space
- A van to transport equipment
- Small business taxes
- A truck-mounted hot water extractor designed explicitly for steam cleaning, dry foam or cleaning system, and vacuum
Yes, you can gain the highest rates of ROI. The cost of cleaning supplies typically runs less than 5% of the job, meaning a 95% profit margin.
The charge for carpet cleaning typically depends on the location. The charges are paid as per room. On average, it costs up to $0.25/square foot. So, for one room, it can cost between $25 to $70.
We hope you are ready to become the boss of your own carpet cleaning company.
We have highlighted all the key points that help you to enhance your business productivity and customer satisfaction. Following each of the critical steps mentioned in the article will help you streamline your business management with ease.
The article also focused on the mandatory things for your carpet cleaning companies that help owners deal with managing business operations from scratch.