The compound annual growth rate (CAGR) for the carpet cleaning industry will grow at 4.5% from 2019-2025. This growing data will surely take you one step closer to your dream of starting a carpet cleaning business. Moreover, this data also signifies that it is the ideal time to begin the journey.
But, how to start a carpet cleaning business? This question will trouble you most. It feels overwhelming as there are many things to figure out. To help you start your own business in the carpet cleaning industry, I have shared a complete guide for small business owners. So, let’s get started.
Table of Content
What is a Carpet Cleaning Business?
Cleaning industry provides specialized carpet cleaning services in terms of removing stains, dirt, and allergens from carpets.
A carpet cleaning or upholstery cleaning business is a type of business that includes lower startup costs and enhanced flexibility. With upholstery cleaning business’s help, you connect with your customers as a part of road meetings and provide carpet cleaning service to homes and offices.
So, carpet cleaning businesses require small investments and gain substantial profit margins, and enhance business productivity.
How to Start a Carpet Cleaning Business? (8 Simple Steps To Follow)
To start a new carpet cleaning business, we have mentioned essential and easy steps you need to know as a business owner.
Get Yourself Trained From Experts
Before you can market your services and entrust your clients’ property to your care, you’ll need to have sufficient carpet cleaning experience under your belt. Better yet, get yourself properly trained and licensed.
Look into a course from IICRC (Institute of Inspection Cleaning and Restoration Certification), which can get you certified as a Carpet Cleaning Technician, Commercial Carpet Maintenance Technician, Rug Cleaning Technician, and several related specializations.
Alternatively, you can look into online-only training courses from TMF Academy. Also, some equipment suppliers, like Jon-Don and Rotovac, offer educational materials and training programs geared toward aspiring carpet cleaning business owners.
Still, there’s no replacement for on-the-job experience, so reach out to other carpet cleaning business owners in your area and ask if you can shadow their crew for a day or two. If that’s a no-go, ask if they’re willing to let you pick their brain. Prepare a list of questions about all aspects of owning and operating carpet cleaning businesses — think startup costs, recommended tools and carpet cleaning equipment, tips about hiring and managing staff, nurturing customer relationships, and managing a budget—and learn from the experts.
Write Your Business Plan
One of the first and foremost steps a carpet cleaning business owner has to take is writing 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 business, you must be ready to answer these 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.
Decide on Franchise or Solo
To start a new carpet cleaning business, you need to ensure that you are going to start your independent company or opt for a franchise.
The franchise helps the business owners who cannot take risks and are not interested in undergoing the trial-and-error process.
On the other hand, you have an option to initiate your cleaning business 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.
Apply For Business License, Permits, and Insurance Policies
Once you have finalized the business location, you need to opt for the local state government’s business licenses and permits. However, many local governments provide cleaning business licenses to cleaners due to wastewater disposal.
The primary intent of having a business license is that your company gets protected from any criminal allegation. But, in addition to it, you can quickly grab the following advantages of having license and permits for your company, and they are:
- Legal protection
- Receive funding
- Tax compliance
You can also contact your city, town, or county clerk’s office to find out about local licensing and permit requirements for cleaning businesses.
One of the best tips to apply to your carpet cleaning 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, you can avail of the protection to:
- If something happens while working with customers
- Company property
- Rented carpet cleaning equipment
- Doing an advertisement for a business
- Offering professional tips
It becomes mandatory to know the types of insurance you can avail yourself of from multiple property insurance companies. It includes:
- Professional/General Liability Insurance
- Commercial Auto Insurance
- Property/Personal Umbrella Insurance
- Business owner’s policy (BOP)
- Worker’s compensation
- Data breach
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 of your home, but you need to opt for a large-scale area, depending on the carpet cleaners operating in your company as you grow your business.
Selecting the correct place for your carpet cleaning business is the most crucial decision you need to take. Location matters if you are planning to start your own carpet business as it affects:
- Overcall company success and failure
Moreover, you need to ask the following questions before selecting the location for a business:
- 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?
Opening a Bank Account
Once all the legal formalities are completed, it’s time to open a business bank account for your carpet cleaning business. 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 complex to handle if personal and business accounts are mixed. There are 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, you 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 you 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.
For starting a business, the essential thing. In addition, there you need to perform is hiring expert professionals in the company.
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 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, budgeting constraints related to employee salaries are of prime importance for you. It includes health insurance, unemployment contributions, paid time off, and even employee compensation expenses.
Before hiring employees in your business, you need to consider:
- Which are the specific skills that you are looking for?
- Are the employees aware of tasks they need to perform?
- How much does an employee cost?
- What are the employer’s key responsibilities?
Create Your Marketing Plan to Attract More Customers
The primary intent of creating a marketing plan is to allow people to know your business. Here is what you can do:
Build a Business Website for your Carpet Cleaning Business:
Your Business Website is the digital version of your office.
Make sure to put relevant content on your website. The information that will help clients know more about you and your services. Your website should be easy to navigate and mobile-friendly.
Adding photos of your previous work and testimonials from previous clients will also help strengthen your reputation for prospects who are considering hiring you.
Get your business listed on online directories
Online directories such as Google, YellowPages, Yelp, and Foursquare will make your business more accessible to new clients. People looking for service providers usually refer to these directories when looking for local companies.
You can also go for directories like Angie’s List. All this will ensure that clients looking for carpet cleaners find you first before your competitors.
SEO for Your Carpet Cleaning Website
Businesses that appear on the first page of a Google search have more chances of acquiring customers than those on the second or third page. You can do this by making sure that your digital assets and content are SEO optimized.
Many consumers feel that businesses on the first page are more known, credible, and trustworthy. Hence, make your commercial carpet cleaning business appear on the first page not just once or twice, but thrice by:
- Registering on Google Business
- Getting listed on all major online directories
- Ensure your website is search engine optimized. Use keywords that customers are using to search for carpet cleaning businesses
- Local Content Marketing
So, these steps must have answered your question about how to start a carpet cleaning business in the simplest manner. In case, if you still have any questions or queries, we have answered most asked questions from our readers.
Grow Your Carpet Cleaning Business With FieldCamp
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Who is the Target Market for Your Carpet Cleaning Business?
For your carpet cleaning business, there are two types target:
- Commercial carpet cleaners: The target audience are property managers, offices, stores, owners, and other professional spaces
- Residential carpet cleaners: The target audience are homeowners, renters, and landlords
What is the Cost to Start a Carpet Cleaning Business
If you’re thinking about starting a carpet cleaning company, you’re probably concerned about cost. How much capital do you need to get your business started?
While the cost to start your business will depend on several factors, there are a few startup costs you’ll want to consider, including:
- Cleaning equipment: The costs for cleaning equipment will depend on your cleaning method. If you plan to go the hot water extraction route, then plan to pay between $2000 and $4000 for a portable extractor. If you offer low moisture carpet cleaning, expect to shell out between $3000 and $8000 for the necessary equipment.
- Cleaning supplies: Depending on the types of supplies you need and the volume of cleaning jobs you are tackling, monthly costs for detergent, stain removers, and cleaning solvents will start around $200 per month—and a higher volume of work can easily cost you thousands each month.
- Registration and insurance costs: Depending on the business location, you have to pay somewhere in the $150 to $300 range for your initial business registration. You can also expect to pay another $200 to $1000 per year in insurance costs. It depends on your coverage.
- Transportation costs: You will need transportation to get you and your equipment to and from jobs—typically a van or a truck, which, if you need to purchase, can run anywhere from $15,000 to $50,000.
- Marketing costs: Marketing is one of your most variable costs; you can rely on word-of-mouth marketing and spend zero on marketing—or you can launch a large-scale digital advertising campaign and spend $20,000 in a month. Many new businesses fall somewhere in the middle, spending between $5000 and $10,000 on their initial marketing push.
- Franchising fees: If you decide to open a carpet cleaning franchise, be prepared to pay up; between franchising and marketing fees, you can easily spend over $35,000 getting your business up and running.
What Equipment Do We Need For Carpet Cleaning Business?
One of the essential decisions to make is whether you will offer hot water and steam cleaning, dry foam cleaning, or dry chemical cleaning. Dry foam is widely considered the least effective cleaning method of the three. Most carpet cleaning businesses offer dry chemical or hot water and steam extraction.
You will have to invest in a dry cleaning compound and a special two-head powerful vacuum for the dry chemical method.
It agitates the compound to help trap dirt. With this method, the carpet requires zero drying time, making it easy to sell, especially for commercial carpet cleaning.
The hot water extraction method requires either a truck-mounted or portable hot water extraction unit. The truck-mounted cleaner provides more power, making it far superior to the smaller units that people can rent at the local hardware store. A portable unit must get emptied regularly, which can be awkward when working in a home.
The most powerful portable units require separate machines for solution application and vacuuming.
No matter which method you choose, it’s a good idea to search for used equipment. You’ll save money, and you may develop a preference for one type of cleaning based on personal experience.
If you are looking for used equipment, ask yourself- “Is it used or is it used up?”
Making a wrong decision here would prove expensive. A top-of-the-line portable unit, such as the Nautilus 1200 PSI, goes for about USD 4,200, including a set of hoses. That said, you can pick up something older and smaller on eBay.
- You can begin with the Small Business Association’s Create Your Business Plan website. It’s a free resource, which helps you write a comprehensive business plan step-by-step. The Small Business Association has a center dedicated to helping entrepreneurs in each state.
- Also, check out the SCORE Business Plan page. It has free workshops and podcasts to help you get started with your carpet cleaning business. SCORE can also help with the marketing plan.
- It’s essential to have a business and marketing plan when you start a carpet cleaning business. These plans serve as your guide and will keep you on track towards accomplishing your goals. It will also help you overcome the more common small business challenges.
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 went through the steps that you as a business owner need to follow when you want to start a carpet cleaning business. We have discussed steps in detail, approximate cost of starting a carpet cleaning business, and equipment that is required to start the business.
Once you start your carpet cleaning business, you can automate and streamline daily operations like job scheduling, job assigning, customer management, invoices and more with FieldCamp. This service scheduling software is mainly designed for service businesses to maximize the efficiency, gain complete business mastery and peace of mind.
You no longer have to worry about scheduling jobs, processing payments and invoices as FieldCamp will take care of everything. Visit our website and Book for a DEMO today.