How To Open A Carpet Cleaning Business – Maybe you’ve been working in the carpet cleaning business and are ready to go out on your own. Or you are an entrepreneur looking for a new venture. Anyway, this guide is for you.
Inside, you’ll find information about the legal requirements, costs, how to find business leaders in your local area, and more. And we use real-life examples of business owners from across the US.
How To Open A Carpet Cleaning Business
Finally, we’ve summarized the steps you need to take to start your business in a downloadable checklist.
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Like all businesses, a carpet cleaning business needs start-up capital to get going. In addition to carpet cleaning equipment, you also need to invest in things like registration and licensing fees, insurance, and marketing costs. We’ll go over ways to be smart about your finances.
Housecall Pro makes running your business easy. Through our software, you can dispatch techs, schedule appointments, create estimates and invoices, take payments, manage reviews and much more – all on one platform.
Milton Green had been in the carpet cleaning business for over twenty years before he decided to start his own company with his wife, Julie. They founded Mighty Clean Carpet and Upholstery as cheaply as they could and built the business piece by piece without taking on much debt:
“Basically we started our company with about $7,000 of capital, we bought a carpet cleaning machine that went into the back of my wife’s minivan, went out there and did the work- leg and we landed a couple of good accounts that helped fund everything else. .”
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Just a couple of months in, they were hired by a hotel that brought in over $60,000 in the first year. “It was the repeat business we got from the hotel that helped us grow and get off the ground.”
The Big Takeaway: Start out as small as you can while maintaining a professional process. Focus on building strong customer relationships that will help you grow.
In our guide to calculating your break-even point, we’ll walk you through how to break down and calculate all your expenses. This is a necessary step to determine what your profit margin will be. After you know what it takes to break even, you can start looking at what kind of income is possible!
Setting a revenue goal helps you set growth goals for your company. How many customers do you need to meet your revenue goal and how many techs will it take to service those customers? It pays to be a data-driven business.
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Here are some numbers to look out for: Average Transaction Value (ATV) or Average Order Value (AOV): The average dollar amount a customer spends on your services . Attracting new customers is not easy, so upgrading your ATV/AOV will give you a higher return on your investment when it comes to your marketing and sales.
Average Revenue Per Customer (ARPC): The average dollar amount you can expect from an individual customer. Unlike trade value, not for every job. If you can calculate how much a customer spends on each transaction, and how often you serve this customer, the average revenue per client will be high (a sign of successful business). And anyway, with Housecall Pro, you can run these reports and monitor these numbers.
To run your own business, you must register your business at the federal, state and local levels, including registering for a tax ID. You need this ID to open a business banking account and get insurance. If you are not sure how to register, you can work with a registered agent.
The legal requirements can be daunting for people looking to start a new business. This is one of the reasons people look into franchises instead of doing everything themselves. Opting for a franchise allows you to take advantage of a brand and business model that is already working. They offer franchisee training, and you can skip the difficult and difficult stages of starting a business.
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If you are considering the licensing route, be sure to evaluate the various rights available. Talk to current and former franchisees to understand what it’s like to be a franchisee yourself.
Many of the technical aspects of running a carpet cleaning business may also be new to you. To help you out, we’ve outlined the types of tools you’ll need to get started and some of the exact brands our pros talk about and use regularly.
You probably already have most of the professional tools and equipment you need to get started. Below, we have listed the steps and other items (such as uniforms) that are useful for all carpet cleaning businesses.
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Especially if you’re just starting out in this business, you’re about to make a big investment in equipment that needs to last and do a good job. So how do you know which brand is best? Ask for other benefits.
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We’ve listed a handful of Facebook groups in the “Where to Go From Here” section at the end of this guide. Join and search the group for reviews or discussions about various equipment.
In addition to operational equipment, you can also examine uniforms. Having a uniform for your business can help you appear more professional and trustworthy. If you are a solo shop, you can order one with your logo. It’s not too expensive and can add a lot of value to your brand!
When you’re selling to everyone, you’re selling to no one. When it comes to positioning yourself in the market, you need to know who your ideal customer is, and consider specialization.
Most carpet cleaning companies target homeowners and small commercial businesses, such as medical organizations, realtors, or even hotels and schools.
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But there are other markets to consider, such as high-end homeowners who have carpets and rugs that require special equipment and care, or property managers who need consistent services across many properties.
You don’t have to pick just one market, but whoever you choose, you’ll want to make sure your website and marketing materials speak directly to them.
MIlton recommends starting with both. “I don’t think you can pigeonhole yourself into being one or the other. Especially starting out, you want as much input as possible. You need the money to grow where you are.”
If you want to attract both audiences, however, you need specific language on your website and unique marketing efforts for each.
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As Mike Campion explained on his Grow My Cleaning Company Podcast, “You need the right bait for the right fish.” He uses the example of a company targeting young professionals that owns condos. The bait would be “more time for fun, more time to be with your friends and live your life.” But that message won’t work for commercial customers who have different priorities.
You don’t need to specialize. You can run a successful carpet cleaning business by simply offering good professional services. But sometimes it helps to stand out—especially in oversaturated markets.
There are many ways to do this. For example, you can specialize by serving a specific audience. You can also offer special carpet cleaning services or techniques. A few examples:
The benefit of specializing: “The clearer you are in what you do and who the perfect customer is, the better your referrals will be,” Campion explained in that same podcast.
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According to industry reports, carpets and rugs are still losing their market leadership. Hard flooring, such as tile and hardwoods, is still on the rise. It is important to follow these trends while positioning yourself: your brand and your services.
Consider, for example, how your company name, your website, and your logo affect how you position yourself in the market. If everything is focused on carpet, but you want to focus more on cleaning tiles, it may need a major rebranding.
Many of our pros raise some of the highest standards in their area because they know they offer an amazing customer experience, as well as top services. You’ll know you’ve found your sweet spot when you’re attracting your ideal customer and meeting your revenue goals.
Carpet cleaners have strong opinions about whether to charge per square foot or a flat rate per area. Ultimately you’ll want to go with the pricing structure that makes the most sense for you. But we are seeing more benefits moving into flat rate. Customers often appreciate the flat structure because there are no surprises. The price you see is the price you get.
How To Start A Carpet Cleaning Business
If you choose to go with flat pricing, here are some tips to make it work well:
Increase the lifetime value of each client with recurring service plans, also known as service maintenance agreements. When you offer amenities such as discounted rates or enhanced services in exchange for an ongoing service agreement, both you and the customer win.
If you don’t have an existing customer base, positive reviews, or a presence in your local community yet, those first leads are hard to come by. But before you spend tons of money on advertising, we recommend building your online presence and personal networking. These strategies can
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